FAQ
Common Queries & Solutions
The minimum purchase for cask organic rum ownership depends on the type of organic rum and type
of cask that you select. There are direct purchase options on our website or if you have further
questions, please contact the team to discuss.
Based on the type of organic rum and cask combination you choose, the purchase price will be between
$825 and $900 per cask. When you purchase cask organic rum with Invest in Rum, your purchase price
covers the cost of the cask, the original 210 litres of organic certified rum inside the cask (on average; casks are
made by hand so not all are exactly 210 litres) and insurance and secure storage in our on-site warehouse for your first two
years. The rum’s title and ownership are registered in your name, and this full asset ownership enables you to sell, ship or bottle your rum at any time. For an additional fee (handling, freight, IBC costs and import processing), we can ship your organic rum to our Miami warehouse where we will import and temporarily store your organic rum for you.
The process of buying the cask itself and having the ownership transferred to you takes just a few weeks, and once you have this full ownership, you may choose to sell your casks at any time. Your organic rum has the value at which we sell our fresh organic rums in bulk from day one. Maturing in barrel is simply going to add value.
The rate of return can be dependent on how long you’re able to hold your casks. As with any asset, value is subject to fluctuations and your actual returns may vary.
The rate of return can be dependent on how long you’re able to hold your casks.
Firstly, we have been around a long time! Our sugar mill, OTISA, was the first organic sugar mill in the world, starting operations in 1994. We started exporting organic certified rums over 15 years ago and formalized our distillery as a separate
operation from the mill in 2019. We are pleased to provide you with an exhaustive list of our clients, which unlike most cask investment platforms, are not direct clients like we have because most cask investment platforms do not actually produce their own spirits! They are simply middlemen that negotiate contracts with distilleries. We produce the organic sugars, organic rums and we do everything on-site ourselves and we have 30 years experience doing so!
After the success of Scottish Whisky, American Whiskeys and Irish Whiskey, rum is the most under-appreciated barrel aged spirit. Rum is ripe for premiumitization and has been gaining steady recognition. Experts predict and data shows that premium rum consumption continues to grow year-over-year and this trend will continue. Interest in premium and luxury expressions has been a significant driver of this increase, and the spirit has become especially popular in the US, the UK and
Germany.
Brands like Diplomatico, Appleton Estates, Dictador, etc. have lead the charge in the premium and super-premium rum categories. As new markets develop tastes for this premium spirit, demand is increasing and aged stocks are becoming more scarce. Rare bottles have seen significant increases in value over the last decade, and these premium expressions are likely to become even more difficult to source in the future.
Cask rum ownership offers the opportunity to participate in this booming market in the way that works for you – whether that’s to help a favorite distiller continue producing spirits, hedge against potential future shortages, or bottle the contents of your cask under your own marque. As with any major purchase, make sure to do your own research, learn about the industry, and undertake due diligence.
We at the Legado Distillery do everything possible to ensure the best storage conditions of your casks. With its sub-tropical climate, Paraguay boasts some of the absolute best weather conditions for barrel aging. We have steel building warehouses, concrete floors, misting systems and more than adequate ventilation. Casks are inpsected weekly for any signs of leakage or any other issues, which are immediately addressed and remedied by our distillery and warehouse staff.
Paraguay is one of the few countries in the world that is almost immune from major natural disasters: no earthquakes, it is a
landlocked country far from the ocean (no typhoons or hurricanes), no tornadoes and the area in which the distillery is located is not prone to flooding.
As with any major purchase, there may be an associated level of risk and returns cannot be guaranteed, but they are insured.
When you pay the balance on your casks, you will receive your official certificate of ownership. This is a legally binding document that confirms your full ownership of your casks. The payment of the balance on your casks will include your first two year’s storage and insurance fees.
How much rum is left after the angel’s share?
Around 5-6% of the spirit inside the casks evaporates each year as part of the ‘Angel’s Share,’ so the amount of rum left in your cask at the end of your ownership term will depend on the duration of your term.
As with any luxury asset, returns cannot be guaranteed and the value of a cask may be subject to market fluctuations or other unforeseen major events. However, we model and project returns based on actual export pricing that we ourselves have realized over the last 15 years of exporting organic rum.
The value of a cask of rum is primarily determined by its age, quality, and scarcity. Generally speaking, quality and scarcity together will have greater bearing on the value than age alone. Additionally, our rums are not only premium, but also have the additional differentiation of being organic certified NOP for the US market and EU Organic for Europe. Our organic rums can also be Fair Trade certified and are produced in one of the world’s most sustainable distilleries. These are all growing requirements for many European and Asian buyers and are not requirements that can be easily nor quickly implemented
by other distilleries.
We’ve spent decades cultivating relationships with the world’s largest bulk buyers of rum to help offer a potential exit strategy and the best potential for future returns for our clients.
When it comes time to exit, you’ll be able to devise the exit strategy that best fits your financial needs and goals. Whether that means selling your casks back to our distillery (Legado), offering them to our distillery’s existing international bulk clients, putting your casks up for auction or bottling your casks’ contents under your own marque, the Invest in Rum team will be able to provide you with the information you need to make the right decision for you.
All of our casks are held in on-site warehouses located in Arroyos y Esteros, Paraguay. They are monitored by our staff 24/7 and 365 days per year. You can request short video updates that will then be uploaded to your client portal OR you are always welcome to tour our warehouse tour to experience the facilities firsthand.
In addition to our 30 years export experience of organic sugars from Paraguay, we also hold the
following certifications:
1. NOP Organic
2. EU Organic
3. JAS Japan Organic
4. Kosher
5. Passover Kosher
6. BRC Food Safety Certification
7. Fair Trade Certification
8. HACCP
Once you have received your certificate of ownership, you are the full owner of your casks and may
sell at any time. Given our experiences in the international rum markets, we generally recommend
holding your casks for a minimum of four years; however, when you choose to sell your casks is
ultimately up to you.
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