Total Pageviews

Social Media

Tuesday, 22 February 2022

DIAGEO 2021 SPECIAL RELEASES BRINGS OUT UNTOLD LEGENDS

 DIAGEO’S 2021 SPECIAL RELEASE BASED ON ‘LEGENDS UNTOLD’

Autumn is an interesting time for whisky lovers, and among the highlights of the season are the Diageo Special Releases—the company’s annual collection of limited, highly sought-after single malt whiskies. The 2021 edition was unveiled on 30 September 2021.

Diageo’s Master Blender Craig Wilson was given carte blanche and roved free through unparalleled stocks that set his imagination free. Each of the whiskies included in the collection expresses “an individual character, inspired by the mythical creatures that inhabit the lands around each distillery.”

THE STORY OF THE SPECIAL RELEASES

For those who haven’t encountered this Yearly Release of Limited–edition Drams, you can find out all about them in the What Are The Diageo Special Releases blog posted by Billy for The Whisky Exchange. In short, it’s a collection of whiskies that has appeared each year since 2002 (after a smaller release in 2001), and which has slowly evolved into a showcase of lesser-known distilleries in Diageo’s portfolio – they own more distilleries in Scotland than any other whisky maker – as well as new takes on more familiar names.

The past few years have seen some major changes in both the make-up of the collection and its intention, The Prima and Ultima range has taken on the role of super-high-end-whisky showcase, leaving the Special Releases as a more accessible way to get your hands on some very special drams from Scotland’s biggest whisky maker.

The collection comprises the usual eight bottles of Single Malt Scotch Whisky, this time linked to the mythical creature associated with them and referred to in their history:

  • A 19-year Singleton: The Singleton Siren.
  • A 14-year Cardhu: The Cardhu Secret Blossoms of Black Rock.
  • A 13-year Mortlach: The Mortlach Moonlit Beast.
  • An 8-year Talisker: The Talisker Rogue Seafury.
  • A 12-year Oban: The Oban Twin Foxes.
  • A 16-year Royal Lochnagar: The Royal Lochnagar Spring Stallion.
  • A 26-year Lagavulin: The Lagavulin Lions.
  • A 12-year Lagavulin: The Lagavulin Jewel.

As expected, these are all at cask strength. When it comes to cask strength scotch, valuation is considerably more tricky. The idea of “value” begins to go out the window as proofs rise in the Scotch world, and this is a reality of the industry for a few reasons. For one, barrel proof or cask-strength single malt scotch whisky is relatively more rare as a phenomenon, with a greater percentage of the industry’s output being consumed at a mere 40% ABV (75 proof), or close to it. That’s 80 proof in the USA. Secondly, the greater amount of time inherent in ageing most Scotch brands means a greater investment on the distillery’s part, which translates directly into higher price tags. Yes, one can find some year-round brands of cask-strength Scotch for less than $100, but don’t expect to see any limited release going for that amount. This is a category that many drinkers inherently find they can’t afford.

In keeping with its trend of recent years, the releases include fewer ultra-aged (and thus ultra-priced) whiskies. This year’s oldest and most expensive expression is Lagavulin 26 year old at $2,400. The pricing then drops to $250 for Royal Lochnagar 16 year old, and the remaining six are pegged at below $200. They may seem affordable, but the fact remains that one needs deep pockets to indulge one’s fancy. Compare that to the 2017 collection, when five of the eight whiskies were older than 20 years—including a 52 YO Port Dundas ($900), 37 YO Port Ellen ($3,500), 34 YO Brora ($1,700), 32 YO Convalmore ($1,400), and 24 YO Blair Athol ($460). Only three Special Releases in 2017 were priced below $200.

The entire collection will set you back around £ 2,560 ($3,500). For that, you gain ownership of eight limited-edition Scotch whiskies that are unlikely to be seen again. Each one represents the height of experimentation with rare cask finishes and unusual age statements, ensuring that the mythical creatures of the collection represent the true expressions of the distilleries.

Each bottle in this year’s Legends Untold Edition carries a QR code linking to what Diageo calls a “multi-sensory experience” of legends and tales from the distilleries in the collection. By scanning the QR code, an augmented reality is activated. “The legends are unlocked, and the multi-sensory experience begins with a narration of the cask-strength Single Malts’ tale. Whisky fans are then guided through a mixed reality tasting experience, designed to captivate their senses, all from the comfort of their own homes.” The whiskies were made available at specialist retailers in Europe, the U.S., Canada, Australia, selected Asian markets and airport Travel Retail.

Diageo, the global alcohol megalith, gets the most out of having many classic single malt distilleries via yearly features like the Special Releases, which assemble dream teams of rare, cask-strength whiskies from distilleries such as Mortlach, Oban, Lagavulin and Talisker. They feature admittedly beautiful artwork on all of these labels in the 2021 collection. This is another aspect of the overall presentation where Diageo’s overarching influence creates a gorgeous result. Each of these labels is truly a work of art; credit to digital illustrator Ken Taylor who designed them all.

Lagavulin 26 YO, The Lion's Jewel, 44.2% ABV, £1,650

A Special Releases line-up must have at least one big hitter, this time a 26-year-old Lagavulin matured solely in first-fill oloroso and PX sherry casks. There aren’t that many spirits which can hold up to two-and-a-half decades of big sherry maturation without losing their identity, but Lagavulin is, well, a Lagavulin – it works well with sherry and is good at turning casks to its will rather than the other way around. That said, one could have expected a slightly stronger whisky as it costs more than the others combined. Perhaps the Angels didn't let up on their share!

Unlike all the other selections, which each note that they are available in “limited quantities,” this is the one selection that comes with a bottle count: 7,542, which is actually quite high for any cask-strength Scotch with this kind of price point. Fittingly, given its sherry route, it has the very deep, burnished amber colour you’d expect as a result. After 26 years, the smoke here has been smoothed out quite a bit, being only a distant wood fire now, while elements of the barrel and the fortified wine it once held swim to the forefront. Candied almond jumps out, along with brown sugar cookie and a bit of butterscotch, and hints of dark, syrupy fruit.

Nose: Sweet peat, tarry ropes and bung cloth. Singed apples and pineapples hide under the smokiness, with a touch of fresh and zingy mint and menthol. Then it’s time to dive into sherry-cask fruit, with sultanas leading to stewed plums and surprisingly gentle notes of dark fruitcake. Layers of spice build: nutmeg, cinnamon and clove.

Palate: Soft and fruity barbecued apples and grilled pineapple, all backed up by soft cinnamon spice, mint and bubble tar. Sweet pink shrimp sweets and liquorice are followed by black pepper spiciness, a touch of bitter barrel char and lashings of sweet baked apples.

Finish: Smoky barbecued fruit, hints of tar and lingering spice.

