Whisky Investment Insider Insights: Ten Top Tips

As with any investment, you need to be careful when investing in whisky. In this article, we’ll give you some whisky investment insider insights - ten top tips to consider.

1: Understand the whisky cask market

As with any investment, make sure you do your research. Know the trends, demand, and factors affecting cask values. Make sure you've thought about some of the downsides, as well as the potential upsides. Think about the risks, and how they could be mitigated. Put a plan in place.

2: Quality Matters

As with many things in life, quality matters. Try to buy high-quality casks from reputable distilleries. Make sure they're priced fairly by getting multiple quotes, or by comparing the cask against others on the market. Ensure it comes with the right paperwork. And be clear on naming rights, or lack thereof.

3: New Make Spirit vs. Matured Whisky Casks

Decide whether you want to buy new make spirit (unaged whisky) or matured whisky (ie three years or older). New make spirit is cheaper initially but requires time to mature, while matured casks are more expensive but may offer quicker returns relative to new make. Crucially, make sure you pay a fair price. Do not pay whisky prices for new make spirit.

4: Whisky Cask Type and Ageing

Pay attention to what kind of whisky cask it is. Is it a more common bourbon cask, or something more unique - sherry, or port? Has it been ageing in this cask since Day 1 (also known as Full Term Maturation), or has it been changed (re-racked) into the cask more recently? Try to pick casks that are likely to develop flavour. Try to avoid overly tired casks - or indeed, overly active casks that may have overpowered old whiskies.

5: Distillery Brand and Reputation

Casks from well-known, established distilleries tend to be in higher demand due to brand reputation and perceived quality. This demand may translate into higher prices and/or faster sales. Again, please make sure you understand whether the cask comes with naming rights or not.

6: Independent Cask Brokers

Chances are you'll be buying your casks through a cask broker. Finding a reputable cask broker with a fairly-priced cask list and with whom you feel you can build a trusted relationship is vital. Make sure you do research, read customer reviews, and check their licences.

7: Storage and Insurance

Make sure you're casks remain stored in a fully-licenced bonded warehouse. Take out insurance to protect your casks from damage, theft, or loss.

8: Exit Strategy

Have a clear exit strategy. Decide whether you plan to bottle the whisky yourself, sell the cask to a bottler, or move it on within the cask market. Understand the associated costs and potential returns for each option, and whether there are any taxes.

9: Legal and Regulatory Considerations

Make sure you're familiar with the legal, regulatory, and tax requirements of whisky cask ownership. Different countries may have varying rules, so read up on your country's rules.

10: Patience and Long-Term Outlook

As with any investment, you should be prepared to hold your whisky cask investment for the long-term. Be patient and prepared to wait several years for your investment to mature - it's not a quick-flip investment.

Whisky investment insider insights from Spiritfilled

We hope you’ve found these whisky investment insider insights useful. If you'd like to learn more about investing in whisky casks, we'd be pleased to help. We're a cask broker and independent bottler, helping our clients buy and sell whisky casks everyday. We've written a free Whisky Cask Investment Guide which you can download. And if you'd like to discuss further with our Cask Experts, you can arrange a call here.