New Delhi. Now whiskey is not just a thing to drink, but has become a new investment option. Its demand has increased rapidly especially among rich Indian investors. Foreign companies are now offering Indians the opportunity to buy entire ‘whisky casks’ i.e. large barrels and let them mature for years, increasing their value over time.
A UK company named Marrowbone Lane Irish Whiskey (MLIW) has opened its Cask Investment Program for Indian investors. The method of investment is very easy. Buy a cask (big barrel) today, let it mature for years and earn money by selling it later at an increased price. According to the company, such casks can give annual returns of up to 12–14%.
Will be able to buy a small portion of the cask also
Priced at £3500-8000, these casks hold up to 200 liters of whiskey and can yield around 280 bottles. The company, which manages more than 4,000 casks across the world, is now going to introduce the option of ‘fractional ownership’ i.e. buying a small part of the cask for small investors.
Why cask investment facility is not available in India?
In India, whiskey is considered an experience rather than an investment product. Indian distilleries like Diageo India or Paul John sell only ‘personalised single casks’. But its purpose is not to earn returns, but to celebrate a special occasion.
Why is cask investing becoming popular?
As whiskey ages, its price increases. This trend has increased rapidly all over the world. After the India-UK Free Trade Deal, when the import duty will be reduced from 150% to 40%, real premium whiskey from Europe and Ireland will reach more people in India. This may increase the demand further.
Cask investment risks
- The market is unregulated.
- Difficult to determine price, no single database
- risk of fraud
- Returns are not always stable
- Fear of damage from fire, theft or water
- Companies get insurance done and also do KYC of investors, but the risk is not completely eliminated.
How to earn from investment?
You can sell the cask back to the company, transfer it to another investor, create your own private label and sell it, or incorporate it into a future tokenization model.
What if someday you want to drink your whiskey?
It is possible! The company will bottle your whiskey and send it to India, but be prepared to pay a huge bill for tax and import duty.
