Whiskey cask investment…

[RayDonovan]

Does anyone have knowledge of this area?

[Seventyseven7]

It’s not worth it anymore…

[RayDonovan]

Cheers, could you go into a little more detail? It's out of my investment scope but a few friends have harboured any idea to invest..

[85Carrera]

I’ve bought a whisky cask with some friends but more as a bit of fun rather than an investment.

Beware there are a lot of scammers out there offering whisky cask investments.

I bought our cask directly from the distillery (Arran) where it is stored but not many distilleries offer that these days.

[RayDonovan]

85Carrera said:

I’ve bought a whisky cask with some friends but more as a bit of fun rather than an investment.

Beware there are a lot of scammers out there offering whisky cask investments.

I bought our cask directly from the distillery (Arran) where it is stored but not many distilleries offer that these days.

That's helpful, thanks. I think 13% return is bring quoted..

[robscot]

Don't bother is the short answer

Would invest in whisky for fun not £ returns. Malt Release Radar Forum is worth joining for more specialised info.

[Insurancejon]

I don't know much about this area, but my Brother in Law owns Whiskey Partners which solely does cask sales for investment if you want an intro

[Odhran]

https://thecrollydistillery.com/wp-content/uploads...

[Kickstart]

There was an article last week in the Telegraph which would be worth finding as it really sounds like the Wild West it’s behind a pay wall but you might find it elsewhere
https://www.telegraph.co.uk/investing/news/investe...

[Your Dad]

Kickstart said:

There was an article last week in the Telegraph which would be worth finding as it really sounds like the Wild West it’s behind a pay wall but you might find it elsewhere
https://www.telegraph.co.uk/investing/news/investe...

https://12ft.io/proxy?q=https%3A%2F%2Fwww.telegraph.co.uk%2Finvesting%2Fnews%2Finvested-28000-whisky-casks-now-cant-prove-mine%2F

[Dylano]

Seventyseven7 said:

It’s not worth it anymore…

In what way is it it not worth it anymore?

Presumably you're of the opinion it was worth it at one time?

I'm not disputing your post, I know nothing at all about the subject, just curious to find out more.

[chrisch77]

As above - I appears a questionable investment opportunity at the moment. A friend invested in a barrel a year from the Arran distillery or so ago at something like £2500 initial cost. The same thing today is quoted nearly £6k. The prospectus the suggests a likely doubling of total costs (in today’s money) once bottling etc is taken into account in 10 years’ time. If you are into whisky the do it for fun, but I’m not convinced the return will be that great.

[85Carrera]

RayDonovan said:

85Carrera said:

I’ve bought a whisky cask with some friends but more as a bit of fun rather than an investment.

Beware there are a lot of scammers out there offering whisky cask investments.

I bought our cask directly from the distillery (Arran) where it is stored but not many distilleries offer that these days.

That's helpful, thanks. I think 13% return is bring quoted..

I always work on the adage if it sounds too good to be true it probably is. If that is an 13% annual return being quoted, I’d walk away.

[bitchstewie]

If it was 13% compounded over the life of the product I'd have thought the owners of the business would be set for life rather than having to try to sell barrels to the public.

[85Carrera]

bhstewie said:

If it was 13% compounded over the life of the product I'd have thought the owners of the business would be set for life rather than having to try to sell barrels to the public.

Which was my point. If the returns are that good, you’d borrow the money and pocket the difference between the 13% and whatever interest rate you were paying on your borrowing rather than giving it away.

The first hit on Google for whisky cask investment claims 12% pa, which I suspect includes (or is largely driven) by the super rare “investment grade” bottles and not the typical return on a cask that you then have to pay bottling charges, duty, VAT (including VAT on duty), etc on before drinking and/or selling.

[Biggy Stardust]

I've just bought a cask last week. I did all the sums & decided it was worth it to me, although I don't expect miracle rates of ROI.

[robscot]

Biggy Stardust said:

I've just bought a cask last week. I did all the sums & decided it was worth it to me, although I don't expect miracle rates of ROI.

Able to share the sums?

[vulture1]

Maybe a few years ago but everyman and his dog are investing in it now.

[Dg504]

vulture1 said:

Maybe a few years ago but everyman and his dog are investing in it now.

Yup, they’re trying to get me via instagram at the minute - desperate times if you ask me.

Much like the miracle student property investment opportunities on FB/social media - if the returns are truly and dependably double digits then the funds/institutional investors would have snapped them up ‘off plan’ by now

[aspender]

This was on Radio 4 a few weeks ago.

The Wild West of Whisky: From Cask Investments to Dram Scams
The Food Programme
Jaega Wise and producer Robbie Armstrong explore cask investment programmes, counterfeits and even burglary – as bad actors enter the world of whisky to make a quick buck.

https://www.bbc.co.uk/programmes/m001hdnl