I have to apologise from the very start of this article. Of course that is not like me at all, no Sir-ee! Mainly because the title of this article is from the a song on the Cypress Hill Album ‘Black Sunday’. Ok, wrong day I suppose for what I had in mind for this article. And while it is NOT like me, I actually own this album and listen to it on a rare occasion and enjoy it. You can’t listen to shoegaze all the time (apparently). What is at least accurate to some degree in my opinion is the topic today does have a slight whiff of insanity about it, although probably of a type we may not be aware of and suffer from in varying degrees. It’s about how we allow ourselves to become blind to the obvious.
Once again my conscience has been pricked to write an article in defence of a body of people that have been undera silent attack for quite some time and since March 2020 this has been intensified. Unfortunately it is whisky drinkers that seem to be the people who allow it to happen, albeit not doing the attacking themselves. Given how friendly the whisky community is, I’m surprised that there seems to be little promotion and concern to people that are vital to our hobby, passion, or more to the point – obsession.
Independent whisky shops have had a tough time of it for some time now. This is something I raised on my blog Facebook page back in March of this year, going as far to break my anonymity and release a couple of videos. Use the Facebook links below to navigate to the page if you want to see the videos. In most cases these smaller retailers cannot compete with online retailers such as Amazon and don’t have the collective buying power of chains like The Whisky Shop, Oddbins or Majestic to name one or two. And you can forget any hope of being able to complete with any of the supermarkets.
What triggered this was the amount of people who seemed to be upset that there seemed to be not very many Black Friday deals on Amazon this year. I’m not having a go – in full disclosure I’ve bought booze from Amazon when I’ve seen a bargain, but usually it is when I cannot get a bottle anywhere else at that time. An Old Pultney 17 was my first bottle that I did this with just after it was discontinued and latterly when Glengoyne 18 was slashed to £70, though that was just before the change of packaging and it was bought for stash. Maybe for later of course…
In a quick moment of research, certainly here in the UK are a myriad of places that do online only retailing. Drink Supermarket, Master Of Malt, Drinks Direct, 31 Dover, and Spirit Store are just a handful and I’d be sure that this would be replicated overseas where specialist whisky retailers may be thin on the ground. Even Whisky Exchange which does have a couple of shops probably makes the vast majority of its profits from online trading.
Look. I’m not trying to make anybody feel bad about seeking a bargain. It’s been a tough year for everybody with many people locked down for long periods of time; people losing their freedom, contact with family and friends, their jobs; people possibly losing a lot more. And I can hardly hold the moral high ground as I have made the occasional purchases from some of these retailers, especially Master Of Malt as the Drinks By The Dram give me a chance to taste older or more expensive whiskies without having to cough up for a full bottle. However let’s look at this from a slightly different perspective.
While online shopping may be very convenient and cheap (as an Aberdonian I can assure you this is very close to my heart!), let’s look at some very plain to see facts that often get ignored and I see no evidence to the contrary that we seem to be suffering selective blindness to these issues. Amazon does not need your money. Tesco, Asda, Waitrose and Sainsbury’s do not need your booze money. Let’s face it, despite the fun of #WhiskySanta, a company giving away £250,000 of drink does not need your booze money. However the hypocrite in me is very happy to promote the company by making my #WhiskySanta wishes. If they are generous enough to ‘pay’ quarter of a million quid for over a month of free social media advertising I’m taking my chance. You can bet your bottom dollar that an independent retailer of Whisk(e)y would probably wet themselves if they thought they could make £250,000 of profit, let alone be able to afford to give it away. And they certainly do need your custom.
Speaking of local experience here in the Highlands, I can think of at least 4 local-ish (50 miles away still counts as local!) independent whisky retailers that have suffered the double whammy COVID has delivered. Not only were they forced to close their businesses when COVID first took hold, the businesses concerned were also in tourist areas, so once they’ve been allowed to open, there’s a lack of the normal crowds to sell to. I’m thinking of shops in Aberlour, Dufftown, Tomintoul, Pitlochry, Tyndrum, Inverary and Skye to name a few. The cancellation of the Spirit Of Speyside festival this year hit our region hard and without the same footfall, the whisky retailers in the area have had to rely on online sales to generate income. It doesn’t mean independent whisky retailers in large towns and cities aren’t suffering too – at least they have more chance of local footfall than one in the middle of the Cairngorms.
The majority of independent retailers have not got the same profit margins to reduce stock prices and remain viable. Some are forced to deal with wholesalers as they cannot buy directly with the distilleries or bottlers, further reducing competitiveness with online only businesses. To be fair to Amazon, there is plenty of independent traders use Amazon market place, but this is still not perfect as this still involves selling fees that further reduce margins. And therein could be the reason that there wasn’t so many Black Friday deals – perhaps the majority of them in the past have been supplied not from Amazon but small traders. They certainly cannot afford to be giving massive discounts at the moment.
The greatest benefit to dealing directly with an independent trader is that you’ll receive something that you’ll never get online – by buying over the phone or in person you’ll receive a personal service. Think about this when you next shop with an independent whisky retailer. They can tell you what is new. They usually have a great knowledge of the whiskies they sell. If you can visit one, you may get to try before you buy; something that has often seen me buy more than expecting to. You can build a relationship where the retailer may be privy to information that maybe of interest to you and they may tell you first, or at least keep a hard to find bottle back for you. At least one Whisky Twitterer has said he enjoys this type of situation and I have also found myself in this pleasant position too.