You can identify this as a Lagavulin even before your nose gets to the glass. The casks have added their dark and fruity character, but other than allowing the distillery’s punchiness to soften, they have in no way masked the classic Lagavulin feistiness. Evidence that first-fill sherry casks don’t have to create sherry monsters, even with 26 years in wood.

Singleton Of Glendullan 19 YO, The Siren’s Song, 54.6% ABV, £135

The nice thing about Diageo’s portfolio of single malt-producing distilleries is that they fill out all the major columns, in terms of common scotch whisky flavour profiles. A few of the more famous distilleries are indeed those known for peat and smoke intensity, but you also have the likes of Singleton of Glendullan to balance them out. While this Glendullan has started off in refill American oak, it has been finished in Cognac casks. This is not a particularly common choice of cask in Scotland and even less common in Diageo’s warehouses – they might have every sort of cask under the sun hiding away, but they rarely let Cognac casks out.

Glendullan is popular in, but still not that often seen outside of the USA; its normal fragrant and floral character is very well suited to refill casks, and a Cognac finish shouldn’t overwhelm it.

Nose: Candied fruit, sharp apples and buttered pastry – a part-baked pie with a dusting of sugar. Fruity jelly – orange and lemon – is joined by spiced pear, lemon drizzle cake, sultanas and muscat grapes. Lemon madeleines, trail-mix fruit vanilla cream, and oatmeal and raisin cookies follow.

Palate: Sweet, butter-rich caramel sauce leads to sultana-studded fruit sponge cake, polished oak and soft baking spice. Mint cream builds, followed by fruit: fresh, baked and puréed apple, a touch of brown banana and poached pear. Brown-butter toffee-studded cookies and green leaves sneak in at the end.

The sponge cake notes often found overpowering in Cognac finishes are very well controlled here, adding a sweet and candied dimension to the fruity Glendullan spirit.

Royal Lochnagar, The Spring Stallion 16 YO, 57.5% ABV, £199

Sunlight in a bottle. A rich, vivid Scotch that will remind you about the pleasures of springtime. A deep golden colour, this Royal Lochnagar 16 Year Old is a regal dram in many ways. It underwent a dual maturation process, between American oak and European oak refill casks. The Highland dram is presented at a hearty 57.5% ABV, and is cask strength (which means no artificial colouring nor chill filtration).

Royal Lochnagar is a rare whisky, and official bottlings like the 12 Year Old are offered at the lowest possible ABV. This may be spring in the glass, because the release was called 'The Spring Stallion'. This Highlander was matured in both American oak and European refill barrels. Would the horse be in the stables of Balmoral Castle? After all, that is close to the distillery. The equine on the front of the bottle is somewhat less bold on the nose; it is the palate is where the horse kicks on. Here’s a chance to get a better insight.

It is the most standard of all the maturations in this year’s range – refill European and American oak, the classic mix of sherry and bourbon casks. This is definitely a whisky where they’re not trying anything weird and wonderful and are just showing what the distillery does best.

Nose: Crisp apples and crunchy pears, with a surrounding blanket of green grass and meadow flowers. Gentle mint cream notes are joined by white grapes, sweet sultanas and touches of beeswax polished oak. White melon, fragrant oak, candy bracelets and stewed apple notes develop.

Palate: Thick and buttery pie filling to start – sharp apples with mint springs. Oak and lemon peel are followed by sultanas and sponge cake. Sharp apple is balanced by candied almonds, and buttery frangipane. Floral notes build as it sits: honeysuckle and violet.

Finish: Green leaves, mint creams, butter mints and damp grass.

The sherry casks are dialled back, giving a touch of sticky fruit, while the bourbon casks allow the grassy and fruity Royal Lochnagar spirit to shine.

 Cardhu 14 YO — The Scarlet Blossoms of Black Rock ABV: 55.5% £115

Cardhu – Gaelic for “Black Rock” – was founded in the early 1800s by John Cumming, then a distiller of illicit whisky. As the fable goes, upon a hill of blackened rock grew a mysterious tree with scarlet blossoms of irresistible charm. The scarlet blossoms are a reminder of the red flag Helen Cummings would fly above the farmhouse to warn other distillers in the area about the taxman. Their sweet aroma of honeycomb and spice was so alluring, it transformed the dark hill into lush abundance. Where crimson petals had fallen, a distillery took root. The spellbinding scent filled the air, infusing Cardhu with its distinctively enchanting character. Johnnie Walker & Sons bought the distillery in 1893 for his three brands, to be known in 1909 as Johnnie Walker White Label, Red Label and Black Label. About 30% of its malts are used solely today for the same brand, but with many more expressions.

Cardhu is a soft and easy-drinking drinking whisky, one that continues to go from strength to strength, and has now broken out of its Mediterranean heartlands of popularity and turned its eyes to the rest of the world. It is a very likable whisky – mixtures of bourbon- and sherry-matured spirit combined to create stereotypically sweet and spicy Speyside drams. This release, however, adds in something that is rare in the Diageo line-up: a red-wine finish. The scarlet blossoms? It promises a major quality uplift compared to last year's edition given that the price almost doubled (for just three additional maturation years)...and to be honest: It is of about the same quality as last year's Special Release Cardhu, maybe a little more mature.

Nose: the soft nose appears with fresh, fruity lightness of pleasant aromas such as light grapes and lychee in the clear presence of green apple, pear and a trace of orange peel - embedded in buttery pastries - behind it hovers a slightly sharp note that frees the wood that is stored in the wine - a drop of water presents light nuances of meadow flowers that evolve with each sip; Flatters the moment more clearly

Palate: A soft, creamy-smooth and quite full texture, the sweet taste suggesting home-made toffees. Soon, that taste becomes more fragrant and hints of Parma violets, a note further enriched by winey red apple and pear fruit and made more appetising still by crisp, clean oak. A dash of water softens it to a delightful creamy-sweet freshness, leaving just a hint of spice.

Finish: quick, sweet, pure and warming with a lingering fragrance in the finish - a little more with water until a warming pinch of white pepper appears, which rises in a finale of green apples in the aftertaste.

The Cardhu this year for the Diageo Rare by Nature Special Releases collection is delightful. It is a more delicate whisky, but it is a Speysider; the sweet-and-spiciness has had a surprisingly elegant blanket of fruit and spice draped over it. Recommend picking up a bottle if you can find it. 

Lagavulin 12 Year Old — The Lion’s Fire 56.5% ABV £128

As the fable goes, The King of Islay seen upon the crest of Lagavulin was no ordinary feline, but a lion rampant who prowled the grounds of an Islay castle, a fresh victor, intense in power and pride. This brooding and battle-worn beast, won its crown through flame and ferocity – and came to represent one of Scotland’s most fiery distilleries.

