28/02/13

Andy Simpson

The Balvenie – In Focus.

In the first of a new series of distillery specific articles, I take an in depth look at some of the iconic distilleries which attract collectors, investors and of course drinkers.

Given there’s been a raft of relatively recent rare and collectable releases from this distillery, including many Tuns, a couple of Roses and a Cooper, I thought it fitting to start this new series by taking a look at Balvenie. I’ve already been asked the question as to the collectability of the new 12 year old Single Barrel releases so we’ll come onto those a little later.

Balvenie have been an almost immovable rock within the Whisky Highland Index (the index used to ‘rate’ distilleries according to the collectability/investment potential). They finished 2010 in 3^rd place, 2011 in 4^th place and they finished 2012 in 4^th place too. Incredible consistency, which no other distillery bar Macallan has managed to achieve. A consistency driven by the exceptional quality of their liquid coupled with single cask bottles and special releases to keep the avid fan wanting for more.

So how have The Balvenie got it so right?

Quite simply they meet the needs of every whisky fan, whatever the reason for purchase (drink/collect/invest) and whatever the budget. Simple as that…. And they do it with high quality product across the entire range. It’s no secret I’ve heavily criticised the over use of NAS (no age statement) bottles in pockets of the industry, however, Balvenie manage this well. Their NAS bottles complement, rather than dominate, their core range.

They have released special editions at prices which offer genuine value for money to drinkers and collectors alike. Last years Craftsman’s Reserve, The Cooper is a perfect example of this. A 15 year old vatting of a couple of casks, limited to 515 bottles and sold at a very realistic price of £65.

The aforementioned Tun 1401 and Rose first release both sold for £150; slightly more than the Cooper but still good prices for such limited bottles.

Balvenie are also clearly fortunate enough to have remaining stocks to enable such wonderfully aged whiskies as the recent 50 year old. Not within everyones budget, however, this is what I mean when I say Balvenie maximise their exposure in all areas of the market. From £30 a bottle to £20,000.

So let’s take a look at some of these collectable gems to see how they have performed over the last 12 months. The index below charts the progress of Balvenie Rose 1^st release, Tun1401 1^st release and also The Cooper.

The index starts at 100 and over the course of just 12 months increases to 265.13, showing a 165.13% increase. Even more impressively, had these bottles been purchased for their original retail prices the cost would have been £365. That value now stands at £2,250, a staggering 516% increase in value over their original release prices.

One of the things Balvenie has traditionally done very well is to release a number of older vintage single cask bottlings to complement their already impressive core offering. These precious gems range in vintage from the 1950’s to more recent 1970’s. The earlier vintages sell for thousands of pounds, such as the 1951 vintage (cask 1236, 90 bottles) which sold last year for £3,000.

Due to the rarity of these wonderful old vintages, prices should remain buoyant. Another factor to aid relative price stability and future increases is the almost obsessive provision of a desirable on going series for completionist collectors; there will always be a healthy market.

But just like any other distillery, certain bottles don’t perform as well as they are sometimes believed to. In the current market when high value bottles are becoming far more commonplace than they were just 5 years ago. The temptation is to assume what looks like an old bottle of whisky is going to be worth a small fortune.  The older Cognac bottle shaped Founders Reserve is one of these bottles.

The chart below plots the progress of the Cognac bottle shaped Founders Reserve over the last 12 months (the index tracks both the 10 year old release and the NAS variant).

It’s interesting to see they moved up just 4.75% and that’s after a plunge into the red through most of 2012. While there’s clearly a market for these bottles, the reason they have not moved particularly (and they haven’t really moved much over the last two years) is simply the level of supply. They appear relatively frequently at auction which has supressed values over the short/medium term. If supply eventually starts to dry up I’d expect these bottles to see future increases in value.

Looking to current and future releases, a new range just hitting the primary market is the Single Barrel 12 year old. These are well priced single casks (around £50 a bottle) and as the first release, they should sell out relatively briskly. There’s also the continuation of the collectable series Tun1401. Batch 7 has just been announced on a travel retail exclusive basis.

