Special Releases pricing has soared in recent years – but how and why? Let’s crunch some numbers…
From the Editors
Shorts from our editorial team
20 April 2016
How does a whisky become a cult? It’s a thought which sprang to mind when I was tasting this year’s release of Yamazaki Sherry Cask. Why this whisky? Or rather, why this whisky which isn’t the same whisky which did become a cult? Once cult status has been achieved, is it held in perpetuity? Once a cult, always a cult – as I’m sure I overhead someone muttering in a Glasgow bar one night.
Anyway, to get back to the question in hand, cult status is linked to scarcity. It can be granted to a whisky thanks to a (often belated) realisation that it is in finite supply – Port Ellen, Brora, Karuizawa. It can be a limited edition whisky where demand always outstrips supply: Ardbeg limited editions, Bowmore Devil’s Casks, and Yamazaki Sherry Cask.
In both scenarios, it produces a reaction akin to mass hysteria. ‘I haven’t tried it, but I have to have it because people are talking about it.’ It’s drams as Pokémon cards, limited edition trainers, or handbags.
If the cult has momentum, critical faculties also disappear. Possession of the sacred object is all that matters. The liquid (in this case) is meaningless. The fact that it might only be of average quality is irrelevant. It’s whisky as fetish.
Object of desire: Feverish interest greeted the release of the 2016 Yamazaki Sherry Cask
This might seem an enviable position for a producer. In actuality, it can be a nightmare, particularly when it comes to distribution. Who gets it? How many do they get? What’s the price? The same dilemma is then passed down to retailers, who have to deal fairly with cult members, knowing that it will be impossible to satisfy them all.
How, then, to be even-handed with what is an inevitably tiny allocation? Two retailers had an interesting response with the Yamazaki. ‘The issue is how you appear fair and not make more people than necessary angry, because that anger is there,’ says Arthur Motley, buyer at Royal Mile Whiskies.
‘A man gives an award to a whisky, so the distiller decides to increase its price. People get angry. The retailer doesn’t know how many they’ll get or what the price will be, so people get angry with us. We get a small allocation and can’t sell a bottle to everyone who wants one. People get angry. We’re living in new times.’
How, then, to be even-handed in selling the stock? ‘We could alert our most loyal customers and pre-sell the allocation, but that isn’t an option as you’ll be criticised for selling to an inner circle. Or we could sell on a first come, first served basis with one bottle per customer, which is what we did. We Tweeted that it had arrived and it went in seconds.’
That still leaves the fact that many (most?) whisky lovers will never try the dram. Is there any way to spread the love? Master of Malt devised A Cunning Plan for its six-bottle allocation of Yamazaki. Four were bottled as 3cl miniatures and sold in a lottery, which in theory meant 93 folk got to try it – maybe more if they were happy to share a glass. One went for auction, with all profit above the retail price going to charity.
The last full bottle went to a lottery, sporting a back label saying: ‘I hereby swear not to sell this bottle – but to drink it with my chums. May my taste-buds and olfactory bulb shrivel and die if I should break my word.’
How likely is that? We all know that these bottles are now as often bought to flip, not drink. That possession of the sacred object is no longer the main driver within the world of cult. Profit is.
In Royal Mile’s case, someone had tried to cheat the system and ordered two bottles, meaning that there was one left over. ‘Everyone believed when it was released it would resell for £800 to £1,000,’ says Motley. ‘The individual then makes more profit that we or the distiller makes. So we were faced with this issue – do we sell this spare bottle, put it into auction, or do we effectively give it away? Which is what we did.’
The bottle was sold to Edinburgh bar Bramble for £180 (0% profit) and the bar then sold 25ml drams at £6.43 (0% profit). It sold out in 10 hours (search #breakevenbottle on Twitter to see the video). Again, more people were able to try it, which gives this whisky lover a warm, fuzzy feeling.
But is it up to retailers to try to subvert the flipping culture? ‘How do you judge whether a customer is someone who wants to buy for a collection, or is going to drink it, or who wants to flip it?’ asks Motley, somewhat rhetorically. ‘If they do flip it, is that less valid? Is it even our business?’
Here, though, is the dark side of the cult business. Suntory knew that there would be huge demand for this bottle, so the company raised the price, to around (gasp!) £200 retail.
