How VCL is modernising the whisky cask market
In the world of alternative investments, few assets carry the allure of a Scotch whisky cask.
For centuries, this liquid gold has aged in the quiet shadows of Scottish warehouses, governed by tradition, family lineages, and a “gentleman’s agreement” style of business.
However, this charm masked a systemic problem that Benjamin Lancaster, Founder and Partner of VCL Vintners (VCL) sought to resolve: how do you build institutional-grade trust in an industry that has historically thrived on opacity?
VCL founder’s journey
Lancaster’s entry into the spirits world was born not of a boardroom, but amid the pressure and precision of a professional kitchen. Starting his career as a chef, he developed an early intimacy with the hospitality industry that would later define his approach to business.
A chef must know exactly where their ingredients come from, how they were handled, and the exact specifications of the product. It was during a year of travel with his now-wife that Lancaster came up with the idea of a new kind of whisky broker. “While traveling with my now-wife, a wine supplier introduced me to various wineries and early-stage distilleries. That was a real eye-opener regarding the scale of the sector,” he says.
Lancaster, a self-proclaimed “Scotchophile” (he was married in Scotland), saw that whisky was performing exceptionally well at auctions, yet the infrastructure for individual investors to participate in the cask market was almost non-existent. “Back then, you either had to work in the industry or live in Scotland to even know cask investment was viable. Sourcing was the hardest part. Today, you’re inundated with options to buy a cask, but when I started, there was no “go-to” place,” he says.
This became the catalyst for VCL’s founding in 2010. Lancaster identified that the primary barrier to entry was a lack of transparency in ownership. “We saw a void. Everything in the industry was being done on Excel or paper. When you combine increasing asset values with archaic, slow processes, you create a bottleneck. We wanted to “grease the wheels” – quickening the management and transfer of ownership. If the infrastructure moves faster, the industry grows faster,” he says.
Whisky casks: market problems
To redress these issues, Lancaster made the pivotal decision to move beyond the traditional broker model. While other companies were content to act as mere middlemen, Lancaster set out to build a comprehensive management platform. By building dedicated digital infrastructure, VCL replaced “handshake trust” with “systemic trust.”
This culminated in the sale of a rare 1991 Macallan whisky cask in 2021, which hit a record by selling for $2.33m (£1.8m) through an auction facilitated by VCL Vintners and the NFT marketplace Metacask. This landmark sale combined the physical asset – containing approximately 600 bottles’ worth of premium Scotch – with a specially commissioned NFT artwork by Trevor Jones titled “The Angel’s Share.” This event stands as definitive proof of concept for VCL Vintners’ mission to reform the secondary whisky market, demonstrating that digital innovation can unlock significant value while preserving the spirit’s heritage.
“They say imitation is the best form of flattery. We pioneered this space in the UK as a bona fide asset class over the last 15 years. We created the template that many others followed,” he notes.
By implementing a client portal that delivers this information transparently and independently of a broker’s word, Lancaster has empowered investors with the data they needed to make informed decisions. In addition, M&G Trustees (a division of M&G Investments, an FTSE 100 investment manager with over £340 billion in assets under management) is the record keeper of all casks, which adds a further blue-chip stamp of quality and trust to the offering.
Lancaster has also worked to improve transparency across the industry with Proof 8 – a company he helped fund – which is reimagining the industry with innovative solutions for production, ownership and consumer engagement.
New markets
To add to its offering, VCL Vinters has also released an app as an extension of the company’s proprietary client portal. The app allows investors to track valuations, review historical performance, and access granular data such as the “Digital Deeds” and regauging records that ensure transparency
The competitive advantage Lancaster has built is rooted in this “credibility first” approach. While newer companies have entered the space attempting to imitate the VCL model, they often lack the “boots on the ground” history and the depth of expertise that Lancaster has cultivated over fifteen years.
With the launch of One Cask At A Time (OCAAT), VCL’s independent bottling line, this process moved one step further.
“We’ve also invested heavily in people,” says Lancaster. “Some critics claimed we only did it as an “exit strategy” for clients, but that’s factually incorrect and disrespectful to the work put in. We brought in Russell Bradley from William Grant & Sons to run it – he was responsible for the creation of Wm Grant’s House of Hazelwood brand. It’s a standalone project because independent bottling is a massive part of the whiskey culture,” he adds.
This integrated approach based on trust has worked well for the brand. Today, VCL has over 2,000 clients worldwide, manages 16,000 casks valued in excess of £150m, and employs 17 members of staff with an annual turnover of £20m.
The business is also working to give back to the industry. The team has also launched the VCL Foundation, a silver partner with The Drinks Trust, sponsoring two bursaries: 1) Scotch Whisky Certificate delivered through the Edinburgh Whisky Academy, which will see 30 students sit the course every year and 2) CIBD Foundation in Distilling course for upwards of 50 candidates annually.