COLLECTIVE: col·â€‹lec·â€‹tive
Working together to streamline bourbon investing in the United States
Start Investing in Bourbon Barrels
Invest Wisely, Drink Well
Explore exclusive opportunities for investing in bourbon barrels. At The Cask Collective, our expertise and connections within the bourbon industry get you access to the best investments.
Why Invest in Bourbon?
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Bourbon has seen an explosive rise in popularity over the past decade, with global consumption increasing by 116%. This "Bourbon Boom" has driven demand and skyrocketed the value of collectible bourbon. Rare bottles have fetched over $20,000 at auction, while even production bottles are now regularly selling for more than $4,000 on the secondary market. As high-end bourbon becomes a symbol of luxury and status, its value is expected to rise even further.
Exceptional Stability and Returns
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Bourbon barrels have demonstrated remarkable stability and consistent performance, making them a wise choice for strategic investors. Since 2010, the average annual appreciation for bourbon casks has been 13.85%, outpacing many traditional asset classes. Importantly, these investments have shown little correlation with stock and bond markets, providing a valuable hedge against market volatility.
The Bourbon Market Outlook
Growth and Demand
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The bourbon industry has experienced significant growth in recent years. According to the Distilled Spirits Council of the United States, sales of bourbon and Tennessee whiskey exceeded $4 billion in 2020. The Wall Street Journal notes that rare bottles have seen values soar with returns on investment ranging from 10% to 20% annually. Despite rising prices, investor interest continues to grow, driven by market scarcity and increasing global demand.
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Global Market Expansion
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The global whiskey market is projected to reach USD 89.60 billion by 2025, with a compound annual growth rate (CAGR) of 6.4%. This growth is fueled by rising consumption worldwide, particularly in Europe and Asia. The Asia Pacific region is expected to be the fastest-growing market for bourbon, with a CAGR of 8.3% from 2021 to 2028.
Our Investment Opportunities
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Bourbon Barrel Investment
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Investing in bourbon barrels offers a unique opportunity to own a tangible asset that appreciates over time. We partner directly with leading distilleries to secure the best barrels for our investors. These relationships ensure that you get the most lucrative and secure investment options available.
Bourbon Investment Fund
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For those looking to diversify their investment portfolio with a professionally managed option, our fund is an excellent choice. The fund pools resources from multiple investors to acquire high-value bourbon barrels, maximizing returns while minimizing individual risk.
Benefits of Buying Bourbon as an Investment from The Cask Collective
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Direct Distillery Relationships
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Our strong, long-term relationships with distilleries across the United States are the cornerstone of our investment platform. These connections allow us to offer exclusive opportunities, including distillery buy-backs and bottling arrangements, ensuring the best possible returns for our investors.
Stringent Oversight and Protection
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All bourbon production in the United States is heavily regulated to ensure quality and safety. Every cask purchased through us is stored at licensed facilities, complying with strict federal regulations. These safeguards, along with oversight from the SEC, FDA, and other governing bodies, make the U.S. one of the most secure markets for bourbon investments.
Asset-Backed Security
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Owning a fully insured bourbon cask provides a secure and stable investment. Stored in bonded warehouses and regularly checked by experts, your investment is protected and well-maintained.
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Wholesale Rates
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Our industry partnerships allow us to secure significant discounts on premium casks, offering you the best possible rates on your investment.
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Solid Returns
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According to the Knight Frank Wealth Report, rare whiskey has been the best-performing collectible of the past decade. This trend is expected to continue, making bourbon an attractive investment option.
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Diverse Exit Strategies
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We offer a variety of exit strategies tailored to your individual needs, ensuring that you can maximize your returns when it’s time to sell your investment.
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Asset-Backed Security
​
Owning a fully insured bourbon cask provides a secure and stable investment. Stored in bonded warehouses and regularly checked by experts, your investment is protected and well-maintained.
​
Wholesale Rates
​
Our industry partnerships allow us to secure significant discounts on premium casks, offering you the best possible rates on your investment.
​
Solid Returns
​
According to the Knight Frank Wealth Report, rare whiskey has been the best-performing collectible of the past decade. This trend is expected to continue, making bourbon an attractive investment option.
​
Diverse Exit Strategies
​
We offer a variety of exit strategies tailored to your individual needs, ensuring that you can maximize your returns when it’s time to sell your investment.
Frequently Asked Questions
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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.