‘Worry’ over unaged whisky cask investments

9th February, 2016 by Amy Hopkins

Investment specialists at Rare Whisky 101 (RW101) have expressed “worry” over the increased number of inexperienced investors buying new make spirit.

RW101 has offered advice to those contemplating investing in Scotch whisky casks

RW101 has offered advice to those contemplating investing in Scotch whisky casks

RW101, a rare whisky indexing, valuation and brokerage firm, recently released its Rare Whisky Collectors / Investors 2015 Single Malt Scotch Review, outlining performance of rare whisky on the secondary market last year.

The firm said the market for rare whisky experienced a “record” year in 2015, but also outlined a number of issues affecting the sector.

RW101 said it has brokered a number of sales of “exceptional” casks containing old liquid, including Ardbeg, Laphroaig, The Macallan, Highland Park and Springbank.

However, the company said these sales were made by “sophisticated buyers with a wealth of experience in maturing stocks”, adding that it would not advise inexperienced investors or buyers to purchase “even the most sought after of casks” due knowledge about the loss of liquid in the maturation process.

In addition, the increased incidence of inexperienced investors looking at buying into new make spirit, that is, whisky that has not aged in the barrel, is “worrying” to RW101.

“Malt and grain production is at an all-time high with distilleries being worked 24/7 to get more out of every last cell of years,” the group said. “Should the current negative trend for global sales of big brand blends continue, it would not be beyond the realms of possibility that there could be a whisky loch in a few years’ time.”

In order to generate funding to increase capacity, a number of whisky distilleries offer cask investment schemes to consumers, who can purchase either entire casks or shares in casks at a time before the liquid has aged.

While RW101 concedes that buying new make spirit from distilleries where it’s not usually obtainable “may not be disastrous”, the firm said such investments “might not yield the expected results”.

“The market for older casks of quality liquid from top-tier distilleries, in our opinion, will continue to go from strength to strength,” RW101 said. “[H]owever, we’re advising our customers against buying new make from less desirable single malt distilleries or new make single grain.

“Rarity and quality, again in our opinion, is crucial when looking at casks.”

David Robertson, former master distiller for The Macallan, partnered with former corporate banker and founder of Whisky Highland Andy Simpson to launch RW101 in 2014.

To see the company’s new list of the top 10 most investible Scotch whisky brands, click here.

Leave a Reply

If that's interesting, how about these?

Black Sea oak dram to mark Ardbeg Day

Islay single malt distillery Ardbeg will release a virgin Black Sea oak more...

Spirit of Speyside to host 'whisky cache'

The Spirit of Speyside Whisky Festival will this year host a geocaching event more...

Johnnie Walker rebrands Platinum as 18YO

Diageo-owned blended Scotch whisky Johnnie Walker has renewed its focus on age more...

High Commissioner offers shoppers 50” TVs

Loch Lomond-owned blended Scotch brand High Commissioner has brought back an more...

Lindores Abbey Distillery launches members' club

Lindores Abbey Distillery in Fife has opened sales for its Preservation more...

Lagavulin charity bottle sells for £7,300

Islay distillery Lagavulin has raised £7,300 (US$8,900) from the sale of a more...

Catawiki remembers Samaroli with whisky auction

Online auction house Catawiki is to host a whisky sale in memory of independent more...

Last Drop releases 1972 Lochside single grain

Rare whisky bottler The Last Drop Distillers has launched a 1972 single grain more...

Baijiu category beats whisky on value

The global baijiu category has overtaken whisky to become the most valuable more...

Collection of 290 Karuizawa whiskies up for sale

The "world’s largest" known collection of Karuizawa Japanese whisky – more...

Ardgowan Distillery initiates £17m funding drive

After receiving planning permission earlier this month, The Ardgowan Distillery more...

Sidney Frank rebrands as Mast-Jägermeister US

Sidney Frank Importing Company has changed its name to Mast-Jägermeister US more...

Tomatin unveils series inspired by elements

Highland distillery Tomatin has unveiled a limited edition single malt series more...

Top 10 little-known Irish whiskey facts

From the world's most expensive bottling to the origin of the Irish coffee, we more...

Jägermeister on 'solid' growth trajectory

German herbal liqueur brand Jägermeister recorded "solid" single-digit volume more...

Fever-Tree celebrates 'exceptional' FY results

Premium tonic and mixer brand Fever-Tree has hailed an "exceptional year of more...

Gin added to UK inflation basket

Gin has been added to the inflation basket after a 13-year absence due to the more...

Johnnie Walker rolls out Blenders’ Batch in US

Blended Scotch brand Johnnie Walker is to introduce its “experimental” more...

Deep Eddy Vodka hits one million case sales

Heaven Hill Brands-owned Deep Eddy Vodka has exceeded one million annual case more...

Boutique-y intros gin with botanicals sent into space

Newly formed That Boutique-y Gin Company has launched a gin made exclusively more...