Investment: with a huge trade deal on the horizon, why now is the time to snap up Scotch whisky
With everyone from rappers to sporting stars throwing their weight behind whisky, demand for single malt is soaring – and it’s about to reach new heights with the launch of a new trade deal with India.
Last year, Scotch whisky exports grew to more than £6 billion for the first time as the Asia-Pacific region overtook the EU as the industry’s largest regional market. Double-digit growth in Taiwan, Singapore, India and China helped to hit the record high, and India has now replaced France as the largest Scotch whisky market by volume.
There are plenty of famous faces who are into the liquid gold: David Beckham is the ambassador for Haig whisky and rapper (and Mr Rihanna) A$AP Rocky launched his Canadian whiskey brand Mercer + Prince last year to great success, while UFC star Conor McGregor made around £430m when he sold his major stake in Irish whisky company Proper No. Twelve in April 2021.
All eyes on India
Demand is certainly on the up, and nowhere more so than for rare Scottish single malts as increasing numbers of knowledgeable customers head for the more refined whiskies. According to the Knight Frank Luxury Investment Index, which tracks the auction results of a basket of rare Scottish single malts, rare Scotch whisky has seen a staggering 586% growth over the decade to 2021.
And a new trade deal is expected to double the size of the Scotch whisky market in five years, according to the CEO of Chivas Brothers.
The UK-India free trade agreement could remove the 150% import tax on whisky, offering huge potential for Scotch brands to get around the maze of state-controlled alcohol laws that currently make it hard for them to get a foothold.
“There is fantastic potential of innovation for prestige and luxury whiskies, where Scotch whisky is beautifully positioned,” said Jean-Etienne Gourgues.
Couple that with plenty of investment in the industry, from Macallan’s state-of-the-art £140 million distillery to Chivas Brothers’ £88 million investment into Aberlour and Miltonduff and it’s clear there’s a recipe for success.
How you can get involved
Cask traders Vintage Acquisitions, the trading name of Brooks & Whitaker Limited, have been helping clients get the most from their investments since 2011. Many of their recent investors have been inspired by the record-breaking whisky sales in recent years, including a single cask of Ardbeg Cask No 3 which went for £16 million last year.
While your investment may not hit the millions, there is plenty of potential for anyone who is looking for long-term gains – after all, the longer whisky is left, the better (and rarer) it becomes.
Vintage Acquisitions have direct and indirect relationships with the oldest and most distinguished distilleries in Scotland to offer you access to casks that might otherwise never see the light of day. You can buy one or more casks and they will do all the hard work for you, including storing, insuring and even helping you to sell your whisky at the end.
“We are seeing casks double in value every five to ten years,” says MD and founder Sam Brooks. “Some double in value in a shorter period of time, some take slightly longer, but over the last 12 years we’ve seen that rule of thumb to be incredibly accurate.”
What you need to know
It’s not just influential figures who are getting involved in whisky cask investment: Vintage Acquisitions buy, sell and broker whisky to market newcomers as well as whisky enthusiasts and experienced traders from their HQ at London Bridge.
You can start the purchase process by chatting to a member of the team about your needs and how much you want to spend – they promise that there’s no hard sell, just honest advice. They will match your requirements to their extensive stocklist then let you decide.
When your invoice is settled, you’ll be sent an ownership pack which includes the certificate of title for your cask or casks. Your cask will be held in one of Vintage Acquisitions’ secure HMRC-licenced warehouses or you can have it transferred to your own HMRC-approved excise warehouse – just remember that to be called Scotch whisky, the spirit must mature in oak casks in Scotland for at least three years.
You’ll receive updates on your portfolio via the members section of the website and be enrolled into the Vintage Whisky Club where you can get access to exclusive tastings, sporting events and even distillery tours.
How to find out more
For a comprehensive Whisky Cask Investment Guide with everything you need to know from cask types to the best whisky regions, visit the Vintage Acquisitions website www.vintageacquisitions.com now.
This is paid-for content on behalf of Vintage Acquisitions, and does not necessarily reflect the views or advice of Milton Keynes Citizen. As with all financial investments, your investment may go down as well as up, and people are recommended to take financial advice.