This cornerstone of the Special Releases appears in every line-up since the first full release in 2002. The annual release originally shocked by showing Lagavulin 16 Year Old’s rich and dark smoke wasn’t the limit of the distillery’s powers, instead pushing a fresher, sea-drenched style. While we now have the punchy ongoing 8-year-old to keep us going between Special Releases, it’s still a must-have for Lagavulin fans.

This is a no-frills Lagavulin malt without any secondary finishing, aged exclusively in refilled American oak. The distillery’s marketing language says it comes from their “fiercest and smokiest” casks, but oddly it doesn’t really seem to revel primarily in those flavours, on either the nose or the palate. This may come down to marketing bloviation, but the reality of The Lion’s Fire is that it ultimately displays superb balance.

Nose: dry peat with lots of coastal notes and medicinal elements. Beach sand, tarry ropes, with sea spray and iodine bandages. Dried seaweed. Hints of green apple and lemon. A slight mineral sharpness, as well as green olive juice, but also subtle sweetness in the distance. Like most of these 12 year-olds, slightly fierce but very high quality.

Palate: oily, with a sweetness of salted caramel and bready malt coming out first, before you’re struck by deep bonfire notes, char and plenty of brine. Lemon peels, smoked oysters, iodine and tingling pepper. Dry leafy notes, olives and chalk in the end, with light oak tannin as well.

Finish: rather long, on tar, slightly acrid smoke, green wood and lemon, sweet mint and chocolate touches.

2021 has brought us a great Lagavulin 12 Years, less sweet than last year and perhaps more briny and coastal than most other years. This is the most Caol Ila-y Lagavulin in a while. The chocolate-lime notes are classic Caol Ila, but it’s backed up by the Lagavulin meatiness and crashing waves. A true classic. I know people are complaining about the price creeping up, but on the other hand it’s almost impossible to to find this level of quality at a better price. One to savour!

Oban 12 YO,—The Tale of Twin Foxes 56.2% ABV, £105

As the fable goes, wedged between the Highlands and Isles where Oban’s distillery came to lie, twin foxes were born into light and dark. They were relentless opposites; one, with a bright orange coat, possessed the Highland’s gift for lightness and speed. The other, dark as smoke, possessed the Isles’ camouflaged mystique. Each fox contrasted and skillfully balanced the other. That makes for an evocative dram, shaded with spice yet also suffused with sunlight, out of the ordinary while remaining a fine representative of Oban’s understated, easy-drinking style. Both foxes are found on the label of this Oban Legends Untold version for the 2021 Special Release.

At first glance, one might look at this Oban release and wonder how a distillery with a 14-year-old flagship single malt chooses to put out a “merely” 12 year old limited release for the Diageo Special Releases lineup, but the answer lies in the barrels. Rather than the standard re-used American oak casks, this one seems to have been matured exclusively in freshly charred, or “virgin” American oak, which isn’t often employed for this length of time in maturing scotch whisky—or if it is, often used as a component of a blend, rather than presented solo. Which is to say, this is a whole lot of virgin oak influence, meeting up with Oban’s already unique fusion of Highland single malt/coastal single malt styles.

The ‘freshly charred American oak’ doesn’t mean new casks, but instead rejuvenated casks – old casks that have been stripped of their inside layer and recharred to give them new life. They don’t have the oomph of virgin oak, but they do have something that showcases the Oban character more than a new cask might.

Nose: Butterscotch, browning leaves, orange zest and touches of treacle to begin. Butter toffees and stewed apple are followed by incense touches. The butter notes sit at the heart while balanced citrus pith and peel, and a grind of black pepper fill in the around the edges.

Palate: An immediate hit of sweet orange and lemon is drenched in toffee sauce. Salt and pepper touches sit alongside sharp apple and buttered fruit loaf. Spice builds – black pepper and a tingle of cinnamon. Fruity jelly – apple and pear – is hit with a squeeze of lime, a touch of cask char and a drizzle of salted caramel.

Finish: Butter toffee and salted caramel linger, fading to reveal candied lemons.

A dive into the heart of what makes Oban tick – orange-forward citrus notes, a hint of smoky char and lots of sea spray. Generally the brininess is more restrained, but here it’s amplified and perfectly balanced by the sweet and fruit notes.

Mortlach 13 YO, The Moonlit Beast, 55.9% ABV, £135

The Mortlach distillery is once again included in the 2021 Special Releases. The 13-year-old whisky is aptly named The Moonlit Beast. Mortlach itself is known as the “Beast of Dufftown.” How did this legend arise? As the fable goes, “when darkness falls, and the sapphire glow of the full moon lights up the sky, a lone beast stirs amidst the shadows. As the singing stills of Mortlach begin to play their haunting melody, a howl breaks and rings in unison. The beast leaves no trace but his formidable song, vibrating throughout the distillery, gives Mortlach its extraordinary, magnetic nature.”The bottle itself features The Moonlit Beast, a beautiful illustration of a howling wolf in front of the moon.

Mortlach, the Beast of Dufftown, is darkly robust, a true creature of the moonlight shadows; this expression presents finely tuned highlights that pour from its rich, primal heart. This expression is a magnificently intense, well-structured Mortlach with a character that rises to new heights inspired by virgin casks.

Within Diageo’s portfolio, Mortlach has one major aspect that separates it from the rest: it’s all about sherry casks. The 12-year-old has a bit of American oak in its make up, but the other bottles in the distillery’s range are focussed around rich sherry-matured flavours, which pair up well with Mortlach’s meaty spirit. This whisky, however, is the exact opposite, stripped back and focussed on virgin oak and refill casks. It could be a bit of a shock for traditional Mortlach fans, but should leave them intrigued.

Appearance: Full gold. Very good beading.

Body: Medium to full.

Nose: You can certainly get the influence of the virgin oak on the nose, which has no shortage of freshly scraped vanilla bean to go along with more savory influences. A mellow and rounded nose-feel lulls the senses, then introduces a first soaring note of freshly oiled wood. Next, rising through this, savoury and meaty notes suggest the beast within yet also carry a sweet tartness, suggesting roast pheasant with redcurrant jelly. The senses are heightened as these pitch perfect aromas in turn reveal a deeper moorland base-note, rich in heather pollen and freshly crushed herbs. A drop of water completes the anticipation, bringing out a sweet, fruity hint of lime.

Palate: The pleasure builds still more, as a big, supersmooth texture envelops the palate. The wonderfully intense taste is vanilla-sweet yet easily embraces a savoury finish, spicy-dry as the new oak makes its presence felt, with a surprising kick of chilli-pepper in the swallow. Magnificently feral and full of life on the palate, these flavours race across the tongue.

Finish: Long and deeply impressive, with power, fruit and spiciness in perfect harmony as a warming peppery glow spreads out in the aftertaste, in which a dash of water brings up a fresh floral-herbal note to light the deepening night.