Overall I see Balvenie continuing to become more collectable, with values poised for further increases. Their exceptional quality whisky and limited release programme fuels the market almost to perfection. I for one, expect them to hold onto their top five ranking like a limpet on a low tide rock.

Until next time,

Slainte.

Andy

Weekly Whisky Auction Watch

Andy Simpson

05.03.2013

Bonhams recent whisky auction in Edinburgh saw the usual host of collectable dream drams. This auction had a huge selection of Scotch Malt Whisky Society bottles for sale. Plenty of these were the first bottles (bottles bearing xx.1, where ‘xx’ denotes the distillery code) from a whole raft of distilleries. Also hammered away was a large selection of older Cadeneheads bottles from the early to mid 1990’s. These older independent bottles are rapidly gathering pace as often great examples of older vintage whisky from many sought after distilleries.

Onto some of the highlights –

Previously selling for around £80 – £100, a bottle of Benromach Centenary sold for £320. While whisky is broadly experiencing solid increases in value, I do see this massive disparity as being a spike. If you’re looking for one of these bottles, I would expect to be able to find one at auction for way under this amount at more like its typical value.

Always popular, a bottle of Brora Rare Malts Selection 1972 22 year old (61.1% variant) sold for £1,000. This is the first time this particular bottle, lacking its box, has achieved more than £1,000.

A 1968 vintage 26 year old Laphroaig bottled by Hart Brothers sold for £600. In 2009 these were selling for £220. Proof, if more proof were needed, that you can indeed realise significant gains in value despite auctioneers commissions.

Springbanks tear drop shaped bottle of 50 year old whisky (66.3 degrees proof) sold for a new record of £5,500. When you consider this is actually from the legendary 1919 distillate, it still seems like something of a bargain.

Another bottle from the Rare Malts Selection series, a Hillside 1970 25 year old sold for £380, a new record for this bottle and healthy progress from 2008 prices of around £220.

Glenfiddich had a brace of new records for two high end collectables. The 30 year old crystal decanter with silver stags head stopper achieved £3,000; more than double its previous auction best. The wonderful old Egon Ronay 19 year old finally settled on £1,900, way more than its estimates and a reflection of the extreme rarity of this bottle.

Of course it wouldn’t be a Bonhams whisky auction without some Macallan fireworks. Some of the Speyside icons new records were – Private Eye (plus miniature bottle) sold for £1,100, more than doubling the previous sale of £460 for this matching set. A whole variety of vintages from the 18 year old bottles achieved new records. The 1966 18 year old (lacking box) sold for £650 which represents a significant increase over and above bottles which have had their accompanying boxes. The final Macallan featured is the 1950 vintage (‘handwritten’ label with red ribbon, distributed by Gordon & MacPhail). One sold for £1,900 demonstrating the continuing demand and declining supply of this bottle. These were selling for just £600 back in 2008.

There were some bargains to be seen (granted not very many) as a pair of Hazelwood Centennial bottles sold for £220 each.

The final bottle this week is from Highland Park. Many are aware of the recent decline in values for relatively recently released limited Highland Park bottles. This was further borne out by a bottle of Saint Magnus 12 year old (the second release in the Earl Magnus trilogy) selling for just £50. An interesting sale value when you consider its original retail price was just under £90.

Broadly speaking, most bottles sold for an amount equal to or above previous auction bests.

In the next update we’ll take an in-depth look at some of the prices achieved at the recent Scotch Whisky Auctions sale.

Until next week.

Slainte,

Andy.

1200 miles, 4 flights, 40 hours, two distilleries and one award winning whisky company. It could only be another W Club giveaway!

Our winner and world aviation pilot Iain Stuart successfully navigated his way through our tricky Mackmyra quiz and was the first contestant picked out of the hat. That was the hard part…

The prize – a trip of a lifetime to visit Sweden and the award winning Mackmyra Distillery. (Mackmyra was announced the European Spirits Producer in the 2012 International Wine and Spirits Competition) So what better time to visit the country every whisky fan is talking about.

The Whisky Shop's new camera works a treat

I thought I had a good job visiting some great distilleries all over Scotland and and beyond but Iain is a pilot and he has been to almost every corner of the World flying over 5 million miles in the process. An exciting job that has kept him busy for over 30 years. Just as well he is used to some early starts because we were catching the red eye 6am Glasgow to Amsterdam and then onto Stockholm.

