It might be intimidating to think of selling a whisky barrel. However, the five-step procedure in dealing with a barrel of whisky is straightforward and uncomplicated. However, these processes can be time-consuming and may take several weeks.
The primary actions involved in the sale of a whisky barrel are:
1. Inquire about your cask’s specifics.
To determine how much your whisky barrel is worth, you must first collect as much information as possible about it. When you bought your barrel, you should have been given information on the distillery, the year of distillation, the kind of cask, and whether it is a first-fill or re-fill cask.
You’ll also likely need to schedule a regauge for your cask. Contact us if you want to know more about regauging or need some assistance setting one up.
A perfect moment to ask for a sample is while you are having your cask remeasured. Sending a photograph of the model (rather than the actual example) is the norm when dealing with potential buyers.
2. Try to sell your cask to someone.
The four options available to you to sell your cask are as follows.
The first thing you may do is get in touch with the distillery you bought the barrel from. Most people start here, but be wary; distilleries sometimes grossly undervalue barrels. This is because they already have enough casks in store and see no reason to pay a premium for yours.
Second, a broker can help you sell your cask. As a private seller, you may not be able to reach as many potential purchasers as a broker can.
Once a deal is agreed upon, the broker functions as an impartial third party to facilitate communication between the buyer and seller. Since most brokers are paid on commission, it is their most significant incentive to secure the best possible price for your cask (we charge 10%, all taxes included).
There is also the third choice of going through a dealer. Someone who buys a cask intending to resell it at a profit is called a dealer (just the same as in cars, for example). It may be quicker to acquire a quote from a dealer, but that doesn’t mean it’s the best.
Lastly, you might try selling it at a specialized auction. To avoid financial loss, we insist that the auction be conducted by experts in the field, as knowledge of whisky marketing is essential.
The final price of a cask at auction may be more or lower than expected. And since both parties have to pay a cut of the sale price in the form of commission, the amount you actually end up with from the sale of the cask will be less than the total price (not sure you follow, read about auctions versus private sales).
What You Need To Know When Selling A Cask
Distributing samples to potential buyers is unnecessary. In the offers phase, an image is usually all that is needed. After contracts are signed, the buyer might send out a “subject to sample” bid.
Get a second opinion whenever possible. Did someone make you an offer for your cask? Mark Littler Ltd is pleased to have friendly, no-pressure conversations regarding the worth of your barrel and provide free, no-obligation appraisals.
It might be time-consuming to find a fair price for a barrel. Although a speedy sale is conceivable, the best price for a whisky barrel will be achieved if you take the time to advertise it to the proper individuals.
3. Reach a mutually acceptable price
The market determines the price you get if you put your goods up for auction.
However, if you’re selling a cask in any other way, you and the buyer will negotiate a price and sign a contract.
4. Finish the delivery order processing.
You and the buyer need to physically sign a delivery order transferring ownership of the barrel since the whisky cask industry still operates on paper and ink.
You’ll put your signature on order and send it in the mail to the new owners so they can complete it and send it on to the warehouse. The warehouse will amend its records to reflect the new owner of the cask, who will then have the legal right to have it transferred, bottled, etc. Similar to when someone buys a property and has to update the land registration.
You will get the proceeds from the sale of the cask after the warehouse receives the delivery order and the necessary paperwork has been completed.
And with that, you now know the 4 primary procedures for selling a whisky cask.