This whole subject brings me back to a similar situation in a different retail environment; music. As I alluded to at the start of this article, I’m heavily into music, especially indie / shoegaze / post rock. There used to be a shop in Aberdeen called One-Up, of which I was a very regular customer. I always used them as the chances of finding something new, exciting and possibly undiscovered was high. But the ultimate draw was the service. The staff were excellent and one in particular, the well known shoegazer in local circles, Yogi Duncan used to recommend bands and albums to me so I could listen to it before making a decision. This was music I’d never have heard otherwise and would not be likely to see the suggestion on iTunes. You just don’t get that specialist service online and are at the mercy of an algorithm to suggest what you might like in the future. Just because some tracking cookie sees I’ve bought one album, doesn’t mean I’ll like the whole genre though it’s certainly cheaper to take a risk on a £10 CD than a £70 bottle of whisky.
It came to pass that CD buying fell out of fashion. People turned to downloads and with large overheads compared to online sales and a desire of one of the business partners to retire meant on the 18th of January 2013, One-Up closed for good. Since that store has gone, I’ve gradually fallen out of buying music. Perhaps it’s my age having an influence as well, but in the past 2 years I’ve found myself downloading more and more; my once proud music CD collection all but stagnated. For me nearly 8 years on, I and many others from the North East of Scotland still mourn the loss of One-Up
Regardless of my feeling, while digital retailing doesn’t mean we’ll fall out of love with whisky (goodness no!) it does mean we risk slowly falling out of touch with a more intimate way of connecting with the industry. If we only see what is advertised on line or by who we follow on social media, to me it just becomes a cacophony of marketing noise and other people’s opinion. The lack of personal contact within the whisky retail industry really means to me we are all perhaps following around on each other’s coat tails and are at the mercy of anonymous algorithms and advertising budgets which pigeon-hole us and see us getting targeted into purchasing blandness.
Let’s be clear however, as there is more we can do. It isn’t just spending our hard earned cash at independent whisky retailers that helps. Many of us on social media have our own blogs. Why not give one of the independent retailers a shout out on your blog? Review a bottle bought from them. Better still, if they bottle their own or have exclusive bottles to their shop, review one. I recently did, and the email that I received from the owner was one of pure gratitude. Not just because I genuinely enjoyed the whisky he had bottled, but because as an independent retailer in an area highly dependent on tourism it had been a tough year and he was over the moon to see his products promoted in such a way.
My blog is tiny and insignificant. However due to my review of his whisky, I know of 25 confirmed bottle sales as a direct result of what I said. Maybe only 4% of the bottling run, but that is sales that put money into a local business and a local economy; not into the bottomless pockets of CEO’s who don’t care a jot about whisky but just want your cash. If you don’t spend your whisky money at Amazon or get a Black Friday deal from an online only retailer, they aren’t that likely to go bust. Of course not everybody has the funds to avoid being frugal when it comes to whisky purchases, this year especially. The Mr Grumpy in me understands the situation and there is nothing wrong with that. Note: I’ve seen some whisky cheaper in an independent shop than on Amazon. Some retailers do promotions on free shipping if spending over a threshold amount. Shop wisely.
2020 has a lot of negative things to look back on. Don’t let it be the beginning of the end for a friendly independent whisky shop. Perhaps make an effort to reduce or let go of our building dependence on cheap online only sales. Once lockdown is finished, be sure to pop into one of the independent spirit retailers close to you. They’ll thank you for it.
Feedback is welcome on this subject. My aim isn’t to offend but highlight the smaller businesses that struggling on an already uneven playing field. What’s your opinion?
After One Up closed, Yogi Duncan was working in an Oddbins in Aberdeen. He could have become my shoegaze, wine and whisky guru, but sadly I left Aberdeen the same year as the lights went out at One Up forever. Then the nearest independent music shop was Imperial Records in Inverness, but sadly this closed the following year in 2014. Another store with a stunning customer service lost to the digital shopping paradigm, a service made more special due to the owner Mark and I having some great conversations based on initially realising a shared love of the music of Galaxie 500.
Whether or not you want to, it is pretty hard to escape the fact that the world of whisky is expanding beyond all expectations. We don’t even need to stop at whisky, for there is still a lot of expansion in other distilled spirits such as premium rums and craft gins and it doesn’t seem to be stopping. More and more people are getting in on the concept of collecting. I’ve been asked by quite a few people recently about collecting and its enough to make it worthwhile to write another article on it. I’ve already written extensively on this in the past, but I feel now it is appropriate to bring you a more up to date article which encompasses some of the experiences that I have had as well as conversations I have had with various people within the whisky industry.
What is collectible?
This is all down to personal preference. We all have different things that excite us in the whisky world. Some people only collect from one distillery, some people may only collect certain vintages, certain age statements. We’ve all heard of the generous father who gave his son a bottle of 18 year old Macallan for his birthday, allowing his son to sell it and use the profit to help him move onto the property ladder, there really is no limit on what is and isn’t collectable, but you have to look at why you are collecting and this will determine what will be suitable for you to collect.
