Scam

Whiskey Wealth Club

We review Whiskey Wealth Club

Returns of 10% to 20% per year with “relatively little risk”?

Whiskey Wealth Club offers investment in barrels of Irish whiskey, the premise being that the barrels will increase in value as they age.

Its website claims that

Investor returns are currently in the 10-20% per annum region.

and that

Investing in barrels of whiskey as they age and increase in value in bonded warehouses offers potentially massive rewards with relatively little risk.

Its brochure goes further, claiming various eye-popping potential rates of return, including a claim that whiskey offers “15 YEARS TO TURN €2,550 INTO €160,000” – a 32% per year rate of return.

Who are Whiskey Wealth Club?

Scott Sciberras and William Fielding
Directors and joint owners Scott Sciberras and William Fielding

Whiskey and Wealth Club was incorporated in November 2018.

A confirmation statement filed with Companies House claims that no-one exercises significant control over the company. This appears to be contradicted by the incorporation document, which states that co-founder and CEO Scott Sciberras, co-founder and COO William Fielding, and Bradley Jay own the company in 34/33/33 shares.

I couldn’t leave WWC’s “About Us” page without noting that one of their Senior Wealth Managers rejoices in the name of Becci Toogood.

When she’s promoting whiskey investments projecting returns of 32% per year, Becci’s clients must be hoping that Ms Toogood actually is to be true…

How safe is the investment?

Whiskey Wealth Club claims that investing in whiskey carries “relatively little risk”.

The reality is that you are investing in a commodity supplied by a company that is less than a year old at time of writing, which is inherently high risk.

The reality is also that no investment projecting returns of 10-20% per year or 32% per year to the public carries “relatively little risk”.

Whiskey is a commodity and the price of all commodities fluctuates considerably.

In its brochure, WWC does acknowledge this fact – only to sarcastically dismiss it. In a miniscule disclaimer it states:

Like anything in life, nothing is guaranteed. America (Irelands biggest export market) could change laws and reinstate Prohibition again. Other countries could follow suit which would cause an oversupply of the market and bring whiskey pricing down. It’s unlikely but could happen.

There are plenty of reasons why a whiskey cask could be worth less than the buyer paid for it that do not involve America reinstating Prohibition.

Whiskey and Wealth’s economic illiteracy manages to get even worse from there.

In an email promotion sent to investors, it states:

Whiskey increasing in value over time is inevitable as it’s based purely on its age. It doesn’t suffer the ups and downs of financial markets. How much it increases depends on supply and demand.

Securities on financial markets go up and down because of supply and demand – and so does whiskey.

Whiskey will not increase in value over time if supply goes up, or demand goes down. Or if the investor paid too much in the first place.

Whiskey Wealth Club’s claim that demand for Irish whiskey currently exceeds supply may well be true. Its claim that the gap will widen even more over the next few decades is conjecture. Its claim that its conjecture is inevitable is nonsense.

The worst case scenario is that investors hand money to Whiskey Wealth Club and they are unable to fulfil their contract to supply the whiskey – which not a criticism of WWC, but an inherent risk when dealing with any small company. In this case investors would be looking at up to 100% loss.

Due diligence

The second rule of investment is “don’t invest in what you don’t understand”. (The first is “don’t lose money”.)

Unless investors are already professionally experienced whiskey dealers, they should employ a professional whiskey valuer working for and paid by them (not by Whiskey Wealth Club) to confirm that WWC’s whiskey casks are as valuable as they say they are.

You would not buy a house as an investment and simply assume the seller’s estate agent’s valuation was accurate – you would hire your own valuer. The same applies here, unless you are willing to take a total gamble.

Verifying that Whiskey Wealth Club are able to supply whiskey as promised also requires professional due diligence into the firm. Note that speaking to Whiskey Wealth Club representatives or visiting their premises is not due diligence.

The simple question investors need to answer is: if WWC’s whiskey casks will increase in value by 10-30% per year with so little risk, why does WWC need to sell them so cheaply?

Regulation

Whiskey Wealth Club inaccurately describes its investment as “relatively little risk” and misleadingly compares investment in a commodity with a small newly-formed company with saving in an FSCS-protected deposit account.

In the world of regulated investments, misleading promotions like this would be subject to intervention by the FCA. Investors in whiskey, however, are considered to be buying booze – even when it is explicitly promoted as an investment – and consequently the adverts do not fall within the oversight of the FCA.

While this leaves Whiskey Wealth Club’s adverts subject to regulation by the Advertising Standard Authority, the ASA is a national joke, with virtually no power.

Investors will therefore need to make doubly sure they are able to assess Whiskey Wealth Company’s claims for themselves.

