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Author: Darren Hughes - Head of Stock and Logistics
HomeArticles Posted by Darren Hughes - Head of Stock and Logistics
June 11, 2025 Industry NewsWhisky Cask InvestmentBy Darren Hughes - Head of Stock and Logistics

How to avoid whiskey investment scams

Some brokers in the market are using unfavourable practices and like many industries, it is subject to unscrupulous people acting fraudulently to con honest investors out of their money. But this should not deter you from investing in whisky as it is such as great investment (and why these people are targeting this sector), you should however do your homework before investing.

What should you look for?

One of the first things you can look at is the company history. Is it a new company? What experience do they have in whisky investment? What licenses and certifications do they hold? What reviews are available on the company? What processes do they have in place to manage and protect your whisky investment? Will ownership of the casks be transferred to you?

You should look for a reputable company that has the experience and is licensed by HMRC to move and store alcohol under suspended duty, this regulation is called WOWGR.

Are they connected to the right warehouses to protect your assets? Cask whisky investments should be stored securely in HMRC-bonded warehouses which are designed to store goods that are subject to excise duties (such as alcohol) and they ensure the duty is paid before the alcohol is released to the market for consumption. These warehouses are designed specifically for storing alcohol with temperature controls, strict protocols and surveillance systems to deter theft and ensure regulatory compliance. Also, how will they safely transport your casks to the appropriate warehouse? A genuine company should have certification and answers to all these questions.

Ownership of the casks is also a key priority so that you have verifiable ownership of the casks and documentary evidence. How will the company provide you with this? You should always check that the cask is registered in your name at the warehouse upon completion of the purchase and the cask being stored there.

What do the reviews say about the company? Recommendations or reviews are a great way to learn more about a company from impartial people, find out more about its offerings and how they treat their customers.

Finally, look out for potential red flags such as the promise of fixed high returns or hidden costs for warehousing fees or duty payments which could indicate someone that isn’t operating reputably or acting fraudulently.

If you are at all unsure about a company and the investment opportunity, you should seek advice before investing.

What does Whisky Investment UK offer their clients?

Whisky Investment UK is part of a large organisation that has been operating for over 15 years and is FCA regulated. We are also WOWGR licensed which means we are approved and licensed by HMRC to store both bulk and cask whisky in duty suspense storage at any approved Scottish warehouse. We are a trusted whisky investment advisor and broker with a wealth of experience to help you find the right casks and we provide transparent pricing.

In 2023, Whisky Investment UK were awarded “The Best Whisky Investment Management Specialist” at the UK Enterprise Awards. The award recognised the careful and personal way that clients and their investments were handled. At Whisky Investment UK, we are trying to lead the way in the industry by creating processes that protect the client and their assets as well as deliver exceptional customer service.

One of the things we uniquely offer our clients is that we facilitate the opening of private accounts for our clients at HMRC-approved bonded warehouses. This is an essential part of the process for clients as it provides them with 100% ownership and control over their assets as the process includes providing the client with a Delivery Order and transferring the casks to their private account. Each cask also has a unique number and AYS which gives the date it was filled which identifies and the warehouse will track your casks for you in their facilities. We can also arrange for you to visit your casks at these state-of-the-art warehouse facilities and have your photo taken with them, so you can see your casks for yourself and know that they are safe and well cared for.

The HMRC-bonded warehouses that we use have state-of-the-art surveillance and monitoring systems to protect your assets with CCTV cameras, access control measures and motion sensors. Sites are protected by fencing and gates with restricted access and security personnel to patrol the premises. They also have sophisticated inventory management systems to track all casks in their facilities.

Each HMRC-bonded warehouse is also temperature and humidity-controlled to provide the right environment to support the maturity of the whisky. So you can be reassured that your casks are in safe hands for your investment period.

If you are interested in investing in cask whisky with a reputable and trustworthy company contact us to find out more and one of our team will answer your questions and guide you through the process.

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November 21, 2024 Climate ChangeWhiskyWhisky Cask InvestmentBy Darren Hughes - Head of Stock and Logistics

Whisky Investment UK: A Commitment to Sustainability and Quality

One of Scotland’s oldest working distilleries, Glenturret has announced plans to phase out the use of peat in its whisky production, with a target to complete this transition as early as 2025.