This is a question I put to Andy Simpson of Rare Whisky 101. Andy has been a whisky collector as long as he has been legally allowed to be, as well as being a collector, he is a broker, valuer and consultant to the Scotch Whisky Industry. Andy and I had some very interesting conversations over our joy of whisky collecting and seeing as I was going to have to rebuild my collection slightly, I thought it made sense to ask Andy what would be appropriate to collect in the future.
“There are three properties to collectible whiskies” Andy explained to me over the phone. “which are desirability, collectability and investability.” He went onto explain how every bottle will have different amounts of each property, and where it has good levels of all three, then that is where you have a suitable bottle.
Desirability. Does the bottle have a physical property that makes people want to own it? Is it a whisky with an in demand flavour profile? Does it have attractive packaging?
Collectability Is it a rare release? Is it from an in demand distillery or bottler? Is it part of a set that you already own? Is it discontinued or from a silent distillery?
Investability This can be a product of the desirability and collectability. This is because if a whisky is rare and in demand, then the chances of it being investment grade are high. However, true investment grade whisky is likely to beyond the means of most people reading my blog. We are looking at items like Macallan where some bottles easily reach into five figures. Investability (which isn’t really a word in the English dictionary) is not likely to occur from a bottle that can be bought in your local supermarket. You are looking to source bottles at specialist whisky shops, distilleries or auctions to get a better chance of making a profit.
If you are considering whisky that has all of these attributes then you have a bottle that is likely to be in demand.
What sort of collector am I?
I think it is fair to say that the vast majority of collectors are people who perhaps just collected a bottle here and there, perhaps to drink, perhaps to save for a rainy day. Few might go down the investment route from the beginning. Has it been that people have got the idea that is often fuelled by the media and the producers themselves that whisky is a premium investment option? Just because something appeared on the Knight Frank index does not mean it will continue to do so.
The types of collector fall into a handful of very easy categories. 1/ Drinkers – Those who want to collect to have a good stash of a favourite dram on standby. 2/ Hobbyists. Those who take pride in owning bottles. 3/ Investors. Those who are buying whisky in order to realise profit, expecting their whisky to go up in value. 4/ Flippers. Those who take advantage of new releases to sell quickly after release to those who either can’t wait for a bottle or aren’t able to get a bottle.
Of course there can be blurring of the borders between the four types of collector. I don’t know if a flipper actually counts as a collector as some don’t even touch the bottle they buy, often getting retailers to send straight to the auctioneers. Personally, I’m a bit of the first three types. I have whisky in store that I know I plan to drink, whisky I’ve wanted to own because I like the presentation and whisky I have bought deliberately as an investment.
For those who drink or those who collect just to own bottles they admire, then what they choose to collect is entirely personal and dependent on their own tastes. However if you want to collect to realise a profit, no matter how small, there are guidelines that you would be well advised to stick to.
1. Have a collection policy or an aim.
This might not be particularly obvious, but if you want to maximise profits, then you have to target what you want to collect. In the start of my collecting journey, I initially started collecting bottles from distilleries that could be seen on my journey between home and Aberdeen. As this passes through Speyside, that encompassed many distilleries. I didn’t just collect any bottles, I collected those that were limited edition. Let’s face it, a standard 12 year old Glenfiddich unless its ancient is never going to realise much value.
I moved onto collecting Flora and Fauna bottlings. It’s advisable if you are going to collect a certain type of bottle, then attempt to get the whole collection. When the time comes to sell, you will be able to attract two types of buyers; those who want the whole collection or those who wish to a bottle at a time. Make sure however you are aware of the likely cost of all the collection before you start. For instance, many Flora and Fauna bottles cost around under £200. However, rarer bottles like the white cap first editions often go for over £400. The holy grail of the collection is the Speyburn, which was only made for one batch according to legend. This bottle has started regularly achieving hammer prices of over £2000.
2. Buy bottles that are likely to realise an increase in value
There is absolutely no sense in buying bottles for investment just because they are available. They have to be able to realise an increase in value and realistically you need to be buying bottles that will be in demand in the future. Bottles that would come under this criteria are most normally limited editions with low numbers released. There is a problem with the title ‘Limited Edition’ as in a lot of cases it isn’t really rare at all.
Realistically speaking, if you can buy it off the shelves of your supermarket, then it is generally not going to be a bottle that will be collectable. There are some exceptions, but you will have to generally keep hold of the bottle for many decades to realise a decent increase in value.
Unfortunately, many bottles increase in value not due to the whisky inside of them, but due to the brand. The whisky inside them may not be the best example of what that distillery can produce, but the demand is there. Distilleries such as Macallan, Ardbeg, Highland Park and Glenmorangie spring to mind. It is pretty hard to lose money on a Macallan bottle, but you have to buy the right one. The quality of the whisky in a 1980’s distilled 10 year old is far superior to some of the Double Oak and Triple Oak expressions available now in my opinion so it pays to do your research. Not that any are bad whiskies, it’s all a matter of relativity and personal opinion. And while I did say it was hard to lose money on a Macallan bottle, it is possible and I personally know of one person who has lost £100 on a higher value release. It’s not me I hasten to add, although the person in question is quite open about it.
