WHISKEY CASK INVESTMENT
Invest in Whiskey Casks with Confidence
The Cask Collective specializes in sourcing, purchasing, and managing barrel aged spirits. Our model provides an opportunity for individuals to not only invest but also enjoy bourbon cask ownership.
We have collaborated with US distilleries to purchase barrels at the lowest competitive prices. Once purchased, barrels are stored at their original distiller's bonded warehouse.
These low-cost facilities ensure your whiskey cask investment is safe, insured, and evidenced by our published inventory list. When it’s time to sell, we will aid in securing competitive offers from industry end users.
Is it Worth Investing in Whiskey Casks?
The bourbon industry has experienced significant growth in recent years. Returns depend on age, quality, and recipe. Aged bourbons realize an average annualized return of over 10% after costs. Per the Distilled Spirits Council of the United States, the bourbon industry has witnessed sales of bourbon and Tennessee whiskey exceeding $4 billion in 2020. The Wall Street Journal notes that some of the rarest and most sought-after bottles of bourbon have seen their values soar in recent years, with returns on investment of 10% to 20% annually. Prices have been moving up and investor returns are increasing. Despite the increasing whiskey cask investment prices, the popularity among investors continues to shore up. Furthermore, the global bourbon market is projected to continue its growth trajectory in the coming years.
The global whiskey market is expected to reach USD 89.60 billion by 2025, according to a new report by Grand View Research, Inc. The market is anticipated to witness a compound annual growth rate (CAGR) of 6.4% during the forecast period on account of rising product consumption across the globe. Growing product usage in the artistic preparation of alcoholic drinks is the key factor driving the industry. Blended whiskey is likely to remain the most lucrative product segment over the forecast period due to ongoing experimental activities to produce innovative drinks.
The market has also experienced a high demand for rye-based and single- and double-malt whiskey rich in new flavors. Use of malt whiskey in cocktail formulation is anticipated to increase the demand further. The increasing popularity of bourbon in international markets, particularly in Europe and Asia, is expected to be a key driver of growth as well. The same Grand View Research report projects that the Asia Pacific region will be the fastest-growing market for bourbon, with a compound annual growth rate of 8.3% from 2021 to 2028.
Due to maturation requirements, barrels must age before processing. This maturation process at a minimum, is four years. Due to this unavoidable delay distillers frequently borrow money to cover costs as they wait. Volatile borrowing conditions and nervous bankers often force distillers to sell prematurely. This instability in lending markets allows you to accept whiskey cask ownership. Together we profit through tackling the industry's greatest problem — the large working capital requirements of financing maturing stock. This niche in the industry creates an opportunity to build wealth assets in ways usually reserved for insiders.
So, what are you waiting for? Consult the Cask Collection and secure the best whiskey cask investment available on the market.
Cask Whiskey Investment Benefits
Asset Backed
You will own a fully insured whiskey cask in a proven and stable market.
Wholesale Rates
We leverage our industry partnerships to secure heavy discounts on premium casks – and offer these rates to you.
Solid returns
According to the Knight Frank Wealth Report, rare whiskey was the best performing collectable in a decade.
Secure Asset
Fully insured and secured in bonded warehouses and regularly checked by whiskey experts.
Diverse Exit Strategies
We offer a wide range of unique exit strategies, tailored to your individual needs.
Who Can Invest in Whiskey Casks?
Private Investors
Whiskey cask investment continues to drive consistent and stable returns for individuals. Leverage the growing demand and market scarcity of aged whiskey and invest in barreled bourbon today!
Collectors
Investing in whiskey casks presents a unique opportunity to acquire sought-after bottles in the future. Each cask holds the potential to become a cherished and valuable addition to your treasured collection.
Brands
Capitalize on the growing interest in premium and limited-edition spirit by investing in whiskey casks. Create unique flavors that give you a leg up in the highly competitive market.
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What is the minimum purchase amount?For American whiskey, whole casks are approximately $1,800. That amount also covers storage and insurance. The optimal hold time is typically four years. Partial barrels can be purchased monthly for as low as $225 which buys 1/8th of a barrel with a 1-year contract.
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Why is the minimum so low?The minimum purchase starts at $225 because we offer partial casks with an annual contract. When you consider that a 53-gallon barrel holds 266 bottles, you’re getting 33 bottles of whiskey juice under $7. The stability of the monthly purchase program allows multiple buyers as a Collective to purchase at wholesale production costs from the distilleries.
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Where is the whiskey sourced?We partner with craft distilleries currently in North Carolina and Texas.
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What are the management fees?ZERO
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Why invest in casks and not bottles?Whiskey Improves with Age. The flavor and aromas of whiskey constantly evolve while they are in the cask. Once whiskey goes in a bottle, it stays the same permanently. Now you are competing with retail distributors verses remaining in the wholesale shadows. Casks have more liquidity. When you want to sell your cask, you have multiple wholesale buyers who are blending, bottling, and holding for additional maturation.
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Can I invest in custom or rare casks?Yes. These are offered as available. Let us know what you are looking for as prices and hold times can vary greatly.
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Where are the casks stored?Cask storage facilities are called Rickhouses. Typically, a temperature and humidity-controlled bonded warehouse either managed by the distillery the cask was purchased from or a Cask Collective managed facility.
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Can I visit my cask?Yes. Contact us to make arrangements to take a distillery tour.
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How are the casks insured?The insurance policy is based on the initial purchase price through the rickhouse operator.
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Can I invest in a cask through an LLC, trust, or joint ownership?Yes
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Can I take delivery of my cask, or have it bottled?Yes, and the whiskey will be delivered in bottles. We will work with you to get your whiskey bottled and shipped to you. Know that delivery of your whiskey will be subject to packaging and freight costs in addition to local taxes and duties. These costs will be determined and upon approval. You will need to advance all funds to complete the delivery.
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Can I have proof of my cask?You will receive a barrel number that uniquely identifies every barrel for Federal tax purposes and tracking along with a certificate or ownership.
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Can I bottle my whiskey with a custom label?Yes, you can have your whiskey custom labeled. This has traditionally been a great value to business owners providing branded gifts to customers. These services can be completed for an additional fee.
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How is the value of my cask determined?Valuation is based on data from comparable sales from whiskey exchanges and auction houses around the world.
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If bourbon is such a great investment, why don’t distillers hold all their casks?Whiskey is a long-term asset. The magic is in the cask maturation, due to this, distillers must wait years before selling. However, waiting years to sell a product causes cash flow issues. That’s why distillers sell some of their new fill casks immediately and free up working capital. Often, the distiller will buy back their whiskey when it’s mature so that they can bottle and sell it.
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What is the average estimated hold time per cask?4 years is the norm for bourbon but not longer than 25 years per Federal rules.
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What happens when I want to sell my cask?We locate purchasers in advance of the final maturation and will typically negotiate a bulk sale. You will be invited to participate along with us. If you need to sell prior to full maturation, there are often buyers available but know that it may take a couple months to complete. We will obtain offers and present you with the available options for your ultimate decision.
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Where does my cask end up? Who buys it for bottling?Many craft brands do not have distilleries or rickhouses and they purchase these types of casks. They may bottle as is, blend with other casks or blend and mature in different casks to enhance the flavor profile. Next time you are in a spirits store, look on the back of the bottles and they will usually disclose where the product was distilled. It is surprising to many how common and unknown this is.
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Do I get to choose the whiskey cask or distillery?Those purchasing more than 100 casks at one time can have input on the product. Under 100 barrels you participate in the wholesale transaction we are able to locate from the top 5-10 desirable types of product being produced.