Risks Disclaimer

Risks to Consider Around Whisky Investment

At VCL Vintners, we value transparency and strive to provide our clients with a comprehensive understanding of all risks associated with whisky cask investment. Below, you will find essential risks and considerations that are pivotal when investing in cask whisky.

• Whisky cask investments are not regulated in the UK.
• The investment’s value can fluctuate, and could go up as well as down.
• A whisky cask does not come with a regulated financial product’s standard protections, such as a cooling-off period with a cancellation right after purchase. However, VCL Vintners provides a 14 day cooling off period on all transactions. Beyond this period, cancellation may not possible.

As a cask owner, you will be responsible for:

• Bonded-warehouse storage fees for your casks.
• Costs related to periodic maintenance, testing, and regauging services, regardless of the provider, to monitor spirit volume loss due to evaporation.
• Insurance coverage against risks of damage to the casks or their contents.
• An annual management fee is due to cover the administrative costs for VCL Vintners to manage your casks on your behalf.
• Casks can be sold for continued storage in bonded warehouses or removed for bottling or personal consumption, subject to taxes and duties.
• The duration for which a cask remains a viable investment is influenced by market dynamics and the requirement to maintain a minimum of 40% spirit volume to qualify as “Scotch whisky.”

Consider these industry-specific risks that could affect your investment’s value:

• A global demand decline for whisky.
• An oversupply in the whisky market.
• Legislative changes impacting whisky sales.
• Alcohol prohibition in certain regions.
• Global conflicts or natural disasters disrupting supply chains.

These risks can often be mitigated through collaboration with a knowledgeable brokerage like VCL Vintners.