We would love to answer this great and fundamental question!
The team at Cask Capital boasts an extensive history of investing in whisky and rum, spanning over a decade. Our journey began with bottles and eventually led us to explore the potential of whisky casks. Over the years, we have observed cask investment grow and evolve into a thriving industry.
However, we have also noticed a significant surge in the number of cask investment companies in recent times. Unfortunately, many of these companies sell casks that are not suitable for investment and are grossly overpriced, making it difficult for investors to reap any realistic returns.
To help investors make informed decisions, we have created the world's largest and most interactive cask investment social media groups. Our community of like-minded individuals has benefited from our educational content, which has helped many avoid mistakes and make smarter investment choices. Moreover, we often receive requests for assistance from individuals who have purchased casks from unreliable sources at inflated prices, and we strive to support them in any way we can.
The first thing you must understand is that whisky is distilled to be drunk. As an investor, it's important that you know that a whisky drinker needs to walk into a store and find a bottle of whisky that they are happy to buy at a price they are comfortable with. Brand choice and quality also play a huge role here.
At this point, you also need to factor in taxes and the retailer's margin. Shipping, storage, and bottling casks also need to be accounted for. To some, this will, of course, be obvious. But in reality, some of these dubious investment firms are selling casks priced at several times their actual market value, making it impossible for the end product to ever become economically viable!
Another real issue is the importance of branding. There are reasons why some distilleries command much higher prices for their bottles compared to others. Understand that it takes decades to build a trusted and respected whisky brand. And it is these distilleries whose casks we offer our clients.
What we have been seeing in recent years are investment companies partnering with distilleries that are now producing whisky under their 'B' brand. These casks do not come with what we call naming rights from the distillery that originally distilled the spirit. They have also been produced in huge quantities. This has led us to ask who exactly is going to buy all of these 'B' brand bottles? Especially when the initial high cask price and lack of a successful brand name make them undesirable, in our opinion.
With all of this in mind, we have chosen to offer casks from established Scotch whisky distilleries. Brands with great traditions and histories from across all of the Scottish whisky regions. And here is the crucial part regarding why you should choose to work with us. We have a rapidly expanding network with bottling companies who, when your cask has reached maturity, will bottle the cask ready for retail sale. Of course, you'll have been paid before all of this work takes place. But rest assured, you will have bought a cask at a price that makes it economically viable to end up in a bottle.
Other investment companies will tell you that they will sell your cask to another investor when the time is right for you to exit. But casks eventually need to be bottled; if they continue to do this, someone will have massively overpaid for their cask, and then what are they going to do with it? Why would any bottler pay 500% to 600% more than what a cask is actually worth?
And this is why we believe you should look to purchase whisky casks from Cask Capital. We have credible exit strategies.
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