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August 15, 2024 WhiskyWhisky Cask InvestmentBy Darren Hughes - Head of Stock and Logistics

Reopening Port Ellen Distillery!

Port Ellen Reopens!

The reopening of The Port Ellen distillery on the 19th of March 2024 has caused quite a stir here at Whisky Investment UK, having been spruced up and opened after almost forty years since the distillery, located on the South coast closed.

Port Ellen was originally opened around 1825 and concentrated on blended and peated Scotch. For reasons unknown the distillery which had part fallen into disrepair became obsolete around 1983.15 or so years later, Diageo announced plans to bring the distillery back to life as part of an investment of £180 million into the Scotch category.

The re opened Port Ellen has been fully refurbished with its two giant Phoenix stills being exact replicas of the distillery’s original early still, alongside a further two experimental stills. The master distiller on site Alexander McDonald and his team have included methods to explore multiple smoky flavours in the onsite lab. Also, a six-part roller mill and are among the investments in equipment. But where this really excites us here at Whisky investment is that the distillery is also carbon neutral. That element is what brought our partner group into wholesale sales and storage of cask whisky and what drives us forward with our background firmly in the ethical production of whisky and the energy management work the distilleries undertake. This also shows the work that the distillery and its management are environmental conscious and secures the ongoing future of Islay.

The Port Ellen Distillery is now officially open for business on Islay, breathing new life back into an old legacy building. This content has been created by WIUK for the purposes of information only. The Port Ellen distillery, Diego and its products which may be trademarked are not connected to WIUK and we make no inference or connection to them. 

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August 13, 2024 Industry NewsWhiskyBy Darren Hughes - Head of Stock and Logistics

Cask Matured Whisky as an Investment

INVESTORS!
Have you thought about cask matured whisky as an investment? If no, then WHY?

Well, you would not be alone, but sadly many investors shy away from the unknown investment. But what if we could evidence that Cask whisky investment can be a fun, sociable and very safe investment would you give it a go? 

At Whisky investment UK we operate a small team of knowledgeable whisky brokers that offer expert advice. Importantly we do not operate a hard sell operation and if it’s not for you then there’s no obligation to purchase. 

Darren Hughes - Head of Stock & Logistics at Whisky Investment UK

Why it’s safe.

Following a cask purchase we immediately send our client a delivery order and proof of purchase and arrange for the cask to be carefully moved to one of our associated HMRC trade facility warehouses such as Volpe & Castello. 

Once stored in-bond your whisky purchase is ‘safe as houses’ due in part to regular visits by HMRC. After all, if it was easy to avoid duty then millions of pounds could be lost to the public purse. Therefore, checks are stringent, and we say “There’s no safer place to place your money” 

Why it’s fun.

At WIUK we regularly arrange whisky events. Usually these take place in either London or Edinburgh, but as our client list grows more venues are being found. There’s no cost to these, there’s no emphasis on purchasing anything, it’s a good quality evening of fine food and free whisky, beers & wine alongside a whisky professional offering samples of ours and our supplier’s cask whiskies. 

If you are a whisky fan, then what could be more fun than drinking old and sometimes rare whisky sourced by experts alongside other whisky drinkers. Of course, if you choose to join our growing list of clients by purchasing a cask or two then that works too! 

Why it’s an investment.

There are many reasons why owning cask whisky is good for your pocket. It’s true it’s always in demand, bought and sold for years on end and very nearly always growing in value. The key is to buy right, store it safely and either sell when the time is right or bottle. We can help with both options when you are ready to exit. You can order a sample of your cask, and we set you up a private account direct with the bonded warehouse and from there you can add to your whisky portfolio, bottle or sell without our ongoing assistance if that’s what you choose to do. 

Click on the buttons below for:

A download of our latest cask list
Cask List
An invitation to September’s whisky event
Whisky Event
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August 6, 2024 Industry NewsWhiskyBy Darren Hughes - Head of Stock and Logistics

Best Whisky Cask Management Company 2024 – UK

We have done it AGAIN!

