Oliver Court, Managing Director of London Cask Traders.
The whisky market has grown in recent years. Although the market has experienced some turbulence, whisky is still a “top performer” and has offered an alternative to stocks, property and other more traditional investments through times of market uncertainty.
Unlike bottles, cask whisky is generally exempt from capital gains tax for investors in the U.K. and Ireland—making it especially attractive for investors looking to diversify their portfolio, with tax-efficient alternative assets sometimes described as “safe haven investments.”
However, as in any growing market, the potential for high returns can attract bad actors. A recent BBC documentary, Hunting the Whisky Bandits, exposed at least two carefully contrived companies, posing as cask investment specialists and deliberately exploiting uninformed investors—selling non-existent casks, inflating prices and issuing worthless “certificates of ownership” (registration required).
Strategies For Investing Wisely In A Growing Market
As managing director of a company that specializes in cask whisky investing, I’ve spent years building trust with clients and believe education is the best protection against potential fraud.
According to the Scotch Whisky Association (SWA), whisky exports alone topped £5.4 billion in 2024. With the right knowledge and due diligence, I personally believe whisky casks remain one of the most rewarding and tax-efficient investments available today—provided investors know how to look for the potential pitfalls.
If you’re considering entering the whisky cask market, here are 10 critical checks I suggest every whisky cask investor make before any purchase:
1. Insist on a delivery order (D.O.).
A delivery order is your legal proof of ownership, issued and co-signed by the bonded warehouse where your cask is stored. Without a D.O., your cask doesn’t officially belong to you—no matter what a “certificate of ownership” or portfolio dashboard says.
2. Check you have your own private account at the bonded warehouse.
Ensure your cask is stored in a warehouse where you (and not the investment company or broker) have a private account under your own name. This is a key layer of investor protection and can help prevent casks from being misrepresented or sold multiple times.
3. Ask to visit the bonded warehouse in person.
A trustworthy company will actively encourage you to visit your cask in person. Regauging and quality control checks are all vital—it’s not just about knowing the cask exists.
4. Check the company is listed with Companies House.
In the U.K., you can verify a company’s status on Companies House. Check the firm you are dealing with is actively trading, compliant with HMRC and transparent in its filings. This takes minutes but can offer major peace of mind.
5. Visit their offices if possible.
Can you visit the actual offices listed as their address? Legitimate firms are always happy to meet you in person—something scammers avoid at all costs.
6. Request past client success stories.
Ask for evidence of previous client exits. Some organizations will provide real case studies (with permission) of clients who’ve achieved strong returns through both short and long-term cask sales.
7. Compare prices across the market.
Always cross-check prices with other established traders. Price discrepancies—especially overly inflated ones for either cask purchase or exit sales—are a warning sign. I actively encourage clients to check prices online.
8. Invest in established distilleries.
Avoid buying from less well-known distilleries, and focus on ones with a proven market and bottling reputation. Casks from unknown or speculative producers often carry significantly higher risk and less resale appeal.
9. Check their online presence.
Does the company you’re investing with share real stories and content—client visits, warehouse tours, distillery partnerships, whisky tasting events—or just adverts and sales copy? Companies should prioritize visibility and actively engage with clients online and in the real world.
10. Read the reviews.
Check online platforms like Trustpilot. Don’t just look at star ratings—read the actual feedback. Five-star reviews are great, but does the company help and assist those who haven’t had a perfect experience? For those who have left five-star reviews, have any been successfully sold out of the market for a profit? Have they received their cask in their warehouse account with a delivery order?
Investing Carefully
In addition to potential fraud, I also want to make potential investors aware of a few other factors to consider before investing. While whisky can often be considered a liquid investment, please do not listen to any broker who compares the market liquidity to that of an individual savings account (ISA).
Similar to selling a property, finding a buyer can take time, and casks are rarely sold with a click of a button. Storage and insurance are another key part of the investment, and while these facilities are secure, it is important to ensure the insurance policy covers all factors, such as theft and leakage.
It is also important to remember that whisky casks should typically be considered as a medium- to long-term investment, and brokers should not advise short-term flipping strategies.
A Safe Future For Whisky Investment
Whisky cask investment is an established alternative luxury asset class that’s already proved to be lucrative.
The BBC exposé rightly cast a spotlight on fraudsters, who’ve naturally appeared alongside the growing popularity of the market. This extra scrutiny is helping our sector educate investors and prevent those fraudsters from thriving. Reputable firms are stepping forward, and that’s great to see.
Asking Smart Questions
While the headlines may be daunting for some, I think the long-term outlook for cask whisky remains strong. Nobody can guarantee high returns, but as part of a diverse portfolio, cask whisky can remain a smart, secure and tax-free investment.
If you’re considering entering the market, take your time, do your research and speak to people.
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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