While whisky casks remain a popular long-term business choice, you’ll want to make sure you’re aware of the latest opportunities and threats in the industry.
Get a delivery order.
If you’ve been following our site for any length, you know that having a shipping order when purchasing a Whisky barrel is essential.
We are relieved that we are not alone in our beliefs about this; instead of taking our word for it, you can read what others say about it here. In other words, if you don’t have a shipping order, you don’t own the barrel, which doesn’t sound like a reasonable basis for an investment, so you should stay away from it.
Pay for the best deal.
Every day, prospective barrel buyers contact to double-check the accuracy of the amount they’re about to spend. Most months, whisky barrels sell at internet sales for significantly more than they would cost to package and sell in stores. It can be challenging to determine whether or not you are being requested to pay a reasonable price for a barrel of Whisky due to the abundance of conflicting information and the lack of a trustworthy directory listing actual prices.
Several options are still available if you want to double-check the price of a whisky barrel. First, enter the information about the barrel you’re considering into our online cask estimator. If you still need clarification, feel free to call the office and talk to someone who can answer your questions without bias.
Be patient and wait.
A cask is an investment that requires patience, so expect to see a return on your money when it’s 18 years old or more.
Buying a “young” barrel, which is a bit older than new manufacture, is the only way to reduce the return on investment in a shorter period. Sadly, advice three, ensuring you are paying a reasonable price, is essential before deciding whether to purchase a juvenile barrel or a new build cask.
Verify your identities
Like any other industry, Whisky places a premium on its brand identity. If you want to get the most out of a barrel and the marketing the distillery has put into making its name known, you need to make sure you — or the prospective bottler of your cask — have the right to place the name on the bottle.
The final price of your whisky barrel will be significantly affected because some companies offer casks without exclusive branding rights, so you must verify this information in your contract.
Stoaisha, Whitlaw, Kirkcowan, and Orkney Malt are some of the names to watch for when researching branding rights. Feel free to contact us if you have any questions about whether or not the barrel you are considering has the appropriate branding rights.
Use NFTs cautiously.
A new addition to our 2022 whisky investment guide is a term that will likely become more commonplace in the coming year: NFTs.
It will be some time before NFTs are relevant at the levels that count regarding possession of a barrel, the storage, as the whisky business still uses a signed paper duplicate to transmit ownership of a cask. Moreover, unless the vendor is listed with the appropriate financial authority, we have reservations about the legitimacy of using NFTs to purchase barrel portions. In light of this, from January 2022 onward, you should avoid anyone who suggests investing in NFTs via whisky casks.