VCL Vintners

Lifting the curtain on whisky cask investments

An introduction to whisky as an investment

Scotch Whisky is an integral part of scotland and the uk's global export strategy

In 2019, Scotch Whisky accounted for:

75%
of Scottish food and drink exports
21%
of all UK food and drink exports
1.4%
of all UK exports
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Sourcing casks and the importance of relationships

Whisky Market Performance

Whisky Supply vs Demand: a perfect imbalance

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The size of the Scotch whisky market

Global Whisky Exports Continue to Rise

Whisky Tops the Knight Frank Luxury Investment Index

Explore the data: Knight Frank Luxury Index

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Source: Knight Frank

Whisky Investment Costs

What are the costs of investing in whisky?

Warehousing Costs

Insurance costs

Performance related fee

Duty, Vat and Taxation

Illustrative Example of Costs

Indicative figures to show how the above costs are calculated:

1

Cask Purchased

Mr Smith invests £10,000 in a single cask of Scotch single malt in 2020

Cask Sold

He sells the cask through VCL for £15,000 in 2025

2

3

Storage Costs

He has paid £40 storage on the cask from 2021-2025, equalling £160

Commission

VCL’s commission would be 10% of the £5,000 profit generated, equalling £500

4

5

Return on Investment

Mr Smith would therefore receive £15,000, minus £160 (cask storage), minus £500 (VCL commission), equalling £14,340

Taxation

The £4,340 profit is potentially exempt from CGT owing to its ‘wasting asset’ status*

6

*Our advice is always to consult with your own independent tax advisor

Whisky Investment Process

Typical whisky investment process

Step 1

The Journey Begins

Step 2

Cask Selection

Step 3

Transfer of Funds

Step 4

Transfer of Ownership

Step 5

Cooling-Off Period

Step 6

Ongoing Support

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What should you look at when selecting a cask for investment?

Investment Exit Strategies

How easy is it to exit the investment?

THIRD PARTY AUCTION SALES

INTERNAL AUCTION

BROKERAGES AND INVESTMENT COMPANIES

CASH BID

INDEPENDENT BOTTLING

Frequently Asked Questions

Your Questions Answered

01

HOW DOES THE STORAGE WORK?

02

Can I view my cask?

03

How do I arrange insurance?

04

WHAT ARE THE TYPICAL INVESTMENT SIZES?

05

HOW LONG AM I EXPECTED TO HOLD THE CASK FOR?

06

CAN I SELL OUT AT ANY TIME?

07

DO YOU WORK WITH ANYBODY I MIGHT HAVE HEARD OF?

08

HOW DO I EXIT WHEN I WANT TO SELL OUT?

09

CAN I SELL OUT THROUGH ANOTHER COMPANY/BROKER?

10

CAN I MEET OTHER CLIENTS AND THE MANAGEMENT TEAM?

11

HOW CAN I BE SURE THAT YOU ARE THE RIGHT COMPANY TO WORK WITH?

12

WHAT FACTORS DETERMINE THE VALUE OF A CASK?

Covid & The Whisky Market

Export Destination
2019
2020
% Increase
Latvia
£142m
£176m
+23.6%
China
£89m
£107m
+20.4%
Western Europe (non EU)
£82m
£93m
+11.5%
Export Destination
2019
2020
% Increase
Poland
33m bottles
37m bottles
+14.6%
Latvia
35m bottles
39m bottles
+11.9%
Brazil
43m bottles
45m bottles
+5.7%
France
173m bottles
176m bottles
+1.5%
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The impact of Covid on cask investments

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