The Rise of Ultra-Premium Whiskey
In November 2023, a bottle of The Macallan Valerio Adami 1926 60-Year-Old sold at Sotheby’s for $2.7 million. The sale broke the world record for the most expensive bottle of whiskey ever purchased at auction until January 2024, when a 30-year-old bottle of The Emerald Isle from The Craft Irish Whiskey Co. sold for $2.8 million. A mere decade ago, however, the top price paid for a single bottle of whiskey at auction was $800,000. Special bottles have always fetched steeper prices, and while prices have been steadily rising, the stark emergence of such a vast price gap in such a short period of time is unheard of in the spirits world.
After the COVID-19 spirits boom, in which overall spirits sales increased amid lockdown and stay-at-home orders, sales in spirits, as well as beer and wine, are now generally down and continue to experience a strong decline across the board. In contrast, the trend of ultra-premium releases selling for exorbitant prices shows no signs of slowing.
The rise in ultra-premium whiskey sales is considered a counter trend in the spirits industry as a whole, and whiskey in particular. The volume of sales in the ultra-premium category is up 14 percent from 2022 and 23 percent from 2021, according to a 2023 article from IWSR, while other premium spirits categories have seen decreases. Agave spirits and Scotch whisky are driving the ultra-premium movement, but American whiskey is not far behind.
“The ultra-premium category is growing exponentially,” Jonny Fowle, head of spirits at Sotheby’s Global, tells Observer. “As age statements increase, so does the scale of presentation and, indeed, the price point.”
What does ultra-premium actually mean?
The truth is that there are no official requirements for ‘ultra-premium’ classifications. Like the term ‘small batch,’ there is technically no legal definition for ultra-premium, beyond price. And since the category is relatively new, the threshold for entry is actually quite low. “In general, spirits priced over $40 for 750 ml are considered ultra-premium,” Jamie Van Haren of Samson & Surrey tells Observer. While the general entry point may seem low, the quality of the highest-end releases has to increase in value in a somewhat commensurate manner to up the price point. This means that more brands are gambling on themselves by finding and laying down rare and aged spirits that take time to mature. Oftentimes, the collectors who purchased the $800,000 bottles 10 years ago are the ones purchasing the $2.8 million versions, but younger generations must see the appeal as well. But in reality, how much better is a $2.8 million bottle than one that sells for $45?
In short, the answer is that it should be quite a lot better. “Ultra-premium whisky stands apart from regular premium options through its high price, rarity, age and exceptional packaging,” Gordon Dundas of Ian Macleod Distillers explains. “The elevated price reflects its exclusivity and luxury, while limited availability and older age statements add depth and complexity that appeal to discerning collectors.”
While there are very good $45 bottles, the higher price point options come with more bells and whistles. For the highest end of ultra-premium, distillers will set aside certain extra-special liquids and then carefully nudge them towards excellence through barrel finishes and blending, all in the hopes of adding subtle complexity and flavors that taste like drinking a piece of history. Pair that with one-of-a-kind bottles, pedestals, or decanters, and it furthers the odds of avid collectors with deep pockets recognizing these high-status releases as a worthy investment.
Who is buying ultra-premium whisky?
Ultra-premium tiers have continuously grown over the past 20 years, according to IWSR’s Bevtrac consumer tracking data, but you don’t necessarily need to spend millions of dollars for an excellent or investment-worthy bottle. Collectors comprise the majority of the highest-end purchasers, but the demographic of the collectors themselves is shifting, and an influx of new buyers, including a younger and more gender-balanced demographic, is emerging.
The mostly millennial consumers (ages 27 to 42) are heavily impacting the market and ultimately shifting the way that ultra-premium spirits are produced, packaged and sold. While the average millennial is still purchasing the lower end of the ultra-premium selections—around $55, per IWSR data—that range is still higher than their predecessors, whose typical purchases were between $30 and $40. Thanks to those older baby boomer and Gen X consumers who drove the market up in the first place, the millennial and younger generations see whiskey as a solid high-value investment, whether to save or to drink. They may be drinking less, but they are also drinking better. This convergence is helping drive the price and expectations for upcoming releases in the ultra-premium whiskey category.
What makes ultra-premium bottles special?
The incentive for brands to cater solely to the stereotypical traditional whiskey drinker (older and male, with a high income) has expanded to reflect the broader appeal. While this affects packaging, it goes deeper to reflect a more holistic form of luxury. This premiumization of spirits raises the bar all around, not just at the highest end, with more brands aging whiskey for extended periods in premium barrels with unusual finishes—think quality spirits and techniques of the past, married with the sustainable practices available in the present.
