INVESTMENT  CHOICE OF THE MONTH

Bunnahabhain is the most remote distillery on the north coast of the island of Islay. The distillery was founded in 1881 and like many other distilleries in Scotland of a similar age, has experienced many of the ups and downs in the whisky world. Unlike many others, it has made it through several closures and re-openings and is today one of the best-known whisky distilleries in Scotland.

Bunnahabhain stands out in the Islay region for producing its whisky with pure spring water that is un-influenced by the abundance of peat throughout the Islay landscape. Unlike its Islay counterparts, Bunnahabhain’s expressions are generally unpeated or only mildly peated, which is contrasted starkly with the likes of Laphroaig, Ardbeg, and Lagavulin.

With peated whiskies being highly sought after in the whisky market, distilleries in the Islay region have seen a massive uptick in demand in the auction, cask, and retail markets alike. Bunnahabhain, being the odd one out from the region has enjoyed a dual benefit from this surge. Firstly, Bunnahabhain benefits from being lumped in (or mistaken with) other Islay distilleries as collectors and investors pile in to acquire any and all of the casks and bottles from the region. Secondly, Bunnahabhain stands out as having a vastly different flavour profile than its counterparts without losing the essence that Islay’s intense seaside environment imparts to the spirit.

This cask of the month is a very special release from Bunnahabhain. Dating back to 1990, it is one of the oldest casks from Bunnahabhain that we have had the opportunity to offer our clients. In the early 1990s, production was very limited from the distillery, meaning that this 1990 cask will be one of the few that remains in the Independent Bottling market.

One lucky investor or collector will now have the opportunity to take advantage of a cask for which whose age and vintage have virtually no parallels, meaning at 33 years old today, it is well into territory that few have ventured into before.

The Glenrothes distillery is a well-known and respected producer of single malt Scotch whisky located in the Speyside region of Scotland. The distillery was founded in 1879 and has a long history of producing high-quality whiskies that are prized by collectors and enthusiasts alike.

In recent years, the prices of Glenrothes whiskies have been steadily increasing, particularly for rare and limited edition bottlings and older independent bottlings. For example, the average price for a bottle of Glenrothes 25-year-old increased by over 50% between 2019 and 2022. This is due in part to the growing popularity of the distillery among collectors and whisky connoisseurs.

For investors interested in this 2013 vintage, we recommend that they hold onto it for at least five years before bottling or selling it. This will allow the whisky to break the 15-year-old barrier, which in our opinion is where most of the sherry cask bottlings from Glenrothes start to shine, potentially increasing its value and appeal to buyers. Additionally, the client should consider selecting a sherry cask from the Glenrothes distillery, rather than a bourbon cask.

The reason for this is that Glenrothes is known for its exceptional sherry cask maturation, which imparts a rich and complex flavor profile to the whisky. The sweetness and spiciness of the sherry complement the natural flavors of the whisky, resulting in a smooth and balanced taste that is highly prized by collectors and enthusiasts. A sherry cask from Glenrothes is also likely to hold its value better over time than a bourbon cask, due to the distillery’s reputation for sherry maturation.

Springbank whisky prices have been rising steadily over the years, and despite the high cost, experts and enthusiasts have all predicted that they will continue to rise in the coming years. This is due to several factors that make Springbank whisky a highly sought-after and prized commodity.

Firstly, Springbank whisky is produced in limited quantities, which creates scarcity and drives up demand. Currently, Springbank distillery has a production capacity of 750,000  liters per year, which is less than one tenth of what Macallan is able to produce. This means that only a limited amount of whisky is produced yearly, making it a highly prized commodity among whisky enthusiasts and collectors.

Secondly, Springbank whisky has a loyal and dedicated fan base willing to pay top dollar for their favorite brand. This is evidenced by the large number of whisky clubs and societies dedicated solely to Springbank whisky. Collectors and enthusiasts are willing to pay high prices to add rare and collectible bottles to their collections, further driving up the price of Springbank whisky.

Lastly, the global whisky market has been experiencing a surge in demand for premium and rare whiskies. As disposable incomes rise, consumers are willing to spend more on luxury items such as rare and aged whiskies. Entering the post-covid era, 2022 Scotch whisky export value has recorded an increase of 37%, whilst the number of bottles exported has increased by 21%. This shows a strong global demand for premium whiskies, of which Springbank is the leader in the category.

In conclusion, despite the high price tag, Springbank whisky prices are expected to rise in the coming years due to factors such as limited production, award-winning quality, a dedicated fan base, and the growing demand for premium and rare whiskies. While this may be bad news for some, for those who have invested in Springbank whisky, it presents a lucrative opportunity for financial gain.

Whilst generally regarded as a top-tier whisky, Bowmore’s value has not shown as much growth as its brothers and sisters on Islay such as Laphroaig and Ardbeg. However as more and more 90s Bowmore are being bottled in recent years, it has been proven that Bowmore from this era is nothing short of its legendary 60s and 70s vintages. 90s Bowmore at their age of 20s are consistently scoring incredibly high scores from critics and are currently one of the most sort after whiskies in the world. We present to you this Bowmore 1997 at an incredible abv of 51.4% that allows you to age it until its 30s, in which you can expect a compound annual return of 19%.

