IMPORTANT 💫 This video was filmed a few months ago and clearly the market prices have softened for both the Springbank and Macallan referenced. As such some of the price calculations need to be revised.
Interesting points that (I think) mostly come from a perspective where the future is golden eg the markets keep going up. But of course that is very unlikely, as we are seeing. I believe Springbank has an eye on the long view and know that not so long back things were very different. With that in mind it fits their values that short term profits should not undermine long term integrity/loyalty...more or less. Normal packaging like Springbank is equivalent to gift wrapping something nice = Mostly Honest to the Whisky. Macallan decanter packaging is over dressing the product to make it seem more than it really is = Mostly Honest to the shopping experience over the whisky experience. Bunnahabhain 18 was around $180 in CA 2019 at the big store Total Wine. Last week I saw it for $360. So doubling every four years going forward? I dont think so. I say it already jumped the shark.
As a whisky drinker of some 35 odd years I have seen some incredible changes. The high end packaging is a fairly new phenomenon. Taken I suppose from the high end watch and luxury goods market, and driven by the rise and rise of Asia, particularly China, Hong Kong and Singapore, and also the UAE. Asians and Arabs are very big on presentation. I think this has shifted the high end whisky production to become recognised as more works of art and status symbols in those markets.
Its is an intriguing question. As a collector at the lower end, I recently bought 2 bottles of Aberfeldy 19 year exceptional cask. For £150 each. Half the price of a core range Macallan 18 y o Sherry Oak. I drank one bottle really enjoyed it and am keeping the other just to see what the market does. For now Aberfeldy is not a whisky that is sought after at all, if it stays that way for the next 10 years, I will drink and enjoy the second bottle!
I assume Aberfeldy is priced so reasonably is because they have not been caught up in the investment market. So the limited edition 19 y o has not sold out, is still available at retail price, indicating little demand. I think it is a really nice whisky, and possibly undervalued by the market.
Another great video. Always a pleasure to watch. Have bought and sold at auction myself but mainly to find/fund new bottles to open. Although drinking a wee dram that has effectively doubled in price now does come with a little added satisfaction 😂
If you have low production and high demand then this naturally pushes prices up. So the only way to combat this is to ramp up production and still focus on quality. You can devalue a brand by making it too available. Remember levis jeans were sold in Azda once. Then levi made the smart move to stop azda sales in order to protect the brand. If springbank bank sold the 30 year old bottles for £3000 then you naturally kill the whisky market as the collectors keep the market growing.
It’s all about PR, hype created. Making sure that the market is not flooded n Springbank case. You see it in Yamazaki as well. And of course suckers like us that keeps on paying stupid prices. Great video
Thank you - glad you liked the video! Exactly - if whisky was for drinking I think there would be no age statements - just declarations of quality :) But who would do that!!
People should treat it like Wine if you buy the right stuff and hold it over years it’s collectible and drives prices up there’s no difference with whiskey and accept it’s an investment if wanted it to be.
How sleazy can you be? Without your drinker, you have no collector market because there is more whisky than the collector market can handle. Fine for some limited expressions but there standard releases are being offered at collectors pricing.
Isnt it much simpler than this? If a distillery has 3000 bottles to sell, then they need to price those bottles low enough to shift all 3000. When it comes to auctions the orice thats achieved onky requires 2 people to value it that high, and therefore the price is naturally higher. At Auction the price is what the top person is willing to pay but the distillery is aiming to selling the bottles at what the 3000th person is willing to pay. Also, if they didnt leave some fat for the investor, then the investor wouldn't get involved.
Language like “Springbank have handed over”,… so many millions is indicative of business acumen that disregards and is blind to what J. & A. Mitchell have given to around 90 employees [local human beings] which has immeasurable benefits to the ‘toon’ at large. Sure, rip into Macallan all you like, but Springbank is a totally different proposition. It is unfortunate and befuddling that people in business are blind to such activity.
IMPORTANT 💫 This video was filmed a few months ago and clearly the market prices have softened for both the Springbank and Macallan referenced. As such some of the price calculations need to be revised.
Interesting points that (I think) mostly come from a perspective where the future is golden eg the markets keep going up. But of course that is very unlikely, as we are seeing. I believe Springbank has an eye on the long view and know that not so long back things were very different. With that in mind it fits their values that short term profits should not undermine long term integrity/loyalty...more or less.
