10 Things You Need to Know Before Investing in Your First Whisky Cask
The whisky cask market has experienced significant growth over the past decade, quietly
outperforming other luxury assets, such as fine wine and vintage cars.
With Scotch whisky exports reaching £5.4bn in 2024, showing a steady increase of around 36.7
per cent over the last decade, the long-term outlook for cask whisky remains strong, provided
investors know what to look for.
This growth has been fuelled by rising global demand, particularly in markets like China, where
Scotch whisky exports have seen a dramatic increase of 165 per cent from just under £89m in
2019 to over £235m in 2023.
This expanding market presents real potential for investors seeking to diversify their portfolios,
particularly since cask whisky, unlike bottled whisky, is exempt from capital gains tax.
Hunting the whisky bandits
However, as with any burgeoning market offering attractive returns, it can attract unscrupulous
actors.
The recent BBC documentary, ‘Hunting the Whisky Bandits’, which aired on 20th March 2025,
exposed companies engaged in deceptive practices, such as selling non-existent casks or
inflating prices.
In 2023 alone, consumers were reported to have lost as much as £3m to alcohol investment-
related scams.
Scams often target investors through social media or via direct cold calls. In one of the most egregious cases, consumers lost as much as £10m from one single scam in the United States.
While headlines about fraud can be concerning, the long-term outlook for cask whisky
investment remains positive. It offers a unique combination of characteristics:
● Low correlation to global markets
● Potential for long-term growth
● Capital gains tax efficiency.
● A tangible, insured asset that matures over time and can be visited and sampled.
This creates a rare blend of downside protection and upside potential in an asset that feels
more personal and can be enjoyed on a level that differs from a purely monetary investment. This makes it more critical than ever for investors to be well-informed and vigilant. London Cask Traders emphasises that education is the most effective defence against fraud.
They advocate for clearer industry standards and empower potential clients with authoritative
content to alleviate concerns and build confidence in the market.
The 10 checks smart investors should make
To help navigate the market safely, here are ten essential checks every serious whisky cask
investor should make before committing to any purchase:
- Insist on a Delivery Order (D.O.): This is your legal proof of ownership, issued and co-
signed by the bonded warehouse storing your cask. Without a D.O., other documents like
a ‘Certificate of Ownership’ are essentially worthless. - Ensure You Have Your Own Private Account at the Bonded Warehouse: Your cask
should be stored in a warehouse where you, not the investment company, have an
account in your name. This prevents the misrepresentation or multiple sales of casks. - Ask to Visit the Bonded Warehouse in Person: A reputable company will encourage
you to visit and see your cask. This is not just about verifying its existence but also about
understanding the storage conditions and potential for regauging and quality checks.
London Cask Traders regularly facilitates client visits to their bonded warehouse partners. - Verify the Company is Listed with Companies House: A quick check on Companies
House can confirm if the company is actively trading, compliant with HMRC, and
transparent in its filings. This simple step offers significant peace of mind. - Visit their Offices if Possible: Legitimate firms are generally happy to meet clients in
person at their listed offices. Scammers, on the other hand, will often avoid such in-
person meetings. - Request Past Client Success Stories: Ask for evidence of previous clients who have
successfully exited the market and achieved positive returns. London Cask Traders can
provide case studies (with permission) of clients who have seen strong returns. - Compare Prices Across the Market: Always cross-reference prices with other
established traders. Unusually high or low prices can be a warning sign. London Cask
Traders encourages clients to check prices online, confident in their competitive pricing. - Focus on Established Distilleries: Investing in casks from well-known distilleries with a
proven track record and bottling reputation carries less risk than investing in those from
start-ups or lesser-known producers. - Check their Presence Online: Examine the company’s online activity. Do they share
genuine content like client visits, warehouse tours, and distillery partnerships, or is it
primarily sales material? A strong, engaging online presence can indicate transparency. - Read the Reviews: Look at online review platforms like Trustpilot. Pay attention not just
to the star rating but also to the content of the reviews and how the company responds to
feedback.
London Cask Traders is committed to guiding investors from their initial cask purchase to
developing a complete portfolio strategy.
For those considering entering the market, taking the time to research and speak with experts is
crucial.
While no investment can guarantee returns, with careful due diligence, cask whisky can be an
innovative and potentially tax-efficient route to long-term wealth building and growth.
To learn more about safe whisky cask investment and how London Cask Traders can assist
you, please visit https://invest.londoncasktraders.com/cityam.
About the Author: Oliver Court is the managing director at London Cask Traders and a member of the Forbes Business Council. He is a strong advocate for greater transparency within the whisky cask industry.
This article is Partner Content on City AM.