Buying a cask of whisky can be a great investment. The data shows that historically returns on whisky casks have been generally positive… but like most investment, making sensible, data driven purchases and holding those assets for the long term is the best way to ensure positive returns.
The whisky market continues to grow due to a growing international demand. Positive growth in key markets and historic data gives us the surety to say that whisky casks have been and are still a good long term investment in 2025. The Scotch Whisky Association also recognise that casks have become a popular personal investment opportunity, but recent activity with some cask investment companies makes it clear that care needs to be taken.
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We believe that when scotch whisky casks are purchased for a fair price, as a long term investment, and with a comprehensive understanding of how the whisky cask industry works, then casks can be a sound investment. We state that with authority because we have sold millions of pounds of casks for our customers; helping them to make from a few thousand pounds to over £1,000,000 over 10 to 30+ years.
However, experience also shows us that when casks are purchased for more than their market value, as a short-term investment, by consumers who do not have a full understanding of how the whisky industry works then their potential as investments is severely limited, if not removed completely.
Just like any other investment (in property, shares etc) it is crucial therefore to do your research ahead of a purchase. You need to ensure you are putting your money in the right cask, for the right reasons, and that you understand when the prime time to enter and exit that investment is likely to be.
We have written a comprehensive guide that you can sign up to and receive for free, but if you want a brief overview then read on.
How Does Cask Investment Work?
The principle of investing in whisky casks is that the value of whisky in a cask increases with time. This is because the quality of whisky in a cask increases with age as the spirit interacts with the wood and atmosphere. In addition, the scarcity of the spirit increases over time due to evaporation and consumption: 90% of all casks are bottled before they reach 12-years-old, and an average of 1 to 4% of the spirit in a cask evaporates each year (aka the angel’s share).
This means casks are cheaper when they are younger, and become more expensive as they get older, starting to be considered a premium product around 18 years old. Crucially, the relationship between scarcity and age means that value of casks increases more rapidly as they get older; the relative jump in price between 5 and 10 years is smaller than the jump between 15 and 20. HOWEVER this does not mean that you can simply buy an older or mature cask as a way to make casks a short term investment.
For the sake of clarity, at Mark Littler Ltd we use three terms when talking about the age of whisky; new make, young casks and mature casks. New make is the spirit that is not yet termed whisky, it can specifically refer to whisky that has been distilled in the current year. We use it to describe spirit that is not yet whisky, i.e. is less than 3 years old. We use the term ‘young casks’ to refer to any casks that are still in the slow growth period of their maturation; generally 4 to 12 years. When we refer to ‘mature casks’ we are generally talking about casks older than 12 years. These are less suited to long term investment unless you understand the increased risks associated with them.
With those age distinctions clarified, let’s explain why you need to take care when buying mature casks.
- Firstly, casks do not age indefinitely; at some point either the cask will evaporate completely due to the angel’s share, or the alcoholic strength of the cask will drop below 40% and the cask is no longer legally whisky. Either way the cask becomes worthless. It is crucial that you buy a ‘healthy’ cask if you are looking for a mature cask as an investment.
- Secondly, it is imperative that you purchase mature casks for a fair price that is representative of its market value. A mature cask’s value is much easier to manipulate and so you must take extra care to ensure you are not overpaying. Overpaying means you will have to keep your mature cask for longer in order to make a profit.
Why Is There Such A Big Difference In Returns On Cask Investments?
The average range of values for casks we sell for our customers is around £8,000-£30,000 for casks mostly aged between 10 and 30 years old. Some casks are worth over £100,000 but these are the exception for casks from certain distilleries, and most lucky buyers bought these casks for £1,200 – £4,000 in the 1990s and early 2000s.
The brand of your chosen distillery will also make a significant difference to the premium it can command when you come to sell. It will come as no surprise to anyone that the most expensive cask of whisky ever sold was a Macallan. There are other casks that command a premium too: Springbank, Ardbeg, Bowmore, Caol Ila, Lagavulin and silent distilleries like Port Ellen are just a few examples that command a premium in today’s market, however they also command a premium to buy–if you can get one at all. What that means is that the cost to entry for these casks is high and as they have already experienced the market shift for the value of those brands you are not going to make the returns seen by those investors who were lucky enough to buy casks 20 to 30 years ago.
Buying with established brands gives a good scope for a solid return on your purchase. Buying a cask from a distillery that is less established but which you expect to have a large investment in a brand is one way to try and speculate on higher returns.
Are Whisky Casks A Good Investment For Me?
It is important to assess whether any investment is right for your circumstances and casks are no different. You need to ask yourself the following questions:
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Can I afford to have my capital tied up in a long-term investment?
Casks should be considered a long-term investment. If you think it’s likely that you will need to sell the cask in less than ten years/before it is 18-years-old then you should consider putting your money elsewhere. It is also worth noting that selling a cask can take a few months in order to find the right buyer and maximise returns.
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Do I need regular returns on my money?
Casks do not provide rent or dividends during the length of the investment. If you need income from your money then casks may not be right for you.
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Can you afford the annual charges?
There are some annual charges associated with storing a cask, including storage at the warehouse and the fees due if you wish to insure your cask. You will also need to check the health of your cask, which is done via a regauge, we suggest every three to five years for this. Each warehouse will have there own costs associated with this.
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Do you understand the cask industry?
Do you have a basic understanding of the industry so you can be positive about your investment? Do you understand how you might eventually exit your investment? Do you know how ownership is transferred? If you are considering bottling your cask, do you know the costs, VAT and duty involved? Are you aware you can sell a cask in bond, and what the tax implications of each option are? A good broker will give you the information you need to make a sound decision, without pressuring you into making a decision.
Importantly, we believe that casks can be a good investment as long as you stick to these three guiding principles:
- Purchase a quality cask for a fair price
- Buy a young cask with the intention to keep it until it is roughly 18 years old
- Have a clear understanding of the industry you are looking to invest in
- Ensure you own the cask at the warehouse level
If you would like to learn more about buying a cask of whisky then you can sign up to receive our free Cask Buying Guide. It covers everything you need to know about the industry so you can make an informed decision about becoming a cask owner. Sign up here.