Normal packaging like Springbank is equivalent to gift wrapping something nice = Mostly Honest to the Whisky. Macallan decanter packaging is over dressing the product to make it seem more than it really is = Mostly Honest to the shopping experience over the whisky experience.
Bunnahabhain 18 was around $180 in CA 2019 at the big store Total Wine. Last week I saw it for $360. So doubling every four years going forward? I dont think so. I say it already jumped the shark.
Good perspective, Phil!
great analysis. It makes a lot of sense..brilliant, strategic, and prestige maintenance . Thank you
As a whisky drinker of some 35 odd years I have seen some incredible changes. The high end packaging is a fairly new phenomenon. Taken I suppose from the high end watch and luxury goods market, and driven by the rise and rise of Asia, particularly China, Hong Kong and Singapore, and also the UAE. Asians and Arabs are very big on presentation. I think this has shifted the high end whisky production to become recognised as more works of art and status symbols in those markets.
Great video. The whiskey market has definitely changed and probably peaked. “ if you see a bandwagon.. it’s already too late “
Its is an intriguing question. As a collector at the lower end, I recently bought 2 bottles of Aberfeldy 19 year exceptional cask. For £150 each. Half the price of a core range Macallan 18 y o Sherry Oak. I drank one bottle really enjoyed it and am keeping the other just to see what the market does. For now Aberfeldy is not a whisky that is sought after at all, if it stays that way for the next 10 years, I will drink and enjoy the second bottle!
Amazing - how is the whisky? £150 for an 18YO is a bargain for any 18YO.
I assume Aberfeldy is priced so reasonably is because they have not been caught up in the investment market. So the limited edition 19 y o has not sold out, is still available at retail price, indicating little demand. I think it is a really nice whisky, and possibly undervalued by the market.
Another great video. Always a pleasure to watch. Have bought and sold at auction myself but mainly to find/fund new bottles to open. Although drinking a wee dram that has effectively doubled in price now does come with a little added satisfaction 😂
If you have low production and high demand then this naturally pushes prices up. So the only way to combat this is to ramp up production and still focus on quality. You can devalue a brand by making it too available. Remember levis jeans were sold in Azda once. Then levi made the smart move to stop azda sales in order to protect the brand. If springbank bank sold the 30 year old bottles for £3000 then you naturally kill the whisky market as the collectors keep the market growing.
It’s all about PR, hype created. Making sure that the market is not flooded n Springbank case. You see it in Yamazaki as well. And of course suckers like us that keeps on paying stupid prices. Great video
Thank you - glad you liked the video! Agreed too - there is so much control over what is released to the market and when.
Spot on as usual 👍
Thank you! Glad you liked the video!
Perfect video, who’s right,…
Good video. If whisky was just for drinking there should be nothing above 25yo at the absolute highest.
Thank you - glad you liked the video!
Exactly - if whisky was for drinking I think there would be no age statements - just declarations of quality :)
But who would do that!!
At the end of the day. The auction houses win no matter what market condition
Is rip van wrinkles 25 years aged worth its price 50,000
People should treat it like Wine if you buy the right stuff and hold it over years it’s collectible and drives prices up there’s no difference with whiskey and accept it’s an investment if wanted it to be.
How sleazy can you be? Without your drinker, you have no collector market because there is more whisky than the collector market can handle. Fine for some limited expressions but there standard releases are being offered at collectors pricing.
20👍
Hope you are well :)
Isnt it much simpler than this? If a distillery has 3000 bottles to sell, then they need to price those bottles low enough to shift all 3000. When it comes to auctions the orice thats achieved onky requires 2 people to value it that high, and therefore the price is naturally higher. At Auction the price is what the top person is willing to pay but the distillery is aiming to selling the bottles at what the 3000th person is willing to pay.
Also, if they didnt leave some fat for the investor, then the investor wouldn't get involved.
Rolex! Daytona retail £12000, secondary market £30000!
Utter madness with Rolex isn't it. Same with diamonds too mind you...
Glenturret are doing some super premium sh*te…….😂
Language like “Springbank have handed over”,… so many millions is indicative of business acumen that disregards and is blind to what J. & A. Mitchell have given to around 90 employees [local human beings] which has immeasurable benefits to the ‘toon’ at large. Sure, rip into Macallan all you like, but Springbank is a totally different proposition. It is unfortunate and befuddling that people in business are blind to such activity.
Never Ever Invest in Whisky, it is a SCAM.