The BBC have released an article naming three companies that have been using cask whisky in an unscrupulous manner. This is unfortunate but as the saying goes, when there is treasure to be found, pirates jump on the ship, and with cask whisky, it is no different. 

We think it is important to state why we feel this is happening. Purchasing casks of whisky, holding long term and making promising returns as a strategy works, however, the double-edged sword of cask whisky is that it can create the perfect conditions for scammers to operate in.

Not all whisky investment firms operate the same way. The article highlights fraudulent activity, not the industry as a whole. In fact the article itself states “There are many legitimate traders” of which Hackstons is one. 

The BBC article addresses two main points:

Ownership

High pressure tactics

We have been speaking to these risks since our inception as we feel education is key, and we tackle the risks head on. Whether that’s in external articles with Forbes and The Scotsman, or internal blogs on the risks, videos on how to avoid scams or our recent article on the good, the bad and the ugly of this market.  

Above all we feel the recent news highlights how important it is for those interested in cask whisky to do their due diligence when it comes to cask investment.

Hackstons operates with full legal compliance, documented ownership, and secure storage, working only with regulated, HMRC-bonded warehouses and reputable suppliers.

We carry out KYC checks, AML checks and will always recommend a client doesn’t invest more than 50% of their disposable capital for the sole reason that it would be irresponsible to do so. We care about our clients and their investments.

(Hackstons clients visiting their casks)

We have a third-party audit process that verifies where the cask is and that the liquid inside is what the client has purchased, and furthermore we encourage clients to visit their casks, ensuring full transparency at every touchpoint.

With our new HMRC-bonded warehouse we will also be able to send our clients delivery orders and facilitate even more visits to see and interact with their cask, and we’re always more than happy to walk clients or potential clients through our processes and answer any questions.

Further to all of this, we’ve made movements to provide our own proven exit strategies in the form of bottling through our Knightsbridge Retail Store, with our own The Bottling Club range an example of this in action. 

The bottom line is that we welcome increased industry regulation to eliminate bad actors. As such, we feel this is a good exercise for cleansing the market. 

If you have any concerns or questions please do not hesitate to get in touch with us at [email protected] or by calling 0203 307 0410.