If, by most accounts, whisky gets most of its flavour from the time spent in cask – both meticulous planning and deep contemplation are needed when setting up a barrel warehouse.
Flavours aside, the storage decisions you take makes a huge impact on cashflow, inventory availability and on a pragmatic level – the day to day operations of your warehouse team.
This article explores the various factors at play and what to consider when either constructing a barrel warehouse, or picking the right solution for you.
Types of whisky warehouse
Understanding the different types of warehousing solutions available and their respective impacts on the maturation process is fundamental.
Put simply – a warehouse’s construction has a substantial bearing on the whisky’s final profile. You need to find a symbiosis between what you want to happen to the whisky and how you shape the environment to be conducive in achieving it.
Small details might not seem that important on any given day (humidity and temperature) but over the years they lead to creating complex, enriched flavours. They are also responsible for having predictable inventory, or a random assortment of casks to work from…
Traditionally, there are three warehouse types:
Rickhouses
These are racked warehouses where barrels are stored horizontally on ricks, generally rows between eight and twelve layers high in long, parallel rows, facilitating ample air circulation around the barrels. While this method demands significant manual labour, it supports a specific ageing process influenced by the environment in the warehouse.
The primary advantage of modern racked warehouses is cost savings. The increased ratio of space to stored goods makes them cost effective, while it allows for ample warehouse floor space to be used for machinery that moves the casks around (e.g. forklift trucks)
It’s estimated that around 50% of all casks are currently stored in this way in Scotland, while the largest racked warehouses in Kentucky has over 20 levels and a capacity of up to 60,000 barrels.
Palletised warehouses
In this setup, casks are stored vertically on wooden pallets, generally four casks per pallet braced together with a steel or plastic strap and stacked one on top of the other.
This approach is space-efficient and reduces labour requirements thanks to the utility of forklifts. However, it poses challenges including restricted airflow which alters the ageing process and a heightened risk of leaks due to increased pressure from stacked pallets.
Dunnage warehouses
Often seen in Scotland (although their design means less than 10% of casks are stored in them given the volume of the industry), these are single-floor buildings with stone walls and earthen floors, designed to naturally regulate temperature and humidity, thus offering a consistent climate for slow, long aging.
The oak casks stored for whisky maturation within a Dunnage warehouse are stacked directly on top of each other
The main advantage of Dunnage warehouses are excellent air circulation and a microclimate with a higher level of humidity. Thanks to their thick walls and roofs Dunnage warehouses experience less outside influence than other types warehouses.
Safety considerations in whisky warehouses
The integration of safety protocols is non-negotiable when it comes to setting up a barrel warehouse.
Ensuring safety against fire hazards and structuring a warehouse that accommodates secure movement of casks should be paramount.
Implement fire safety regulations stringently, including installation of effective fire suppression systems is the first major task. Realistically, it’s less suppression and more retardation given the contents of each cask, which makes regularly reviewed and implemented prevention protocols the key area of focus.
You’ll need to implement regular safety training and drills, clear safety signage and the provision of protective equipment. You’ll also need to ensure the storage of other goods adheres to regulations (especially for hazardous materials), as well as organise routine safety inspections by external auditors (namely, insurers).
An efficient warehouse layout facilitates smooth movement, reduces retrieval times, and optimises storage space. Designing pathways to facilitate the easy transportation of casks, be it for sampling or disgorgement, is essential to maintain a streamlined workflow while adhering to safety norms.
Factors that often creep up too late are structural integrity of the floor (weight loading), once everything is accounted for and forced ventilation systems (some countries insist on it for fire protocols).
Technology plays a pivotal role in modern whisky warehouses by streamlining operations, reducing human error, and enhancing overall efficiency.
While it’s lovely to paint a logo and a cask number on the side… Employing a Warehouse Management System (WMS) that integrates RFID tags or barcoding is how most operate their warehouses. Speak so providers about how they suggest implementing it with your operational / scale needs in mind.
Lastly, new premises must factor in security, in particular understanding how to be compliant with bonded warehouses regulations, accounting for excise and regular audits of inventory.
A few tips before you start…
Setting up a barrel warehouse is complex. Here’s a practical set of questions to consider before committing any spend. By methodically addressing each, soon to be distillery managers can ensure that they’re making informed decisions, optimising resources, and setting up a warehouse that aligns with both current needs and future aspirations.
Purpose and capacity
How many casks do I intend to add to the warehouse and what is the projected growth over the next 5-10 years?
When do I need to start removing casks and disgorging them? In what quantities will this need to be done from year 3, 4 and 5? Will you be refilling casks and putting them back there, or will refill casks be stored in a different place?
Are there plans for tours or visitor experiences that would require additional amenities or design considerations? Think walkways, zoning etc.
Type of whisky warehouse
Which warehouse type (racked, palletised, or dunnage) aligns best with my desired aging process and flavour profile?
How will the chosen warehouse type impact labour, space efficiency, and the ageing process? Can I afford that?
Location
What are the climatic conditions (temperature, humidity) of the chosen location, and how will they influence the maturation timeline? How will these affect the angels share and the flavour development?
Is the location easily accessible for transportation and logistics?
Safety protocols
What fire safety measures need to be in place? Are there specific local regulations to consider?
How will casks be safely moved within the warehouse? Is there adequate space for manoeuvring equipment and personnel?
Infrastructure and design
Is the infrastructure robust enough to support the weight and volume of barrels, especially if they’re stacked?
How will airflow and ventilation be managed, especially if opting for a palletised setup?
Is there room for expansion if production increases in the future?
Can the warehouse infrastructure be easily modified or expanded?
Operational efficiency
How will barrels be tracked, accessed, and rotated? Hw much space do you need to leave for vehicles? These can range from those used inside the warehouse to deliveries and collections.
What systems will be in place for sampling, disgorgement, and bottling?
What measures will be taken to ensure the warehouse is environmentally friendly?
How will waste and by-products be managed?
Financial considerations
What is the budget for setting up the warehouse, and how does it align with the overall business plan? Is it going to be an incremental build as inventory arrives, or will it be an upfront cost?
Are there potential tax implications related to warehousing in the chosen location? As in, are there benefits to having multiple warehouses for annual production, or is everything under one roof better? Some countries have particular tax rebates and volume caps…
In conclusion, establishing a whisky barrel warehouse requires careful consideration of various factors to ensure optimal maturation, safety, and efficiency.
The type of warehouse (Rickhouses, Palletised, or Dunnage) significantly influences the whisky’s ageing process and flavour profile.
Safety protocols, especially fire prevention, are paramount, alongside an efficient warehouse layout for smooth operations. Modern technology, like Warehouse Management Systems, plays a crucial role in enhancing efficiency and reducing errors.
Distillery managers must consider questions regarding purpose, capacity, warehouse type, location, safety, infrastructure, operational efficiency, and financial implications before embarking on setting up a barrel warehouse.
This thorough planning ensures any maturation warehouse aligns with both current needs and future aspirations, ultimately contributing to the creation of quality whisky.
For more of this type of whisky maturation planning, take a look at our article on Creating a Maturation Schedule.