It also raised the spec of the whisky, so that the liquid was commensurate with the price being asked. That is to be applauded. Then you look at auction sites and see it selling for £2,000.
Now, I ask you, seeing this, what price do you think Suntory will charge next year and, if it is a four-figure sum, can you blame them?
The industry gets criticised for greed. Ask yourself. Who is being greedy here?
13 April 2016
Now, while I watch YouTube relatively regularly, I can’t say I fully understand how the clips on the ‘now watch these’ menu which pops up at the end are selected. Maybe it’s your browsing history, or the site’s goblins are using some cunning algorithm to make a connection between what you’ve seen and something which initially seems completely unrelated – but maybe isn’t.
Who knows? Actually, who cares? What matters in this case is what happened when the video finished, because it offered a link to an interview with the late Peter ‘Sleazy’ Christopherson of Coil – which I’d guess might be the first time that these two gentlemen have ever been linked. One co-founded Throbbing Gristle and was noted for his interest in the occult, psychedelia and transgressive behaviour; the other blends whisky.
I love Coil, deeply, so I watched it (though I didn’t tell the Editor, what with this being a fairly busy news day). What was integral to Coil, Sleazy said, was being true to the vision upon which their work was grounded, on its truths.
True to a vision: Peter 'Sleazy' Christopherson of Coil
The band, despite what some believed, were never simply provocative for the sake of it. Neither were they self-created ‘mavericks’ – an approach which is little more than marketing taking the tropes of the underground and diluting them for the mainstream. Beware the b(r)and which shouts: ‘Look how wacky I am!’
It occurred to me that these insights can be applied to any endeavour – even whisky – as they concentrate on the importance of honesty and values.
Listen closely and you can hear integrity in the music, just as you can taste it – or the lack of it – in a whisky. Values are more than logos and bottle shapes and paying lip-service to barely understood ‘heritage’. We’ve all encountered the weary taste of flaccid mediocrity as another barely-matured single cask flops on the tongue. We’ve tasted the dusty, hollowed-out corpses of formerly great brands reanimated to hit a price point.
Equally, we’ve had our worlds made richer by the complexity of a compelling liquid – and that could be a standard blend or a bottling from the upper stratosphere. In other words, whisky connects with you in the same way as art or music: emotionally, viscerally. It only truly resonates, however, if it has integrity, is true to itself.
I went back to work with some Coil as a soundtrack – which is what you should do as well:
06 April 2016
It’s one of those stories which makes you look twice at the date. It did, after all, appear on 1 April. ‘Scotched: Diageo bows to pressure to rename whisky brand’.
The reason for this surprise announcement? The reported renaming of the firm’s Indian whisky, McDowell’s No.1, and the cessation of exports of its sister brand, Bagpiper, at the insistence of the Scotch Whisky Association (SWA) over potential confusion that they were Scottish.
The changes only apply to markets outwith India but, the more I consider it, the more it seems either some weird post-modern joke, or the start of something more sinister.
Let’s take bagpipes for starters. I think we all can accept that the great Highland bagpipe has associations with Scotland, but bagpipes themselves are originally Greek, or Egyptian. Chaucer’s motley collection of pilgrims are piped out of town as they depart for Canterbury in the 1390s:
‘A baggepype wel coude he blowe and sowne.’
That’s the same poem, by the way, which first mentions beer being used as a base for a distillate, but I digress.
Bagpipes have been played in India since at least the 19th century. First introduced to the military, they have also become a folk instrument there. Those of you who have travelled to Garhwal will have thrilled to the skirl of the pipes being played there by the Kumauni people. For the few of you who may not have experienced it, here’s a clip.
So integral are bagpipes to the Indian military that, in 1976, United Breweries (as was) launched its brand. Maybe Diageo, riddled with post-colonial guilt, has only just realised this and acquiesced to the SWA’s demands, seeing the brand name as an example of a symbol of British imperialism being imposed on a proud and independent nation. Ok, they might be 40 years late, but it’s a start.
Maybe, though, there’s another way of looking at this. Perhaps the SWA’s motivation is to protect bagpipes for Scotch. Equally, it could be an attempt to rid the world of what most whisky marketeers see as an antiquated cliché.
