UK watchdog cracks down on whisky cask investment firm over misleading claims

Investing in whisky—especially in casks—comes with risks. The UK Advertising Standards Authority has once again stepped in against a company offering whisky cask investments. According to the regulator, Capgroup Int, previously known as London Cask Company and Caskcap, used misleading reviews and failed to provide sufficient information about the financial risks. That has to stop now.

The London-based company now focuses on investments in Irish whiskey casks and gold coins. On its website, these products were presented as tangible assets that could protect against inflation and potentially appreciate over the long term. The site also showcased more than 27,000 positive reviews.

That number caught the ASA’s attention and prompted an investigation—and it wasn’t the first time.

A key part of the ASA’s investigation centered on a striking Trustpilot listing. According to the ASA, the information was inaccurate. Under the company’s current name, there were no Trustpilot reviews to be found. Under its former name, Caskcap, there were only 85 reviews with an average score of about 3.5 stars.

The claim on the website was anything but accurate. Capgroup has since removed the false claim from its website. The regulator also concluded that the mention could easily give visitors a misleading impression of the company’s reputation.

The website also lacked adequate warnings about the risks of investing in whiskey casks. This type of investment is not subject to the same financial regulations and protections as many traditional investment products.

According to the ASA, this is essential information that must be stated clearly and prominently. The value of a cask can rise—but it can also fall. And past positive performance is no guarantee of future returns.

Capgroup acknowledged that this information was missing and has since added a notice stating that the products offered are unregulated investments. But that’s not the end of it.

The website also claimed that rare whiskey could deliver an average annual return of 8 to 15%. To support this, Capgroup examined the figures for 83 casks purchased between 2021 and 2023.

The results showed annual outcomes ranging from 4.4 to 28.5%. So the investment firm’s numbers didn’t hold up here either—though there is some nuance. For 54 of the 83 casks, returns did fall within the stated range. Even so, the ASA found the claim insufficiently substantiated.

Part of the sales prices used were based on valuations rather than actual cask sales. As a result, the figures were not representative enough to support a general returns claim, according to the regulator. Capgroup has also removed this assertion from its website.

This isn’t the first time the company has come under the ASA’s scrutiny. In 2023, an ad from the London Cask Company was banned due to unproven claims about financial gains.

The wider whisky industry has long warned about misleading offers and fraud around cask investments. The City of London Police reported that in 2023, consumers collectively lost around £3 million to fraudulent alcohol investments.

Our advice: always be cautious about what you invest in. Verify a company’s claims and ask questions if you have them (including seeking third-party opinions).