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Can I Make 10-20% PA From A Whiskey Barrel?

Returns from whiskey barrels are not guaranteed. It is unrealistic to expect uniform growth as a barrel matures and a PA % is misleading - find out why.
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Returns from whiskey barrels are not guaranteed. The rate at which the value of a whiskey barrel increases changes over time and is dependent on the type of whiskey and the angel’s share. It is unrealistic to expect uniform growth and also misleading because you don’t get any returns from a barrel until you sell it.

The Data

Historically scotch whisky barrels have increased in value over time (other whiskey types do not have suitable data to make general predictions). However it is important to realise that the increase in value over time is not linear and that the value of whiskey can go down as well as up.

Generally the value of scotch in a barrel increases slowly for the first twelve years of maturation and begins to increase more rapidly after that. Averaging the change in value out over the lifetime of the maturation is misleading, which is one of the reasons why we don’t suggest per annum returns.

Buying and owning barrels of whiskey can be a rewarding pastime, with the potential to make long term returns and enjoy a whiskey as it matures. However, consider this: if annual 10 to 20% growth was realistic then they would be part of every sensible investor’s and/or pension manager’s portfolio. Instead barrels can be a good way to build generational wealth over the long tern (10 years+) and are an enjoyable asset for whiskey lovers to create and experience their own whiskey.

Buying barrels of whiskey is not regulated and the value can go up as well as down. It is important to understand the effect that the angel’s share has on the contents of a barrel, and its eventual value.

The Rules Around Return Rates

In January 2024 the UK’s Advertising Standards Authority introduced rules around how investments in barrels of whiskey can be advertised. This includes that any rates of returns must be backed up with suitable data. If someone selling barrels is offering predicted or historic rates of returns then you should ask them for the data on which the rates are based.

Ready to learn more? For detailed insights and expert tips to help you navigate your whiskey investment journey download the comprehensive Whisky Barrel Buying Guide written by the team at Mark Littler Ltd.

Our colleagues over at Mark Littler Ltd have curated their most helpful articles all in one place so you can learn more about buying and owning a barrel of scotch. If you’d like to find out more about moving forward with a barrel purchase please email [email protected].

Returns on whiskey barrels are not guaranteed and the value of casks can go down as well as up.

A Note On Cask Ownership From Mark Littler, The Whiskey Wash Editor-In-Chief

Scotch whisky casks are a long-term commitment — think 10 to 30 years, not a medium-term investment with an easy exit. The only reliable path to value is buying young spirit and giving it time. There are no magic years, no guaranteed returns, and no shortcuts.
Casks sold through Mark Littler Ltd or other partners involve full legal title transfer via a warehouse-acknowledged Delivery Order. These are physical assets, not managed funds, so they fall outside FCA or SEC regulation — and outside any government compensation scheme.

Buy a cask because you love whisky and believe in what it can become. Not because someone promised you a return.

Read our full editorial guidelines on cask investment here.

Hannah Thompson

Hannah Thompson is a whiskey educator who helps consumers understand everything they need to know to make an informed decision about whiskey investment. She has been working in the secondary whiskey market since 2019 and joined The Whiskey Wash team when Mark Littler took over as Editor in Chief. Working with Mark Littler Hannah has amassed a broad range of whiskey knowledge and specializes in helping consumers make education driven cask investments. Hannah has authored two published works of fiction and her background in research and creative writing lets her create interesting and informative articles to give people a solid understanding of the world of whiskey.

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