Cask Ownership Programme 2024
White Peak Distillery (“WPD”) released its Wire Works single malt English whisky in February 2022. To-date the whisky has been well received (UK and beyond) and has received a number of sector accolades since launch.
World Whisky Awards 2024 (Virgin Oak – Gold, Over Smoke – Gold), IWSC 2023 Awards (Caduro – Gold, Bourbon Barrel – Silver), Global World Whisky Masters Masters 2023 (Alter Ego – Masters, Caduro - Gold), Global World Whisky Masters 2022 (Necessary Evil Finish – Gold).
We plan to sell a limited number of freshly filled casks in Q4 2024/Q1 2025. For this program we are offering some unique 125L quarter casks. This is a unique opportunity to own a cask of Wire Works whisky and experience its journey as it matures at WPD in the coming years.
The initial purchase price includes storage and insurance at the Distillery for up to 10 years.
Headlines
– Cask; the new make spirit will be laid down in second fill quarter casks:
- 125 litre ex-bourbon cask
- Originally sourced 200L barrels from Heaven Hills Distillery (Kentucky)
- One previous use for Wire Works whisky
- Re-build into quarter casks and re-charred at Speyside Cooperage
– Casking; WPD will arrange casking around its operational schedule.
– Cask Identity; purchased casks will be identified at WPD by a unique number. A cask name can be appended by stencil if specified.
– Certificate; following casking an ownership certificate (in a single name) will be issued conferring cask ownership and stating the details of your cask number, cask type, cask size, fill date and fill volume/weight.
– Samples; as the spirit matures, upon request we’ll be able to take small (max 10cl pa) tasting samples, so you can follow the development of the spirit (charges apply for postage). Sampling will be available upon request in January each year.
– Finishing; in years to come, if you’re interested in finishing your whisky in a different style of cask, we’d be happy to look into this with you (additional costs may apply).
– Insurance; your cask will be covered by the WPD insurance policy whilst in our care.
– Bottling; the point at which you decide to bottle, and the bottling ABV %, would be your choice. We can organise up to two separate bottlings here at the Distillery. You’d also be free to make your own arrangements at an independent bottler.
– Labels; we plan to offer a ‘standard’ owner label with bespoke features. Alternatively, you’d be free to organise your own label if preferred, in which case we would require reference to ‘distilled at White Peak Distillery’ appearing prominently on any label so that we can properly address authenticity and branding related issues.
Costs
The upfront cost of the cask ownership is £3,500 + VAT (note costs are VAT-taxable but rate of VAT upfront is zero whilst the cask is duty suspended i.e. pre-bottling). This covers the cost of the new make spirit, the cask itself, storage and insurance for up to 10 years.
In addition to the upfront cost, the following would be at an additional future cost to you (WPD would provide transparent costs at the time before any decisions are taken):
• Duty; the rate of duty is currently £31.64 per litre of pure alcohol (we have no control over how this may change in the future). Duty is not payable until the whisky is bottled. The amount of duty you’ll be liable for will depend on the volume of spirit in the cask at the time of bottling, which will be lower than the initial fill volume due to natural evaporation (the ‘angels share’). Over the long-term this is estimated to be 2% pa in the UK, but can vary from cask to cask.
• Bottles/Closures; if you choose to use one of our available 700ml bottles, then we would charge you (i) for the bottle and closure at cost (which we would demonstrate at the time, but currently would be approx. £2.00), plus (ii) £200 +RPI per bottling to cover labour costs. You’d be free to provide your own bottle providing it fits on our bottling equipment (or use the services of an independent bottler).
• Label; labels are very much down to individual tastes on design, label features, etc and the associated printing costs can vary significantly (especially for one off set up). We are developing a label for all our cask owners that would have bespoke elements. This would probably be the most cost effective option (approx. £1.25 a label).
Above future costs are valid as of Q4 2024, but may vary in the future and are subject to VAT. As noted, WPD internal costs are also subject to increases in line with RPI
• Cask Finishing; as an independent craft distillery, we have the potential flexibility to look at future requirements you may have for ‘finishing’ your whisky in a different cask to the ex-bourbon used for initial maturation. The incremental cost of this would include the purchase price of an alternative cask (we may be able offer a reasonable trade-in on the ex-bourbon if we can use as a refill).
