Bottle Or Cask: Two Very Different Whisky Investments

Bottle Or Cask: Two Very Different Whisky Investments

Whisky Bottle Investment

In recent years the market for rare whisky bottles has boomed; in 2019 the record for a single bottle was broken twice in 2019, reaching an impressive £1.5 million for an exclusive 1926 Macallan Fine and Rare. Typical annual returns for investment in rare whisky bottles are around 8-10% and growth on the secondary markets has been strong in recent years with whisky auction sales rising 40% in value from 2018-2019. Whisky bottles are a secure, asset-backed investment which typically appreciate over time as rare bottles are consumed and diminishing availability pushes prices upwards.

Despite the healthy global appetite for rare bottles of whisky, one important caveat is that investing in bottles is significantly harder to navigate than cask whisky investment. We strongly advise enlisting an expert to help you to select and source the highest potential bottles and to ensure the authenticity and provenance of your chosen bottles.

Whisky Cask Investment

Although it might seem like a romantic notion, owning a cask of whisky is a solid alternative investment strategy delivering market-beating returns. Typical annual returns for cask whisky investment are between 10-16% and casks are securely stored “in bond” at the original distillery. This ensures watertight provenance and authenticity as well as bringing tax benefits since VAT is only payable once the cask is bottled and leaves the distillery.

Unlike with whisky bottle investment, investors can achieve excellent returns even with modest casks since they are entering the market at a much earlier stage. Generally speaking, younger casks will have greater growth potential than more mature casks.

One important factor to bear in mind with cask whisky investment is how you will access this exclusive market. Purchasing a cask of whisky usually requires an excellent network of insider contacts, so it is best to enlist the assistance of an expert who can facilitate the acquisition process. The Tomoka Casks team are always on hand to provide advice and support should you wish to learn more about whisky cask investment.