Answers

Frequently Asked Questions

Cask ownership, maturation, valuations and bottling, the questions our cask managers answer most often. If yours is not here, ask us directly.

About BitCask

Who is BitCask?: BitCask is a specialist whisky investment and bespoke bottling house. We combine data-led strategy with industry expertise to guide clients from cask acquisition through to sale, bespoke bottling, or private tastings. Our mission is to build enduring trust, backed by discipline, transparency and expertise at every stage of your journey with us.
How do I get started in whisky cask investment?: BitCask offers a personalised whisky cask investment experience based on your preferences. From buying casks to building a portfolio to selling your investments, you'll work with your dedicated cask manager. They will guide you through each step of the process, ensure you have everything you need, and answer any questions along the way. When it comes time to sell, your dedicated manager will help secure the best price for your cask and give you access to our ever-growing online platform, where you can market your cask to an extensive, diverse network of buyers.
How do I choose the right cask?: The best whisky cask investment portfolio is the one that fits your goals, budget, exit strategy, and overall preferences. BitCask will use its platform to identify the casks that best fit your reasons for investing. We strive to find casks from your favourite distilleries or those that suit your favourite flavour profiles. BitCask sources casks from the best distilleries in Scotland to ensure clients have a selection of high-quality casks when they are ready to invest. Our dedicated cask manager will guide you every step of the way to make sure your cask is the best investment opportunity for you.
Who manages my casks?: You'll be assigned a dedicated cask manager at BitCask. Your manager will oversee your account, help you decide when to enter and exit your investment and keep you up-to-date on any exclusive offers that you have access to as an investor.
How can I track my portfolio?: BitCask has an online platform where investors can monitor their casks anytime. Not only can you see new investment opportunities, but you'll be able to see how your cask is performing based on its market value, which is updated each year.
Do I need to become a member?: Browsing the online store is open to everyone. However, to access our best offers, becoming a member will keep you in the loop. Membership is free to join and includes entry to exclusive tastings, preferential bottle rates, curated content and early access to cask offers.

Ownership & Management

Can I sample my whisky?: You can request samples from your cask at any time that way you can taste your whisky as it matures. Please note it can take a minimum of five weeks for a cask sample to be drawn, and that there is a fee associated with this, which varies depending on the warehouse your whisky cask is stored at.
How much whisky is in each cask?: Casks can vary in capacity, there are over 10 cask sizes. Here are some of the most common, and their approximate capacity:Barrel: 190-200 litres (est. 270-285 bottles)Hogshead: 225-250 litres (est. 320-355 bottles)Butt: 475-500 litres (est. 675-715 bottles)
Where is my cask stored? Can I see my cask?: The Scottish government has specific regulations for its whisky industry. All client casks are stored at government bonded warehousing facilities across Scotland, managed by our trusted partners. Every warehouse has different regulations, however generally you can visit your cask – if this is important to you, we can take this into account during cask selection.
What are the storage and insurance costs?: This will depend on the value of your cask and BitCask does not gain anything from this cost. Our specialists however will be in charge of managing the relations between yourself, the warehouse owners your cask will be stored in, and the insurance brokers.
What is a bonded warehouse?: A bonded warehouse is a duty suspended storage location. Duty and tax payable on goods held there are deferred until the goods are purchased and shipped out. Because of the high potential tax taken from alcohol, bonded warehouses are licensed and closely monitored by the HM Revenue and Customs (HMRC).
How do I know I actually own a cask?: Under Scottish law, ownership of undeliverable assets is established through Beneficial Ownership. Whisky casks must remain in bonded warehousing until bottled classifying them as an undeliverable asset. To prove cask ownership, the Scottish Whisky Association (SWA) requires a contract of sale and a receipt of payment. We provide both documents including an official certificate to ensure your ownership is fully documented.