Even with the sherry stripped out, Mortlach is a still a bit of beast. Meaty spirit with loads of weight and some well-balanced creamy cask character.

Talisker 8 YO, The Rogue Seafury, 59.7% ABV, £89.95

The Talisker 8 Year is a tried and true whisky since 1830. On the shore of Loch Harport, the island’s extremes impact the whisky’s flavour profile, but the legend of a Rogue Seafury is a much better tale.

So how did this legend arise? Well, as the fable goes, “on the rugged Isle of Skye stood Talisker, an enduring distillery with a fierce protector of an otherworldly nature: the ferocious Sea Fury. Beneath the smoky, mist-draped surface of the island’s dark waters, this leviathan of the loch lay in wait, keeping watch over its ancient home, imparting the whisky that leaves its shores with its powerful and unmistakably brine-licked character.”

The Rogue Seafury features a beautiful illustration of a sea dragon you would find on old maps to mark unexplored areas and haunting details of this legend have been captured with masterful artwork.

The Isle of Skye is 50 miles long and the largest of the Inner Hebrides. All the far western edge sits the oldest distillery on Skye. Talisker makes a variety of whiskies. Their whisky is popular and even has a cult-like following. Founded in 1830, the history of Talisker is filled with ups and downs. The whisky was originally triple distilled, but eventually reverted to double distillation in 1928. In 1960, heartache and tragedy took the Talisker Distillery by surprise. A fire destroyed the stillhouse. It took two years to replicate and replace the five stills lost in the fire.

 This one more than lives up to the raw power of its illustration, being perhaps the punchiest and most purely intense bottle in this lineup. It’s unsurprisingly the strongest in terms of ABV, while also being the youngest—this is common in scotch, where cool climate aging often results in barrels losing proof over the years as they age. The press kit notes that this comes from Talisker’s most heavily peated reserves, and you need only to uncork it to get ample proof!

The maturation is described very simply here as ‘heavily peated refill casks’. This is not a whisky matured in casks that once held heavily peated whisky, as thought suggested. Instead, the blending team took a parcel of Talisker casks and tested the phenol levels in the matured spirit, choosing only those with the highest readings – the smokiest casks – for this release. Talisker with dialled up smokiness? You bet!

The maturation is described very simply here as ‘heavily peated refill casks’. This is not a whisky matured in casks that once held heavily peated whisky, as thought suggested. Instead, the blending team took a parcel of Talisker casks and tested the phenol levels in the matured spirit, choosing only those with the highest readings – the smokiest casks – for this release. Talisker with dialled up smokiness? You bet!

Nose: Rich and briny smoke bursts out of the glass: beach bonfires and buttery biscuits. Austere mineral and gravel notes are contrasted by puréed orchard fruit; fresh salt-and-pepper sea breezes are set against rich and earthy peat smoke. Barley sugar and fruit jelly notes develop, joined by damp green ferns.

Palate: A burst of sweetness pulls back to reveal intense smoke, liquorice and anise. Chocolate, spice and damp earth build, with the chocolate notes becoming creamy as salted caramel and green, leafy notes also develop.

Finish: Sea breezes and beach bonfires, just as at the start of the nose – full circle. Sweet apple sauce and a touch of crashing wave lingers. This does exactly what it says on the tin – lashings of smoke and all the seaside Talisker character you could want. A stepping stone to the Islay distilleries’ bigger smoke, but well integrated with the salt-and-pepper spiciness of Talisker’s spirit.

 

Monday, 21 February 2022

THE VAUNTED ANNUAL DIAGEO SPECIALS FOR 2020

                RARE BY NATURE EXPRESSIONS RELEASED AT CASK STRENGTH

Diageo's Special Releases Single Malt Scotch Whisky Collection for 2020 features eight vibrant expressions, each selected to bring a taste of Scotland to every enthusiast's home.

The 2020 collection, curated by Master Blender Dr. Craig Wilson, includes eight cask strength single malt Scotch whiskies drawn from some of Scotland’s most interesting distilleries. The annual collection explores unusual age points, experimental maturation techniques and this year, welcomes their first-ever release finished in pot-still Caribbean rum casks. The "Rare by Nature" theme highlights the extraordinary nature that surrounds each distillery, with each whisky visually brought to life through intricate illustrations that decorate the bottles.

This year’s Special Releases Collection has been created from some of Wilson’s favorite distilleries across Scotland, with whisky enthusiasts in mind. For those who enjoy spicy flavours, he recommends the Cardhu, and for those who favour rich, intense and smooth flavours, the Mortlach 21 year old. For those curious about discovering something very rare, the Pittyvaich - the single ghost distillery in our Special Releases Collection this year is an unforgettable dram.

The highly anticipated annual collection once again explores unusual age points and experimental maturation techniques, like its first-ever release finished in pot-still Caribbean rum casks. The encore theme highlights the extraordinary nature that surrounds each distillery, with each whisky visually brought to life through intricate illustrations that decorate the bottles.

This one of a kind line-up highlights the diversity of Diageo’s most-treasured reserves maturing in Scotland. The 2020 Special Releases collection was made available in limited quantities from specialist Scotch whisky retailers, including selected airport duty free stores and malts.com. Target markets included the US, Canada, Australia, South Africa and certain Asian countries.

While these whiskies hail from the spirits company’s 27 malt distilleries across Scotland, and vary in age, price, and availability from year to year—there are a few things that have never changed over the past decade:

  • The whiskies are bottled at cask strength without chill-filtration or added colouring.
  • The offerings are usually targeted at collectors, out of reach for the commoner, but priced within reach of those who want to drink them.
  • There’s always a Lagavulin 12 year old.

The 2020 Special Releases Collection:

Cardhu 11-Year-Old ABV: 56.0% Region: Speyside 

Cask: From refill, new, and ex-bourbon American oak

Limited quantities worldwide RRSP £85 (US$113)

Nose: fresh and vibrant, with a nice sourness of Granny Smith apples, lime and unripe pineapple. Lemon icing on a vanilla cake. Meadow flowers, herbs and lightly floral oak. Ginger and suble heather honey as well. Coconut flakes. Nice and easy.

Palate: clean and pleasant with a fairly tart fruity side again, almost a hint of citric acid, mixed with some (virgin) oak spice. Mid-palate it turns towards sweet lemon candy, honeyed breakfast cereals and light biscuity notes. Almonds. White pepper. A very subtle bitter edge, like grapefruit peel or IPA beers.

Finish: medium, drier and quite grassy now, with limoncello, vanilla cream and peppery notes.

Cardhu is a name that is easily ignored in a Special Releases line-up, but this is actually one of the nice surprises in the 2020 selection. It shows an immaculate freshness and a kind of apéritif style, very vibrant and pleasant.

