While many people buy whisky casks for the enjoyment we also know that a lot of people want to buy a whisky cask as an investment. But how exactly do invest strategically in casks of whisky and buy the next big thing?
Buying A Whisky Cask Investment
For some the current global situation means they are not in a position to buy a cask investment right now, but for others these strange times are an incentive to look at other ways of investing their money and securing a future income. As such we will continue to provide information on buying whisky cask investments.
If you are not familiar with buying and investing in casks of whisky then I suggest you head across and download our Cask Buying Guide and explore our extensive selection of online guides on whisky investment.
Not Covered in The Cask Buying Guide
One thing that we did not get a chance to cover in the guide (it is already 50+ pages long) was why, on exiting their investment, some owner’s mature casks are worth £10,000-£15,000 and others are worth £100,000-£300,000, even when those two casks are a similar age and were purchased for a similar amount of money.
A working example
Cavendish wines were a small merchant in London selling casks of whisky to the public in the 1990s. The two main distilleries that they sold casks from were Macallan and Tobermory. Macallan casks were priced at £4,000 and Tobermory casks at around £1,000. We have sold casks from both distilleries for clients in the past; casks that were the same age when purchased, and the same age when sold. However, the Tobermory casks are currently worth £10,000-£15,000 and the Macallan casks £140,000-£300,000.
Strategic Whisky Cask Investment
The nature of how whisky matures means that every cask will increase in value each year as the cask matures (to a point) because older whisky is worth more than younger whisky. Obviously, there is nothing to complain about with the return on investment for the Tobermory cask, but when it is compared to the Macallan it then seems disappointing. So how do you choose a cask that will gain value above the standard?
The difference between Tobermory & Macallan
Tobermory and Macallan both make single malt whisky. They both use the same ingredients to make the same basic product. So why in 2023 does a cask of Macallan sell for 20 times more than a cask of Tobermory?
The difference between Tobermory and Macallan right now is brand. Over the last 40 years Macallan have invested heavily in their brand. They have successfully changed the public perception of that brand and positioned themselves as a luxury asset. So that now the public are now prepared to pay a significant amount more for Macallan than they are for Tobermory.
How Do You Buy The ‘Next Macallan’?
In order to find a cask that will increase above the norm you must search for a distillery that is looking to position its brand above the norm. Want another example, just look at how Dalmore went from a blending malt to a top 10 bottle with investors.
What Whisky Cask To Buy in 2023?
It is possible to buy a cask direct from a distillery, but in our opinion the casks currently available in this way do not offer great value.
We actively search for casks from distilleries where we see potential for an increase in value above the norm; distilleries that are investing in their brand.
We use four indicators as well as industry contacts and our years working in the whisky industry to search for distilleries where we see potential. Which means when you come to us to buy a cask we don’t just tell you what is available, we let you know what else is going on in the distillery that may make that cask increase in value above the norm.
Also when you buy a cask with Mark Littler we don’t just offer you what is in one warehouse; we have a network of suppliers and access to a variety of casks. That gives you more choice to make the right decision for you, and eventually means you own a unique cask that will be worth more when you come to sell it (compared to one that is the same as 100+ others from the same distillery/distillation when you buy through a dealer who has brought stock in bulk).
Get in touch
If you are interested in finding out more about investing in whisky casks with us then please get in touch. We currently have a waiting list for cask investment but if you would like to be added you can email [email protected].
