Investing in anything nowadays can be an arduous exercise. And so it should be. It involves making sure you place your hard-earned cash into something that will supply you with the fruits you deserve for your labour.
However, when it comes to Whisky and Cask investing we take the “arduous” side out of things allowing you to fully enjoy the benefits of your outlay with full transparency.
As such, we regularly update our website with useful and informative blogs, allowing you to get an insight into our rapidly-growing industry whilst enabling you to make an informative decision when it comes to joining PAI.
Why Invest?
One of the most common reasons for investing in a whisky cask is its excellent return rates. This is one of the best alternative investing opportunities. The four-year growth from December 2014 in rare whisky has increased over 160%, compared to just 2.47% for the FTSE 100., making investing in Whisky casks a true Return of Investment. The safety of casks is ensured by the fact that they can only be held in government bonded warehouses. As well as the investment opportunity, it is a great way to build a legacy with friends and family. Plus you also get the enjoyment of watching your very own cask mature whilst tasting it at various intervals along the journey.
What to Invest In?
When it comes down to picking which whisky to invest in, there are 3 main factors that we advise all our investors to consider.
Firstly, with such a range of whiskies to choose from, we advise choosing a type that you like. Whether that may be a peaty or sherry, sweet or any other type of whisky. Secondly, the type of wood, amount of pure alcohol (read OLA / RLA sections below), ABV all goes into deciding factor. Lastly, your budget will also play an important factor when deciding what to invest in. As a rule, PAI recommends that you invest in a “portfolio” of casks rather than a single one.
However, if you only want one, then this is acceptable too. That is why it is so important to talk to us – as we can work with you to curate the best proposition for you. We have a diverse selection of whisky casks for every budget! It is also important to note that all our investments opportunities, provide our investors with the opportunity to plan an EXIT strategy with concentration risk and Return on Investment (ROI), in mind.
Whisky Terminolgy
We thought it would be helpful to provide easy to pick up and learn definitions when dealing with whisky. It won’t take you long before you’re confidently using all the whisky terminology. Take a look at some of the most common terminology below.
ABV
The term ABV, is commonly referenced in our industry and stands for Alcohol by volume and is used to measure the alcohol content of beer, wine, distilled spirits, and other alcoholic beverages.
Dunnage warehouse
This is a traditional warehouse low in height with thick walls and an earthen floor, commonly used to store casks.
Hoghead
Hoghead (or hoggie), is a large cask that distillers use to mature Scotch whisky. It is effectively a reconstructed barrel that contains extra staves, allowing the whisky to mature appropriately.
New Make
A clear spirit that comes off the still. It’s usually 68% alcohol and has aromatic characteristics. A lot of whisky’s flavour, and all its colour, comes from the wood.
Refill cask
A refill cask is an apparatus distillers use to store spirit at least twice: first as virgin oak, then as first-fill, before they then fill it up again as a refill cask.
The logistics of PAI’s cask management process
Whisky Casks and their Storage?
We store your cask(s) with our partner distilleries or a UK government-approved bonded warehouse and then store each of our casks (Scottish or Welsh) in Scotland and Wales respectively, depending on what liquid you have procured. Last but not least, we identify all cask locations in your Title Deed upon issuance to ensure the process is fully transparent at all times.
Insurance
We aim to remove all the cumbersome hassles of owning a cask! This is why all our casks come with 5 years of storage, insurance and some servicing included.
Certificates of Title the exits
We go through extraordinary levels of counterparty due diligence to ensure you get what you invested for!
The next step is to take possession of the casks, on behalf of our investors through reputable, and government (HMRC) approved cask servicing companies and warehouses. Finally, we aim to centralise all our stock in a few select warehouse locations so, if you wish, you can arrange a visit to see your cask (or order to draw a sample) in person.
Our company founders then issue a “Title Deed Certificate”, which they authenticate and verify, prior to providing to the respective investor.
As the whisky bottle investment market has grown, and the most valuable bottles have become harder to find, there has been an increasing interest in investing in cask whisky. Casks are a great route for investing and the future for cask investment is looking quite attractive indeed.
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We’d love to hear your view and help you in getting all the “finer” details prior to investing, so do not hesitate to contact us, download our FREE GUIDES, check our FAQ’s Page, or click here to arrange a FREE Consultancy meeting. Keep up to date with the latest content by following our Social profiles on Facebook, Google, and Instagram and do not forget to DM any of our pages, for an instant response to any queries you may have.
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