Cragganmore 20-Year-Old ABV: 55.8% Region: Speyside

Cask: From refill casks and new fresh-charred casks.

Limited quantities worldwide RRSP £130 (US$173)

Nose: sweet, rather oily, with a good dose of fresh, slightly grassy oak. Bananas, yellow plums and ripe pears. Whiffs of beeswax. Crème brûlée. A lightly fragrant touch as well, almost glue. Hints of shortbread and walnuts as well.

Palate: starts with sweet, creamy notes – plums and tangerines. It is quickly overtaken by grainy notes, oak polish and a good dose of burnt wood, including a light bitterness. Ginger and menthol, as well as liquorice and hints of Turkish coffee.

Finish: medium, still on charred notes, ginger, apple compote and marmalade.

This is quite a punched up, oak-driven expression of Cragganmore. The new oak brings a layer of charred flavours and spice, but also added sweetness. One of my favourites this year.

Dalwhinnie 30-Year-Old ABV: 51.9% Region:  Highland

Cask: From refill hogsheads; Number of bottles available: 6,978

RRSP £550 (US$732)

The oldest Special Releases 2020 were the Pittyvaich and this Dalwhinnie 30 Year Old, a 1989 vintage drawn from refill hogsheads, mostly ex-bourbon casks but also ex-sherry. Some of the last remaining drops from this vintage, according to Diageo.

The style of this distillate is slightly peculiar. In 1986 Dalwhinnie switched from worm tubs to shell and tube condensers which create a lighter style. They weren’t entirely happy with the result so they switch back to traditional condensers in 1995 (only to notice the character wasn’t the same as before either).

Nose: elegant, starting on ripe plums, gooseberries and yellow apples with sweet herbs and floral notes in the high end. This blends nicely with oak polish, cigar boxes and beeswax. Dusty library and very subtle oily and leafy notes in the background.

Palate: the onset is rather hot. The second wave is sweet (peach, honey) and spicy (ginger and black pepper). Some creamy custard and butterscotch. Liquorice roots and some earthy, green herbs. Plenty of grapefruit peel as well, leaving a slightly tense and bitter impression towards the end.

Finish: medium length, rather sharp, on zesty lemons, menthol and a very faint smoky touch.

This is quite an energetic, complex Dalwhinnie. There’s some oak polish and old-style fruits on the nose that I really like, but it’s remarkably green and earthy on the palate, so somehow it doesn’t win me over entirely. The Pittyvaich is cheaper and better in my opinion.

Lagavulin 12-Year-Old ABV: 56.4% Region: Islay

Cask: From refill American oak casks

Limited quantities worldwide RRSP £125 (US$166)

The yearly Lagavulin 12 Years Special Release is a single vintage 2007 single malt, matured in refill American oak casks selected to stay quiet and make place for the distillery character.

Without doubt this is one of the reliable whiskies among Diageo’s Special Releases, one you can buy without hesitating.

Nose: saline and smoky, with gentle iodine and medicinal notes but this year also a roundness and sweet fruitiness that I was often missing in previous years. Smoked pineapple and lemons alongside briney seafood, light herbs and aniseed. Pretty great.

Palate: bam! This is where it hits you in the face. Dark tarry smoke, Lapsang tea and dark chocolate. Hints of salted caramel. Again this is sweeter than how I remember it. Deep earthy notes and barbecue smoke. Bright flashes of lemon and eucalyptus. Towards the end the TCP* and olive brine becomes stronger.

Finish: very long, coastal and immensely ashy, with crushed peppercorns and drying tarry notes.

A rather sweeter version of this classic this year, but it’s still a benchmark Lagavulin 12 with dark smoke, punchy spice and plenty of coastal notes. They’ve managed to improve a superb whisky.

* TCP is a mild antiseptic, produced in France by Laboratoires Chemineau in Vouvray and sold in the United Kingdom by Omega  Pharma. It is often taken to mean Taste of Chlorinated Phenol, which is incorrect by extant status, but close enough to pass examination.

Mortlach 21 yo 1999 56.9% ABV, OB Special Releases 2020,
PX & Oloroso seasoned cask finish, 7692 btl.
Price: £575/€ 650/$700.

The Mortlach in this year’s Special Releases is a 21 year-old finished in Pedro Ximénez and Oloroso seasoned casks. Just a finish, so one may expect a slightly toned down version of last year’s Mortlach 26 YO.

Nose: surprisingly mild and naked, even a little generic. It shows plenty of malty notes, oranges and golden raisins, as well as some oak polish. Ginger and citrus. Growing golden syrup in the background, a little pineapple and fig too. There’s an uncommon lightness to this spirit and the sherry casks are pretty shy as well.

Palate: a more firm character now, but mostly because of the high ABV, I would say. Just a certain hint of meatiness. Melons and lemons, lightly caramelised malt, hints of chocolate. Nutmeg and ginger, with a little mint. Then rather big resinous notes and polished leather, mixed with slightly bitter oak char.

Finish: long, with yellow apples, more nutmeg and other spices.

If the purpose was to show a different, leaner kind of Mortlach, then well done. However those who expect the typical Mortlach weight may be disappointed. While complex enough to merit mention and trigger the memory cells for comparatives, it is a tad expensive for what you’re getting.

Pittyvaich 30 Years (Special Releases 2020) 50.8% ABV Region Speyside; 7056 bottles RRSP: £400/€ 440/$510

The only ghost distillery this year. A 1989 vintage bottled at 50.8% ABV finished in first-fill bourbon casks – that’s a first.  It was originally built to support Arthur Bell's top selling Blended Scotch.  

Pittyvaich: this Speyside distillery is making a name for itself in the Special Releases, with three subsequent releases over the past years, usually with a high score. It is also the only ghost distillery these days, closed in 1993. I’ve always wondered why it survived the big crisis of the early 1980s only to close shortly after.

This year we’re getting a Pittyvaich 30 Years distilled in 1989 and matured in first-fill bourbon.

Nose: convinces immediately. This oily, fruity profile with bananas, unripe pear and pineapple, as well as some etheral citrus oil and Earl Grey. Distant vanilla sweetness with light hints of beeswax. Some mineral and green herbal touches.

Palate: this an oily, creamy quality, with slightly tropical fruits (green mango, bananas, guava) and vanilla cream. Sponge cake. Gets more mineral again, with some chalky touches and green elements (peppercorns, bay leaf). Something of an aromatic Tripel beer. Just a tad boozy perhaps, but a great profile nonetheless.

Finish: not too long, but clean with fresh fruits, now zesty citrus, ginger and mint too.

Probably the best of the Pittyvaichs so far, and one of the better Special Releases this year too. Bright, with a nice (slightly hoppy) fruitiness and above average complexity.