The flight to Sweden was filled with whisky tales and an anticipation of visiting one of the most relevant and talked about distilleries anywhere in the world.

We were greeted by the wonderful Lisa Collin – a brand ambassador and export specialist all rolled into one. The two hour road trip was reminiscent of a Christmas Card with thick snow only interrupted by giant Swedish oak trees and the lively deer roaming freely by the roadside.

Swedish Wildlife

We soon arrived in the small village of Mackmyra where we were ready to taste some great whisky  - Mackmyra Distillery is located on the grounds of the old Mackmyra Mill and ironworks, which was originally founded in the 1500s. Mackmyra Distillery is housed in old buildings previously used as a power plant, mill and blacksmith.

The New Modern Gravity Mackmyra Distillery

Demand and popularity of the Mackmyra whisky both in Sweden and beyond led Mackmyra to build a second distillery and begin a hugely ambitious project of creating a whisky village all set in the remote picturesque town of Gävle. Our competition winner was treated to a guided tour of both distilleries as well as a delicious whisky food pairing. The new Gravity distillery allows you to follow the production of whisky, which is led by gravity, from milling and mashing the malt at the top to the distillation and filling of the casks at the bottom. State of the art doesn’t cover it. After flying above the tall Swedish oak trees at the top of the new Gravity Distillery we were whisked off to the Distillery warehouse, as we drove down a steep hill expecting something a little more normal we were met by a cave that would not look out place in a Batman movie! “Welcome to Mackmyra’s distillery warehouse” Lisa said with a smile! A cave that goes 50 meters underground and is used to mature the majority of the Mackmyra whisky. With temperatures ranging from 8-10 degrees and the humidity level as high as 95% it is as they say a perfect whisky maturing environment!

Mackmyra Distillery Warehouse

Sampling the Mackmyra Range

To experience a taste of Sweden simply click on the image below.

Mackmyra Single Malt

Balblair comes to London!

Join us for a luxury tasting here in London Piccadilly!

We would like to welcome you to a very exciting Balblair whisky tasting right here at The Whisky Shop 70 Piccadilly. The event will take place on Tuesday  the 5th of March at 7.30pm with John MacDonald the Balblair brand ambassador hosting the event!

Balblair is unique.

The home of Balblair lies on the misty shores of the Dornoch Firth, . It’s here that they have been producing award-winning Highland Single Malt whisky since the very first barrel was rolled out in 1790.

The full range will be tasted on the night with some of the award winning whiskies listed below.

• Balblair 2002
• Balblair 1997
• Balblair 1989
• Balblair 1975
• Balblair 1965

Booking is essential, please contact Piccadilly@whiskyshop.com or phone the store on 0207 4996 649

Ticket Prices are £25.00 or £12.50 for W Club Members.

Exploring whisky with Dominic Roskrow

Welcome to our new W Club feature. The idea is to go on a long journey in to the very heart of whisky and what it is.

Each week Dominic will pick explore whisky in depth and explain why it’s the way it is. There’s going to be no roadmap, so we could be heading off anywhere in any given week. A particular whisky style might be analysed this week, a particular Scottish region the next. Dominic might look closely at rye at one point, and look at the importance of fermentation to the whisky making process at another. If a particular subject dominates the whisky news, we’ll head right over to it and dissect it.

And Dominic’s more than happy to answer questions and deal with issues of specific interest to W Club visitors and members.

This week we start a two part mini series looking at different style of whisky. This week we look at the whiskies of Scotland and next week we take a tour round the rest of the world.

We live in  rapidly changing world, and every week the old adage that the only things that are certain are death and taxes would seem to become increasingly true. Whisky lovers could throw in another though – Scotland makes the world’s best whisky.

You might even be tempted to add in another ”certainty’- Scotch single malts are the best whiskies of the lot.

There, though, you and I would have to part company, not because there aren’t scores of great Scottish malts, but because there’s a very strong argument that while Scottish single malts dominate the top 50 whiskies, they have no permanent and absolute claim to all of the top 120 places. And not only are there whiskies from elsewhere that can match them, but there are other Scotch whisky genres capable of doing so.

