Dodder Bank Irish Whiskey

                                               Guide to Whiskey Cask Investing

Why Choose Irish Whiskey Casks?

Irish whiskey is experiencing a renaissance, and global sales continue to grow year on year. At one time, Irish whiskey enjoyed 60% of the global whiskey market. Today, that figure is less than 10%, leaving huge scope for growth. Predictions show that Irish whiskey export sales will surpass Scotch by 2030.

 

Single Malt Whisky Production in Scotland 

The industry is deeply ingrained in Scottish culture and economy, with a long history dating back centuries. As of the latest available data, Scotland boasts a significant number of distilleries, with over 130 operational whisky distilleries spread across its regions.  

 

Single Malt Whiskey

Production in Ireland 

Ireland also holds a distinguished reputation in the world of whiskey, known for its smooth and approachable styles. Irish single malt whiskey production has seen a resurgence in recent years, with a growing number of distilleries entering the market. However, compared to Scotland, the Irish whiskey industry is significantly smaller in scale. As of the latest data, Ireland is home to around 40 operational distilleries, a fraction of the number found in Scotland. Irish whiskey production primarily incorporates triple distillation and a focus on a lighter, fruitier flavour profile compared to its Scottish counterparts.

Comparison of Distillery Numbers

    • Scotland: Over 130 operational distilleries 

    • Ireland: Approximately 40 operational distilleries 

Scotland’s whisky industry significantly outweighs that of Ireland in terms of the number of distilleries. This is largely due to the Irish whiskey industry suffering several major geopolitical setbacks in the early part of the twentieth century. However, in the early 1990’s Irish whiskey began to recover market share, and it is now experiencing a global renaissance.    

5. Growth Predictions 

Ireland’s whiskey sector is poised for notable growth in the coming years. Several factors contribute to this prediction:

    • Increasing international demand for Irish whiskey, driven by its distinct flavour profile and growing appreciation among consumers. 

    • Irish whiskey was awarded Geographical Indication status by the EU in 2016, confirming its position internationally as a premium spirit.  

    • Ongoing investments in new distilleries and expansions by established brands, indicating confidence in the future of Irish whiskey. 

    • Rising interest in craft and artisanal spirits, with Irish whiskey positioned to capitalise on this trend due to its traditional production methods and unique offerings.

Why Aged Irish Whiskey Casks Will Grow in Demand 

Ireland’s whiskey industry is experiencing a resurgence and is poised for steady growth in the coming years. Understanding the unique qualities and market dynamics of both regions provides valuable insights into the evolving landscape of single malt whiskey production. 

    • Increased Global Demand: The growing popularity of Irish whiskey worldwide has led to increased demand for aged expressions. As more consumers seek out premium and aged varieties, there is pressure on existing stocks to meet this demand. 

    • Limited Production Capacity: Despite the growth in the number of distilleries in Ireland, the production capacity for aged whiskey remains limited. It takes at least three years for Irish whiskey to reach maturity, and the current production levels may not be sufficient to keep pace with the rising demand for aged expressions. 

    • Maturation Time: Irish single malt whiskey, like Scotch whisky, requires aging for a significant period to develop its desired flavour profile. This maturation process cannot be rushed, leading to a natural bottleneck in supply as distillers wait for their whiskey to age adequately. 

    • Increased Consumption: As emerging markets develop a taste for Irish whiskey, consumption levels continue to rise. This heightened consumption further strains existing stocks, particularly those of aged whiskey. 

    • Investment in Production: While there has been significant investment in expanding production capacity in Ireland, the effects of these investments may not be fully realised for several years due to the time required for whiskey to age. In the interim, there may be a gap between supply and demand for aged expressions. 

    • Market Trends: Consumer preferences and market trends can also exacerbate the shortage. If the demand for aged Irish single malt whiskey continues to outstrip supply, it could lead to price increases and scarcity in the market.

    • Premiumisation and New Brands: The sales growth in Irish whiskey has been driven by premiumisation and new brands – putting further pressure on stocks of aged single malt whiskey. 

Considering these factors, it is clear there will be a shortage of aged Irish single malt whiskey in the coming years, so building and maturing stocks of single malt casks presents a compelling investment opportunity.

Understand that cask investing requires patience. It’s a long-term strategy aimed at capitalising on the rarity, value, and demand of your whiskey over time. Stay committed to your investment plan for optimal returns in the future.

The Golden Rules When Buying Casks

Purchase Price
When considering your investment, it’s important to find a competitive initial purchase price. Aim for a target around €3,000 for a 200 litre cask of new-fill triple distilled, single malt, ensuring you’re making a solid investment.

Quality & Provenance

Ensure the distillery you choose has a superb provenance. Look for accolades such as awards for single malt production and adherence to sustainability protocols like Origin Green. Additionally, prioritise distilleries whose whiskeys qualify for EU Geographical Indication status, ensuring quality and authenticity.

Security, Storage & Insurance

When assessing costs, keep in mind that your initial purchase price should cover at least three years of storage and insurance. This ensures your investment is protected during its early stages. Select a bonded warehouse for storage to guarantee regulatory compliance and security for your cask investment.

Documentation

Look for suppliers who provide comprehensive certification, including a PIN and Certificate of Ownership for your cask purchase. This ensures transparency and authenticity throughout the investment process.

Support & Service

Choose a supplier with their own retail whiskey brand and expertise to support you in the future. This includes assistance with bottling and labelling if you choose to go that route, providing valuable guidance for maximising your investment.

Casks of Single Malt whiskey from Dodder Bank meet all these criteria, so for more information email sales@dodderbankwhiskey.