Whisky Investment UK ® has been awarded
Best Whisky Cask Management Company 2024 – UK by Wealth and Finance International.

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July 16, 2024 Industry NewsWhiskyBy Darren Hughes - Head of Stock and Logistics

Personal Investment in a Scotch Whisky Cask

It is impossible to think of Scotland without thinking of Scotch Whisky. Its roots are firmly embedded in Scottish history and traditions but today it is found in the most stylish bars in the world’s biggest cities. For more than 500 years the Scots have successfully taken the natural ingredients which our country has been blessed with to create the world’s leading international spirit drink. 

Distilled in over 150 distilleries dotted around Scotland from the Northern Isles to the Borders it is exported to around 180 markets across the globe – an unrivalled reach for the product of any one country. 

Scotch Whisky makes up a quarter of the UK’s food and drink exports and the value of annual exports has grown consistently for more than a decade. All of this creates considerable interest in investing in Scotch Whisky, driven by a desire to share in its success. 

A personal investment opportunity?

Several companies promote individual ownership of a Scotch Whisky cask as worthwhile and potentially lucrative. Potential investors should carefully assess the sales offer, carry out due diligence and take appropriate advice.  The Scotch Whisky Association is not able to offer advice on the purchase or sale of casks as an investment and is not responsible for regulating the whisky cask market. Nevertheless, we believe that potential investors should understand something of the structure and operating methods of the industry to assess the risk vs reward of cask investment proposals. 

Scotch Whisky and its market

World exports of Scotch Whisky are currently worth in excess of £5.9 billion. Blended Scotch Whiskies, which contain spirit from many different distilleries make up the majority of sales. 

To meet this demand, Scotch Whisky blenders, who need whiskies aged for different lengths of time, contract with individual distilleries for the supply of the spirit that they require, laying down their stocks several years in advance. This enables Scotch Whisky distilleries to plan and maintain production at appropriate levels. 

As a result, there is no regulated market for mature or maturing casks of Scotch Whisky, no officially published list of buying and selling prices for casks from different distilleries or at different ages and no established mechanism for selling. Scotch Whisky casks are not a regularly traded commodity on an open market. It is traded within the industry, sometimes through Scotch Whisky brokers, but primarily by contract between blenders and distillers who will sometimes exchange casks with no money changing hands. 

It is possible, subject to availability and willingness, to purchase casks of Scotch Whisky, either newly distilled or maturing, from distillers for personal use. Casks are sometimes also purchased from time to time as a form of speculation with the intention of re-selling them at a profit. However it must be emphasised that only a tiny proportion of the total amount of Scotch Whisky produced in Scotland is bought and sold in this way. 

The promotion of investment opportunities

Opportunities to invest in casks sometimes include indications of the likely return that the investors might hope to make. 

Scotch Whisky casks however are no different from other commodities, whose values rise and fall according to supply and demand. The only certainty about owning a cask is that it will lose roughly 2% of its contents through evaporation each year.

Warehousing your cask

You are very likely to be charged for storage and insurance for the time the cask is in the warehouse. There may also be charges if your cask requires to be moved or its contents measured to check, for example, its alcoholic strength. Movement of the cask under bond is strictly controlled and can only be carried out by authorised operators. 

Bottling your cask

You will need to factor in the cost of bottling (Single Malt Scotch Whisky must only be bottled in Scotland). If a private owner ultimately decides to bottle their cask, excise duty will normally be due when the bottles are dispatched to the owner. The duty due will be based on the rate of duty applicable at that point and not when the cask was purchased. Thus the purchase price of the cask is only the initial outlay. 

In 2024 the rate of duty in the UK is £31.64 per litre of pure alcohol to which Value Added Tax at 20% must be added. This will require a further outlay of several thousand pounds on the average cask. 

You should bear in mind that most bottlers are set up to bottle large volumes of spirits and it may take some effort to find one who is willing to bottle a single cask. 

Non-UK investors should consider any duties and taxes due for importing bottled Scotch Whisky into another country. 

