Have you ever wanted to own a cask of your favourite whisky?
Would that be for pleasure or profit?
There are few objects in the world that evoke such a weight of prestige like a cask of whisky.
That feeling of absolute exhilarating ownership, of experiencing an object that carries both heavy cultural and financial value.
That’s the reason collectors the world over opt for casks of whisky. Whether you want to save that cask for someone special, a present 18 years in the making? Or maybe you always wanted to give your family and friends a limited edition release of your own custom bottling?
Whether you wish to own a cask as a hobby or treat it as an investment, Hackstons is here to help.
Owning a whisky cask opens up a world of possibilities. Due to their status as a gem of the collecting world there’s a wide variety of things you can do!
For instance maybe you wish to buy a whisky cask from a ghost distillery? These casks are from distilleries that are no longer operational meaning that they are often rarer and as a result, typically more sought after.
Maybe you’re looking for that perfect corporate gift to present to your clients?
Or perhaps you are interested in reaching new heights as a whisky hobbyist by working with an independent bottler to release your own branded scotch?
As Whisky’s primary function is CONSUMPTION, it is an asset class for the modern investor to utilise and make the most of the fact that cask whisky (while in the cask) is free from Capital Gains Tax. It should be noted that once bottled, you will need to pay VAT and duty.
Furthermore, we feel the value of whisky is the fact that it is made to be consumed. It is not tied to perceived value as much as more traditional investing assets such as stocks and bonds.
NOTE: The whisky investment industry is unregulated, and as with all investments, the value of your investment can go up and down. Please note, there are risks to consider when investing in cask whisky, you can find more information around other risks relating to whisky cask investment, as well as an outline of some of our key terms of business with you, here.
We are Account Managers that have personal experience in a multifarious range of collectibles, luxuries acquisition and alternative investment options.
Each member of our staff has their own specialisation in certain collectibles, whether that is cask whisky, luxury timepieces, gold coins and many more.
However, for even the wealthiest getting these items can be extremely difficult. Most distilleries won’t open an account for you, most prestigeious watch dealerships have long waiting lists and luxury auctions can be prohibitively expensive. By drawing upon our extensive and exclusive network of contacts we have helped our clients to attain the tangible items they desire!
What is your objective? Have you always dreamed of owning a cask? Our team of veteran Account Managers work alongside people from all walks of life. Not all casks are created equally, and at Hackstons we only acquire collectable and investment grade whisky casks. All of our whisky cask investment options are tailored for your budget and ambitions. The choice is yours!
Once the strategy has been agreed and the package has been selected, the most important stage has begun, procurement. After going through our compliance procedures and anti-money laundering checks, the purchase will be finalised and full ownership of the casks will be transferred into your name. You will receive all the legally required documentation to ensure that you are the ultimate beneficiary owner of the cask. You can find out more about this process in our FAQ.
As per the legal requirements in the UK, all casks of whisky have to be stored in HMRC bonded warehouses. This is to ensure that detailed records are kept of your cask, and protect it from potential damage. We have relationships with several warehouses and insurance providers across Scotland, allowing our clients to receive the greatest levels of care. From there you can sit back and allow the whisky to mature, meanwhile your portfolio manager and online portal will keep you up to date with your portfolio’s progress.
Please note: There are additional costs to storage and insurance, and these costs can be discussed with your Account Manager.
When it comes to exit strategy, we work with our clients to ensure their needs are met.
The most popular way to sell your cask is to sell to another client that wants to purchase your cask or build their portfolio. We can also arrange private and public auctions, help you independently bottle your cask, or even sell your cask back to the distiller.
We offer two different ownership models.
Direct Ownership and Ultimate Beneficial Ownership. Once you have purchased a cask from us, the cask is irrevocably and unquestionably yours, however, how it is stored determines which model you fall into.
Direct ownership means that you will have to independently open your own account with a warehouse and then we will transfer your cask to you and provide you with a delivery order upon receipt of the casks.
Other clients prefer to use the Ultimate Beneficial Ownership model as they might not be able to open an account with a warehouse.
We will store and manage the casks on behalf of the ultimate beneficial owner, which in this case, is you. We have a fiduciary responsibility to ensure your casks are kept safe whilst in our Trust.
So this includes but is not limited to, the storage and insurance of your cask. So we keep your casks in a company client account and then invoice you separately for storage and insurance.
All casks held under this model undergo an inspection by an independent auditor in order to ensure the casks are absolutely verifiable and provide reassurance to investors.
Please note: Whether you opt for the Direct Ownership or Ultimate Beneficial Ownership model there will be annual storage and insurance fees to pay. These fees will differ depending on which ownership option you choose, but all fees regarding storage and insurance can be discussed with your Account Manager.
At Hackstons we will help you every step of the way to ensure you get the best possible returns on your whisky portfolio.
Upon deciding to cash in your cask investment, you can choose to sell via one of our seven exit routes:
As our objectives are intrinsically linked, we will always request that you allow us to present you with the best strategies; however, the final decision is always yours.
When you think of Whisky, you could be forgiven for solely imagining a dark brown liquid with a high alcohol content. You may even have the odd 10-year-old bottle that only makes an appearance on special occasions. However, when you consider Scotch Whisky, you now have to appreciate the over 500 years of history and tradition that have been put into each bottle, making it coveted as the pride of a nation.
As a result of this, single malt whisky casks have long been an asset that enjoys a highly desirable global demand. Recently, its limited supply has commanded the attention of private investors and hobbyists.
At Hackstons, we have access to a wide network of distilleries. This has given our clients the opportunity to purchase premium, branded single malt Scotch whisky of the highest quality. What was once esoteric and reserved only for a select few is now available to our investors who want to use the opportunity to invest in premium Whisky casks safely and effectively and thus add a different layer to their scotch portfolio.
If you are already a holder of whisky casks and would like to explore an additional exit strategy using our services, please contact us using the form above.
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