Whisky as you know is a commodity. Pre pandemic the FTSE traded at less than 1% over 12 months. The whisky index was at 12 % over 3 months. In certain sectors whisky has risen by over 550% in the last 10 years.
Taking the Wolfcraig cask as an example the predicted growth per annum is 17%. This is net of cask purchase price, duty and bottling charges.
Liquid quantities vary based on cask used, e.g Sherry Butt at fill is around 500 litres, a Hogshead 220 -225 litres, Quarter Cask 45-50 litres and a Barrique 250 -300, Barrel 190 -200 litres. There are others but these are the market you see operated in most. Angels share varies depending on cask but is around 2% loss p.a.
Whisky when released following maturation is at cask strength and the older the whisky the more ABV will reduce over time. Cask purchasers can if desired water the whisky to not less than 40 % to increase bottle yield and reduce duty charges. The duty is worked out on ABV level. You pay £28.74 of spirit duty per litre of pure alcohol. So on a 1 litre bottle of whisky at 40% duty is 40% of £28.74 or £11.50. On a 70 cl bottle duty is £20.118 x 40 % equals £8.05. At 50% ABV duty is obviously more.
If the whisky is bottled for export duty may not be charged and if not bottled then vat does not apply providing the cask is sold abroad. Remember though to call it Scotch it MUST be bottled on Scottish soil. So, if bottled here vat will apply.
We can assist buyers to resell their casks or to bottle them and we provide a route to market for bottle sales. We can also assist in partial cask ownership or cask share schemes and can manage a purchasers cask project.
If you would like to discuss any of these options, please click here to get in touch.