Should I invest in Whiskey Wealth Club?

As with any commodity investment, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.

Any investment offering returns of 10-20% per year or 32% per year is inherently extremely high risk. As an investment in a commodity supplied by a small newly-formed company with a risk of total and permanent loss, Whiskey Wealth Club is much higher risk than a mainstream diversified stockmarket fund.

Before investing investors should ask themselves:

  • How would I feel if Whiskey Wealth Club defaulted on the contract and I lost 100% of my money?
  • Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?

Our Recommendations

If you are looking for an investment with “relatively little risk”, you should not invest in a commodity supplied by a small company with a risk of 100% loss.

1.5 Total Score

2.9User's score
Trust
2.6
Risk
4.2
Security
2
Profit
3
Add your review  |  Read reviews and comments
9 Comments
Show all Most Helpful Highest Rating Lowest Rating Add your review
  1. 0.35
    Trust
    10
    Risk
    10
    Security
    10
    Profit
    0

    Who is Bradley going to threaten now. Every person that has exposed James Bradley has received threats – not personally – because Bradley is a coward and hides behind lies and lawyers.
    Just a complete tosser who has ripped off THOUSANDS of people.
    Living the high life on DEFRAUDED money.
    Fuckin coward, liar and thief.

    Helpful(2) Unhelpful(0)You have already voted this
  2. Whiskey Wealth Club – sounds like a Ponzi scheme already. Why do all these scams have to keep their names so luxurious? I guess they think people are fools and would easily fall prey to their vicious tactics because of their rich-sounding names. Ridiculous.

  3. James Bradley – Jay Bradley – Bradley Jay – enough said – check out his history not what he tells you.

  4. 1.25
    Trust
    0
    Risk
    100
    Security
    0
    Profit
    0

    Just a bunch of arbitrage trading scammers looking for their next scam – steer clear.

    + PROS: None whatsoever
    - CONS: Dealing with professional criminals who have defrauded thousands of people. LIARS and CONMEN
    Helpful(0) Unhelpful(0)You have already voted this
  5. Be very wary – research the owners – ask them to name ONE legal company they have been involved in that is still operational.
    ARBITRAGE SCAMS – check their backgrounds.
    May be wrong but would not put one cent with these people who REFUSE to state their history in legitimate business.
    Anyone linked to james Bradley must be considered of very dubious character.
    Ask them what they have done – bet they refuse to answer or talk in circles like lying politicians. May be politicians are more truthful than these people.

  6. Haha, Brev copied your review at https://bondreview.co.uk/2019/08/13/we-review-whiskey-wealth-club-returns-of-10-to-20-per-year-with-relatively-little-risk/. He’s really pathetic. Just a shame he left this website and copied the content.

  7. 2
    Trust
    40
    Risk
    40
    Security
    40
    Profit
    40

    Although mostly wine centred anyone thinking of investing in drinks ought to read this blog first:

    http://investdrinks-blog.blogspot.com/

    And it’s sister site:
    http://www.investdrinks.org/

    Drinks investments are dangerous waters for the unwary and those who are not experts in the trade.

    You can also view the reviews at gripeo.com and tripledistilled.blog

    Helpful(0) Unhelpful(0)You have already voted this
  8. 1.5
    Trust
    30
    Risk
    10
    Security
    20
    Profit
    60

    One extremely important issue here which has been over looked – an investor buys a cask of whiskey from a reputable distiller with a good track record of producing quality whiskey. Sadly, the investor cannot label that whiskey with the name of the distiller’s best selling brands. Also, back in the 1990’s many whisky investment companies offered casks of whisky to investors and every single one of those companies was closed down by what was then the Department of Trade and Industry for misleading investors. My question to the people behind this whisky investment offer, is how much are you buying the casks for and what is their sale price to investors ? Also, because of the spelling above – WHISKEY – I am assuming single malt scotch whisky is not being offered as an investment ? If this is the case , then this potential investment offer will fail to match projected returns, as single malt scotch whisky comprises of a vast part of investment grade whisky market, globally. At best this investment offer is highly speculative , that is unless you can convince me otherwise , but bear in mind I have been involved in the whisky market as a professional participant for 25 years to date. Over to you gentleman ……

    Helpful(0) Unhelpful(0)You have already voted this
  9. 2.25
    Trust
    50
    Risk
    50
    Security
    30
    Profit
    50

    Would also do extensive research into the three owners – just google their real names, not the names they are using at whisky and wealth..

    Helpful(0) Unhelpful(0)You have already voted this

Leave a reply

Gripeo
Logo
Register New Account
Reset Password