Other genres? Well yes. Three in fact. As we explore whisky we will look in depth at single malts but for now, let’s give it up of

r the other categories – two unsung and under-rated, the other ignored, abused and misunderstood.

Grain whisky

Grain whisky and single malt whisky are very different beasts.

Single malt whisky is produced in single batches, using only malted barley, yeast and water. The malt is fermented in to a beer, distilled in a pot still and then matured in oak casks.

But malted barley isn’t the only grain that can make whisky and nor is the batch method the only was of distilling the wash, though it is the grain that ferments easiest with yeast because of the richness of the sugars it releases; and it produces the most flavoursome alcohol.

Whisky can be produced from a range of grains including unmalted barley, corn, wheat and rye, mixed with an amount of malted barley to ensure successful fermentation.

The fundamental difference about whisky made with these grains is that it is not made in batches, but in a continuous, factory-like process. The continuous or column still was originally invented by a Scotsman, Robert Stein, but perfected by an Irishman called Aeneas Coffey, and it is after him that this type of still is named – the Coffey Still. This is ironic really, because it was adopted in Scotland and rejected by the Irish, who felt it would undermine their traditional way of making whisky, and who in turn lost their world dominance in whisky because of it.

Unlike the cuddly, curvy, pleasing copper pot still, the column still is a workman-like, no nonsense piece of factory; all steel and rivets, harsh lines and aggressive engineering.

Whisky is made by pouring the fermented wash down a series of tall columns and against steam at extremely high temperatures and under extreme pressure. The liquid is vaporised and then passes against a series of plates where it is condensed in to liquid.

Where malt comes off the still as a fruity, appley fresh spirit, grain spirit is considerably stronger and smells like soggy cornflakes in hot milk. The spirit it produces has far less taste than single malt, and is referred to in some countries as neutral grain spirit.

But the process allows it to be produced in large quantities relatively quickly. Its importance to whisky production is that when it is mixed with malt whisky it makes it a smoother, rounder easy-to-drink whisky. It was this that turned Scotch whisky in to the worldwide success story it is today, because it helped create a style that was acceptable first to the English and then, after the industrial revolution, to the British Empire, and finally the rest of the world.

Grain whisky is bound by similar laws to single malt whisky and that means it must be matured for a minimum of three years in oak casks in Scotland. Very little of it is bottled as grain whisky and some of what is average and uninspiring. A high proportion of grain whisky is matured in old casks that don’t impact positively on the whisky.

But there are subtle differences between the grains produced by the different grain distilleries in Scotland, and more significant differences between the whiskies produced by each type of grain. And there are plenty of examples of grain whisky that have been aged in a high quality cask for many years and have become tasty and absorbing whiskies. They take on many of the characteristics of the oak cask and because there are no other dominant flavours in the whisky the end result can be highly attractive.

“A grain whisky is like a blank canvas,” says Euan Shand, managing director of whisky company Duncan Taylor, which sells a range of outstanding grain whiskies. “Over the years the cask leaves its mark on the whisky and this can be outstanding.”

A growing number of enthusiasts share Euan’s view and grain whiskies are enjoying some time in the spotlight. And because they don’t have the kudos of single malts, very old grain whiskies cost a fraction of the price of a malt.

Vatted or blended malt whiskies

A single malt whisky is a whisky made from the product of one distillery and it has a taste distinct to that distillery. But each one is a solo instrumentalist, a one trick pony that it could be argued lacks the subtlety and sophistication of some other styles of whiskies.

The small ensemble of the whisky world is the category known as ‘vatted malt whisky’. This is a collection of single malt whiskies from different distilleries balanced to offer a harmony of styles. A vatted malt whisky may include anything from three different malt whiskies to a couple of dozen, but the mix contains only malt whiskies.

To find a perfect balance of flavours between the warring malts in each whisky takes a huge amount of skill and effort, but often vatted malts are cheaper than malts, and thus they offer excellent value for money.

This is also the category which offers Scotch the best opportunity to appeal to a younger generation and to find a place in style bars. Because vatted whiskies are the product of several distilleries they aren’t restrained by any traditional baggage and can adopt zany and genre-breaking names such as Sheep Dip and Monkey Shoulder.

