You can now not just drink your whiskey, but invest in it too

India’s Whiskey Passion

India’s relationship with whiskey is already deep and emotional. The country is one of the biggest whiskey-consuming markets in the world, with International Wine and Spirits Record (IWSR) data showing 440 million cases of alcohol consumed in early 2024, 130 million of them whiskey.

Yet, despite the scale, Indians cannot invest in whiskey casks domestically. What Indian distilleries offer today is more personal, more celebratory and not meant for returns.

Take the case of Vikram Achanta, founder and CEO of Tulleeho. To mark 25 years of his company, he purchased a Godawan single malt cask. “A special label was created, and 252 bottles were filled from a single cask to commemorate the occasion,” he says.

Programmes like Diageo India’s India Rare Spirits and Paul John’s Single Cask Programme let enthusiasts customise their whiskey, choose the finish, and bottle it for personal use.

But it is not for investment purposes. ""We are in the business of personalised experiences”. We do not position this as an investment offering. The India Rare Spirits initiative provides bespoke designer liquids that are special, personalised, and tailored to each individual”, says Vikram Damodaran, Chief Innovation Officer, Diageo India.

So while India lets you romance your whiskey, the investing piece still sits offshore and that’s where companies like MLIW step in.

How a whiskey cask becomes an investment

A typical MLIW cask like the 2024 Triple Distilled Single Malt Irish Whiskey starts at GBP 3,495. A five-year-old 2020 cask is priced at GBP 7,995. Each cask holds around 200 litres of spirit and can yield approximately 280 bottles.

“Irish whiskey is triple-distilled, which gives it a smoother, more refined finish,” Pereira explains. “Scotch is double-distilled.”

The idea is simple. The older the whiskey, the deeper the flavour. And the deeper the flavour, the higher the value.

“Cask programmes have existed globally for many years, and their growing presence in India is a natural progression. With strong purchasing power and a deep emotional affinity for whisky, Indian investors are well-positioned for these programmes to thrive,” says Achanta.

The role of the UK–India free trade deal

As investors weigh flavour against financial return, another variable is quietly reshaping the equation: the UK-India Free Trade Agreement.

The deal would reshape the spirits business in India, as import duties on whiskey and gin, which is currently at 150 percent, would fall to 75 in the first phase, with a plan to reduce it further to 40 percent in the next few years.

A lower duty structure means genuine Scotch, Irish and premium craft spirits will no longer be reserved for only high-net-worth drinkers. “We are planning major retail expansions globally, with India as a key focus, offering nearly 15 expressions ranging from blended and quarter-cask to cask-strength whiskies aged between 3 and 25 years,” says Pereira.

But reduced tariffs are only the beginning. Market access is just step one. The real winners will be those who understand Indian consumer nuances, navigate regional logistics with finesse and build stories that truly resonate, Pereira adds.

Due Diligence

For all its charm, whiskey investing comes with its share of caution signs. The market is unregulated, both in India and abroad. “We operate as a self-regulated industry and follow strict compliance measures,” says Pereira. “Every investor undergoes a thorough KYC process to ensure transparency.”

Another risk is about no central database of aging alcohol in casks. “Valuing aged whiskey casks is complex. There’s limited public data and no uniform pricing benchmarks,” says Prof. Joshy Jacob of the Indian Institute of Management.

Fraud is another worry. The famous Rudy Kurniawan scandal, where the wine collector refilled old bottles with cheaper blends and sold them as rare vintages in the USA.

Even returns are not smooth. Knight Frank’s 2024 report shows whiskey delivered a 141 percent return over 10 years, higher than art or watches, but rare whiskey prices fell 9 percent in 2024 after years of spectacular growth.

Then there could be other risks like fire, theft, and water damage, which could destroy or devalue the investment. “Our casks are insured against fire, theft, and natural disasters,” Pereira assures.

And what if you just want to drink the whiskey?

Only on special request and at an additional cost . MLIW’s retailing arm can bottle your matured cask and ship it straight to your doorstep in India.

“There are essentially five ways an investor can make money,” says Pereira. “You can exercise the first right of return and sell the cask back to MLIW, which is our most preferred route. You can sell the cask to another investor or an independent bottler, bottle it under your own private label, sell it to a bulk buyer, or eventually move it into our tokenisation scheme once it’s launched.”

But this is where the fine print starts to matter. One major reason cask investing works so well in the UK is its tax treatment: whiskey ageing in a cask is classified as a “wasting chattel,” which means any capital gains are exempt in the UK.

The moment the whiskey leaves that cask, however, the tax perks vanish. Bottling triggers UK VAT and excise duties, and once the bottles are shipped to India, they are met with steep import taxes. In other words, you can drink your investment just be prepared for the tax bill that comes with the first sip. “We even plan to open the facility for tourism, where investors can come to Ireland and enjoy their whiskey right at the source,” Pereira adds.