Whatever the case, you can’t on one hand preen yourself about the international reach of Scotland and then object when one Scottish export is then co-opted and adapted into local culture. No country ‘owns’ bagpipes – and, by extension, bagpipers.
Exclusively Scottish?: Bagpipers in Penzance, Cornwall (Photo: Tom Corser/tomcorser.com)
This could be the thin end of the chanter. We could be seeing an SWA-led campaign to turn the World Pipe Band Championships (which brings 40,000 people to Glasgow every year) into a Scottish-only event, the piping equivalent of baseball’s World Series.
A ridiculous notion, you say? It’s not the first time the SWA has acted as cultural shock troops. Take the long and somewhat absurd fight between the industry body and Glenora Distillery of Glenville, Cape Breton, Nova Scotia and their use of the world ‘Glen’ in the name of their Glen Breton whisky. The Canadian distiller has managed to fight off the SWA, but the apparent success of the bagpiper gambit might see another attempt being mounted.
With the Scots clearly now in the mood to reclaim their cultural heritage, where will it end? Might Nova Scotia have to be renamed? Are the good folk of New Caledonia trembling in their boots? Who is next? When might the distillers at Glendalough, Co. Wicklow, expect the writ to come through the door? What of craft distillers in Glendale, Missouri (where, as the New Riders of the Purple Sage reminded us, a train was robbed), or Glen Echo, Maryland?
Where will this madness end? Will there be law suits to ban bars being given Scottish-sounding names – yes, I’m looking at you, The Auld Alliance and Campbelltoun Loch. Could Haggis Appliance Repair in New York be concerned, and where, one might ask, will you then find a mechanic to fix your haggis appliance if they go under?
Could tartan and shortbread be next? You might think this the workings of an over-excited imagination, but if McDowell is now deemed to be an exclusively Scottish name (despite the firm being established in India in 1898), then whither all the Mcs and Macs around the globe?
And what, may I ask, of Scotch Tape? As far as I can ascertain, there’s no whisky involved in its production. A sticky situation indeed.
25 March 2016
We all like to feel special. We love being pampered and told that we are being rewarded for being… well… us. It is part of the human condition I suppose, a manifestation of our own self worth – our own inflated sense of worth some would argue. Why should we get something just because we exist? That’s one for the psychiatrists among you.
I began musing on this when I read of yet another whisky show which offered a VIP option for attendees. This has become so engrained in shows recently that it hardly raises an eyebrow. Yet what does whisky’s equivalent of Willy Wonka’s golden ticket get you? It could be early entry, it could be food, or access to drams which aren’t available to others. In one case, the VIPs were the only ones to get access to in-depth masterclasses. Any other classes simply showed whiskies which were available on the floor.
By only allowing wealthier visitors access to certain whiskies, shows are creating a divide and preventing the spread of education.
Let’s look at this in more detail. Earlier entry, in simple terms, means you pay more to be able to try more whisky. Why can’t the show simply run for longer so that everyone can get an equal chance? Restricting the time available opens up the real possibility that those who haven’t taken the VIP option will drink more quickly when they do finally get in. Result? Carnage.
It is the access to drams and classes which worries me the most, however. Both are examples of the creeping elitism which is appearing within whisky. This approach quite clearly divides whisky into the haves and the have nots. The monied folks can drink any dram they want; those on a smaller budget have to make do with something else. That isn’t what whisky is about.
A whisky show should be egalitarian, it should be about enjoyment and education. It’s the only opportunity that most people have to try some of the bottlings which they know they cannot afford to buy, but are still interested in.
Restricting classes to VIPs is, however, the most insidious manifestation of this elitist approach because it restricts education to those who can afford to pay for it. Where, I ask you, are the new generation of whisky drinkers going to come from if knowledge is restricted in this way? How can the industry hope to educate bartenders or students, people who are low in budget but high in interest if show organisers refuse to engage?
I’d think twice about attending a show which runs a two-tier system. There are alternatives. There are rooms out there filled with people who want to talk, and share, and celebrate in a spirit of equality. Whisky is for everyone.
22 March 2016
There’s a scary marketing trend gathering pace in America that could have a (slight) negative impact on Scotch whisky sales.
Over the past 10 years there’s been a rise in the number of American consumers choosing a gluten-free diet, regardless of whether they suffer from gluten intolerance or, worse, coeliac disease.