Talisker 8-Year-Old ABV: 57.9% Region: Isle of Skye

Cask: From pot-still Caribbean rum casks.

Limited quantities worldwide RRSP £90/€110/US$120

For a few years now, the Talisker is one of the most anticipated options among the yearly Special Releases. The distillery doesn’t regularly release new offerings and they’re among the younger and more affordable choices in this series. In the Special Releases 2020 there is this Talisker 8 Years, which has been finished in Jamaican pot still rum casks. It was distilled in 2011.

Nose: a slightly funky mix of maritime notes (oyster shells, dried seaweed) with olive brine and pickled gherkins, but also pear drops, lime and a little roasted pineapple. Some mashy notes, toasted wood and heathery notes. The rum is quite shy.

Palate: classic young Talisker with white pepper, heather smoke and a hint of antiseptic with added notes of ripe banana. Sweet and salty, on olives and saltwater, as well as lemons and a drop of soy sauce.

Finish: not too long, slightly hot, with green apple and white pepper.

Mixed feelings. While the recipe is pretty good, the rum feels a little underexposed, leaving the spirit to display its slightly immature side. Maybe not the highlight that some people make of it.

The Singleton of Dufftown 17-Year-Old ABV: 55.1% Region: Highland; Cask: Matured only in refill American oak hogsheads.

Limited quantities worldwide RRSP £110/€125/US$146

This is the first release of Singleton of Dufftown to be matured solely in refill American oak hogsheads.

The eighth and final whisky in the Rare by Nature editions comes from the Singleton Distillery. The 2020 Special Releases marks the first time a theme repeats itself. Due to the popularity of the 2019 Rare By Nature collection, Diageo has released a part two. This gives Master Blender, Dr. Craig Wilson the ability to showcase whiskies as an encore from these distilleries that would possibly not get bottled on their own.

The 2020 edition is younger by one year than the 2019 edition. It comes in at 17-years-old this year.

The Singleton Distillery is not the only Dufftown distillery in the 2020 Rare by Nature Special Releases. Rome may have been built on seven hills, but “Dufftown stands on seven stills.” The salmon on the Rare by Nature bottles is not a coincidence, it is also Singleton’s logo because they go their own way. The distillery started its journey upstream in 1897 at the edge of the River Fiddich. You will also see the distillery go by its full name The Singleton of the Glendullan. During the past ten years, the Mortlach Distillery neighbour has been updating; e.g., a state of the art biodiversity plant opened at Glendullan in 2013.

Appearance: Chardonnay

Nose: Buttery rich popcorn greets the nose instantly. It has sweet touches of honey and caramel. It’s reminiscent of a traditional candy shoppe. Marshmallow and fudge also seem to stand out. In the midst of all the sweet notes is candied ginger and orange peel.

Palate: This one burns at its natural cask strength. The mouthfeel is soft. Candied orange peel and ginger come out in droves. It has a touch of vanilla fudge that lingers on the finish, however, the oak dries out the mouth. Finally, the aftertaste is full of acetone.

The Singleton 17 Year in the 2020 Rare by Nature Diageo Special Releases is more about being in the mood for it. The nose is so different from the palate it feels like a lie and is unbalanced. At times it tastes like one thing, but then at other times it tastes like a different thing. It's still a decent whisky, but maybe spring for others in the 2020 Rare by Nature collection first.

 

 


Sunday, 20 February 2022

INVESTING IN WHISKY A PATHWAY TO PROFIT-PART I

Whisky: Investing in Liquid Gold


In a world fraught with economic uncertainty, investors are looking for ways to diversify their investments as a hedge against inflationary shifts. Bitcoin has skyrocketed, tech stocks have soared, housing prices are up and down depending on your location and now whisky is seeing a spike in investor interest.

Scotch whisky remains the global whisky superstar, putting all others in the shade. It is a drinks behemoth — the single most traded spirit on the planet and accounting for 75% of Scotland’s entire food and drink export revenue. The secret to Scotland’s success is its adaptability and today it is leading a move to premium whiskies. The global palate is becoming more refined and the value of the high quality Scotch single malt market is set to grow by over 11% a year to 2023.

Investing in Cask Whisky

One of the main reasons why a fine whisky cask appreciates in value is its ability to improve as it ages, unlike the average product which goes stale or simply expires, to quote from labels. In effect, when it comes to investing in whisky casks, time is your ally, much like investing on the Bourse in an identified quality stock. But when it comes to investment in a whisky cask, it may be the most important factor of all. In general, the longer you can leave it to mature, the richer you will be. The definitive word here is can. Every single cask in use, no matter its origin and handling, has a finite life, after which there will be negative Return on Investment. This facet defines the best age or time to sell your cask, as will be explained later. The cask could well be reworked and used again!

Producing whisky costs a lot, but one way distilleries capitalise on their efforts is to allow private investment. By investing in newly created whisky, the private investor can leave it to mature for as long as they like, making annual profits of 10% to 30% depending on how and where they market/sell it. Meanwhile, the distillery generates cash-flow to keep things ticking over.

Buying A Cask

If you were tempted to buy your own cask of whisky as a means to “cut out the middle man” and to obtain some bottles of whisky cheaply, stop reading here and head down to your local liquor outlet instead. Commercially available whiskies that you find in these outlets or in the online stores enjoy economies of scale that are beyond the humble cask-buyer, and the journey of buying, maturing, and bottling your own cask is not a path to cheap whisky. So now that you’re considering this for the right reasons…

Several Scottish distilleries offer cask purchase schemes and, in fact, with the huge number of new distilleries establishing and opening in the last few years, the opportunities to buy your own cask are better than they’ve been for a long time.  Ardnamurchan, Glasgow, Ballindalloch, Lagg, Annandale, Lindores Abbey, Kingsbarns, and Ardnahoe are all just some examples of Scottish distilleries that have (or had) private cask purchase offerings in place for individuals.  These smaller, privately owned distilleries need cash and investment up front, and so offering casks as fresh fillings to the public is a nice way for them to get the early injections of revenue they need.  However, the cost and value varies tremendously.  For example, both Ardnamurchan and Glasgow offered 200 litre ex-bourbon barrels for around £2,500, whereas Lagg and Ardnahoe are currently charging £6,000 for the same size barrel.

The schemes vary from distillery to distillery but, in most cases, your original buy-in purchase price will afford you somewhere between five and ten years of warehousing and a sample sent out to you once a year. Additional fees and costs apply if you want to mature the cask and keep it warehoused beyond the initial allowance, or to obtain extra samples.

According to The Whisky & Wealth Club, an organisation set up to connect investors with suitable whisky investments, investors purchased record palettes of the liquid gold in September. This boom at The Whisky & Wealth Club came as it sold 111.2 palettes of a new-make premium spirit for a total investment of over £1.8 million. This was nearly a 54% rise on its August sales.

