PRIVATE CASK PROGRAMME 2021 HARD TO FIND WHISKY CHRISTMAS OFFER – Scotch Whisky News


HOLYROOD x HARD TO FIND WHISKY

PRIVATE CASK PROGRAMME 2021 HARD TO FIND CHRISTMAS OFFER

Interested in the Holyrood x Hard to Find Christmas cask offer and want to discover more? In this document, we’ve answered some of the frequently asked questions. If your question isn’t covered or you would like to order your cask, please get in touch. lucy@holyrooddistillery.co.uk

  COSTS

The barrel purchase price is £4,000 and the hogshead purchase price is £5,000. The purchase price includes the spirit production and cask filling, as well as warehousing and insurance for up to 10 years. The purchase price does not include bottling, labelling, duty, tax and VAT costs which will be due at the time of bottling.

We have illustrated an estimation of the full cask cost for a hogshead. In total, the estimated costs are £11,579 and with an estimated 300 bottles per cask, the price per cask strength 70cl bottle would be £38.60. Please note this is only an illustration of full costs.

PURCHASE PRICE: £5,000
 

BOTTLING ESTIMATE:

 

£1,200

DUTY ESTIMATE:

(based on 120 LPA at 55.62%)

£3,449
SUB TOTAL OF ABOVE: £9,649
UK VAT ESTIMATE:

(based on the current 20% rate)

£1,930
TOTAL: £11,579

Note: The bottling, duty & VAT costs outlined above are only incurred should you bottle your cask. These costs would not apply if you choose to sell your cask.

BOTTLES 

Within our Hard to Find offer, we have two options for you to choose from – a peated 200L bourbon barrel or a specialty 250L sherry hogshead. There are a number of factors which affect the number of bottles per cask, but as a typical estimate, you could get 250 bottles from the barrel and 300 bottles from the hogshead.

TERMS AND CONDITIONS 

Holyrood reserves the right of first refusal, should you wish to sell your cask. This enables Holyrood purchase the cask back into Holyrood stock, before a third party has the opportunity to do so. If we choose not to exercise our right of first refusal, you will be able to sell your cask elsewhere, with our approval and with the understanding that the new owner accepts the terms set out in the Spirit Agreement. The full terms and conditions of Holyrood cask ownership are set out in our Spirit Agreement.

WHISKY INVESTMENT 

According to the Drinks Business [18.02.21] London broker ‘VCL Vintners reports that over half (56%) of all whisky casks sold in the past three months were to clients aged 18-44, with 52% looking at medium term investment of

5-10 years.’ Over the past decade, whisky has seen appreciation at a rate which out-performs diamonds, wine, art and watches [Knight Frank Luxury Index].

We’ve found the real investment for our cask owners is the opportunity to create their own spirit and to share this with their loved ones. Our cask owners have casks with us to celebrate their marriage, the birth of their children and many other life events. We have cask owners who have bought as couples, a family or larger group and here at Holyrood, we love this interest in cask ownership as a shared experience.

Alongside this, we know our cask owners have joined the Holyrood family because they believe, as we do, that whisky is an incredibly interesting spirit. Despite using the same ingredients, each cask we create will make a unique spirit that differs from the next. Cask owners have joined to come along the maturation journey with us.

WILL I GET A CERTIFICATE?

Yes, we issue a certificate once the cask has been filled so that the certificate can outline the cask fill details.

WHAT % IS THE NEW MAKE SPIRIT?

The new make spirit will be filled to cask at 60%. This is because we believe (and studies determine) that 60% is the optimum ABV for cask fillings for congener and sugar production.

ARE THE CASKS FIRST FILL?

Yes, each of the six casks we offer are first fill.

WHAT SIZE ARE THE CASKS?

Within our Hard to Find casks there are two options – the peated 200L bourbon barrel or the specialty malt 250L PX hogshead.

WHO IS THE CASK DUTY REP?

As per our Spirit Agreement, the legal title to the spirit stays with Holyrood so that we can insure the spirit and manage all HMRC commitments. This is a standard across the industry, as it enables the HMRC responsibilities to remain with the producer, for the ease of the private owner.

CAN I VISIT MY CASK?

Yes, with due notice and subject to Holyrood’s availability. This also depends on the easing of Covid restrictions.

CAN I REQUEST SAMPLES?

Three samples are already included – these are outlined in the Spirit Agreement. We will take samples at 1 years old, 3 years old and 10 years old. Should you wish any further samples, this would be for discussion at the time and may be subject to further charges.

WHAT WILL THE BOTTLE AND LABEL LOOK LIKE?

Bottling and labelling are not included in the cask purchase price and would be due at the time of bottling. As this is a way off (at least three years!), the bottle and label options we will have on offer will be confirmed in the coming years.

Having said that, we will create a template label design which includes the details required by Scotch Whisky Association rules. We believe that this label will offer a degree of customisation, to allow you to tailor it to your cask and personal details.

We would also be able to help you create a more bespoke label and bottle, however there would likely be further costs associated with this. Certain information must be on the label to meet Scotch Whisky Association standards and we would ensure these requirements were met.

CAN I CHOOSE THE BOTTLE ABV?

Yes, we have included calculations for cask strength bottles in our full price estimation, as this is generally what our cask owners prefer. However, we could reduce the spirit if this is your preference.

CAN I USE HOLYROOD ON THE LABEL?

Yes, subject to how this is used. More information on this is available in our Spirit Agreement. As above, we have not yet finalised the label options but we will likely have some templates for you to choose from which offer some personalisation.

WHAT ARE MY OPTIONS FOR SELLING THE CASK?

There are a number of options for you, should you

wish to sell the cask in the future:

  • You can sell the spirit back to us – we can agree a price at the time and there would be minimal fees involved as the stock is and would stay in our warehouse
  • You can sell it to a third party – we would option our right of first refusal clause and potentially seek to match the sales price if we are looking to buy back liquid. If we can’t match the price or don’t wish to exercise our right of first refusal, you would then be free to proceed with the sale. In this instance, costs are minimal as transport, insurance costs etc. are usually passed as a buyers
  • Auctions – we have included a clause where the casks going to auction need Holyrood approval – this is to ensure that the right value bar is set for our stock and that a failed auction doesn’t devalue our

Options 1 & 2 are definitely our preferred routes and something we would be more than happy to help with later on.

CAN I SELL MY CASK / TRANSFER OWNERSHIP AT ANY TIME?

Yes, subject to the above and the terms of our Spirit Agreement. Our Spirit Agreement has been made to protect the Holyrood brand in a market which can change quickly.

ARE WHISKY CASKS SUBJECT TO CAPITAL GAINS TAX?

Whisky is classified as a wasting asset, which means it is not subject to capital gains tax.

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