TO THE WHISKY MARKET

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.