According to a recent Gallup poll, 20% of Americans now include gluten-free products in their diet, from natural foods that don’t contain gluten, to modified GF breads and pasta.
For those who are unaware, gluten is a protein found in wheat, barley and rye that some people can be intolerant to. Symptoms include fatigue and depression. In worst cases, the body reacts to the digestion of gluten as if it were poison, making sufferers very ill. This is called Coeliac disease.
It’s not necessarily the rise in the number of Americans going gluten-free that’s the issue. The problem is the rise of gluten-free vodka. Now bear with me.
Bread is usually made from gluten-containing wheat, and can be dangerous if eaten by someone with Coeliac disease.
Distilled spirits do NOT contain gluten. The process of distillation removes the protein from the grain, so all you’re left with in your glass is alcohol, water and a few congeners that contribute flavour (unless it’s a liqueur then add sugar and flavourings to that list. And botanicals if it’s gin).
According to glutenfreeliving.com: ‘Vinegar is accepted as gluten free by major celiac disease centers and support groups. In the United States most distilled white vinegar is made from corn. And even when it is made from wheat, which does happen often, the distillation process removes the gluten protein. Donald Kasarda, Ph. D., a grain scientist who is now retired from the USDA and who has a specific interest in gluten free grains, said there is no scientific evidence for gluten peptides in vinegar. Further, he said he does not know of a single chemist who thinks there are gluten peptides in distilled products.’
So why are there more and more ‘specialist’ vodkas purporting to be gluten-free when all distilled spirits are such?
The American Alcohol and Tobacco Tax and Trade Bureau (TTB), which is a department of the US Treasury responsible for making sure alcoholic beverages are labelled correctly, identifies a gluten-free spirit as being a product produced from raw material that does not naturally contain gluten (such as brandy or rum), or that has been modified to remove gluten.
As corn does not naturally contain gluten, any vodka made from it is permitted to use the term ‘gluten-free’ in large letters across its bottle.
However whisky – single malt Scotch, blended Scotch, American rye, even Bourbon with a mashbill that contains rye or barley in addition to corn – is exempt from this permission.
In a ruling posted in February 2014, the TTB stated: ‘TTB does not believe that this provision [as outlined above] will generally be relevant to malt beverages fermented from malted barley and other gluten-containing grains, or distilled spirits distilled from gluten-containing grains, as these products are usually made from the grains themselves, not from ingredients such as wheat starch or barley starch.’
Stoli Gluten Free – it's made from 88% corn and 12% buckwheat, so of course it's gluten-free.
What does this mean for Scotch whisky? Well for starters while the rest of the world can identify it as gluten-free, it is not considered as such in the eyes of American Federal law. This is a country that’s close to putting a fascist, racist bureaucrat in the White House after all.
According to research conducted by Stoli vodka (who incidentally has launched its new gluten-free product this month), 56% of people don’t know that vodka is naturally free from gluten anyway.
Here’s the punchline: producers know spirits are gluten-free, but in order to educate consumers they have to create an entirely different product that conforms to the TTB’s inaccurate definition. Americans with an intolerance or coeliac disease are under the impression they can ONLY consume products labelled as such. That is simply not true.
Essentially this TTB ruling is ignoring scientific research and preying on the naivety of consumers. As all Scotch whisky sold in America cannot legally be labelled as gluten-free (as it must contain an element of malted barley), the entire category is going to struggle to gain the attention of this consumer segment if the trend toward gluten-free living and selective marketing of a handful of spirits continues to grow.
16 March 2016
There was something both alarming and surreal about Andy Simpson’s opening gambit in our recent debate on investment grade Scotch. He said, ‘Firstly, we’re going to have to put aside the overused nonsense that whisky’s a drink…’ I must confess that I’m still trying to get my head around that one.
If whisky isn’t a drink, then what is it? A monkey? A lawnmower? Clearly I have been living in a cloud of delusion for all these years. Here’s me thinking that the Famous Grouse in the cupboard my Dad dipped into for his sole nightly dram, the bottles in all the bars I’ve visited, the contents of all the casks I’ve seen, all contained drink. Now it seems they didn’t. They were lawnmowers.
