WhiskyСoin

​What Determines The Value Of A Cask?

• Age. As the spirit needs to mature in the cask for a minimum of three years, even the youngest casks on the market already store value. However, this value increases exponentially with every year that the spirit remains in the cask. It’s calculated that the value of a whisky cask doubles every 5 years. When casks reach 15 years, their value tends to accelerate even more quickly.

• Supply. Whisky casks respond to the classic dynamic of market-driven growth: demand outstrips supply. Put simply, there is not enough whisky produced in Scotland to quench the thirst of an increasingly global market. This situation has a significant impact at the beginning of the value chain: the casks that will eventually end up in bottles around the world. 

• Origin. Perhaps the most important factor is where the cask comes from. Like wine with its terroir, whisky is a product that is intimately connected to the land that produces it. Scotland currently has around 300 distilleries producing the golden liquid, each of them defined by their own history and whisky making traditions. Inevitably, when talking about a manufacturing process that mixes industrial know-how with artisan techniques, some of these distilleries have built stronger reputations than others. As in all free markets, there are ‘winners’: those are the distilleries that have built a reputation for excellence. Their casks are sold at a premium.

• Rarity. Not all casks are created equal. It’s commonly said that without wood, there would be no whisky, which is another way of saying that the cask is the secret to the spirit inside. During the early years of the 19th Century huge amounts of sherry was imported from Spain in wooden casks. One day a distiller decided to recycle one of those casks to mature his spirit and, almost accidentally, he created the perfect whisky. Nowadays distilleries struggle to secure enough ex-sherry casks to create their distinctive spirit, even going so far as manufacturing and treating their own Sherry Casks in Jerez, Spain. There are many different casks available, but a good rule of thumb is that those that once contained sherry are more valuable.

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375 viewsedited  Dec 4, 2021 at 19:49

​What Determines The Value Of A Cask?

• Age. As the spirit needs to mature in the cask for a minimum of three years, even the youngest casks on the market already store value. However, this value increases exponentially with every year that the spirit remains in the cask. It’s calculated that the value of a whisky cask doubles every 5 years. When casks reach 15 years, their value tends to accelerate even more quickly.

• Supply. Whisky casks respond to the classic dynamic of market-driven growth: demand outstrips supply. Put simply, there is not enough whisky produced in Scotland to quench the thirst of an increasingly global market. This situation has a significant impact at the beginning of the value chain: the casks that will eventually end up in bottles around the world. 

• Origin. Perhaps the most important factor is where the cask comes from. Like wine with its terroir, whisky is a product that is intimately connected to the land that produces it. Scotland currently has around 300 distilleries producing the golden liquid, each of them defined by their own history and whisky making traditions. Inevitably, when talking about a manufacturing process that mixes industrial know-how with artisan techniques, some of these distilleries have built stronger reputations than others. As in all free markets, there are ‘winners’: those are the distilleries that have built a reputation for excellence. Their casks are sold at a premium.

• Rarity. Not all casks are created equal. It’s commonly said that without wood, there would be no whisky, which is another way of saying that the cask is the secret to the spirit inside. During the early years of the 19th Century huge amounts of sherry was imported from Spain in wooden casks. One day a distiller decided to recycle one of those casks to mature his spirit and, almost accidentally, he created the perfect whisky. Nowadays distilleries struggle to secure enough ex-sherry casks to create their distinctive spirit, even going so far as manufacturing and treating their own Sherry Casks in Jerez, Spain. There are many different casks available, but a good rule of thumb is that those that once contained sherry are more valuable.

BY WhiskyСoin