Jonathan Hook
UK investors and finance experts have been looking at alternative investments due to the recent economic and market upheavals and disruption. Besides the top of mind assets like property or gold, alternative ones have been gaining interest, such as art, classic cars and rare whisky.
Whisky bottle investment has grown massively in the past decade, but good returns, like a bottle of the Macallan Fine and Rare, do require a little more of that enthusiast-level knowledge. That’s where cask investment becomes an interesting asset, as it’s a more popular option for those with less expert whisky knowledge. Casks are continuing to rise in popularity, and can be a sound investment for the future providing an average return of between 10% and 25% per year.
Investing in a whisky bottle is a gamble. You are hoping that in the next few years there will be a high demand for your bottle. When a whisky is bottled, it does not continue to mature, meaning its taste will remain the same until opened. Investing in casks from the distilleries, on the other hand, allows you to follow part of the process from distillation to bottling, with the value of the cask increasing year on year.
However, not all investment companies are made equal. Some lack the well-rounded knowledge and background to make a safe choice. Some companies may have experience in whisky as a consumer good, but less understanding of the longer-term financial implications of investment. It’s key to find an investment management company that can advise you on the best options based on your profile. This includes an understanding of the whisky world, its core brands, distilleries and what makes a cask worth investing in, as well as the long term financial and tax implications.
“As a long time accountant and the founder of a cask investment company, I know that some investment firms sell only trade names, not brands, and lots of them sell from a broker list, rather than having already bought the casks themselves. This means the end client could be purchasing something different to that which they originally wanted. I hate seeing consumers misled, and thought to myself, ‘wouldn’t it be great if we could do something to improve the industry?'”, says Jon Hook, Founder of MacInnes Whisky.
Storage and insurance are also elements to consider. Finding people you can trust to provide the right information and manage your investment is essential in a growing market. But, don’t let that put you off cask whisky, whilst stored in a warehouse, it is free from duties and heavily regulated by the HMRC.
Cask investment isn’t just for whisky collectors and keen enthusiasts, but offers an alternative for anyone looking to start investing or add to their portfolio.
Make sure you download MacInnes Whisky Guide at: http://www.macinneswhisky.com.
