No more paper trails: whisky broker puts casks on the blockchain

Whisky, that most traditional of tipples, has finally been dragged into the digital age, kicking and screaming — or rather, quietly maturing in oak while tech disruptors work their magic. VCL Vintners, a London-based whisky broker, has become the first in the UK to fully implement blockchain technology across its operations, promising transparency, traceability and perhaps a little less whisky lost to the paper-trail abyss. In collaboration with Proof 8, a blockchain-based asset management platform, VCL now tracks every stage of a cask’s life cycle using ‘Digital Deeds’ — immutable records that ensure authenticity, compliance and smooth ownership transfers. If the whisky world needed a digital revolution, VCL has just poured the first dram.

Beyond Excel spreadsheets and paper ledgers

Benjamin Lancaster, founder and partner at VCL, is unequivocal about the need for modernisation: “Most distilleries rely on archaic methods — Excel spreadsheets or even paper records — to track cask maturation, losses and ownership details. These processes have historically worked because there wasn’t an alternative. But blockchain introduces a secure, transparent system for tracking ownership, ensuring provenance and maintaining compliance.” It’s an industry where provenance can be the difference between a cask’s value soaring or sinking. Counterfeiting and fraud have long plagued the whisky market, especially in the rare and collectable bottle trade. By digitising ownership and provenance records, VCL aims to eliminate doubt and enhance investor confidence. Rob Hollands, CEO at Proof 8, sees blockchain as the key to greater industry efficiency: “Moving away from paper-based records, certificates of ownership, and unreliable tools such as Excel provides a real opportunity for better data across the whole industry.” The proof, as they say, is in the cask — or, in this case, on the blockchain.

From warehouse to wallet: whisky goes digital

The mechanics of this shift are relatively straightforward. Each cask stored on Proof 8’s platform is assigned a Digital Deed, a unique and secure digital representation of the physical asset. Unlike traditional ownership documents, these digital records are immutable, ensuring that details such as re-gauging (the process of measuring alcohol volume and strength over time) are accurate and readily available. “Do you know what a ‘regauge’ is?” Lancaster asked db during a recent interview. When the reply was a hesitant ‘no,’ he explained: “A regauge is an assessment of the alcohol volume and strength in a cask as it matures. When a cask is filled, it’s usually around 63.5% ABV, but over time, some evaporates and the strength declines. Distilleries document this process, but the records are often paper-based and outdated.” For investors, access to real-time data means smarter decision-making. For distilleries and warehouses, it means optimised operations. For the whisky itself? Well, it continues doing what it does best — getting better with age.

A record-breaking precedent

VCL Vintners isn’t new to whisky-tech innovation. In 2021, the company partnered with Metacask (now Proof 8) to auction a rare 1991 Macallan cask with a blockchain-based certificate of ownership. The cask fetched a staggering US$2.3 million, a record-breaking moment that signalled the potential for digital asset-backed whisky investments. Seeing the opportunity, Lancaster and his business partner Stuart Thom invested in Metacask, paving the way for the Proof 8 platform. “Blockchain technology has already had a transformative impact on industries like finance and banking and healthcare that have complex supply chains, data-sharing requirements, and high regulatory scrutiny,” Lancaster said. “Before the Macallan sale, it was a relatively untapped market, and Proof 8 has developed a secure, scalable solution that provides a seamless way to trade, track and authenticate ownership.”

A more democratic whisky market?

Could this technology also break down barriers to entry in the whisky market? The answer, according to Lancaster and Hollands, is a resounding yes. By verifying ownership and authenticity with ease, blockchain allows more people to participate in whisky investments. “Whisky investment was once niche, but it’s now more mainstream,” Lancaster pointed out. “With digitisation, information is easier to access, ownership is clearer and processes are more transparent.” Meanwhile, major spirits companies are taking note. “Diageo has noted in their innovation reports that new consumers are demanding new forms of ownership and authenticity,” Hollands added. “This technology is preparing the industry for those changes.”

The future of whisky: bottles with blockchain?

Could blockchain even extend to the consumer level, allowing drinkers to scan a bottle and see its full history? Hollands thinks so: “That’s something we’re actively working on. Whether through NFC tags or QR codes, bottles can serve as a media channel, providing access to brand stories, sustainability efforts and provenance data.” Lancaster agreed, adding: “Consumers today want transparency — where their products come from, sustainability practices, and exclusive experiences. These technologies help deliver that.”

From tradition to transformation

So, will whisky purists be raising a suspicious eyebrow at all this blockchain business? Perhaps. But the industry has always walked a fine line between tradition and innovation. Just ask the distilleries that once resisted the use of steam power. In the end, efficiency and security tend to win out. For VCL Vintners, the goal is clear: modernising whisky investment while maintaining the heritage that makes the industry so revered. “The record-breaking Macallan NFT sale showed how whisky can bridge traditional and digital markets,” Lancaster said. “This is just the beginning of a major industry shift.” And if blockchain can prevent even one cask from mysteriously ‘evaporating’ from warehouse records, it might just be worth toasting to.