Of course, Simpson could be outlining a highly refined philosophical position which is rooted in the Buddhist concept of nothing having independent existence. If everything in the world is linked, then in some way a drink can indeed be a lawnmower, or a monkey. Logic then would suggest that consuming one of those two things would be inherently dangerous (I am assuming here that the monkey is alive). There again, this philosophical stance holds, if whisky isn’t a drink, it is also a drink. (Do keep up). It is just not only a drink.
Maybe it is simpler than that. Perhaps what Simpson is getting at is that that whisky might as well be a lawnmower because it is not solely for consumption, but for speculation. It is there to be looked at, and sold on for profit. Opening it destroys the investment. If that is his position, then he is completely right in his assertion. Whisky isn’t a drink, it is a commodity to be traded. It exists purely to make some speculators money.
Lawnmower Man: No Jobe, you've got it all wrong. You're supposed to drink that, not cut the grass with it!
It works at all levels of a market. As soon as any item attains commodity status it is danger of being exploited. Look at the way in which the coffee industry has been adversely affected by commodity traders. It isn’t coffee they are dealing in, but goods which can be traded. Who cares if farmers are adversely affected if the traders are OK?
As soon as a new front in this world of speculation and ‘investment’ for selfish gain emerges it’s instantaneously serviced by a layer of consultants and ‘experts’ who give the new investor advice – in whisky this has happened despite no-one knowing how things will play out. ‘It is the way the world works, Dave’, you say. ‘Wake up and smell the coffee.’ I have, that’s the issue.
It struck me that this also should open up a discussion as to whether there is – or should be – an ethical dimension framing any speculation. Take this imaginary scenario. I have stock from a distillery (let’s call it ‘D’) held by one of my companies. I also run a separate consultancy company advising on whisky investments. With my adviser’s hat on I recommend distillery ‘D’ as being a good investment. My clients take my advice because no-one knows about the market or the liquid because no-one drinks it. My other company then sells my stock at top price. I can then move on to distillery ‘E’. Smart business, or manipulation of the market? You decide.
‘How sweet,’ the singer Neil Innes wrote, ‘to be an idiot.’ I am proud to be one of them. I believe that guitars are to be played, cars are to be driven, yachts to be sailed, suits to be worm, and wine and spirits to be drunk – no matter what the price is.
I’m off to mow the grass. With a bottle.
11 March 2016
A couple of weeks ago I was rambling on about how our minds are apparently only capable of holding on to four or five facts from an hour-long talk (keep scrolling down, if you’re really interested, and you should hopefully spot the original piece).
The subject continues to nag away, mainly because the whisky festival season has started again – it is actually more akin to Dylan’s Never-Ending Tour. That means I’ll be on my hind legs on a semi-regular basis talking about whisky. And other things probably, I find it hard to stick to one subject. I apologise in advance.
Never-ending: Dave Broom and Bob Dylan are both martyrs to their respective causes
If this whole four or five things in an hour is true, then how much can anyone remember after a whisky festival? How does steady dramming affect the uptake of information?
At home I’ll taste six drams, then take a long break before re-tasting, but that’s a luxury which isn’t possible at a fair where, quite naturally, you want to try as much as you can. Trouble is, once you do try everything, you can’t remember what you had three hours ago. To be honest, you probably have difficulty remembering your name.
So, there’s an element of (dare I say it) self-control needed. You can’t have every dram, so look at the racing card and pick the ones you really want to try (tip: don’t ever go straight for the ‘Give me your most expensive/oldest’ gambit – that’s a sure-fire way to get a distiller’s back up).
Make room for things you have never tried before – open your mind to surprises. Drink plenty of water. Eat! Spit! Take notes and then re-read them. If you can’t understand the scrawl, then sit down and drink more water. It is your friend.
The room, somehow, plays a part in this. After all, every show basically does the same thing: tables, drams, people; yet even some which offer free food and plentiful water end up as drunken brawls within an hour of opening, while others – even with more whisky on offer – are calm and controlled.
I thought that people’s behaviour at a show was a cultural thing: drinkers in some countries are just more badly behaved than others, but it’s not true. Shows in the same city with the same drams can be either a mess or superb.