Essential things to consider If you decide to make a personal investment in a Scotch Whisky cask you should consider taking the following steps:

  1. Identify clearly the whisky on offer. Any company offering Scotch Whisky for sale should be able to confirm whether it is a Scotch Malt Whisky or Scotch Grain Whisky, the name of the distillery where it was produced, the year of distillation and a cask reference number.
  2. Check that the offer price is realistic by contacting the distillery or company whose whisky it is, or speak to an established whisky broker or specialist auction house.
  3. Also check any claimed return with an established whisky broker, but even then you should treat this with caution as the figure for which your cask might be sold depends on many variable factors.
  4. Most distillery names are trademarked and sometimes there will be a contractual limitation on the use of the name should you sell or bottle your cask. Before purchasing, you should check whether any conditions apply, particularly if you are not purchasing directly from the distillery.
  5. Consider whether there are any limitations on whether you can move your cask and how you can dispose of your cask. Some sellers may include, for example, a contractual term that it may only be matured at their premises and/or bottled by them exclusively for personal consumption.
  6. By law, Scotch Whisky may only be matured in an approved warehouse in Scotland which has been verified by His Majesty’s Revenue and Customs. Therefore you should check the location of your cask before going ahead with the purchase. You can check to see if a facility has been verified on the HMRC website here. 

“By law, Scotch Whisky may only be matured in an approved warehouse in Scotland which has been verified by His Majesty’s Revenue and Customs.”

  • Insist upon receiving a receipt for the purchase price and a copy of the contract of sale which should:
    • provide a full description of the whisky purchased i.e. type, distillery, and year of distillation; 
    • identify the cask purchased and in particular the cask number, the type of cask (ex-Bourbon, ex Sherry etc.) and the volume of the contents; 
    • identify the warehouse in which the casks are stored and the warehousekeeper; and explain the costs connected to the storage of your cask. 

  • Your contract of sale represents your legal title and is proof of purchase of your cask but ensuring your ownership of the cask is recognised, and understanding who has control over it, may require further action as set out below. 

    • If the cask is located in a warehouse that belongs to someone other than the seller, you should ensure that the transfer of ownership is properly recorded and acknowledged by the warehousekeeper. Traditionally this was done by way of a delivery order, a document setting out the details of the cask to be transferred, signed by purchaser and seller and then delivered to the warehousekeeper. Nowadays other documents may suffice but you should check with the warehousekeeper what documents they require to record ownership in your name and ensure that the seller can deliver them to you before completing the purchase.
    • Check that your insurance is adequate for your needs. Does the insurance cover, for example, loss of spirit as a result of a leaking cask?
    • As the owner of a cask stored in an approved warehouse, you should satisfy yourself that the warehouse and warehousekeeper are approved by HMRC. This also includes ensuring that the warehousekeeper is registered with HMRC under the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (‘WOWGR’). You might also be required to register with HMRC and obtain a WOWGR approval if you are deemed to be a ‘Revenue Trader’. Further information can be found in HMRC’s Excise Notice 196 (in particular, section 5).
    • Be aware that as well as reducing in volume, the contents of your cask will reduce in strength over time. It important that you monitor the strength of your cask, particularly if you are maturing it for a long time because if the strength falls below 40% abv, you will no longer be able to bottle it as Scotch Whisky.

When purchasing a cask, you should be aware of the special nature of the trade in Scotch Whisky and the costs involved.
Investors should recognise that there are risks involved, both as regards the potential value of their investment and the opportunities to sell it on.
Nevertheless, purchasing a cask for your own personal use can give you great pleasure and enable you to create a unique Scotch Whisky to your own specifications. 

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January 30, 2024 WhiskyBy Darren Hughes - Head of Stock and Logistics

Securing Liquid Gold: Safeguarding Whisky Casks in HMRC Bonded Warehouses.

By Darren Hughes (Head of Stock and Logistics at WIUK® and Speyside Bonded warehousing)

In the heart of Scotland, where the rolling hills are adorned with amber hues and the air carries the distinct aroma of peat, lies an invaluable treasure trove – whisky casks. These barrels, filled with liquid gold, are not only a testament to Scotland’s rich distilling heritage but also a significant economic asset. Stored in His Majesty’s Revenue and Customs (HMRC) bonded warehouses, the security of these whisky casks becomes paramount. WIUK ® delve into the measures taken to safeguard these precious barrels.

