EXPERIENCED
WHISKY ACQUISITION CONSULTANTS
Based in Westminster, London, Cartwright Jenson Group Ltd supports clients in the acquisition of specialist and rare whisky. See how you could benefit from our advice today.
We are WOWGR (Warehousekeepers and Owners of Warehoused Goods Regulations) registered and certified.
BUY WISELY
with our support
Rare whisky - in particular Scotch whisky - is revered and enjoyed by drinkers and collectors around the world. More than 20 million cases of whisky reside in Scotland’s bonded warehouses, with Scotch whisky accounting for over £6bn in global exports (in 2022).
At Cartwright Jenson Group we provide information and support to those looking to acquire rare whisky. Whether you are new to this market, or are looking for helpful support with your next move, our team of whisky acquisition consultants will be more than happy to assist.
Learn the fundamentals of how to collect rare whisky, as well as tools and tips to spot a good buy.
When it comes to the exit strategy, Cartwright Jenson Group prioritises transparency and client satisfaction. We offer several options to make the selling process as seamless as possible.
WHY
whisky?
In recent years, there has been an extraordinary change in the market, with some rare whisky bottle values increasing by as much as 40%. It has previously outperformed other, traditional asset acquisitions, such as classic cars, watches and art.
In 2018, over £40.7m of rare whisky sold across the UK in auction houses alone. A cask of Macallan distilled in 1989 recently sold for $572,000 USD, which was a record at the time.
Selecting whisky can be an intriguing and potentially lucrative venture. As an alternative, whisky offers a range of benefits that attract both enthusiasts and those seeking a good return.
THE BENEFITS
of whisky acquisition
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Free from capital gains tax
Multiple exit strategies
Our team will handle everything
We have exclusive access to several distilleries
Secure storage in HMRC bonded warehouses
We’re fully licensed and bonded
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WHISKY ACQUISITION
DISCOVERING
whisky acquisition
If you’ve ever thought about whisky as an acquisition, you’re in good company! Whisky acquisition involves acquiring casks or bottles with the intention of realising a profit later on. But it’s more than just a financial opportunity; it’s an engaging journey into the world of fine spirits.
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Why whisky?In the past, acquiring cask whisky posed challenges, setting it apart from equities and bonds, which were more commonly traded. As a result, it wasn't considered a crowded trade. Tangible assets offers enhanced financial security since these products are generally immune to the risks associated with organisational failures.
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What is a cask?This refers to the wooden barrels many people associate with the industry. These barrels are typically obtained from the United States and crafted from American oak. They are initially utilised to age Bourbon whiskey. These previously used casks are great for whisky, as they impart unique flavours into the blend.
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What is included in my cask purchase?When you purchase a cask, you receive a comprehensive package that consists of a premium oak cask and the New Make Spirit contained within it. Equally important, this package guarantees bonded storage for a duration of 3 years, allowing the whisky to mature and appreciate in value. Additionally, insurance coverage is included for the casks, providing you with peace of mind throughout the purchase process. By choosing to purchase the complete package from Cartwright Jenson Group Ltd, you can rest assured that there are no additional fees incurred during the initial 5-year period.
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Will I have to pay capital gains tax?Whisky casks are seen as ‘wasting assets’ which are exempt. The cask absorbs whisky during the maturing process, around 2% volume per year, which is why HMRC see it as a wasting asset.
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Is my cask insured?Absolutely! When you acquire casks through us, they come with comprehensive insurance coverage for a period of 5 years starting from the moment you become the owner. Premiums adjust as the value of the cask changes. Insurance covers damage, loss and theft.
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Why are casks better than bottles?Unlike wine, whisky will not age and mature once it’s been bottled. The longer it remains in a cask, the longer it can improve and develop over time. Additionally, the tax on bottled whisky is much higher per litre of pure alcohol (LPA), and cask whisky which matures in bonded warehouses isn’t subject to duty charges.
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What is a bonded warehouse?These are tax-free storage facilities where goods can be stored without duty or tax payments, until they are purchased and shipped. Bonded warehouses are licensed and regulated by HMRC, and are highly secure.
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What is the ‘angel’s share’?This refers to the amount of whisky lost through evaporation as whisky ages in a cask. When whisky is stored in a non-airtight container, some evaporation is inevitable. This evaporation is a natural part of whisky maturation. The evaporation process allows for a reduction in alcohol content, enabling other desirable ingredients to become more prominent and balanced within the whisky's flavour profile.
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How is Scotch whisky made?The initial product is produced in Scotland through the fermentation and distillation of malted barley, Scottish water, and yeast. This spirit is then matured in oak casks for a minimum of three years. The maturation process must take place in Scotland, ensuring the whisky's authenticity. During maturation, the only permissible additive is caramel, which can be used for colouring purposes. Strict regulations, known as the Scotch Whisky Regulations of 2009, are in place to uphold the quality standards of Scotch Whisky production. These regulations serve to guarantee that you are purchasing a luxury product of the highest quality. Moreover, they play a crucial role in preserving the distinct and unparalleled flavour profile that Scotch Whisky is renowned for worldwide.
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What happens if a warehouse or distillery goes bankrupt?In this rare event, your cask asset remains secure and separate from any claims made by liquidators. As the owner of the cask, you retain ownership rights. In such a situation, the cask would be transferred to another bonded warehouse, ensuring the continued safekeeping and preservation of your casks. This provides an additional layer of protection for your asset, safeguarding it from potential liquidation proceedings.
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Where is the opportunity to sell?The current state of the whisky market presents abundant opportunities for profit with your purchase from Cartwright Jenson Group. The industry is experiencing record levels of growth. The whisky blending industry is highly lucrative, offering multiple avenues for selling your matured whisky. There are numerous specialised platforms, brokerages, and auction houses that specifically cater to the sale of whisky casks. Throughout this process, we will provide dedicated support and guidance.
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What are the risks?The primary risk lies in the scenario of whisky losing its popularity and experiencing a sudden decline in demand. However, considering the current trends, we find it difficult to envision such a situation. As more and more countries ascend in economic prominence, the demand for whisky is expected to increase even further. It is noteworthy that whisky exports have consistently displayed year-on-year growth for over three decades. While it is important to acknowledge that past performance does not guarantee future results, the sustained growth in whisky exports provides a positive outlook for the industry's future.
WHY CHOOSE
whisky acquisition?
Potential for strong returns:
Whisky can often outperform traditional acquisition, especially rare and collectible casks.
A unique diversification:
Adding whisky to your acquisition portfolio offers a chance to diversify with an asset that’s as enjoyable as it is valuable.
A personal connection:
Acquisition in whisky allows you to engage with a rich heritage and craft, making the process rewarding beyond mere profit.
At Cartwright Jenson Group, we’re excited to help you embark on your whisky acquisition journey. Our team of experts is dedicated to providing you with the information and support you need to navigate this fascinating market. Whether you’re just starting to explore or ready to make your first acquisition, we’re here to assist you every step of the way. Get in touch today to discover how we can help you turn your whisky dreams into reality!
IF YOU’RE INTERESTED IN
acquiring whisky,
speak to one of our friendly specialists first:
020 3411 8101
