Whisky 1901 is a Scotch whisky investment company helping to connect potential investors with the right cask of whisky. They have a team of experts with years of financial experience and knowledge about the whisky industry. Brokers are supported by a fully resourced in-house team.
Founded in 2019 in Knightsbridge, London, by managing director Aaron Damiano Sparkes. The name Whisky 1901 is a nod to the founder’s father as they used to enjoy a dram together of what is now Aaron’s favourite whisky – a GlenDronach from cask number 1901.
Since 2019, Whisky 1901 now works with over 250 clients and has over 1,000 whisky casks under management. They have relationships with around 40 of Scotland’s finest distilleries and have two purpose-built bonded warehouse facilities in Glenrothes, Scotland.
What is whisky cask investment?
Whisky cask investment is a form of portfolio investment that involves buying a cask of whisky, liquid in a barrel in a warehouse, and holding it for a period of time. Typically, the value of the whisky increases over time as it gains age and flavour.* Whisky 1901 recommends a minimum 5–10-year investment.
Why invest in casks?
Whisky casks were once deemed a rare commodity limited to industry insiders, but now with prices starting at around £5,000 private and corporate investors can readily invest. There is a growing demand for whisky and, despite fluctuations, market stability makes whisky cask investing a good alternative to other assets, as the value of whisky casks is not driven by economics alone, but by maturation.
A cask purchased today will become a more desirable and valuable asset year-on-year.* Investors are turning to whisky casks to diversify their investment portfolios and grow wealth in an uncertain financial climate. The BC20 Index exhibited significant growth in 2022 and show a 15.86% annual capital growth rate for the year.
All cask whisky held under bond in Scotland is exempt from VAT and excise duty. These are only applied when whisky is bottled, so, if you sell your cask while it is still in bond, you can avoid paying this. Capital Gains Tax is also not applicable on sales of cask whisky as the product is classed as ‘wasting chattel’ due to the evaporation that occurs during maturation.
Barrelled whisky has significantly outperformed traditional investment options. The value of whisky casks continues to show double-digit growth.
For example: A £100,000 investment in cask whisky in July 2018 would have been worth £214,113 in December 2022. The same investment in gold would be worth £150,864 and an investment in the SP500 would have been worth £132, 327 according to the latest BC20 Index (a representative sample of 20 casks from a range of distilleries, whose value has been tracked since the beginning of 2019).
Why invest with Whisky 1901?
When seeking an investment with the best prospects for appreciation, there are eight key factors to consider: 1. Year of production 2. Age 3. Distillery 4. Barrel type 5. Original Litres of Alcohol (OLA) – the number of litres of pure alcohol originally placed in the cask. 6. Remaining Litres of Alcohol (RLA) – the litres of pure alcohol remaining in the cask after evaporation due to maturation. 7. Alcohol By Volume (ABV) 8. Bulk litres – the combined total of alcohol and liquid.
The Whisky 1901 team understands how valuable Scotch can be and they pair financial knowledge with a deep passion for whisky, bringing investors a considered approach to investing. They have an analytical process to whisky investing – assessing each variable from rarity, collectability and quality to determine the potential return on investment. They use their knowledge of the market and relationships with leading distilleries to identify opportunities and purchase casks for stock portfolio. When an investor invests with Whisky 1901, they are almost always buying from their stock.
You will be fully supported through buying and selling, making the process stress-free. The consultants will discuss the current market, your budget, investment timelines and risk appetite. There is no obligation to purchase and if you do decide to go ahead, you will be supported through the transaction and legal aspects. You will also receive a quarterly investment update from the consultants on current whisky market performance. Every two years you’ll receive analysis of your specific investment, detailing projected return on investment based on market prices. You can access details of your investment portfolio online via the online dashboard too.
If, or when, you are ready to sell, Whisky 1901 have investors interested in both new and mature casks within their client community, so they can tap into this network to find you a private buyer. Alternatively, you could sell to an open market, sell at auction or bottle your whisky, and you will be supported through whichever decision you choose.
With such highly knowledgeable and passionate brokers and all aspects of the business being in-house, Whisky 1901 will ensure the investment process is stress-free and fully explained, with full support available to investors throughout their journey. This really sets them ahead of other investment companies for those looking to invest their money in this exciting prospect in a growing market.
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*Disclaimer: Whisky cask investments are unregulated in the UK and the value of investments can fluctuate, increasing or decreasing as with any stock investment. For further information, please visit here.