Bottles that are likely to go up in value are those from silent distilleries, bottles that were popular and discontinued, single cask bottles from an in demand distillery. Cask strength editions are quite worthy as well, but you have to keep an eye on how many are produced. Something like Glenfarclas 105 will not go up in value, as it is a core range and many thousands have been produced, however a limited run of a cask strength bottle such as a Glenfarclas family cask will most likely increase in value, or a bottle such as a festival release with limited numbers.
Also popular are the bottles from first releases from new distilleries. However buying these on the secondary market soon after release usually means the price has been distorted by flippers, so it is always better to buy straight from the initial point of sale.
3. Know of the potential value of the bottle before you buy.
Yes, it is nice to get your hands on a rare Glenugie, the Peterhead distillery that was the first distillery to close as part of the 1983 mass cull of distilleries due to a surplus of production. However when buying such a bottle, it is always better to get it straight from a retailer on the primary market. If you buy such bottles on the secondary market, such as from an online auction or whisky broker, then you have to be aware of the going price for the bottles. While you may be happy in paying £400 for the bottle at auction, it’s not really a good investment if the ceiling for that bottle is £450. A closed distillery may not be the best example, as eventually supply will run out at some point, but the same goes for any bottle. Look at those people paying over £2000 for a Macallan Genesis – the market price has seen a lot of these bottles sell now for around £1400 at auction. Yes, given time the price will probably go back up again, but that depends on how demand continues for them. If you overpay, then you have to hold onto the bottle for longer to realise a profit, or stand to make a loss.
It’s worth pointing out that in some cases, original bottlings often are more profitable than independent bottlers, but this is not always the case. Buying a whisky bottled by Signatory, Gordon & Macphail, Cadenhead, Adelphi, James Eadie, That Boutique-y Whisky Company amongst others can realise good prices. Certainly an Invergordon 42 year old whisky from TBWC I’ve been chasing has certainly increased in value, and I know from the bidding action it is very much in demand. I think the original release price for Batch 15 was in the region of £115. I had to pay close to £200 once auction fees were considered. However, I have tasted it in the past and it is a great dram, making a good explanation for why the price has gone up.
4. Know your potential buyer
When buying, think about who is likely to buy what you are selling. This is why gimmicks like the Game Of Thrones whisky wasn’t really a good investment. Apart from those complete sets flipped just after release, it is rare to see a complete set break even. It is unlikely to ever make much of a profit if any at all. Limited editions tied to a TV show are unlikely to make money as they are normally manufactured in large amounts.
‘Limited Edition’ is often a misnomer, as something produced in its hundreds of thousands, but only made available for a 6 months or so is still technically a limited edition. You need to see my article on Game Of Thrones whisky to understand that the only people likely to buy this are fans of the show. And they’ll already have a set or two. With no real auction demand, unfortunately you are stuck with it or will not be able to sell for any profit. Remember most auctioneers take between 5 and 10% on the hammer price which when Game of Thrones has already got a hammer price well under the original RRP makes the blow a little bit harder.
This is why I always advise do not buy anything you are not prepared to drink. Buying bottles like Macallan, Ardbeg and Highland Park may have higher prices, but there is a healthy secondary market for these bottles, as people buy them to drink, especially whisky bars in Asia who’s clientele are demanding rare whisky and are prepared to pay for it.
This is also the risk in single cask bottlings. You need somebody to want the single cask whisky you have as there can be duds going about that haven’t been well received, but this can be mitigated by buying from an in-demand distillery. It’s hard for me to suggest individual distilleries, but I myself have usually restricted myself to single cask bottlings from GlenAllachie, GlenDronach, Invergordon, Glentauchers, Dailuaine, Benrinnes and Tamdhu. I have other single casks, but these for me are the brands I like.
5. Don’t overstretch.
It goes without saying that you should not overstretch. If you are a low grade investor, the best advice I can give you is set a budget for what you are prepared to spend to collect. Perhaps a monthly budget – you don’t have to spend it all in one go, but perhaps roll it over to another month. What ever you do, it is important not to spend more than you are prepared to drink, as there is a possibility that the situation may happen. With that in mind, it is also helpful if you collect stuff that you would enjoy drinking – if you don’t like peaty whisky, then there is no sense in collecting Ardbeg for example. Just in case, you understand! It all depends whether or not you are prepared to take the risk.
6. Speculate to accumulate.
As with any investment, you have to consider what bottles give most value. I’ll put it here that if you are only going to collect bottles at £30ish then the chances of any sort of profit are minimal. They are not extinguished, but from my experience the more you can spend on a bottle, the more it is likely to have a chance in going up in value. I can give three examples to show relative profits.
Aberlour 10 – decent enough whisky. Can be bought for £35-45. I am aware that it is getting discontinued in favour of a 12 year old expression. This whisky is mass produced, and while a decent whisky there will be a lot of this hanging around in people’s drink cabinets. It’s a simple yet pretty good value Speyside whisky. However, it is highly unlikely in the period of 10 years to double in value.
