At Whiskey & Wealth Club we have a singular mission, to open up the world of cask whiskey investment.
This industry is hundreds of years old with an exclusive handful of distillers and blenders have profited from the wholesale buying and selling of whiskey – but now you can own a part of this rich tradition.
How it works
We source whiskey from the best distilleries in Scotland and Ireland. Purchasing it at discounted rates to help distilleries cover their up front costs.
We then pass these rates on to investors who purchase the casks outright. The casks are stored in a secure bonded warehouse and insured.
You then wait anywhere from 3 – 5 years whilst their casks get more and more valuable. The distillery will reinsure your cask every year in line with the increase.
When you’re ready to exit for returns of between 12-20%, you have one of six exit strategies. Include selling on to whiskey brands and bottling under your own label.
Cask whiskey - the alternative investment
Whiskey is an old and loved spirit. It takes a long time for it to earn the name whiskey and longer still to develop the depth of flavour that we have come to love. The longer whiskey matures, the smoother and richer in flavour it becomes. The harshness of the alcohol decreases whilst the quality of the spirit increases dramatically.
Purchasing cask whiskey is often compared to investing in wine but the two are very different. With wine, the specific year matters. Grapes need to have the right amount of sun and rain, at the right times. Whereas with whiskey, Father Time usually casts the deciding vote. Of course, the quality of the barley, malt and water, plus the distiller’s technique and the wood it matures in play a crucial part in deciding the whiskey’s outcome – but the main indicator in whiskey’s value is its maturity.
The draw of cask over bottled whiskey is that whiskey continues to age in the cask whereas this process stops once it has been bottled. Investing in casks of Scottish whisky or Irish whiskey is an attractive option for many people, with typical returns ranging from 12% to 20% per year
During the ageing process, whiskey is incurring costs in the form of secure storage, insurance fees and also cost of capital which must be outlaid prior to buy the grain, make the whiskey, pay the staffing costs, buy the barrels and pay all the overheads to keep the lights on at the distillery. There are two key strategies that distilleries commonly adopt to address upfront costs and remain profitable during the whiskey maturation period.
Distilleries are in the business of making spirit. To create an alternative source of funds, they can produce new make spirit and sell the casks at wholesale rates to a whiskey bonder or broker. This gives distilleries more control over the speed and source of their funding. Some distilleries use this model with a certain amount of their whiskey production to ensure a consistent revenue stream, allowing them to cover running costs while the bulk of their spirit is laid to rest to mature and be bottled many years into the future.
Whiskey & Wealth Club facilitates this process. We contractually agree a price to buy large quantities of this new make spirit, which is taken straight off the stills and put in quality casks. This sale provides the distillery with the funding required for operations or opportunities. We then store the whiskey in a bonded warehouse, and ensure the casks are fully insured for five years against fire, theft, accidental damage and spoilage, making it a full turnkey opportunity.