It could time – the higher the price of the ticket and the shorter the duration of the show, the greater the incentive is to drink fast and hard to recoup the outlay: ‘Hey, I’m in profit.’ Long days might be tiring for the folks behind the stands, but they work.
Ultimately, though, it’s the space. The tighter it is, the deeper the queues around the stands become and the tension rises exponentially. If people are feeling physically constricted in an environment where time is constrained – and alcohol is served – then there’s only going to be one outcome. The physical space – the room, the ceiling height – is important, as is controlling numbers.
After all, if there are only a few pieces of information that people will take away, then they need to have space to think about them, and relax.
09 March 2016
It’s tough to admit that there is still, after so many years of marketing to millennials, a lingering perception of whisky as elitist and an ‘acquired taste’. One needs only to read the countless Buzzfeed and HuffPost articles on the ‘26 Ways To Impress Your Boss/Girlfriend/Mates With Your Whisky Knowledge’ to realise whisky maintains an air of exclusivity. You won’t see Buzzfeed publish ‘26 Ways To Impress Your Boss/Girlfriend/Mates With Your Tea Knowledge’ any time soon. Everyone drinks tea; it has no secrets.
Brands often talk of ‘demystifying’ whisky for consumers to make it more accessible, but just how complicated is whisky, really?
Whisky drinkers – real whisky drinkers, not the ones absorbing clickbait internet articles in a bid to look intellectual or cultured – are spoilt for choice. There are hundreds of brands and styles within Scotch whisky alone, never mind the vastness of American whiskey or burgeoning – and in my opinion extremely exciting – Irish whiskey.
Imagine walking into a whisky bar or specialist retailer anywhere in the world and coming face-to-face with so many bottles it seems the walls are made from them. One section contains Kentucky Bourbon; another features single pot still Irish whiskey. Each purports unique maturation or production techniques and many have unpronounceable names. Some have ages, others don’t.
For whisky lovers it’s a haven, but if you were a newcomer wouldn’t you be overwhelmed? Where to even start?
Whisky is a flexible beast that can be as complicated or as simple as need be, offering enough variables in its production to keep the fact geeks happy, while – at its most basic level – tasting fucking great. The problem is that too many whisky bars and retailers have neglected to address the needs of the new consumer, who just wants to understand whether or not they'll enjoy the flavour of what they're drinking.
Black Rock: Whisky bar meets minimalist hip-hop den where flavour is king
That is why the opening of Black Rock in London’s Shoreditch this week is a breath of fresh air. From Tristan Stephenson and Thomas Aske, the same team that introduced progressive cocktail bar Worship Street Whistling Shop, comes a whisky bar with a twist. This is a space geared toward blowing away whisky’s complications and perceptions – gone are the Scottish tweed and hunting lodge décor in favour of a minimalist, hip-hop vibe (how very Shoreditch). At Black Rock the focus is on flavour as the core communicator.
Here it doesn’t matter whether your whisky hails from Dublin or Dufftown – if it shares the same flavour profile, it shares the same shelf. Age and price are also irrelevant in a space where the raison d’être is to actually demystify whisky in a meaningful way that consumers with zero experience can understand.
‘Our aim entirely is to simplify whisky so our guests are the ones feeling as though they’ve discovered whisky.’ Aske told me. ‘We don’t want to be too clever; everything we're doing is designed to simplify whisky as much as possible.’
Whisky aficionados are still catered for – among the bar's 250-odd bottles there may be an appearance from the guys’ personal Karuizawa stocks – but one thing is for sure: Black Rock is a game changer.
In London at least, navigating the whisky landscape just got a whole lot easier for the newcomer.
03 March 2016
These are tricky times for the international trade in Scotch whisky. A number of factors – falling oil prices, currency headwinds in developing markets, the implosion of the Russian economy – have conspired to bring three consecutive years of export declines, according to HMRC figures for shipments from bond.
This is unprecedented in the industry’s recent history. Look back over the past 50 years and – prior to this poor run – you could count the years of export value decline on the fingers of one hand: 1969, 1983, 1998, 2002 and 2004.
Booming sales of American whiskey, which is tipped to overtake those of single malt Scotch within five years, prove a competitive threat to the category.
Beyond the obvious macroeconomic causes for the recent decline, we might hypothesise a number of other reasons, including the competitive threat from other spirits categories and the restrictive impact of constrained supplies of single malt (the value of malt exports fell in 2015, but market share increased because blends fell faster).
