Whisky is steeped in History, and many a tale has been regaled by Herbridean clansman over a fire looking down the glen of tranquility, the warm luxurious rewarding taste has survived centuries and is now warming the hearts of many an investor and propping up many portfolios!
Whisky investment funds have grown dramatically over the last decade. According to Whisky Investment experts; the benchmark index of rare whiskies saw its asset value grow by a staggering 564% over the last 10 years. This represents a yearly return of around 18.9% over the decade.
Also research has shown;, the UK whisky auction market has quintupled in the past five years from approximately GBP 14 million/USD 18.5 million in 2016 to over GBP 53 million/USD 70 million in 2020, and is on track to reach GBP 75 million/USD 99 million by year end 2021. Worldwide, the collectible whisky market is probably in the range of between $100 million and $150 million.
Now an opportunity exists for investors to purchase new-make spirit and mature casks to hold for the medium to long term and sell in the future for a profit. I’m sure you’re well aware that whisky increases in value with age.
Why Invest?
The simple answer is that every client should hold a diverse range of products including non-correlated alternatives. These will help protect portfolios during turbulent times. This is especially relevant during the current crisis we find ourselves in at present.
Track Record
There are a limited number of distilleries in Scotland. As such, supply simply can’t keep up with demand. Scotch whisky exports grow consistently, year on year at an average of 5.8% with new emerging markets opening up all the time. The export value alone in 2019 was worth £4.8 billion pounds (GBP).
Scotch whisky has a proven track record of appreciating in value every year as it ages. This rise in value can increase exponentially after year 7 as only 15% of the 20 million casks currently laid down maturing in Scotland are over this age marker.
Security
Cask owners benefit from full, outright ownership, unlike bonds, funds or securities. Once purchased the ownership title is passed to the client.
While maturing, casks are stored in secure, HMRC approved bonded warehouses, fully insured against fire, theft and accidental damage. Insurance is adjusted annually to ensure the appropriate level of cover is always in place.
Investment Highlights
- 100% full ownership
- Fully insured against loss, theft, or damage
- UK Capital Gains Tax exempt
- Stored in HMRC (UK Government) approved bonded warehouses
- Multiple exit options
- Open to all investors in every country. No restrictions.
Brooks and Whitaker Ltd trading as ‘Vintage Acquisitions’ is a fully licenced whisky cask stockiest.
We are authorised by HMRC to buy, store and sell casks in a fully compliant manner. We have agreements in place with distilleries and contacts in Scotland to purchase a select number of casks on a wholesale basis.
These sales offer the distillery an alternative income stream as they would usually have to wait many years to see a return on their own investment i.e. once they have bottled a cask and sold it on the retail market.
This can be 15 years in most cases. Our option “helps keep the lights on” as they say.
When it comes to the time to sell casks, this could be in 5, 7, 10 or even 30 years’ time, we will sit down with clients and discuss the various flexible options available.
We can purchase the cask back from clients directly, bottle the cask through our independent bottling company (www.vintagebottlersltd.com), auction the cask(s) or facilitate a number of other options. Whichever option they decide best meets their needs, we will advise through the whole process.
Investors should take a look at the Vintage Acquisitions video live interview on GB News earlier this month https://www.youtube.com/watch?v=A4jxRzzepsgand it should answer any questions you may have and I will be happy to explain the sales process, client benefits and the finer points, etc., in more detail.
Speak to Nick
+44 7887 444 001