Founded by Jay Bradley, owner of The Craft Irish Whiskey Co, The Whisky & Wealth Club is a specialised cask whisky wholesaler breaking down the barriers to entry in this ancient industry. Although it’s technically called a club, the private investors are not joining what has traditionally been an exclusive club for industry insiders. Instead, The Whisky & Wealth Club pairs private investors up with wealth advisors as a guide to suitable investment opportunities in the whisky space. Much in the same way that a financial advisor guides a retail investor on suitable investments for their SIPs. They can then choose to buy, hold, bottle or sell their premium cask whisky as an investment vehicle that suits their personal circumstances and whims.

Another reason whisky cask investing is popular is it doesn’t incur VAT or Capital Gains Tax.

How Much Does a Whisky Cask Cost?

The investment club or broker strikes a deal with the distillery for a limited edition run at a discounted price. The investor then buys a cask outright via the club. This is then stored in a secure warehouse and insured. The investor patiently waits, and when it’s time to profit from the deal, the investor should expect to enjoy returns of up to 20%.

The cost of buying a cask varies. Factors affecting price include brand, variety of cask used, distillery location, and many more. The cheapest cask you may find could be around $2000, but they can go upwards of $10,000.

One unique factor affecting taste, and thus price, is the variety of casks being used. Scotch whisky likes hand-me-downs and doesn’t respond well to being put in a brand new wooden cask. So the most common and cheapest option is for it to be birthed in a bourbon cask, often shipped from America to Scotland. A first fill is when a cask, previously used to store Bourbon, is first filled up with whisky. A refill is when that same cask is filled with whisky for a second or subsequent time. Prices for these casks tend to start around the £2,500+ ($3,350) price point. Of course, that’s not the only consideration, so prices vary wildly. A cask that has previously contained sherry may well be double that and red wine, dearer still. Then there’s the option for it to be peated, or unpeated, single, double or even triple distilled.

                    

So many options can be overwhelming and that’s why an investment broker can keep you right. The Irish Whiskey & Wealth Club and HMRC approved Whisky Investment Partners are just two of many to choose from.

There are several exit strategies available to the investor. Whether opting to sell to a whisky brand, bottle under your own label, sell at auction, directly sell to a broker network or consider alternatives provided by the broker.

A Malt or a Blend? Exclusivity Equals Profitability

Whiskies are not created equal, the cheaper ones are blends, containing only 10% to 20% of malt. True malt whiskies are a higher class and more appealing to investors. A unique brand expression, that’s not mass-produced, gives whisky its prestige and desirability. But the true value of a whisky comes from a selection of factors; age, quality, taste, brand, rarity and exclusivity all contribute to its worth.

That doesn’t mean all blends are bad, though. Jack Daniels and Johnnie Walker are blends, but retail investors can still buy exclusive bottles from these brands that hold their value.

The Whisky & Wealth Club’s unique selling point is its access to exclusive runs from top-notch distilleries in Scotland and Ireland. An example of these exclusive runs is its release of Bunnahabhain Staoisha in September. This hailed from an esteemed Islay distillery and was limited to an undeclared number of casks. An average whisky cask has a volume of 250 litres. This produces around 385 75cl bottles. The pitch was perfectly curated and highlighted the reasons Islay whiskies in particular are set to be a very valuable commodity in the future.

Whisky Investing Algorithm

In response to this newfound demand for whisky investment options, financial analysts have gone so far as to develop the very first data modelling algorithm. This is specifically designed for investors in the whisky cask market. These analysts hail from specialist whisky investment firms where they have the knowhow and experience to make clear judgements on the market. The purpose of this algorithm is to furnish prospective investors with a set of metrics that give them unique insight into the industry.

Braeburn Whisky is another Whisky Cask Investment Specialist promising investors a fun, profitable and fulfilling ride to investing in this intrinsically appreciating asset. It has teamed up with Cask 88 to create its BC20 Whisky Cask Index. So far, this index shows the whisky cask market to have a steady annual growth of around 13%. Their recent research shows that whisky investment returns have surpassed that of the S&P 500, Bitcoin (this may now be debatable) and Gold. Despite the raging pandemic, this index continued to rise during the first six-months of 2020. Its data also shows that casks from the top three whisky distilleries offer projected returns close to 20%. Islay whiskies showed a growth rate of 16.3% YOY.

According to its data, Scotland has 22 million casks of whisky maturing in storage, giving it confidence that trades will grow in quantity and cost. Gracing the top of the Distillery Cask League Table is Laphroaig approaching 20% projected annual capital growth. This is closely followed by Bunnahabhain, Staoisha and Macallan. Malt whisky must mature for a minimum of 3 years to be called whisky, but maturation periods can run upwards of 20 years. Due to the costs to store the whisky, the more mature the product, the more expensive it will be.

In recent years the casks that have aged for over 20 years are achieving remarkable valuations. Casks aged over 45 years have sold for over £600,000. But it’s newly casked whisky (aka New Make Spirit) that younger investors are after because with time on their side, they can afford to reap big returns in the future.

The whisky maturing process takes place in the cask. Once it’s been bottled it stops maturing and that’s the age appearing on the label. This is why casked whisky over 20 years old is considered rare and the older it is, the more valuable it becomes. In 2019 a rare bottle of Macallan 1926 sold for an extravagant $1.5 million!

None of the distilleries followed by the BC20 Whisky Cask Index have shown negative returns. This is because it’s a booming and lucrative area of investment to be in.

Irish Whiskey vs Scotch Whisky

The Irish whiskey market is rebounding and is projected to grow for the next two to three decades. Scotch whisky is more established than the Irish whiskey market, with Scotch whisky being a major contributor to Scotland’s food and drink exports, accounting for 70% of them. This has a value of £4.7 billion annually to Scotland. In fact 41 bottles a second leave Scotland’s shores, making their way to 175 global markets.

Demand is growing and new brands are entering the space. In recent years (prior to the pandemic) gin popularity was exploding with new distilleries popping up all over the place. Many of these make gin because production is quick. But a lot of them will also branch into whisky production as a future income stream. So we can expect those brands to come online in the years to come.

An example of this is Greenwood Distillers, a boutique distillery hidden in a misty valley in the Scottish Highlands. This arm is called Ardross Distillery and it’s only begun producing its stylishly packaged ‘Theodore, Pictish Gin’ this year, but has big plans to branch into creating rare, exquisite and aged whiskies. It now owns some of the most unique single malts Scotland can offer and has further plans to expand through Japan, the US, France and Mexico.