Old Pulteney 17 – Another mass produced whisky, but perhaps not as much as the Aberlour above. This was discontinued in 2018. It was reviewed by American YouTube vBloggers Scotch 4 Dummies as potentially the best Old Pulteney ever. Cost used to be £74ish. I’ve just had a look on Amazon, and the cheapest new one they are advertising is £203. It can be had a lot cheaper elsewhere, but the thing is that editon was a very popular whisky. Just looking at one auction site, the price has peaked at £110, yet averages at £85. It has only been discontinued for two years, so many of the people buying it are likely still to be drinking it. Once supply narrows down, this will be a good whisky from an old era. The price is likely only to do one thing.
Bruichladdich Octomore X4+10 – Now we look at a whisky that was a limited release. £150 on release and only 3000 produced. Sold out instantly. This is a quadruple distilled whisky at 70% and ten years old. However it was only in a 50cl bottle. However just looking at one auction site, this peaked at £281 some three months after release and now sells for anywhere between £210 and £250. Even at the lower value, thats £60 in less than a year on an initial investment of £150. As these get drunk, the value will only go up, but will reach a ceiling value of which I estimate to be in the £300 – £350 range maximum. I own two, and I can guarantee one will be getting cracked open.
Can you see the pattern? The more that gets spent on a whisky, the potential to realise an in value increases also. In my experience if you spend below £100 a bottle as an investment, you are unlikely to see great profits and it may only hold its value. Factor in selling costs and you may only break even. However, if you are collecting as a hobby because owning certain whiskies or brands gives you an amount of pleasure and pride, then profit is not your main motive so you should not expect to make any. Harsh, but fair as you’ve received value in the pride factor and not the monetary factor.
7. Be aware what is getting relabelled.
For those who want to collect a specific whisky, they are more likely to be looking for all variants of it. So when a distillery is rebranding, people will want the new style in their collection. Doesn’t necessarily have to be an expensive whisky. Example – GlenDronach, BenRiach and Glenglassaugh were all sold by Billy Walker to Brown Foreman. While there has not been a rebranding of all the whisky (BenRiach recently has undergone a rebrand), there has been subtle changes to the bottles, such as the new Master Blender signature changing to Rachael Barrie instead of Billy Walker. This gives the bottling a distinct ‘marker’ of when it was produced, therefore collectors in the future will easily be able to tell the era the bottle was from.
Another distillery that has rebranded, Glengoyne, recently had it’s 18 yr old expression for sale on Amazon for £20 less than normal retail, possibly in an effort to sell old stock. That is good for drinkers (cheap drink!) but is also good for collectors who have more margin to realise a profit should they ever sell.
This is why with intelligent buying, you don’t have to go for the expensive whisky. It can be enough to buy an affordable bottle and just wait for a rebrand or a recipe change. An example is GlenDronach 15 Revival. The original recipe had to be discontinued for three years due to lack of sufficient stock to make up the malt. Three years later, it reappeared and has since undergone another recipe change according to my sources. The original bottles have increased
8. Be aware what is getting released or discontinued.
First bottlings from any distillery are usually a safe bet, especially if in limited numbers. Be careful if you are buying them on the secondary market as you may be overpaying, Similarly be aware of what is getting discontinued.
It can help being on the mailing lists of distilleries to see when new releases are coming. Often that gives you access to any ballots for limited releases or first chances to purchase. I used to be on the mailing list for a few distilleries, such as Macallan and Ardbeg, but have now decided to cut back as I am no longer really interested in these brands enough to be on their marketing lists.
9.Make sure you have a place to keep your collection
It’s all well and good collecting whisky. But if you are not drinking it, or not drinking it quick enough, then you will have to ensure that you have somewhere to keep it. If you are collecting for investment, then you need to make sure that it is in a place that keeps your bottles in prime condition. I’ve written on this extensively here and here (click on links) but to quickly summarise it needs to be somewhere not exposed to constant light and the temperature has to remain stable and not at extremes – lofts, attics and garages are not good places. I personally have a storage locker, but that comes with its own risks – see here
10.Make sure it is covered.
Again, I have gone into this in detail before here and here, but regardless of where you keep your collection, make sure that it is covered under insurance. Keep an eye on the values of any high value bottles as they may go up and exceed the single item limit on your house insurance. Having large amounts of bottles in your house may also compromise your house insurance too if there was a fire. Best look into specialist insurance. This is a given if you are using a storage facility – get professional whisky insurance and don’t rely on the insurance offered. There are normally limits on alcohol pay outs -my first storage location limited me to £10K.
11.Keep an eye on the value of your collection.
You need to keep an eye on the value of your collection for a few reasons. Firstly and most importantly is for insurance purposes. This will make sure you have adequate cover for your collection.
Keep a regular check on what the more expensive bottles in your collection are doing at auction. These are the bottles that you stand to make the most profit on if bought at the right price, but equally could be the bottles you lose most on. You may find that the price is dropping as a bottle is going out of favour and it may be a good time to sell. However, don’t let one or two auctions be the decider – use a service like Rare Whisky 101 to check every so often to see the average prices. Investment in whisky bottles is best played out over the long term, similar to any investment, so it is sometimes better to hold your nerve.
If collecting to realise profit, then you have to keep an eye on how to sell it. There are limited options as it is illegal to sell alcohol without a licence, therefore you have to use an auctioneer or a broker. These often come with charges or commission, so you have to factor this into your final profit or loss.
