If you’re reading this odds are you have invested in the booming whisky cask industry. Focusing closely on whisky, the global industry has and continues to experience immense growth. It has historically done so, especially over the past few decades. During the global pandemic, whisky has held steady and even shown growth, with cask investment as one of the driving components. Global travel has essentially stopped and shipping bottles has become increasingly difficult; cask investment is a little simpler. After all, the entire process required brings forth no need for shipping or logistical issues. If you want to hear more on whisky’s growth join our upcoming webinar with the leading body is luxury asset reports and growth statistics of whisky: Knight Frank.
Exit Strategies 101
As you build your cask portfolio, you’ll likely amass casks of varying ages and profiles. Some can be held for another decade or two, and some are mature enough to be traded again within a few years. Alternatively, you can simply invest in a whisky fund without needing to manage your portfolio or monitor the whisky industry. So, what are you options as a whisky cask investor? Let’s delve in.
This exit strategy involves investing in whisky without directly owning casks. At Rare Finds, we offer potential investors a chance to enter our whisky fund. As we source and supply casks to our clients around the world, we tend to come across many amazing options. Therefore, we have created an ecosystem in which we buy casks into our fund as we trade. We then hold these casks for future trading, when their value has risen. This option offers those who want to enter whisky, but not be involved in portfolio management and trading, a great opportunity. All you have to do is supply the initial investment and enjoy the returns, much like other funds, except this one is in whisky and thus, far more fun. Get in touch for in-depth details on the fund, the annual returns, and what you can expect in the near future.
This option is as easy and approachable as our aforementioned fund but gives our clients a deeper look into the cask trading industry. Our team of specialists is always sourcing, monitoring the industry, and trading. We know when the best time to sell your cask is, and we’ll tell you. So, as your portfolio grows you can slowly start re-trading your casks after several years of storage, depending on how the brands in question are performing at that point in time. This exit strategy requires more effort but also gives investors greater control over how their portfolios are traded and the returns they receive. Of course, our specialists will advise on prices that can be realized and if that works, then you’ll be well on your way to start profiting from your whisky investments.
This option requires the most involvement and is recommended primarily for clients with avenues of selling and gifting bottles. Choosing to bottle your whisky cask is a very fulfilling and fun experience, we’ll make it so! You can choose your bottle design, label art; if possible, you can even throw in a cask finish. Clients that tend to opt for this option often own bars, restaurants, hotels, luxury brands, or large companies that aim to gift the bottles to their employees or top clients. The process takes some time and, of course, the bottles are subject to taxes that re-traded casks avoid, as they are stored under bond. Be aware that, when bottling, fees for bottles, design, and labels will incur, although these are very low. Ultimately there are also large profits to be made from bottling your cask if, as mentioned, you possess the avenues to sell the bottles as this is the only step we don’t assist our clients with.
As you can see, owning a cask portfolio as well as exiting your investment is easy, safe, and exciting. What we aim to do here at Rare Finds is offer a full picture of the industry to our clients so that they can make an informed decision on how to move forward. While re-trading or bottling may seem difficult, we will assist our clients with each and every step and supply them with the best options available.