Why Whisky Casks?
For anyone with even the slightest interest in whisky, the idea of owning an entire cask of liquid that is silently maturing in a HMRC bonded warehouse has a very romantic allure. Each cask is a unique asset that has the potential to become a highly prised expression, even if the current acquisition price is that of an entry level release. Just as every bottle of Macallan transitioned from clear commodity-grade liquid to the upper echelon of spirits, so too can a cask purchased by a collector transition to a masterpiece. Purchasing a full cask is the pinnacle of whisky collecting, the ultimate experience.
It’s an opportunity to become the sole caretaker and decision maker for an expression which will one day leave its mark on the world - and possibly see its name written in the history books. By becoming a cask owner, you have the chance to write your own chapter by determining what the whisky you purchase will ultimately become. Whether you hold the cask for a few years, or several decades; every choice and every decision is yours alone. You can bottle the cask at any time, or simply sell it to another collector.
Regardless of what you decide, it will be an experience you’ll never forget and will keep you coming back for more.
The four main components are...
1/ Price
By purchasing lesser-aged spirits today, enthusiasts can pay a lower price point if they are willing to wait for the liquid to mature over time. A barrel might cost less than £10 per bottle to purchase today, but upon aging it could be worth more than £100 or even £1000.
2/ Quality
Cask owners can rest assured that they have full transparency in regard to all decisions related to the final product. There is no hidden colouring, filtering, dilution or blending - owners can experience spirits in the same manner as a master distiller.
3/ Exclusivity
The decisions made by a cask owner will produce a release that is unlike any other. From the age at which the expression is bottled to the design decisions related to the label and packaging, the final product is one of a kind.
4/ Experience
Cask owners have the opportunity to access special experiences including owner-exclusive tours and tastings. In some cases purchasers can even sign their barrel or have a custom message imprinted upon it.
Growth In The Market
Over the past few decades whiskey has been on an upward trajectory. Even through COVID, whisky bottle and barrel sales saw record highs. Quite simply - whiskey rarely experiences a dip in value, and with barrels (unlike bottles) there’s the added benefit that the liquid continues to mature. The growth in the rarity & value of barrels comes in three ways:
• Brand Growth As a brand grows, so do the value of their whiskey releases, and thus so does the value of any whiskey they have in barrels.
• Maturation Should the brand’s popularity remain the same, the liquid in the barrels is still maturing and thus growing in value. Today a barrel may be 2 years old. But in 5 years it will be 7 years old, and much more valuable.
• Industry Growth As it has been, the continuous growth of the whisky industry as a whole directly impacts the barrels you own. Bringing the value up, as the spirit becomes more popular globally.
Maturation
The most enticing reason to buy a barrel comes down to one word: Maturation. Whiskey only matures when it is inside a barrel, after it is bottled the aging process stops. No matter how many years whiskey remains inside a bottle, it will never become any older. It’s only when it stays inside the barrel that the magic happens. This characteristic offers a powerful advantage to collectors as they are able to purchase a collectible that naturally improves in flavour and value with each year that passes. Whereas the value placed on art, sports memorabilia, cars, gold coins or bottled spirits is driven exclusively by changes in demand; the liquid contained inside of a whiskey barrels actually transitions into a completely different, and more valuable asset, over time. It’s a change you can see, smell and taste – and collectors pay for the difference!
Bottling
At Highland Whisky Clan we are here to help you create the bottling you’ve always dreamed of. Whether it’s for an anniversary, a wedding, a milestone birthday, or whether you just want to have your own single barrel in your bar or restaurant – We’re with you every step of the way.
Services
- Tasting note creation.
- Design assistance.
- Dry goods sourcing and/or producing.
- Assistance with shipping and export
How to start your whisky journey
Highland Whisky Clan is currently granting access to new users on a first-come first-serve basis. In order to request availability you’ll need to Register your interest then wait for your application to be approved and one of our experienced consultants will be in touch.
Buy Full Barrels Of Whiskey
The ownership process starts by requesting a cask reservation form HWC. With highly limited supplies and large demand, these reservations are often allocated quickly for popular distilleries.
Simple & Transparent Marketplace
HWC offers cask whisky from leading distilleries around the globe. From newly distilled spirits to well-aged expressions ripe for release.
Skip the waitlist
Discover a growing marketplace allowing whisky buyers to build a collection of casks and trade their holdings with other collectors at any time.
Join thousands of collectors who are experiencing whisky in an entirely new way – by collecting full barrels.
Leading ISA’s against Whisky
Whisky pays 8-12% per year, whereas ISA pays 3.38% per year.