 

Dodder Bank Irish Whiskey is delighted to offer a limited cask ownership program, for enthusiasts, connoisseurs and collectors of Irish whiskey.

 

 

Cask Pricing

New Fill 200 Litre Single Malt Cask

€2,995

Includes five years storage and insurance

Single Malt Whiskey 200 Litre Cask Aged Five Years

€5,995

Includes five years storage and insurance

 

The Remarkable Growth of Irish Whiskey

Irish whiskey, once overshadowed by its Scottish and American counterparts, has experienced an extraordinary resurgence in recent years. This renaissance is not only reflected in its growing global market share but also in its increasing popularity among connoisseurs and collectors alike. Let’s delve into the statistics, facts, and the compelling reasons why owning casks of Irish whiskey is an appreciating asset.

According to the Irish Whiskey Association, exports of Irish whiskey have soared by an astounding 300% over the past decade. In 2020 alone, exports reached over €1.4 billion, with the United States remaining the largest market, followed by countries like Canada, the UK, and Germany. This remarkable growth trajectory is a testament to the quality, diversity, and unique character of Irish whiskey.

Limited Supply Versus Growing Demand

As the global demand for Irish whiskey continues to surge, industry experts predict that future supplies of aged Irish malt whiskey will be limited. This is primarily due to the time-consuming nature of whiskey production, where the aging process can take anywhere from 3 to 20 years or more. As a result, the scarcity of aged Irish whiskey is expected to drive up its value, making it an increasingly sought-after and valuable commodity.

Casks of Irish whiskey – considered to be appreciating assets

Given the limited supply and growing demand, owning casks of Irish whiskey presents a unique opportunity. Unlike stocks or bonds, whiskey casks offer tangible value and the potential for significant appreciation over time. As the whiskey matures and gains complexity, its market value increases, offering cask owners the a potential opportunity to benefit.

Moreover, owning casks of Irish whiskey allows cask owners to participate in the whiskey industry’s growth while enjoying the unique experience of owning a piece of Irish heritage.

 

 

Frequently Asked Questions

 

What type of casks are for sale?

All our casks are American Oak, 200 Litre, which have been previously used to mature Bourbon whisky.

What type of whiskey is in the casks?

All our casks contain triple distilled, single malt Irish whiskey spirit, which after three years and one day earns the official designation: Irish Whiskey.

What distillery are the casks from?

The distillery which produces our casks is the Great Northern Distillery in Dundalk, County Louth. This is an award-winning, world-renowned distillery, which adheres to ISO 9000 standards and Origin Green protocols for sustainability.

Can people living outside of Ireland buy and own casks?

Yes, we have cask owners from all over the world. We do require proof of identity to register you as the owner. The process can be completed online, and the hard copy Certificate of Ownership & Provenance can be posted to your nominated address.

Can a company also buy and own casks?

Yes, a private limited company or partnership can buy and own casks.

What is the expected bottle yield from a cask?

The yield will depend on the age of the whiskey, and the alcohol content. Some natural evaporation will occur, known at the Angel’s Share. Up to 20% may be lost to the Angel’s Share during the first 5 years, which typically slows to 2% per year after that. As a general guide, after 5 years, a typical 200 litre cask may yield between 300 and 320 bottles of 70cl, with a generous alcohol content of 43%. These figures are estimates only.

Where are the casks stored?

All our casks are supplied by Dublin Bonders are secured stored under their tenancy in a regulated, Bonded warehouse in County Louth.

How do I purchase casks?

All cask purchases are made online. Simply select your preferred cask bundle and upload your proof of identity, then we will send you the details to make a secure online payment.

Can I visit the distillery or warehouse?

The distillery is not open to the public, as they are trade-only. Nor does not it have a visitor centre. The Bonded warehouses are restricted-entry, secure facilities so are also not open to the public. However, twice a year we organise a supervised group visit to the Bonded warehouse for cask owners, which you will be invited to.

Who owns the casks once I buy them?

Once you purchase the casks, you become the Beneficial Owner, and receive a Certificate of Ownership & Provenance. Dublin Bonders are the official owners to comply with Bonded warehouse tenancy regulations.  

How safe is my purchase?

Casks of Irish whiskey are considered appreciating assets containing a commodity which has a market value. The value of any asset can fall as well as rise. Casks of Irish whiskey should be considered as a long term asset. 

What returns can I expect?

Expected growth is modest in the first five years.  In the medium term (5 to 10 years) the rate of growth will increase. After a decade, the rate will increase again, and once they become rare (18 years and over) the casks will have the potential to have gained significant value. All returns are dependent on the prevailing market conditions, and how the casks are sold by the owner. Projections only. Past performance is not an indicator of future returns.  Capital at Risk.

When can I sell my casks?

As the owner, you can sell your casks anytime you wish, or you can hold them for as long as you wish. The selling of casks is the sole responsibility of the beneficial cask owner.

Can I finish my whiskey in another cask, such as Rum, Sherry, Stout etc?

Secondary cask finishes are available, subject to cask availability and terms and conditions will apply. Pricing upon request. Typically, secondary casking is done three months to twelve months before bottling.

What options are open to me to sell my casks?

You can sell to another individual, or another whiskey brand. It may also be bottled and sold under a private label or your own brand, or for a private event. Where possible, Dodder Bank Irish Whiskey will provide guidance in selling your casks. Older and rare casks can also be auctioned. Terms and conditions apply and are subject to regulations.

What might be the cost of storage and insurance in the future?

We estimate the cost of storage and insurance will be €100* per annum, per cask, subject to market conditions and availability. *Estimate only.