Whisky Cask Exit Options
If you’re considering your whisky exit strategy options you’ll need to understand the difference between selling whisky cask at auction or bottling it for personal enjoyment or resale.
In edition one of Beyond The Cask, published in 2023, we warned that if a company tells you an established distillery will buy back your cask, stop and think - this almost never happens. They manage the quality and quantity of production nearly 20 years in advance, so they are unlikely to have any stock issues that will force them to buy back from the open marketplace.
Independent bottlers may be the end destination for almost all cask whisky investments, but there's more than one way to sell…
Whisky Exiting Through Auction
How Does The Exiting Process Work?
As part of our commitment to exiting our client’s casks, Cask Trade launched Auction Your Cask in 2020 - the first ever dedicated online cask auction site. It forms a vital part of the company's in-house exit options.
Each cask entered into the whisky auction will receive a free valuation. In addition, those who choose to enter the auction will be provided with tasting notes from IWSC judge Colin Hampden-White - along with cask details, and distillery descriptions. This means people from around the globe can see the casks in the auction in the best possible light.
The auction is open to casks bought from other companies and other spirits such as rum, Cognac, and Armagnac. This makes the platform a real treasure trove of products that you may not see on a regular stocklist. We also strive to get hold of samples for as many of the casks as possible, allowing those interested to try the spirit and add their personal impression to considerations before they decide to bid.
A Look At Auction Economics
As the number of people who buy casks increases, it naturally follows that the number looking to sell their cask is rising. The auction saw a 113% increase in valuation requests between November 2023 and March 2024. Wider macroeconomics play their part, with more people in the UK feeling the post-Covid and -Brexit cost-of-living pinch.
In terms of the casks purchased at whisky auction in 2024, the trend for this year has mirrored the overall market - young casks of provenance at lower prices for longer holds, with Ledaig, Bunnahabhain, and Staoisha proving popular. The respective sale prices can be seen below.
What’s Done Well At Auction In The Past?
Over the years, there have been some stellar casks that have excited bidders. One is believed to be the first ever rum barrel sold in an online auction, a real example of how interesting tropical flavours catch the eye of bottlers.
The liquid in question was a Barbados rum from the famous Foursquare Distillery, Distilled in 2006 and maturing in a Sauternes barrel, the spirit's fruity notes paired beautifully with the sweeter side of Bordeaux. Provenance was an important factor too. The earliest records of rum date back to 1650s Barbados, when it was called ‘kill-devil' or 'rumbullion’.
Foursquare has been at the forefront of premium rum thanks to the stewardship of industry figurehead Richard Seale. A great deal of the category's resurgence can be attributed its recent success to Richard striving for two decades for rum to be as revered as any other elite spirit in the world.
Another cask that caught the eye thanks to its name and flavour profile was a Springbank 1998 bourbon barrel which sold for £71,000. The cult Campbeltown distillery has carved a name for itself for its distinct oily mouthfeel and punchy flavours, setting it apart from the big Speysides and Islays.
With such variety, the auction remains not just a fun way to sell a cask and reach a global audience of cask buyers; it can also be a place for an investor to find hidden gems, whether for a long hold or immediate bottling.
Whisky Exit By Bottling Your Own Cask
An often-overlooked and highly rewarding whisky exit strategy is bottling your own cask. This unique option allows you to create something truly personal and memorable, whether it's for a special celebration or simply to savour with loved ones.
Cask Trade will expertly guide you through the entire process – from selecting the perfect cask to designing bespoke labels and organising bottling. This option is perfect for marking special occasions such as Christmas, Diwali, weddings, graduations, corporate events, or even as a distinctive gift for clients or business partners. Or, of course, just to enjoy at home with friends and family. All you need to do is have your dram glass ready!
In fact, the Cask Trade team recently bottled our very own cask from The Speyside Distillery to raise money for The Drinks Trust. The sweet, fruity dram was the perfect match for some homemade rocky road – proof that the joy of bottling your own cask is not just in the whisky itself, but in the experience of sharing it with others.
Whether you're looking to create a one-of-a-kind whisky collection or simply enjoy the fruits of your investment, bottling your own cask is an incredibly rewarding way to exit the cask market.
The Pros and Cons of Auction and Bottling
As with all investment decisions there will be pros and cons to consider when it comes to making a decision about what to do with your cask whisky investment exit. When it comes to auctioning you might have to weigh up a quick and simple exit in amongst a fluctuating market.
When it comes to bottling you’ll need to consider if having the unique personal experience outweighs the cost and storage space required.
Key Takeaway:
Owning a cask should be an enjoyable experience... and so should exiting!
Selling whisky cask can seem complicated but our key takeaway is to always thoroughly research your exit options before you purchase a cask. Speak to an account manager and ensure you have multiple ways to sell when the time is right.
Auction Your Cask takes place four times a year: March, June, September and November. If you'd like to enter your cask into the next whisky auction, register on auctionyourcask.com. If you'd like to bottle your cask, contact our head of operations Jessica Simmons: jessica@casktrade.com
What It’s Like Working With Cask Trade
At Cask Trade, we take pride in offering an unrivaled selection of over 300 casks at any one time, from more than 90 Scottish distilleries, ranging in age and character. From grain to cask to bottle, we manage the full whisky lifecycle and provide cask samples upon request. We also offer a range of exit strategies and buying services, including five in-house resale options, a buy-back guarantee, and access to our own auction platform. Our goal is to maintain fair and transparent pricing for all.
Whether you're looking to turn your passion for whisky into profit or bottle your cask for personal enjoyment, Cask Trade is here to guide you every step of the way. We look forward to sharing the journey with you – and perhaps a dram or two along the way!