Auctions are a risk as you need somebody to want to buy your bottle for it to sell. Ideally you want two or three people to want to buy it, as a bidding war often results in a better price for you. But here’s the hint why you don’t really collect stuff off the supermarket shelves – its been made in its thousands, supply is likely plentiful on the secondary market, therefore people don’t have to have bidding wars.
The other risk in selling is that you have to ensure that you are not selling in quantities regularly enough that could attract the attentions of the authorities. You may be selling in such a way the tax authorities may deem you as a trader. This could have legal as well as tax implications. Advice I have been given in the past is that if not selling everything at once is sell in larger tranches.
You have to be aware that selling bottles of whisky, this can expose you to tax liablity, especially Capital Gains tax if you reside in the UK. This is because unlike casks of whisky, bottles are not seen as a depreciating asset and therefore can be used in any tax liability. Of course, this depends on how you sell it as you will also need to avoid being seen as a trader too if conducting frequent sales. A reputable whisky broker will be able to advise you.
l would like to point out that this is not an exhaustive list. If you decide to collect for profit, then all I can really say is do not spend more money than you can afford to lose or drink. It’s a hobby, do not let it be your downfall. If you want to make bigger levels of profit for less work, I’d consider cask purchase ONLY THROUGH A REPUTABLE DEALER and not through any of these advertised investment schemes. Cask investment also potentially comes with some large tax costs and you need to have a plan on what to do once the cask reaches maturity. Essentially the only way to make profits is to sell in bond.
It doesn’t take a genius to see that collecting in whisky is becoming more and more popular. However I feel in the UK that we are potentially in the path of a perfect storm that may crash bottle auction prices and also affect the industry as a whole. Back in the 1980’s the whisky industry severely constricted due to oversupply. Whisky distilleries were shut wholesale, some never to reopen. The term coined for the period I’ve often seen as the ‘Whisky Loch’. Well, I feel we are reaching a point that we now have a Glass Loch building in the cupboards across the UK. Supply has never been so good, and with many new distilleries coming online, people are seeing bottle collecting as an easy way to make money.
However, I feel the dam holding back the Glass Loch is on shaky foundations. While auction prices are healthy at the moment, the global economy may not be. Without taking the political view but based on fact, the UK economy is in a very precarious position, caused by the Coronavirus and the potential effects of Brexit. Should the economy fail and there is mass unemployment or raised taxes, there will be a pinch on the pockets of the public. People will then see their whisky for what it is – a luxury. Faced with having to make mortgage payments, I predict that a good many people will be selling parts of their collections or even in their entirety. This will have the result of potentially lowering secondary prices.
This has two outcomes for us as collectors and investors. Falling auction prices mean availability of bottles at reasonable prices goes up. Any investment in whisky should always be seen as a long term strategy. Buying cheap now at auction could realise great benefits in the future. But in the second outcome it also potentially means that our collections go down in value too. Hold your nerve as long as possible. Those people who do will benefit, as the lowering of prices will also potentially mean more of those collected bottles get drunk or end up in the hands of those who will drink them. A shortening of supply means when the market swings back the other way, our bottles will be that little bit rarer. And worth more.
Please realise that I am not a professional and am only writing this based on my experience as a collector myself and what I have seen in market performance within the secondary market. I cannot reiterate enough that you must only purchase what you can afford to drink or are comfortable to lose.
Last bits of advice? Collecting for personal enjoyment or profit can give immense levels of satisfaction. You can learn lots about the whisky industry as you research your bottles. Have fun but remember that when the fun stops, stop.
And don’t forget to open a bottle in the stash every now and again. Collecting without tasting is a bit soulless.
The latest review crosses over to the island of Mull. It’s been a while since I’ve done a west coast island that isn’t Islay, and seeing as there is only one distillery on Mull, it is an easy one to cross off the list.
I have a small confession, and this is one that shouldn’t affect things too much. Actually it’s two confessions, but still that shouldn’t matter. Getting the first confession out of the way, Tobermory is a distillery that I have absolutely no experience of at all, but for me that is not a bad thing as my Scotty’s Drams project was all about getting into things I wouldn’t normally drink. I’ll come to the other confession in a wee while.
What did excite me about this review more than anything else was this was one of the easiest titles to come up with. I do try to make it a little bit witty or to reference something else, or even be a bit risque, though for some reason I had the Oasis song ‘What’s The Story Morning Glory?’ in my head for this entry. However, those of us with young kids should remember the Children’s BBC programme ‘Balamory’ which was based around a fictional island community set in Tobermory. The catchphrase was “What’s the story in Balamory?”. I didn’t want people to think that was my favourite watching. I still prefer Danger Mouse, The Magic Roundabout and Rhubarb and Custard. Damn! I’m showing my age…..
So what is the story in Tobermory? Well, it’s one of the oldest distilleries in Scotland, having been founded in 1798, a date proudly proclaimed on it’s bottle and on the side of the distillery. It was formerly known as Ledaig (pronounced as LetchAIG) and was formally licenced in 1823. It went through a couple of other owners before coming into the hands of Distillers Company Ltd, a fore-runner of Diageo, who closed the distillery in 1930 due to the fall out from prohibition in the USA. The distillery was silent for another 42 years until reopening under the Ledaig Distillery (Tobermory) name in 1972. However, production had to be halted by May 1975, as storage space had run out at the distillery due to delays in a bonded warehouse being built. This eventually caused the loss of 14 jobs, and the distillery went into receivership.