In the last few years there has been a move by the Scotch whisky industry to replace the description ‘vatted malt’ whisky with a more modern descriptor, because it was felt that it ‘vatted’ was too industrial.

The description the industry settled on was ‘blended malt whisky’. This is NOT the same as ‘blended whisky’ (see below). A blended malt whisky is exactly the same as a vatted whisky – a mix of just malts. Confused?

Blended whisky

Single malt whisky is to whisky what foreign language films are to cinema; loved by a limited number of enthusiasts but something of an acquired taste. Blended whisky is the drink version of Hollywood; produced on a huge scale, predictable and often bland and unexciting, but with a sizeable smattering of true classics.

Blended whisky is a mix of malt whiskies with whisky made from another grain. When made properly it is a full orchestra, a sophisticated blend of different instruments combined with care and skill to make a perfect harmony for the taste-buds.

About 19 of every 20 glasses of whisky sold contain blended whisky and it is the most palatable of all Scotch whisky styles.

Let’s dismiss a few of the fallacies about blends. They are not necessarily inferior to single malts, nor do they have to be blander and less interesting. Quite the opposite, in fact. When a blend is well put together it contains a vast array of styles and flavours and requires a developed palate to appreciate it. Quality blends can cost considerably more than most malts and can contain rare and old whisky.

The image problem that blends have is caused by two factors: one, because they can contain poor quality grain whisky matured for the minimum period of three years in poor quality casks, and two, because the proportion of grain whisky to malt whisky can be very high, resulting in an anaemic final whisky.

The whole point of blended whisky is to create a consistent product, so that wherever the customer buys it and what ever year they buy it in, it tastes the same as the last time it was tasted. But because each cask of whisky tastes slightly different to the next and will run out, over time the mix of whiskies in a blend will change, and a great deal of effort is made to replicate the exact flavour profile of the blend each time.

No company wants the customer to think its blend is changing so whisky makers tend not to disclose what whiskies they are using in their blends, or in what proportions. This is in stark contrast to single malt whisky, when each glass contains nothing but 100 per cent whisky from one distillery. And as a high proportion of blends are indeed of poor quality and contain a large amount of poor grain whisky, the category as a whole has been vilified.

So how do you spot a good blend?

The simplest advice is to seek out the best known blends. The big names of blended whisky tend to have attained their position for a very good reason. The likes of Bell’s, Famous Grouse, Dewar’s, Whyte & Mackay and Teacher’s are mainstream blends but they are made with very good quality malt whisky from some of the most respected distilleries in Scotland.

Look also for an age on the label. Some blended whiskies have an age on the label in the same way as single malts do. And just as with single malts, the age refers to the age of the youngest whisky in the mix, and applies equally to the malt and the grain content.

Simply like our Whisky Shop Facebook page and share our competition post and you could win a bottle of the delicious Glenlivet 15 year old

Winner to be announced on Monday. Its that simple… Simply click here to visit our Facebook page

Weekly Whisky Auction Watch

Andy Simpson

26.02.2013

This week saw Scotch Whisky Auctions launch another marathon of a sale. On a slightly different theme, I’m going to take a look at the whisky for sale and give my thoughts as to its ‘collectability’ (is that actually a word?).

I guess I wouldn’t be being unfair if I said Scotch Whisky Auctions are known for their volume of collectable bottles at the lower end of the value scale. Before I get shot down by a vitriolic crowd of SWA fans (of which I am also one) I want to say I’m just quoting fact here. There are always a huge number of Arbeg Alligator, Galileo, Rollercoaster etc for sale. So it’s the current auction which interests me, possibly more so than ever.

The number of exceptional bottles appears to be creeping up rather rapidly. So putting aside the eclectic selection of bell shaped door stoppers, here’s my cream of the crop for the current auction.

Clearly, the BIG Ardbeg is the 1965 40 year old. Last seen selling for £2,800 almost 12 months ago in the UK, this should perform admirably. If you’re an Ardbeg collector, this is an absolute must have bottle.

