VCL Vintners

Risks Disclaimer

Risks to Consider Around Whisky Investment

At VCL Vintners, we value transparency and strive to provide our clients with a comprehensive understanding of all risks associated with whisky cask investment. Below, you will find essential risks and considerations that are pivotal when investing in cask whisky.

  1. Whisky cask investments are not regulated in the UK.
  2. The investment’s value can fluctuate, and could go up as well as down.
  3. A whisky cask does not come with a regulated financial product’s standard protections, such as a cooling-off period with a cancellation right after purchase. However, VCL Vintners provides  a 14 day cooling off period on all transactions. Beyond this period, cancellation may not possible.
  4. As a cask owner, you will be responsible for:
    • Bonded-warehouse storage fees for your casks.
    • Costs related to periodic maintenance, testing, and regauging services, regardless of the provider, to monitor spirit volume loss due to evaporation.
    • Insurance coverage against risks of damage to the casks or their contents.
    • An annual management fee is due to cover the administrative costs for VCL Vintners to manage your casks on your behalf.
  5. Casks can be sold for continued storage in bonded warehouses or removed for bottling or personal consumption, subject to taxes and duties.
  6. The duration for which a cask remains a viable investment is influenced by market dynamics and the requirement to maintain a minimum of 40% spirit volume to qualify as “Scotch whisky.”

Consider these industry-specific risks that could affect your investment’s value:

  • A global demand decline for whisky.
  • An oversupply in the whisky market.
  • Legislative changes impacting whisky sales.
  • Alcohol prohibition in certain regions.
  • Global conflicts or natural disasters disrupting supply chains.

These risks can often be mitigated through collaboration with a knowledgeable brokerage like VCL Vintners.

 

Our Full Disclaimer:

  • Purchasers must be at least 18 years old.
  • VCL Vintners is not regulated by the Financial Conduct Authority (FCA) and does not provide financial investment advice.
  • Our communications are for informational purposes and should not be considered financial advice. Seek a qualified financial advisor for investment guidance.
  • VCL Vintners disclaims responsibility, to the legal maximum, for any investment loss, management costs, or challenges in achieving favorable exit terms.
  • Our employees cannot offer tax advice; consult a tax professional for such guidance.
  • We ensure compliance with HMRC regulations for all stored casks, which may involve obtaining certain information from clients.
  • Information sourced externally and presented by us should not be deemed fully accurate without verification.
  • Testimonials and reviews are selectively showcased but are fully accessible on our Trustspot page.

 

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