Cask Buying - A Step by Step Guide - The Uncharted Whisky Co.

Cask Buying -
a Step by Step Guide

Jack Breslin

So you want to buy a cask? Sounds good. There is lots of great reasons to get in on the wonderful world of whisky casks. Maybe you LOVE whisky and have always dreamed of owning your own cask, maybe you like the idea of bottling up a cask for an occasion such as wedding, you want to gift your bottles to family and friends (and enjoy a few yourself) or maybe you’ve heard great things about investment and financial returns. Maybe it is a pleasant mix of them all!

Lots of good reasons, each as valid as the next. However, there are also some pitfalls to watch out for.

So below, I’ve listed how to buy your very own cask of whisky and what to watch out for. Let’s call it “Cask Buying for Dummies”.

1. Decide a budget

Casks of Scotch whisky can vary massively in their price, age, rarity, ABV, origin distillery, cask type, cask size. These can vary from just about £1000 all the way up to hundreds of thousands of pounds. The best thing to do is decide early on how much you want to spend. Set a budget and stick to it.

Things to watch out for

Don’t be tempted by sales people trying to up-sell you above your budget or indeed be pressured into making a quick purchase. Buying a cask- particularly your first cask- can be super exciting but rush into a purchase until you’ve done your research. All too often I am told “Oh I got a bit carried away on that one and paid a bit too much”. There will always be more whisky. There is no need to rush.

What we do at Uncharted Whisky

We are happy to give you as much time as you need to decide if a cask is for you. If you are interested in a cask, we will provisionally hold it for you until you are sure. There is never any obligation to buy. If someone else expresses an interest in buying the same cask you have as us to provisionally hold, we will let you know and the decision will be up to you.

2. Choose a seller

So you’ve set a budget and are now shopping around. You’re off to a great start. Now you need to choose who to buy from. This is the start of a relationship so go with someone you trust and someone with experience. If you can’t get a reference to a reputable broker, ask them lots of questions and make sure that they know their stuff.

Things to watch out for

This is probably the part of the process where you must be most careful. It is a sad truth but in every industry, there are those to only wish to sell, sell, sell at the maximum possible price. We’ve heard some stories that we’d rather not see repeated. So below are our top tips:

Buy from someone reputable
Shop around and compare prices from different brokers to understand if you are getting a good deal
Be particularly wary of sellers advertising huge financial returns. A cask is only worth what someone else is willing to pay for it, none of us have a crystal ball and if it sounds too good to be true, it probably is!
Do not be rushed into a purchase by a salesperson. There will always be more whisky.

3. Choose a cask

Now on to the more fun part. There are many many different casks to choose from. Each broker will have a selection of casks they have available for sale. You have to choose one that suits your needs and budget.

The most common casks are ex-bourbon barrel and hogsheads. These are normally the most affordable. First-fill sherry casks are normally the most expensive.

Things to watch out for

Shop around to make sure you are being offered fair prices and don’t buy in a rush (you’ve probably noticed that I say this a lot…).

Buy based on the amount of alcohol in the cask (with all the different sizes, strengths and angel’s share, prices get too confusing otherwise). If nothing is available which suits your needs, be patient, talk to your broker and see what they can hunt down for you.

4. Check the Other Important Details

This is the nitty-gritty and you need answers before you part with your hard earned cash.

Where is it stored?
Is it going to be moved and to where?
How much does the movement cost?
Who holds the Delivery Order? (read more in our article on Delivery Orders coming later this week)
Who is insuring it and to what value? Is this value reviewed as the cask gets older?
What is the charge per annum for insurance?
What is the charge per year for storage?
Are there any strings attached if you choose to sell the cask further down the line?

At Uncharted Whisky, we will answer all these questions before you are sent an invoice.

Here’s the questions answered if you buy with us…

Q. Is it going to be moved and to where?

A. We try not to move casks if we don’t have to. We have accounts in warehouses all over Scotland so try to leave casks where they are as often as possible. By moving casks unnecessarily, you simply rack up costs in charges by the warehouses and compliant “under bond” transit companies. However, it is your choice. If you want you cask moved, we will do it.

Q. How much does the movement cost?

A. It depends on the distance moved and the “booking in” fees that warehouses charge. The most we have seen is around £250 but it can be much cheaper if we are moving more than one cask.

Q. What additional costs are there?

A. Admin fees mainly which are minor (£25 pounds or so). Read our other article- The True Cost of Cask Ownership here.

Q. Who holds the Delivery Order?

A. We can offer this service but so long as you have appropriate warehouse accounts, you can straight away.

Q. Who is insuring it and to what value? Is this value reviewed as the cask gets older?

A. Your cask is insured with us up to it’s invoiced value for 1 year (up to £10,000).

Q. What is the charge per annum for insurance?

A. This is taken on a case by case basis dependent on the invoiced value of you cask. It is free for the first year (up to a value of £10,000)

Q. What is the charge per year for storage?

A. Free for the first year no more that £50 per year after that.

Q. Are there any strings attached if you choose to sell the cask further down the line?

A. Nope. You are free to sell privately, through us or through any other reputable broker so long as you are compliant with the law.

5.Pay for the cask

Once you are happy you understand it all and are happy with the cask and price. Go ahead and pay for it.

Things to watch out for

Please use a reputable company and make sure you are not being scammed. Do your due dilligence!

Make sure the invoice details and bank account match the brand.
If unsure, don’t transfer any money!
Ask for references.
Ask your bank to check.
You can check the Companies House to make sure everything adds up.
You can check the AWRS checker provided by the HMRC to make sure a UK company is who they say they are. Ask the seller for their AWRS number and WOWGR details.

If in doubt, don’t pay and don’t be rushed or pressured.

6. Decide what is next

This is the fun bit. Are you going to bottle it, re-rack it to do a finishing maturation, go to visit the cask, order a sample or maybe sell it on one day? The options are endless!

So that is it- Cask Buying for Dummies. I know it’s a lot of information to digest but I hope you find it helpful. Still keen to get your hands on a cask? hello@unchartedwhisky.com or give me a call!

Slàinte,

Jack Breslin

Director

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