However, all was not lost, and the distillery did reopen in 1979 (which is the year one of my favourite ever songs was released – Are Friends Electric?) but this time under the name of Tobermory Distillers Ltd. This sadly did not last long, and after three years the distillery fell silent again. Some of the bonded warehouses were sold off for conversion into apartments and other storage uses, which made it look as though the days of Tobermory having a distillery where probably slipping away. The early to mid 1980’s were a dark time for Scottish distilleries, and many other more notable sites closed, especially if they were too small or limited in space to modernise, or had higher costs.
Of course, we all know this story has a happy ending, and the distillery opened in 1989, and by the 1993 it was taken over by current owner Burn Stewart, who themselves got taken over in 2013 by the South African company Distell, who also own the Bunnahabhain distillery on Islay and the Deanston distillery in the Highland region.
This isn’t a big distillery, and in 2017 it closed for two years for upgrading, but the capacity of the distillery was not altered, and remains at 1,000,000 litres a year. That isn’t a lot, especially when you consider that the distillery also produces two runs – There is the unpeated whisky which is marketed as Tobermory, and the heavily peated whisky known as Ledaig, which is peated to around 30-40ppm. This leads me to my second confession – for a long time, I was under the impression that Ledaig was a separate distillery. It wasn’t until about 3 years ago I realised, even though I’d been collecting whisky on and off since 2006. Well, there you go. Drinking Famous Grouse isn’t my only shame!
It seems going by the distillery web page that there are only currently 4 core bottlings, and the 10 year old that I have to taste for you today seems to have been discontinued. however this has been replaced by a 12 year old. There is also a 42 year old bottling, and on for Ledaig there is a 10 year old and an 18 year old available.
Anyway, writing all this info before I have a sip has given me a mouth as dry as Mother Theresa’s sandals, so let’s move onto the process of getting some whisky down my neck. My wee dram has been airing while I typed this up, so should be fully ready for a tasting.
10 Years Old
Quite a fruity hit at first with a very active green apple there, followed by malty notes and some creamy vanilla and caramel. Light oak.
Quite assertive but not overpowering in the arrival. Noted a slight astringency in the development, but all very polite and pleasurable. Fruity, in that there are apples and pears there, perhaps stewed as there is a bit of sweet leading to bitter in the development. The astringency fades and a nutty gingerbread appears, and the start of a maritime note. This is drying on the mouth which leads onto the finish
Medium to long finish. Very pleasant. I got quite a bit of salt in the start of the finish, with the continuing gingerbread spiciness. Perhaps a bit of star anise as well. Right at the end, a chocolate note develops.
This wouldn’t normally be a go to malt for me, which is a shame, as this was really pleasurable, and I liked the notes I got from this whisky. The main points in my round up would be the fruity aroma, the gingerbread spice which has quite a constant spicy feeling in the mouth, though in a really nice way. It is important to know that I sampled this dram neat, and with being 46.3%, it didn’t seem to be. It was just right and well balanced between spirit and cask. Best news is that I found another sample in my hoard.
I don’t know where this whisky matures, but the maritime notes are there, and although not that strong to begin with, build up quite nicely, but don’t become overpowering. The one thing that concerns me is after I made my notes up for the taste test, I had a look at other notes to see how mine compared. I was surprised to see that people were recording a peat and smoke there. I never got that at all, especially because this is supposed to be an unpeated whisky. However, I wonder if they are experiencing something left over from the production schedule of Ledaig?
I can’t tell you how much this sample cost me, as I bought it at Inverness airport, but I don’t think it was much above £6. However a full bottle will set you back around £50. This in my opinion is a bit much for a 10 year old whisky, but given the enjoyment I got, not unreasonable. However it is discontinued so price may rise. If price is not a concern, then it is a good malt, and scores 4/4 on our ABCD scale – Age statement, Bottling strength of 46.3%, No Chill Filtering, and although it doesn’t mention on the bottle or box that it is not coloured, a bit of research on sites selling it in Germany reveal it is not coloured. This must be a Burn Stewart thing, as the Deanston bottles are similar. Not being subjected to artificial colourings is something that should be shouted out.
If you want something a bit more available and cheaper, I would suggest the Old Pulteney 12, but this has a stronger maritime note.
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This is a slightly unusual review for me. Indeed it is a first, as it is the first time that I have reviewed a dram from a distillery that I have already reviewed. It has been sometime since I looked at the Old Pulteney 12, and I did promise to review the 17 year old, well here it is.
Reviewing distilleries reviewed before was always going to happen at some point and I tried my hardest to avoid it. However, if I leave this one much longer the price may rise enough to put it out of reach. Other distilleries we can look forward to reviewing again in the near future are Benrinnes, Glenfarclas, GlenAllachie,
I last reviewed Old Pulteney in August last year, and it was a success. Although it was the 12 year old, and it wasn’t exactly up my street, it was a dram I could recommend. You can visit the review here.
