A mature investment

A conversation with Aaron Damiano Sparkes, founder and CEO of Whisky 1901

Whisky cask investment is an exciting new chapter in the liquor’s centuries-old history. And now, thanks to Whisky 1901, you no longer need to be a savvy industry insider to build a healthy portfolio. The Whisky 1901 team blends in- depth whisky knowledge with hard-headed investment expertise. The Portfolio Managers you work with are supported by a fully resourced back-office team keeping all functions, including accounts and cask management, in-house.

The Luxury Report caught up with founder and CEO of Whisky 1901 Aaron Damiano Sparkes to find out more about this intriguing market.

Tell us how you started out in whisky investment and in turn created Whisky 1901?

Whilst whisky has long been a passion of mine, I have not always worked in the industry. I started out working for my dad as a tiler before I got an opportunity to train as a junior stockbroker for a company based in London. I was later approached by a wine investment company and decided to make the move. The company I was working for diversified into whisky investment, and before long I was heading up the team.

I have been in this industry for 12 years now, and my background and enthusiasm for whisky has very much influenced and shaped my career to date. I was initially drawn to the romanticism and appreciation of whisky as a drink, but quickly recognised its potential for long- term financial returns. Hence the reason for setting up Whisky 1901 five years ago.

Founding my own company has allowed me full autonomy over the casks we sell, ensuring we only deal with the finest Scottish distilleries. I also enjoy sharing my knowledge with investors and collectors entering the market.

What was your inspiration for the name of the business?

Whisky 1901 pays homage to my father, with whom I shared a love of whisky and enjoyed a dram or two from a GlenDronach cask dating back to 1901. That’s what inspired me when it came to naming my own company, Whisky 1901. It’s an affectionate nod to the man who first ignited my passion. My father first introduced me to the joy of top-quality single malt Scotch whisky and GlenDronach remains my favourite whisky today.

Aside from sentimentality, I appreciate the taste and time-honoured traditions used by the GlenDronach distillery. The rich, full-bodied spirit speaks for itself, with 70% of the flavour of the whisky derived from the casks they are matured in.

On your website you mention working with over 300 clients and have over 1,000 whisky casks under management. Please expand on the significance of these numbers.

I started Whisky 1901 in 2019 with a mission to connect investors with the right whisky cask based on their unique circumstances, including investment goals, budget, timelines, and risk appetite. Today, we’ve grown the business to have a client base in excess of 300 investors, with 1,000 casks under management. I’m pleased to say that whisky investment is no longer limited to ultra-high net worth individuals and industry insiders, with casks starting from £5,000, cask investment is accessible to many.

At Whisky 1901 we make it our mission to create a safe haven for our clients’ investment. As part of the investor journey, our clients receive quarterly updates to stay informed about the current performance of the whisky market. Additionally, every two years, they receive a detailed analysis of their specific cask investment, including projected ROI based on current market prices.

Over the past two years, we have also been in the process of moving our investors’ casks into two purpose- built bonded facilities in the Scottish Lowlands. This move enables us to closely monitor the maturing product, including regauging, reracking, and bottling, as well as providing investors with greater transparency over the performance of their portfolios, regardless of the distillery of origin. The move also means our investors can visit their barrels in our Glenrothes facilities in Fife by appointment.

Our clients are also invited to exclusive annual whisky tasting evenings held in London and Scotland. These events provide a unique platform for our portfolio managers to personally connect with clients, fostering long-lasting and meaningful relationships throughout the duration of their investment with Whisky 1901.

When it comes to exiting the market, there are various strategies available for investors, from selling the casks to other investors or at auction, to consuming cask whiskies. We offer support and guidance to investors wishing to re-sell their cask onto the whisky market, but we also offer a bottling service to those investors who are looking either to consume, gift or sell their product once the spirit has matured in the barrel. We will cover all the costs associated with bottling, including transporting the cask from the company’s Lowlands Bond to the bottling hall, weighing, and disgorging.

Explain how Whisky 1901 uses digital technology to enhance the customer experience.

Since the inception of Whisky 1901, we have always believed that the customer journey should be at the heart of everything we do. From day one, we have understood that while whisky cask investment is inherently a ‘hands- off ’ process, the experience should be as engaging and transparent as possible for our clients. Our goal is to provide a seamless, interactive platform where investors can always stay connected to their portfolios.

We are currently using stock management software to efficiently track the journey of our casks from purchase to transfer of ownership to clients. And we are developing tools that allow our clients to not only to track their portfolio’s performance, but view their casks in real-time through digital portals, offering a unique glimpse into the physical assets they hold. They will be able to view the casks they own and see the location within the warehouse. They will be able to request to move casks, view a timeline of the cask’s movements and request a regauge of a cask to provide forecasting. In addition to the traditional investment metrics, this access to real-time data on the casks themselves, right down to their exact storage conditions, brings a new level of transparency.

Ultimately, our investors benefit from data captured during regauging which offers them and us a better understanding of the alcohol by volume (ABV) and liquid levels. This information provides a greater understanding of the longevity of a cask, enabling us to advise our clients on how long they should continue to invest and/or the right time to sell or bottle the product.

By building bespoke software tailored to our clients’ needs, we are empowering them with the visibility and control they want, which is essential in today’s market where clarity and trust are paramount. This digital transformation is not just about improving operational efficiency, it’s about reinforcing the relationship we have with our clients, ensuring they feel informed, confident, and connected every step of the way.

What are your goals for the business over the next 5-10 years?

In the next five to ten years we will look to continue bottling and launching our own range of whisky called The Collection. Last year we launched our first bottled whisky – a rare Glenburgie 1988 single cask expression aptly named Edition One as it’s the first of The Collection. This spring, we hope to launch our second bottle in The Collection series. And then many more to follow.

We have also recently joined the Alcohol Wholesaler Registration Scheme (AWRS), supporting our mission to be the number one cask investment firm for independent bottling, delivering award-winning Scotch whisky to the retail and consumer markets. Our ambition is to have multiple award-winning bottles as part of our range being sold in UK stores nationwide.

We’re proud to be able to source some of the finest casks of single malt whisky from the five whisky regions of Scotland for our 300 plus investment clients. Our independent bottling line – The Collection – enables us to share some of these special casks with a wider audience. Some casks are from well-known distilleries, others from distinguished hidden gems.

The business has been successful over recent years. We celebrated revenues of £7.2m in 2023, an increase of 227% on £2.2m in 2022, and we are excited to see what the future holds for Whisky 1901.

Further information – whisky1901.com