HMRC Bonded Warehouses: The First Line of Defence

HMRC bonded warehouses are high-security facilities designed to store goods that are subject to excise duties, such as alcohol. These warehouses play a crucial role in ensuring that taxes are paid on alcoholic beverages before they are released into the market. Whisky casks stored in these facilities benefit from the strict protocols and surveillance systems implemented to deter theft and maintain regulatory compliance.

Surveillance and Monitoring Systems: Keeping a Watchful Eye

State-of-the-art surveillance and monitoring systems are the backbone of whisky cask security. These systems employ a combination of CCTV cameras, motion sensors, and access control measures to monitor every corner of the warehouse. Any unauthorized access or suspicious activity triggers immediate alerts, allowing security personnel to respond swiftly and effectively.

Temperature and Humidity Controls: Preserving the Elixir

Whisky, a delicate spirit, matures best under specific conditions. HMRC bonded warehouses are equipped with advanced climate control systems to maintain stable temperatures and humidity levels. This not only ensures the quality of the whisky but also acts as an additional layer of security, as any attempt to tamper with these conditions would be detected promptly.

Inventory Tracking and Management: Every Cask Accounted For

Each whisky cask within the bonded warehouse is meticulously catalogued by a unique cask number and an AYS date and are tracked through a sophisticated inventory management system. This digital record-keeping enables warehouse managers to monitor the movement of each cask, making it nearly impossible for any cask to go missing without raising immediate alarms.

Physical Security Measures: Fortifying the Fortress

Beyond the digital realm, physical security measures are in place to safeguard the whisky casks. Fences, gates, and restricted access areas create a perimeter that is challenging to breach. Security personnel, trained to handle various situations, patrol the premises, ensuring a visible presence that acts as a deterrent against potential threats.

Opening a private account

Opening a private account at an HMRC bonded warehouse in Scotland involves a series of steps and considerations, as these facilities are primarily designed for businesses engaged in the import, export, and storage of goods, that hold a WOWGR licence, WIUK ® are working with several independent bonded warehouse that will open private accounts for our clients without the need of having a WOWGR licence or having a WOWGR licence.

Be prepared to provide necessary documentation when opening an account, like when purchasing a cask from WIUK ® you will need to provide personal identification, proof of address, and any business-related documents if applicable.

Clearly communicate the purpose of the private account and the type of goods (e.g., whisky casks) you intend to store.

Understand Costs and Fees:

Ensure compliance with all relevant regulations and legal requirements. HMRC bonded warehouses are subject to strict regulations, and adherence is crucial to avoid legal issues.

Security Measures:

Understand the security measures implemented by the warehouse to safeguard stored goods. This may include surveillance systems, access controls, and physical security measures.

Inventory Management:

Inquire about the inventory management system in place. A robust system ensures accurate tracking and management of stored goods.

Discuss Terms and Conditions:

Review and discuss the terms and conditions associated with opening a private account. Clarify any doubts regarding responsibilities, liabilities, and access to stored goods.

Visit the Warehouse:

WIUK® can arrange a visit to the warehouse to personally assess the facilities and discuss your needs with the management.

Storage and insurance fees:

Storage fees are typically charged based on the volume of whisky casks or pallets being stored and the duration of storage.
Warehouses may have different rates for short-term storage (e.g., a few months) versus long-term storage (several years).
Some warehouses offer tiered pricing based on the quantity of whisky being stored, with discounts for larger volumes.

Insurance fees cover the cost of insuring the stored whisky against various risks, such as theft, fire, natural disasters, and accidental damage.
Insurance fees are often calculated as a percentage of the declared value of the stored goods

Transparency:

WIUK® have spent over 2 years verting different bonded warehouse that provides transparent and detailed billing statements, outlining all charges associated with storage and insurance.

Regular communication with the warehouse regarding fees and any changes in rates is essential to avoid surprises.

WIUK® can arrange a visit to the warehouse to personally assess the facilities and discuss your needs with the management.

If you would like more information on which warehouses will open a private account, or you would like to discuss whisky cask ownership, please contact us at [email protected] or call 01343 610 224 to arrange a chat with one of our whisky experts.

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