Production & Maturation

What does single malt mean?: 'Single' means that the liquid originates from only one distillery. Where 'Malt' tells us that the grain used to produce the whisky was exclusively 'Malted Barley'. Known for its distinctive character and often commands a premium price compared to blended whiskies.
What is a new make spirit?: A new make spirit refers to the freshly distilled whisky before it has been aged in a cask. It's a clear spirit with a high alcohol content and lacks the complex flavours and aromas developed during maturation.
What is angel's share?: This refers to the amount of whisky lost during the ageing process. Whisky matures in the oak casks. These casks play a key role in the maturation of the whisky, imparting colour and character from the wood. In order for this to happen, the spirit is absorbed into the wood, with the changing of seasons, humidity and air pressures eventually returning the spirit to the cask along with it the aforementioned character and colour components. During this interaction, some of the spirit will escape into the atmosphere and evaporate. This lost spirit is what is known as the 'Angel's Share'.
Why do some people use different casks once the whisky has aged?: This is a technique called 'finishing'. Whisky is matured in one type of cask (e.g., bourbon) and then transferred to a different cask (e.g., sherry) for a shorter period. This imparts additional flavours and complexity to the final product.
What is re-racking?: Re-racking is the process of transferring whisky from one cask to another during maturation. This can be done to influence the flavour profile, refresh the wood influence, or combine different whiskies for a unique blend.

Investment & Financial

What is the minimum holding period?: We do not enforce any minimum holding period as the holding period will depend on upfront capital, your risk appetite and the information about the cask you're investing in. As a general rule of thumb, we recommend that anyone considering cask ownership as an investment sets aside a holding period of about 8-10+ years.
What kind of returns can I expect?: Returns vary widely depending on the distillery, age, and type of whisky and your exit options. Our specialists are on hand to explain the amount of returns you'll receive and your exit options when you're ready to sell your cask.Historical data suggests that whisky casks have the potential for double-digit annualised returns over a 5-10 year holding period.
How can I know how much whisky is in the cask I invested in?: Before any cask is sold, a regauge is carried out by a professional in the bonded warehouse your whisky cask is being stored in. Regauging in whisky refers to the process of measuring the remaining volume of liquid and its alcohol strength within a whisky cask after a period of ageing, essentially acting as a health check to determine how much whisky is left (this is known as bulk Litres) and its current ABV (alcohol by volume) by taking a sample and analysing it, usually done when buying, selling, or considering bottling a cask of whisky; the calculated remaining alcohol volume is called the Regauged Litres of Alcohol (RLA).
What taxes am I subjected to?: If you are using whisky casks as an investment they can be the perfect opportunity for a tax-savvy investor. In many regions, whisky casks are not subject to capital gains tax.However, you would be subjected to taxes if you bottled your cask of whisky at the end of your investment; you would pay both VAT and duty. Before making a final decision to invest in whisky casks, we recommend consulting your personal tax professional as each investor's financial and tax situation is unique.
What happens if the distillery or bonded warehouse closes down?: In the unlikely event that the distillery or bonded warehouse ever went bust, your asset would simply be moved to another government bonded warehouse. It's your cask and you own it. It would not be party to the liquidator's claims.This could involve transferring your casks to another company with an account at an HMRC government bonded warehouse, or setting up an account in your own name with a bonded warehouse.

Bottling & Personalisation

What if I want to bottle my whisky instead of selling the cask?: Some investors choose to bottle their whisky for personal consumption or gifting. This can be a rewarding experience, but it's important to understand the costs and regulations involved in bottling. BitCask can advise you on this process if you're interested.
How can I design my own bottle of whisky?: BitCask has an in-house creative team with decades of experience in label designs, branding and creative conceptualisation who can work with you directly to conceptualise how your bottle would look like, the inspiration, what important information should be on the label, and the finer details that are required to make your vision come to life. Whether you are bottling for strategic gifting purposes or adding to your existing premium whisky collection, our team is on hand to help you at every step of the way.