Over the past half-century, Scotch whisky has been transformed into a global powerhouse of an industry, and one that is increasingly reliant for growth on the performance of developing markets in Asia, Latin America, Eastern Europe and sub-Saharan Africa.
Scotch’s aspirational status makes the rewards here potentially huge, but the flipside is market volatility. Brazilian consumers might lust after Johnnie Walker, but if the weakening real sends Red Label prices up 30-40% in a year, they’re likely to go back to drinking locally produced cachaça instead.
The greater truth behind the numbers is the relative maturity of Scotch whisky around the world. According to WhiskyInvestDirect analysis of the HMRC figures, 27 countries imported more than 500,000 cases of Scotch in 2015; in 1985, the figure was just 14.
Scotch is an industry that is increasingly mature in its global footprint, and that is both a boon and a potential burden: it constitutes a spread of risk (if one market falls, chances are that another will pick up the slack); but it also reduces the headroom for future growth.
Don’t get me wrong: there are still vast opportunities for Scotch around the world, but the number of untapped markets with true and large-scale growth potential is unquestionably smaller than it was a generation or two ago.
To that extent, Scotch whisky has become a victim of its own international success.
29 February 2016
A very excited friend posted me this the other day:
‘Yeast!’ she cried, electronically. ‘Geek out!’
It did look interesting. Exciting even, though as someone who wasn’t allowed to even take science at school, I found much of it impenetrable. My esteemed colleague Mr Woodard ventured that Oxaloacetate was in Mexico. Come to think of it, I’m sure I have a mezcal from there.
Anyway, she sent it because she’s been on a distilling course – obviously quite an advanced one because, any time you go around a Scottish distillery and it gets to the yeast bit, the talk goes something like this: ‘Then we add yeast.’
Actually, there’s often less said about fermentation than there is about distillation, but that’s yet another thing to leave hanging up there on the rafters to pluck down at a future date.
It’s always intrigued me why this is the case because, when talking to winemakers or brewers, you almost have to shut them up about yeast because you want to get on with the tour. For them, yeast is an active participant in specific flavour creation, one way to help differentiate your wine/beer from your competitors’.
The same conversation is to be had at many rum distilleries, when you talk about Tequila, cachaça and mezcal (which tends to be wild ferment). In other words, it matters.
Not so in Scotch. ‘We don’t believe the yeast itself contributes to the final distillery character’ is the line, which means that, since all distilleries use the same yeast strain, the flavour differences which do exist are not generated by the yeast, but by other factors (peating, mashing, fermentation times, still utilisation, cut points).
Actually, looking at that you begin to wonder whether they have a point. If there are so many other flavour-creating opportunities, what’s the point of adding another on top?
But what about American whiskey? What about, for example, Four Roses using five different strains on two mashbills to create 10 different new makes – floral, fruity, spicy, vegetal?
Ah, but, surely after maturation the differences are evened out? No. They remain distinct, even after spending time in new wood. Four Roses might take it to the extreme, but all the other distilleries in Kentucky and Tennessee have their own strain(s).
In Japan, Nikka coyly says it uses ‘around five strains’; Suntory, too, has a selection of different yeasts for its makes.
It used to be the same in Scotland when distillers used a mix of distiller’s and brewer’s yeasts. This stopped when local breweries closed, lager rather than ale yeasts were used and the Scotch industry was looking at ever greater efficiencies.
Will things change? It is interesting to observe how many of the new whiskey distillers in the States are coming from a craft beer background where different roasts of barley and yeast strains are the norm. These learnings are now being applied to their whiskies. David Fitt at English Whisky Co – an ex brewer – is doing the same, as is Darren Rook at the London Distillery.
There might be an ‘if it ain’t broke’ attitude in Scotland, it could be that a switch to multiple yeast strains is difficult to retrofit, or their introduction might cause cross-contamination.
Maybe it’s a bit like the law: easy to change, but difficult to undo once the change has taken place. I do know one of the bigger distillers is looking into yeast, but they are an exception. If I was a new distiller it is one area I’d be looking at.
But I'm not a distiller, or a scientist. Maybe that’s why I remain somewhat baffled.
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