This month we would like to introduce you to Tobermorey 1994 Sherry Butt. Tobermory distillery is a Scotch whisky distillery situated on the Hebridean island of Mull, in the town of Tobermory. The distillery, which was formerly known as Ledaig, was founded in 1798. With a touch of copper coins and sour beer, the nose is typically Tobermoray. But soft tropical fruits such as peaches and mango and with a hint of vanilla sugar and traces of cloudy apple juice and rye bread make for a pleasing deviation.

Craigellachie is a great distillery that produces one of the most complex malts in Scotland. Famous for its immensely meaty and full-bodied spirit, it has grown in popularity since 2017. This young cask of Craigellachie has a very high abv, which is ideal for long-term aging.

Mortlach is one of the top brands owned by Diageo and is a favorite among whisky collectors in the high-end market. Before Macallan released their 78-year-old Red Collection this year, Mortlach held the record for the oldest whisky ever bottled, which was a Mortlach 75-year-old whisky bottled by Gordon and Macphail. Its owner Diageo has always positioned Mortlach in the luxury market, with the prices of its official bottles set at around 30 to 40% higher than other brands at the same age, which raises a good benchmark for its secondary market pricing.

Sherry Mortlachs are particularly popular due to their complex flavour. Mortlach utilises its unique distillation method (2.81 distillation) as a strong marketing tool to create uniqueness, which has always been a key component of a distillery’s value.

This cask in particular has an incredibly high ABV level for a 24-year-old whisky, which allows investors to potentially age it to over 40 years old. The exponential growth in value from aging creates the opportunity for incredible returns.

This month, we have something incredibly special: a Bowmore 1997 bourbon hogshead with a stunning abv of 54.1%. It is well-known that the demand and quality of post-90s Bowmore whiskies are ever increasing. In today’s market, Bowmore continues to be the top distillery of Islay, and Islay is the region that we believe most collectors and connoisseurs will be focusing on buying for the coming years. Bowmore casks are not easy to come by on the market and they are often snatched up very quickly. If you are interested, get in touch immediately while these casks are available.

Any whisky connoisseur would know that Bowmore is one of the top distilleries in the world, with its wide presence in every sector of the market, from basic consumer daily drinks to high-end collectibles. Bowmore had some of its darkest periods during the 80s, during which its distillates exhibited a perfume and soapy aroma known as the “French Whore Perfume,” typically despised by whisky critics. However, they overcame this issue in the 90s and were able to resume their old production methods. Now, Bowmore is making whiskies on par or even better than those made in the 60s and 70s. A first-fill sherry Bowmore cask at a high ABV is a good investment, giving this cask the potential to be aged beyond 40 years old. We expect this cask to yield more than 20% return per annum.  

An old Craggonmore cask is not something you’d see every day. Being one of the staple malts of the Speyside region, Craggonmore has always been nurtured under the vast Diageo umbrella, with a lot of control and restriction regarding the use of its casks. Despite having an extensive range of OB whiskies to choose from, they have never released that many old Cragganmore official bottlings. Independent bottling of Cragganmore whiskies is also not as common as one would imagine. Only five bottles have ever been released aged over 30 years old, of which three were from the Scotch Malt Whisky Society, one from Gordon & Macphail and the last one being the 30th-anniversary special bottling for Signatory. Knowing this alone gives potential buyers and investors enough incentive to be one of the very few people in the world to get your hands on a 29yo Cragganmore. Having an incredible abv of 56%, allows buyers to bring the age up to 40 or 50, if patient enough. Whisky prices go up exponentially with age, and this is one of the rare scenarios that you can take full advantage of it. For details projection of the value of this cask, please contact our whisky specialists. 

January’s investment choice is this Caol Ila 2010 Bourbon Hogshead. Located in the Islay region of Scotland, Caol Ila is widely regarded as a top tier distillery making some of the best smoky and peaty whiskies in the world. With the largest production capacity amongst all Islay distilleries, its investment value has long been somewhat underrated compared to its peers like Bowmore and Ardbeg, due to its relatively large supply. However, what many people do not recognize is that only 5% of Caol Ila’s production are being reserved for single malt, whereas 95% of its whiskies are supplied as blending ingredients for both Johnny Walker and Black Bottle, both of which are gigantic whisky brands that have a solid demand and relies heavily on Caol Ila. Therefore, despite having 3 to 4 times of Ardbegs and Laphroaigs’ production capacity, Caol Ila does not necessarily have a more whisky being sold as a single malt.

In the long run, Caol Ila’s value will catch up faster than most other distilleries, to the levels of where the likes of Laphroaigs and Ardbegs currently are. One observation we see is that older vintage Caol Ila bottlings have experienced a significant rise in price in the last two years, many of which have increased 2 to 3 folds. New releases of Caol Ila bottlings are also priced rather aggressively by large bottlers, setting an excellent foundation. We believe Caol Ila cask prices are hugely undervalued, and with such a young cask, it is an excellent stepping stone for first-time investors to step into the market. It is also a safe and solid choice for veteran investors to have a range of Caol Ila casks within your collection. Bourbon hogshead is a popular cask choice for peated whiskies, and the high abv allows flexibility should investors hope to achieve long term ageing. It is also worth noting that, being the most modernized distillery on Islay, Caol Ila is also famous for its highly consistent quality with minimal variations between modern vintages. This makes it highly investor-friendly with little concern with vintage-related quality variance.