The above costs will be subject to VAT at the applicable rate at the time and do not include any potential personal or corporate tax consequences that may be relevant if you decide to sell some or all of your whisky, for which you should take your own professional advice.
Q&A
1. Are there other options besides bottling and owning 100% of the whisky in cask (at the end of year 10)?
Yes, there are other options and here are some we’d be happy to discuss when the time comes:
– You could choose to leave the cask maturing at the Distillery beyond year 10. There would be a notional charge of £1256 pa to cover incremental costs of storage and insurance.
– You could sell the entire cask to a 3rd party such as an independent bottler or whisky investor (WPD would need to be involved if this ultimately became an option you wished to investigate). WPD may also be potentially interested in purchasing your cask.
– WPD could be interested in purchasing a proportion of the whisky in your cask at the time of bottling, for example in order to cover some or all of the additional costs incurred at the point of bottling i.e. duty, bottles, labels, VAT.
6 Valid as of Q4 2023, subject to VAT and increase with RPI in the future.
2. Is there a limitation on the number of casks I am allowed to buy?
WPD reserves the right not to sell more than two casks to any one individual.
3. Can I visit my cask while it is maturing?
Yes, with pleasure! Contact us when you wish to visit and we will arrange for someone to personally take care of you.
4. What are the tax consequences of a cask investment?
This will depend on your place of residence, your personal tax circumstances and whether you decide to sell some/all of your whisky. We would advise taking professional tax advice to better understand relevant tax consequences.
5. When is duty payable?
Duty is payable when the cask is either bottled or is taken out of the duty suspended area at the Distillery. The cask can potentially be exported duty free but may be subject to local import taxes and duty at its destination. We can provide assistance at the time but would advise taking professional tax advice to better understand relevant tax consequences.
6. What if WPD becomes insolvent?
You will retain full title to your whisky cask. As noted your cask will be authenticated by number and your name, and your ownership certificate will evidence all of these details.
7. Is the cask insured?
Yes, the cask will be insured against fire, theft and damage.
8. What happens if the contents of my cask are completely spoiled or damaged?
You will be offered the agreed insurance value as a settlement payment. This will vary over time as our whisky stocks mature, and for the first 3 years of ownership will be limited to
the internal cost of a filled cask, as agreed with our insurers. WPD would hope to be able to offer a replacement cask of the same type, and filled at approximately the same date, as your original cask; we can’t guarantee this option would be available as it will depend on the circumstances leading to spoiling or damage.
9. How you will deal with my personal data
All personal information that you supply to WPD will be handled in accordance with our privacy policy and will be used only for internal purposes. Your personal data will not be passed on to any 3rd parties, save for any regulatory requirements that may be imposed upon WPD.
10. Successors
Should a cask owner die or, by reason of illness or incapacity (whether mental or physical), is incapable of managing his or her own affairs or becomes a patient under any mental health legislation then WPD shall continue to hold the cask, but shall recognise legally valid instructions in connection with the cask ownership (including but not limited to any amendment to a delivery address) from the personal representatives, or those persons duly authorised to act on behalf of, the cask owner.
11. What happens if I move home or my contact details change?
If you move home or your contact details change you will be responsible for advising WPD in writing of such changes (see below ‘Notices’). WPD will then confirm such changes in writing. If you do not inform us of a change in address or contact details then we shall have no responsibility for trying to contact you through any other address or contact details than that we which have previously confirmed.
12. Notices
WPD is a company registered in England and Wales with company registration number 10098181 with its registered office being at the Distillery. If you have any questions or complaints, you should contact WPD using the contact information given on the WPD website. If you wish to contact WPD in writing, or if you are required to give notice to WPD in writing due to change of address or contact details, etc, this should be sent to WPD by e-mail, by hand, or by pre-paid post using the contact information given on the WPD website. WPD will confirm receipt of such notice in writing to you. If WPD has to contact you or give you notice in writing, it will do so by e-mail, by hand, or by pre-paid post to the address provided by you as stated on your ownership certificate, as may be amended by you and advised to WPD in writing from time-to-time.