Golden opportunity: why a trade deal with India is great news for Scotch whisky investment
A new trade deal with India is about to throw open one of the world’s biggest and fastest-growing markets, bringing huge benefits for the Scottish whisky industry.
The India free trade agreement has been labelled a golden opportunity as the government seeks to slash duties of up to 150% on whisky exports, potentially boosting exports to India by £1 billion over five years.
If approved, the deal will be a game changer for the industry – and offer the chance for canny investors to make the most of the increasing thirst for a wee dram in southern Asia.
Business is booming
Huge interest from Asian whisky connoisseurs is already driving prices to record highs making this potential new market the icing on the cake for Scottish distilleries. Last year a cask of rare Scotch whisky from Ardbeg set a new world record after selling for £16m to a female private collector in Asia.
Chivas Brothers, the Scotch whisky arm of Pernod Ricard, reported a 23% rise in organic sales for the first half of this financial year: its brands include Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet.
“It’s a good mix between mature markets, which are growing at 22% and emerging markets which are growing at 24%,” said chairman and CEO Jean-Etienne Gourgues. “The quality of growth is very value-driven, led by premiumisation, and the prestige part of the range is growing at 28%.”
The Glenlivet has “historically been strong in the US but is now growing at a very fast pace in Asia, in particular Taiwan and China,” he said, adding that Korea has also seen “real growth in the luxury part of the market”. He added: “We have enjoyed very, very high growth of almost 60% to 90% in those markets.”
Why now is the time to invest
All of this is good news for anyone thinking of investing in whisky casks which can offer long-term gains for those keen to put their money into tangible goods. And, because whisky casks are classed as a ‘wasting asset’ by HMRC, they are not subject to capital gains tax when you sell them.
While not every investment will see astonishing returns like Ardbeg’s Cask No 3, these recent sales highlights the potential of whisky to become rarer and more exquisite with each passing year – a fact that cask traders Vintage Acquisitions (the trading name of Brooks & Whitaker Limited) are well aware of.
As a stockist rather than a broker, Vintage Acquisitions boasts a stock list of between £1-2m worth of whisky casks on any given day, all ready to trade to its clients. The company, which has been trading for 12 years, takes pride in only working with the very best Scottish distilleries that have a proven track record of growth.
How to get involved
If you think whisky investment might be for you, it couldn’t be easier; just get in touch with the experienced team at Vintage Acquisitions to discuss your budget and timeframe. There’s no hard sell – they aim to deliver bespoke cask whisky solutions based on your requirements and personal circumstances along with their in-depth knowledge of the market.
Your dedicated account manager will take the time to understand your goals and then propose a solution to suit your needs. Furthermore, the company holds all of the required HMRC licences necessary to trade cask whisky under bond, and they can help you to exit the market when the time is right for you with a number of flexible choices available.
“Openness and fair dealing are at the heart of our business, and we treat all clients with the same level of service and respect, regardless of their needs and budget,” explains founder Sam Brooks.
“We always say that just like our whisky, we are in it for the long term. So that means treating customers fairly and a completely transparent purchase process from that initial consultation until you receive your certificate of title and beyond.
“We have built our business on long-term relationships, whether that’s with a big-name distillery or a new client looking to take the first step onto the cask whisky investment ladder.”
Find out more
Download the Whisky Cask Investment Guide today for everything you need to know about getting started at www.vintageacquisitions.com
This is paid-for content on behalf of Vintage Acquisitions, and does not necessarily reflect the views or advice of SussexWorld. As with all financial investments, your investment may go down as well as up, and people are recommended to take financial advice.