The surge in new Scotch distilleries has some striking similarities to the Victorian whisky boom.
He’s not one given to black moods, my distiller friend; so what he said was more with baffled resignation than despair. He’d been doling out some of his whisky in the pub. Under the table. You wouldn’t want to draw attention to the fact that you were reducing the takings.
Not that there was any fear of that. The drams were simply top-ups. Tasting samples. In any case, as the landlord had wandered over, empty Glencairn in hand, there seemed to be tacit approval of the behaviour.
We were all eager to try the wares that he’d carried down from the distillery in a rucksack. ‘I’m on the train,’ he’d told me. ‘We might have got thirsty… In any case, I thought people might be interested.’ We were.
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He told me how some of them were to be bottled soon. ‘But you’ll possibly be some of the only people to try them.’ I must have looked bemused. Or more bemused than usual. I know that single casks are, by nature, limited; a few hundred bottles for the market, maybe the world.
‘At times I wonder if anyone has ever tried any of my whisky,’ he went on. ‘I put it out, people buy it, and then I see the bottle on an auction site for twice or three times the amount I sold it for. I suppose some might be holding on to it for a special occasion, but I reckon most are flipping them. No-one really knows what it tastes like… want to try this one?’
A few days later, back at home, I was chatting to a blender/bottler. ‘We’ve become a cult,’ she said. ‘Great,’ I responded, ‘… that’s what you want.’
‘Well…’ she replied. ‘We released a small batch for sale locally. It sold out within 24 hours. People were driving from all over to get a bottle.’
‘That’s amazing,’ I replied.
‘Aye, well,’ she went on. ‘The thing is, it’s now on auction sites for four times the initial cost. It worries me. I’m not a big fan of collector madness, but suddenly we are hot.’
Both are new players trying to build their reputations on the strength of their liquid, but the liquid is of no concern to the flippers. All that matters is the name, the rarity. Whisky is irrelevant; this is speculation which revolves around the reward, which could be achieved by some commodity.
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The nature of the product doesn’t matter, only the potential profit. It’s pork futures, the orange harvest, coffee. It’s like buying a rare record and never taking it out of the wrapping; it’s having a piece of art and keeping it in a bank vault.
Will it stop? Of course it won’t, and therein lies the problem. Think of the number of new distilleries due to open in the next few years. All will be standing there, proud parents showing their newborn to the world, only for it to be snatched away and hidden until the market decides.
At the moment, the only way to try and dampen down the rampant speculation is by using the blunt weapon of price. Distillers ask more – and you can see why – so retailers then have to adjust accordingly. The result? The real whisky lover is still priced out.
The other consequence is that some established distillers, having seen the way in which this area of the market is moving, are releasing whiskies purely to satisfy the speculators.
Let’s see how high we can push it. Have a lovely pack to lure them in. They’ll make the money eventually and we’ve at least pocketed a decent return. Can the whisky reflect the packaging and justify the price? You’d hope it would… Cynical? Moi?
Are there any other ways around it? I asked my distiller friend. ‘I don’t know,’ he said. ‘I’ve been wondering whether I should only sell them at the distillery and open each bottle when they buy one,’ he mused.
Perhaps someone can invent some sort of device that pops the cork after three months. Until some solution is found, maybe distillers will have to sit in pubs, pouring drams under the table.
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