The dram I am trying today is a sample of the now discontinued 17 year old, which went out of production in 2018. It is still available in online retailers, and some specialist shops, but it is fast on its way to becoming a whisky that will rise more in price. I’ve already saved a few bottles back, as it was a popular dram when in production and I feel a lot of the existing stock will be drunk. The 17 year old was my first introduction to Old Pulteney a few years ago and I do remember it as being quite pleasant, but it was one of those things that I never really went back to. Thankfully I had presence of mind to get some when I heard it was discontinued.
Perhaps that this is the second time that I’ve reviewed a dram from Wick, I should make an effort to visit the distillery. It has been 19 years since I was last there, but it was as a quick flying visit (literally!) to the airport. I was due to join a vessel West of Shetland, and the Super Puma Helicopter we were travelling in had to make a refuelling stop. Due to regulations, we all had to disembark off of the chopper and go into the terminal. We were told we could grab a coffee or use the toilet. Easier said than done when in a survival suit! The chopper was refuelled before I could even get as far as using the toilet! Such is the struggle with the waterproof onesie.
Looking at the photos of the tubes for bottles that I have in storage, I can see that there is an incorrect statement on the tube – it proclaims that Pulteney distillery is the most northern whisky distillery on the Scottish Mainland. While this was true at one point, I am quite sure having passed not only my O level in Geography, but a Scottish Higher in the subject, that the Thurso based Wolfburn Distillery is now holds that title. Perhaps Inver House didn’t want to change the packaging. There has been one change in packaging already, and the older bottlings have the arched writing on the tube, and a slightly lighter shade of navy blue, whereas the later tubes have much darker navy colouring, bordering on black. Its a nightmare to photograph I can tell you!
Without any further ado, let’s plough into the dram.
Very aromatic. Once again the brine was present. Vanilla, toffee, floral, citrus,
Extremely pleasant mouthfeel that gives a good coating to your mouth. Salted Caramel, peppery, a slight sour citrus, almonds in the background – possibly marzipan? Honey definitely in the mix. The heat builds up from a mild and pleasant arrival to something a bit spicier. Nutmeg, cinnamon, while still holding a brine note.
Long, light wood note, spices, sweet, slightly peppery holding the brine to the last. A slight bitter note in the drying finish that reminded me of a plain chocolate.
This dram was very good, and I now sort of regret tasting the 12 year old first. I think if I was to compare these drams, the 12 would definitely have the more pronounced brine notes, but the 17 is definitely more refined. This bottling has been put together with 90% ex-bourbon casks and 10% Oloroso cask. The sherry influence is definitely there, but the way this has been crafted it is not overpowering.
Certainly the casks don’t seem to have overpowered the spirit, and the citrus note is easily picked out along with the floral, which can be something that sherry casks dominate with their sweetness. Indeed, with every few sips I went back to, there was a little extra note.
I would definitely recommend pouring this one out and cover it for 20 minutes or so to let the aromas build up in the glass. I didn’t but left it sitting beside me and the smells were just fantastic, leaving me with the regret of what could have been.
It is quite obvious from the mouthfeel that this has not been chill filtered. It is nicely oily and covers the mouth like velvet. It is however a bit sad that the 17 has also been artificially coloured, which is a shame, as it gets so many other things right. As it is now discontinued along with the old 21 year old due to a lack of the correct aged stock – something that owners Inver House were quite honest about, if we were to see this back again, I hope that Inver House also appreciate that whisky geeks like to see whiskies of this age and quality without colouring.
While I said that this is a not quite a unicorn whisky, it will become rarer, although in the UK it is still relatively easy to get, but don’t expect to see many still on the shelves. Online retailers are your best bet, but things are starting to rise in price, and this is where I become a bit torn with my summation. Would I recommend it? Well, yes and no. For taste, I would definitely recommend it, and if it was a currently produced whisky, it would get a full thumbs up. However this was discontinued in 2018, and now supplies are starting to tighten, the price has started to rise, although I do not really know if this is retailers taking advantage.
When I bought my last full size bottle of OP, I paid £74.99 from the Speyside Whisky Shop in June last year. This would represent good value for a very solid 17 year old. However, online prices are now tipping the £100 mark, and I don’t believe this is the best value you can achieve. Certainly at this price, I hate to say it, but if you are a drinker and not a collector, unless you are desperate to have a full bottle of it, this does not represent good value and I would look at spending my money on something a bit more affordable. As per my usual recommendation, which is to look at online auctions. This bottle can be seen for around £70. Certainly the 105th Scotch Whisky Auction saw all 5 lots of this whisky go for that figure, but other auctions have been higher. Once you factor in auction fees, you are paying just a little more over the original retail price, which I would say would be better value.
If you don’t want to spend that much cash on a drink, then pay a visit to Master of Malt. You can buy a 3cl sample for £9.22, which is very dear, but you can make it a bit more worth while by adding other samples to lower the aggregate shipping price. This is how I got my sample used for this review, but it was bought over a year ago, when the price was only about £6.
This blog is written as a hobby. If you liked this article, why not visit one of my other social media channels. Or you can start following the blog by clicking on the icon at the bottom of the browser page somewhere to get tastings, visits and articles to your email inbox. Also, feel free to share and spread the whisky love
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