Saturday, March 5, 2016
The Price of Scotch Surges as Demand Outpaces Supply
If you’re a lover of good Scotch - you might want to stock up on your favorite label. CNNMoney reports that the supply of old single malt Scotch whiskey has been outpaced by global demand.
For instance, Asia is now responsible for up to a fifth of Scotch exports. Then there is the triple increase in U.S. Scotch sales over the years that has cut into distillers’ aged reserves.
Prices for vintage Scotch whisky are surging as a result. For example, bottles of 30-year Black Bowmore from 1964 are currently selling for around $10,000 online.
That’s a bit rich for my taste.
Major Scotch distilleries such as Macallan, Oban and Highland Park are already ramping up their production to meet consumers' appetites.
And you can expect the Scotch industry not to take page from bourbon maker Maker’s Mark. In 2013, Makers Mark riled its consumers by announcing it would water down its bourbon recipe to lengthen its limited stock. during when bourbon demand was outpacing supply. There will be no watered down scotch unless you do it yourself.
So we're not headed for a world without Scotch any time soon. It will be a world where Scotch will be more expensive.
So if you simply must have an aged bottle, get ready to pay up. You might also consider investing in some Scotch stock. Bloomberg reports that the Platinum Whisky Investment Fund, the first investment fund dedicated to the stuff, has seen an annual return of up to 17 percent.
Drink and get paid to do it. Now there is a plan.