Whiskey Investments Gain Buzz As Mature Casks Offer Higher Returns: How Does It Work? | Savings and Investments News

News18

An Irish whiskey manufacturer Marrowbone Lane Irish Whiskey (MLIW) has opened its doors for Indian investors to invest in cask investment programme. The company lets investors to buy a cask today, which the company will keep secure until it matures. This new investment avenue is offering an annual return of 12-14 per cent, according to a report by Moneycontrol, citing Vijay Edward Pereira, founder and senior Partner at MLIW.

This option allows wealthy investors to buy these casks, which typically cost from 3500-8000 GBP per barrel depending on how old the Whiskey cask is. The MC report added that the company, founded by Michael Ward and Indian-origin academic Professor Vijay Edward Pereira, is planning to launch a tokenised fund so smaller investors can own fractions of a cask.

India is one of the largest markets of Whiskey in terms of consumption. As per International Wine and Spirits Record (IWSR) data as cited by MC report, of 440 million cases of alchol consumed in early 2024, 130 million of them were of whiskey.

How Does Whiskey Cask Investment Work?

When whiskey is stored in a wooden cask, it matures. As it matures, the value of the liquid inside also rises. Investors buy these casks early, usually from distilleries, and hold them for several years.

After a certain period, these casks become more valuable than the actual price they were bought earlier. The margin between buying and selling price becomes profit.

The MC report added that a 2024 MLIW Triple Distilled Single Malt Irish Whiskey cask is priced at around GBP 3,495, while a five-year-old 2020 cask costs nearly GBP 7,995. Each cask typically stores about 200 litres of spirit, which can produce roughly 280 bottles once matured.

While India is on the cusp of a trade deal with the United Kingdom under free trade agreement, it is expected to boost the spirit business in India as import duties on whiskey and gin would fall to 75% in the first phase from 150% and eventually 40%.