Whisky: A Luxury Investment

Whisky investing is taking on a life of its own and very much up there with other favoured alternative investments such as art, rare coins and fine wine. There are a number of cask investment houses now making it easier for retail investors to jump on the whisky bandwagon, but it’s important to avoid pitfalls too. While the middlemen make the process easier, they can also cut into the profits. Nevertheless, these cask wholesalers offer discounts to limited batches and exclusive runs.

This prospering industry is not yet regulated, so it’s important to do your homework. There are trade associations that legitimate investment firms can join to protect the industry’s reputation. The Whiskey & Wealth Club works with a compliance officer to ensure that its compliance-ready for when the Financial Conduct Authority makes its mark.

Another risk is whisky going out of fashion, but as it’s so ingrained in Scottish and Irish heritage, which is spread throughout the world, that doesn’t look to be an imminent concern.

When it comes to launching a new whisky, an alternative route to branding is for the company to buy mature whisky from investors, which it then brands as its own. This is one reason for the increasing popularity of cask investing as it leads both parties to cash in on the rising demand for these new and exciting brands.

Haig Club is a single grain Scotch Whisky popularised by David Beckham in partnership with Diageo (LON:DGE) and British entrepreneur Simon Fuller. Several other celebrity endorsements quickly followed Beckham’s step into the whisky arena. Conor McGregor has his own Irish Whiskey named Proper No. Twelve, after the area of Dublin he comes from. Bob Dylan brought out a trio of whiskey blends, Metallica have their own American Bourbon named Blackened, and Matthew McConaughey also has a Bourbon called Longbranch.

In a 2020 report rare whisky surpassed classic cars on the Knight Frank luxury investments index, achieving its very own Knight Frank Rare Whisky 100 Index in the process. In the luxury investments index, whisky has risen by 564% in value during the past ten years.

Investing in Luxury Liquor Brands

For investors looking to diversify, it’s not just whisky that offers potential gains. The liquor market is taking on a life of its own.

LVMH Moet Hennessy Louis Vuitton SE, is a luxury goods conglomerate, headquartered in Paris and distributed to every corner of the planet. Its share price has grown phenomenally in the past decade generating spectacular shareholder returns.

Bernard Arnault, chairman and CEO of $LVMH is now one of only five centibillionaires in the world. (A centibillionaire is someone who has personal wealth of more than $100 billion.) He joins ranks with Elon Musk, Jeff Bezos, Mark Zuckerberg and Bill Gates. 

                    

LVMH whisky brands include Glenmorangie and Ardbeg, while some of the other luxury goods under its label include Tag Heuer, Moët & Chandon, Sephora, Louis Vuitton, Hennessy (Cognac) and more recently it acquired Tiffany.

If you’d prefer to spread your investment in luxury goods, across a selection of them, you could opt for a luxury goods ETF. One such ETF is The GLUX – Amundi S&P Global Luxury UCITS ETF – this tracks the S&P Global Luxury Index’s performance. Along with LVMH, this includes Pernod Ricard SA (EPA: RI) a French drinks giant with whisky brands that include Chivas Regal, The Glenlivet, Jameson and luxury Scotch Whisky Royal Salute, it also owns many other alcoholic beverages.

Hollywood actor Ryan Reynolds recently sold his premium gin brand to Diageo plc (LON: DGE) for $610m (£460m). In striking the deal he agrees to be the face of Aviation American gin for the next decade. Diageo is a fan of the celebrity endorsement, having previously collaborated with George Clooney and David Beckham.

Diageo is another stock that has rocketed over the past ten years. Its share price faltered in 2019 but has been gaining ground during November. Whisky is such an important part of Diageo’s portfolio, it’s committed to investing £185 million to revamp its Scotch whisky visitor offerings at distilleries around Scotland.The highlight of this is an immersive visitor experience at its Johnnie Walker, Princess Street in Edinburgh, which tells the story of the brand.

Remy Cointreau SA (EPA: RCO) creates premium spirits such as its opulent champagne cognacs. Its whisky portfolio includes Bruichladdich single malts, Port Charlotte and Octomore, as well as Westland American whiskey and Domaine des Hautes Glaces French whisky. Remy’s share price rise has been more volatile over the past decade than LVMH and Diageo, but long-term holders will still be sitting on a significant profit.

Hidden Costs

The “hidden” or extra costs – and what catch so many people out – are the costs involved once the whisky is matured and deemed ready for bottling. Nine times out of ten, the purchase price you pay at the start covers only the cask and spirit up until it’s deemed ready to bottle. For whatever happens after that, the ball is in your court, as are the expenses. In the case of Scotch, the whisky must be bottled in Scotland, and so not only do you have to pay for bottling costs (in Great British Pounds, mind you, which is unlikely to favour your particular exchange rate), you also have to ship those bottles and all that extra weight of glass. Freight costs are determined by weight, and so in the case of a cask that yields, say, 250 x 700ml bottles, you’re paying to ship roughly 330kg of goods – of which 45% is just the weight of the glass! Printing and labelling costs also have to be paid for at the Scottish end (again, in pounds), and we haven’t even come to transport costs yet.

Then, there’s the biggie of them all – the cost of the duties, excise, taxes, and import costs to bring your whisky home to your own country. Take the case of Australia. Those that forked out, say, £2,500 to buy the cask at the start (roughly $4,600AUD) will be up for an additional $11,600 in local taxes (approx), depending on the bottling ABV! (The rough indication given here was based on 250 x 700ml bottles at a strength of 58% ABV). If you don’t have access to a genuine exporter who’s registered for UK VAT and Duty and can’t export under bond, then it’s likely you’ll also be up for the costs of all the UK excise and taxes (about an extra $6,400 based on the same assumptions as above), as well as those at your local end. And the costs of engaging a Customs broker to handle your Customs clearance still haven’t added in; the cost of freight itself (varies, but can be anywhere between $3 to $7 per bottle for sea-freight, depending on your carrier and what rate you can negotiate as a small, one-off player). Next, the additional costs of having to obtain a liquor licence (for importing a commercial quantity of alcohol) and – once it arrives here – space to hoard 250 bottles! And so, as many people have found to their surprise and dismay, what started out as a fun, sentimental venture ends up being an exercise that has become unaffordable. As a single player, doing a one-off exercise with a single bottling, the economies of scale simply do not exist.

Of course, many of these issues can be ameliorated by forming a syndicate and going in as a group. One person may struggle to deal with and pay for everything, but splitting a cask and its costs between, say, 20 or 30 people is a far more manageable affair.

Conclusion

Investing in whisky and luxury liquor appears to be an interesting and potentially lucrative space to be diversifying your financial investments. Just don’t be tempted to drink away your profits!

Part 2 of this article follows.

A major portion of this post is a reprint of an article by Kirsteen Mackay on Value The Markets
https://www.valuethemarkets.com/2020/11/20/whisky-investing-in-liquid-gold