Over the past few years whisky makers have released a variety of very rare and expensive Scotch whiskies to the marketplace.  The price of these rare offerings is determined by what the market will bear, or in other words, the amount the investor is willing to pay.  It appears that the price has little to do with the cost and time required to produce the bottle but more about who is interested in purchasing it. What has been happening is that there are a number of avid whisky enthusiasts who are willing to part with large sums of cash to claim one of these rare items as their own.

The participants in this market consists of collectors, investors and high-end consumers.  Individuals may take on only one or even all three of these roles.  For example, the same person may try to acquire two bottles, one to keep and maybe sell later, and the other to drink.

Ironically, with the recent surge in whisky’s popularity, distillers have been creating and promoting no-age statement whiskies. Older whiskies are more valuable, but the industry is far from claiming that older is necessarily better.  The older the vintage, the fewer bottles there are available, making it more desirable to those who can afford it, as well as more collectible.

Marketing whisky is about the quality of the whisky and the stories it allows the producers to tell about their brand’s legacy and history.

The media seems to have become infatuated by the so-called investment potential of these expensive bottles and casks.  However, whisky producers shy away from considering them as an investment.  There are people collecting simply for the happiness gained from the achievement of getting hold of a particular brand or vintage item.  However, encouraging people to invest for profit is risky business.  A large outlay of cash doesn’t necessarily provide the opportunity for resale for an increased amount later.

In the same way the price of fine wine will fluctuate up and down, so, too will Scotch whisky.  But just like wine, most people don’t consider it an investment vehicle similar to stocks or bonds.

When it comes to distillers setting a price for their rare releases, the only reference point seems to be the auction houses. If the price is set too high they will be accused of having delusions of grandeur. If the price is too low, the whisky will be quickly purchased and resold.

If you find yourself in the possession of a bottle of Scotch from one of the distilleries that no longer exists, you may have something of great value without realizing it. This list of distilleries includes Brora, Imperial, Littlemill, Port Ellen and Rosebank.

Revenues from the sale of rare whisky is minuscule in comparison to the profit made from the sale of the distilleries’ standard fare.  That is one reason why every distillery doesn’t take part in this niche market. Another being that any of the newer distilleries haven’t existed long enough to have any casks that have aged long enough to enable them to provide such a rare offering.

A certain amount of snobbery exists in the ultra-rare whisky market.  There are those who believe that distilleries, such as Macallan, should not have luxury status because their whiskies are available through grocery retailers in Britain.  Apparently in the view of some, if a distiller makes their product easily accessible to consumers, it raises doubts about its luxury status.

Thankfully, this is not an opinion shared by everyone and that whisky is judged and valued by its quality and flavour.  Proof in point, a bottle of Macallan’s 1926 sold at Sotheby’s for £1.5 million or $2.325 million dollars CDN!

Sláinte mhaith