Japanese mizunara often appears during the ultra-premium aging process, with extra time spent in port or sherry casks, as well as occasional ex-bourbon, rum and even tequila barrels. Some distillers, like Tamdhu in Scotland’s Speyside, are returning to old techniques paired with the new by pulling from older single malts and maturing them in oloroso sherry casks. Another tactic is to set aside extra special distillates for high-end collector’s sets.
Prestige brands like The Glenlivet and Craft Irish Whiskey Co., for example, have launched the Eternal Collection and Emerald Isles releases, respectively. These releases include partnerships with non-spirit legacy brands and artists who specially fabricate decanters and pedestals to take spirits to the next level.
The Glenlivet’s 55-Year release is the first edition of the Eternal Collection, and the brand’s oldest release date. It rests on a geometric rose gold pedestal designed by architect Michael Hansmeyer. Craft Irish Whiskey Co.’s Emerald Isles set contains the oldest triple distilled Irish whiskey available for purchase, and is encased in a Fabergé Celtic egg made of 18-karat gold, accented with emeralds as well as a 22-karat gold Fabergé rose gold and sapphire timepiece. “Premium packaging—often featuring custom designs and fine materials—enhances the sense of refinement, making ultra-premium whisky a sought-after experience and collectible,” Johan Radojewski, Pernod Ricard USA’s vice president of marketing, tells Observer.
How to start collecting
Collecting whiskey is still possible, and even enjoyable, for those with varying degrees of spirits knowledge and budgets. Premiumization, however, means that the price point for ultra-premium whiskey will continue to increase, and there is a need to educate newer consumers in the market who may be wary or overwhelmed by a glut of information. While it’s understandable that new buyers may be wary of investing in higher-end spirits that could potentially depreciate in value or simply be overpriced, these higher-end bottles are often meant for consumption, so feel free to experiment. For now, the rules that define ultra-premium aren’t set in stone, but you can start by purchasing a few $55 to $200 bottles with decent rankings. These are far easier to come by, and a great way to acquaint yourself with brands and distilling styles. When shopping, look for a high age statement or precise terms like single cask, cask strength and limited release, which make a big difference in differentiating between special bottles. Don’t be afraid to start off in a lower price range before jumping into a bidding war on a once-in-a-lifetime auction.
That said, older “dusty” bottles are becoming harder to find, and special and limited releases are more competitive to purchase. Brands who want to compete in the ultra-premium space are planning for the future and laying down special vintages.
More and more brands are being distributed nationally through online forums and in stores, and a little research can yield excellent results. Ben Wald, head of beverage programming from New York City’s The Flatiron Room recommends buying from a single store and forming a relationship. Not only can they recommend new items within your price range, but they can help when entering lotteries in state-controlled stores. Ultimately, however, whether you’re collecting or simply enjoying an ultra-premium spirit, it all comes down to a single factor: the taste. “Whiskey collecting is about the liquid itself,” Fowle says. “The most important step in propagating a bright future for whisky collectors is to encourage everyone to familiarize themselves with the whisky in their bottle rather than simply the bottle on their shelf.”
The Macallan Harmony Collection Vibrant Oak Scotch Whisky
Macallan Harmony Collection Vibrant Oak is the newest release from the most prestigious brands in spirits. With plenty of silky oak flavor from first fill American oak and a bit of resting in sherry-seasoned oak, it’s an approachable and reasonably priced bottle for any collector.
Angel’s Envy Cask Strength Port Wine Finished Bourbon
Angel’s Envy recently released their 13th annual cask strength port wine finished bourbon to much acclaim. The ex-port barrels add a complex sweet nose to what is already a succulent Kentucky distillate and a great bottle to add to any collection.
Garrison Brothers Cowboy Bourbon 10th Anniversary Edition
Garrison Brother’s 10th anniversary Cowboy Bourbon release is a hot one for any collector. From the folks who pioneered modern Texas distilling, this liquid gold is bottled at 140.2 proof, with a commemorative gold medallion.
Compass Box Crimson Casks Blended Malt Scotch Whisky
Compass Box updated their core collection to reflect the new generation of collectors without sacrificing flavor. The collection is composed of four main bottles: Nectarosity, Crimson Casks, Orchard House and The Peat Monster. The Crimson Cask, in particular, is a rich blended Scotch whisky finished in oloroso sherry casks that is a welcome dram any time of year.