Whisky Investing can help you hedge against excessive inflation and instability. Whisky has increased 428% in the last ten years, whereas gold has increased 64% in the same time span.
| Provider | Rate – AER (min deposit) | Transfer in allowed? | Penalty to withdraw | How to open | When can I access interest? |
| UBL UK | 4.11% (min £2,000) | Yes | 365 days’ interest | Online/ app/ post/ branch | Monthly, quarterly, annually or at maturity |
| Progressive BS | 4% (min £500) | Yes | 365 days’ interest | Branch/ post | At maturity |
| Secure Trust Bank (matures 3 Apr 2028) | 4% (min £1,000) | Yes, at application | 365 days’ interest | Online | Annually or at maturity |
| Gatehouse Bank (sharia account) | 4.2% (min £1,000) | Yes | 365 days’ interest | Online | Monthly, annually or at maturity |
| Highland Whisky | 8-12% per annum across the board | — | N/A | Over the phone | N/A |
FAQs
Is Whisky a safe choice?
On average, Scotch whisky has delivered returns of between 10 and 12 per cent over the long term. Due to the liquor’s popularity and a healthy export market, the auction selling prices of collectable and rare varieties have reached record levels. Annual whisky exports have been growing for the past thirty years.
While past performance is not a guarantee, demand for premium quality liquor is greater than ever. In their 2019 wealth report, wealth management experts Knight Frank listed whisky as a top-performing alternative investment. Scarcely seen bottles had increased in value by up to 40 per cent, outstripping other well-established asset classes such as fine art, wine, and cars.
Tangible assets tend to give greater financial security and are, therefore, an attractive option for many investors. Unlike bonds and shares, whisky is not a crowded market.
How much whisky is in each cask?
Casks vary in capacity based on barrel type. Here are some common barrel types and their approximate capacity:
Barrel:
190-200 litres (approximately 270-285 bottles)
Hogshead:
225-250 litres (approximately 320-355 bottles)
Butt:
475-500 litres (approximately 675-715 bottles)
When will my whisky be fully matured?
Spirit can legally be described as Scotch whisky after being aged in an oak barrel for 3 years, at which point it is generally regarded as mature. However, whisky continues to appreciate in value the longer it is left in the cask. When whisky matures in the cask, the spirit interacts with the barrel and continues developing flavour and character as time passes. A 25-year-old whisky in the bottle is worth significantly more than a 5-year-old whisky; the same is true with casks. Whisky in the cask increases in value exponentially as time passes: casks that are already advanced in age witness the greatest projected year on year returns, and investors who allow their casks to mature for a longer period of time experience the greatest gains.
What taxes am i subject to?
Whisky cask investment can be the perfect opportunity FOR TAX SAVVY INVESTORS, whisky casks are NOT subject to capital gains tax. However, your whisky would be subject to taxes if you bottled your cask of whisky at the end of your investment; you would pay both VAT and Duty.
Before making a final decision to invest in whisky casks, we highly recommend consulting your personal tax professional as each investor’s financial and tax situation is unique.
What is a D.O?
A Delivery Order, or D.O., is a document that is signed by the warehouse manager to transfer ownership of a whisky cask from one authorised party to another authorised party. Traditionally, legal requirements in Scotland have dictated that an individual must engage a WOWGR or Duty Representative in order to take ownership of a whisky cask by way of a Delivery Order.
In order to simplify the ownership of whisky casks, HWC’s Portfolio Management service offers collectors a secure path to building a portfolio without the complexity. Under this arrangement casks are stored securely under a corporate account in your own name.
What is a WOWGR and do i need one?
The WOWGR (Warehouse and Owners of Warehoused Goods Regulations) is a certification that is required in order for a person residing in the United Kingdom to be able to legally take ownership of a whisky cask for revenue producing purposes. There is a caveat to these requirements that allows private individuals to take ownership of casks if they are not doing so for the purpose of generating revenue and the amount of alcohol they are purchasing falls under a certain threshold.
As an alternative to the complexities of traditional ownership, HWC’s Portfolio Management service allows investors to avoid these requirements by storing whisky purchases under our WOWGR umbrella. Under this arrangement HWC acts as the custodian for client casks thereby avoiding the requirements that an individual apply for a WOWGR.
Are there any extra costs?
Whisky casks are required to be stored in a HMRC Government bonded warehouse. While the cask is there, you will be charged for storage and insurance for your cask. HWC only charges £100 per annum PER CASK for both storage and insurance, a highly competitive rate in the industry. However for NEW collectors we cover the first year for you FREE of charge.