Back to the whole ‘1^st releases matter’ theory, there are Balvenie first releases of both Rose and Tun 1401. Tun 1401 has been selling for way in excess of £1,000 recently so expect similar numbers. Balvenie Rose 1^st release hasn’t seen the light of auction since December last year so expect fireworks with that one.

The rest of the picks from my perspective are an exceptional collection of aged rarities. A perfect example of Glen Flagler is sure to perform well. The Glen Mhor 10 year old is another old gem.

There’s a fantastic old Glendronach, bottled under license by Gordon & MacPhail (who also bottled under license for the mighty Macallan). “A Perfect Self Whisky”, reads the label…. I couldn’t agree more!

Then there’s the Glenury Royal 50 year old. I suspect whatever it sells for, this will be a bargain compared to other 50 year olds on the market right now.

One of the youngest whiskies at this auction excites me the most (in this day and age, would anyone dare say it’s just ‘5 years old’ or would it be another ‘no age statement bottling’?). The Clynelish 5 year old is just a stunning example of one of this Highland hero’s earliest bottlings.

Other exceptional rarities include a Mortlach 28 year old, some very rare Miltonduff bottles, two Port Ellen Feis Ile 2008 bottles and one of the legendary Port Ellen Maltings.

At the moment, values do look to be buoyant so it’ll be interesting to see where many of these rarities finish once the electronic hammer falls. As usual, there’ll be a full report here.

Until next week.

Slainte,

Andy.

We are teaming up with our friends at Visit Scotland to offer a lucky W Club member the chance to win a Scottish break to the World’s only malt whisky trail.

Escape to the captivating region of Moray Speyside and admire charming fishing villages which characterise the 50-mile-long Moray Coastal Trail, meeting captivating wildlife as you go. And, it’s not just the stunning scenery and wild residents which make this area an unmissable part of Scotland; it’s also home to the only Malt Whisky Trail in the world!

Follow a Trail covering more than half of Scotland’s malt whisky distilleries in one area, each with its own invitation to see, smell, taste and absorb the magic of whisky. It’s no surprise that some of the country’s finest amber nectar is proudly produced in Moray Speyside.

You and a companion are invited to relax in a four-poster suite for two nights at the luxury 4-star Knockomie Hotel on a bed & breakfast basis, including a scrumptious meal on one evening. Situated just four miles from the dramatic Moray Coast, it’s recognised as one of the Scottish Highland’s premier country house hotels.

Surprise your senses as you explore the world’s only Malt Whisky Trail! Visit Strathisla, the oldest working distillery in the Highlands and spiritual home to one of the most famous whisky brands in the world – Chivas Regal. Then, journey to BenRiach for a private connoisseur’s tour with the distillery manager and goodybag to take away.

What’s more, with up to £300 towards spending and travel money, you are free to discover the wealth of things to see and do in Moray Speyside.

To enter the competition simply click here and follow the instructions. Good luck!

Terms and conditions apply

The Balvenie First Fill 12 year old is the first in a series of “limited editions” – Each bottle is one of no more than 300 drawn from a single cask and each bottle is hand-numbered and carries the number of the cask in which it matured. Bottled at a higher strength of 47.8% ABV, this unique spirit spends 12 years in first-fill Bourbon barrels before being filled into no more than 300 hand-numbered bottles per cask.

Nose: Bounty of sweet oak and spice

Taste: Rich and complex with deep vanilla oakiness. Honey notes will be overlaid with sweet fruits and subtle spices.

Finish: Lingering sweetness

Bottled at a higher strength of 47.8% ABV, this unique spirit spends 12 years in first-fill Bourbon barrels before being filled into no more than 300 hand-numbered bottles per cask.

Simply click here to buy

Tatsuya Minagawa The Suntory brand ambassador hosted one of the most dramatic whisky tasting events on  Wednesday the 20th of February at the London Piccadilly Whisky Shop

The events have been included a walkthrough of the suntory range where our customers got the chance to taste the below gems…

• Yamazaki 12yo,
• Yamazaki 18yo,
• Hakushu 12yo,
• Hibiki 17yo,
• Hibiki 21yo
• Hibiki 30yo

For more fabulous tastings please keep checking the W Club website.