In November 2023, a bottle of Macallan Valerio Adami 1926 60 Years Old sold at Sotheby’s for $2.7 million. The sale broke the world record for the most expensive bottle of whiskey ever sold at auction until January 2024, when a bottle of The Emerald Isle 30-year-old from The Craft Irish Whiskey Co. sold for $2.8 million . Yet just ten years ago, the highest price ever paid for a single bottle of whiskey at auction was $800,000. Specialty bottles have always been more expensive, and while prices have been rising steadily, such a huge spread in such a short period of time is unheard of in the spirits world.
In the wake of the COVID-19 spirits boom, overall spirits sales have increased due to lockdowns and stay-at-home orders, but sales of spirits, as well as beer and wine, are now generally down and continue to decline significantly across the board. In contrast, the trend of ultra-premium versions being overpriced shows no signs of slowing down.
The growth in super-premium whiskey sales is seen as a counter-trend to the spirits industry as a whole, and whiskey in particular. According to a 2023 IWSR article, sales in the ultra-premium spirits category will increase 14% from 2022 and 23% from 2021, while sales in other premium spirits categories will decline. Tequila spirits and Scotch whiskey are driving the ultra-premium movement, but American whiskey isn’t far behind.
“The ultra-premium category is growing exponentially,” Jonny Fowle, Sotheby’s global head of spirits, told The Observer. “As the age statement increases, so does the size of the display and, indeed, the price.”
What does super-premium actually mean?
The truth is, there are no official requirements for the “super premium” classification. As with the term “small batch,” there’s technically no legal definition of ultra-high end, other than price.. Samson & Surrey’s Jamie Van Haren told The Observer: “Generally speaking, spirits priced over $40 for a 750ml bottle are considered super-premium spirits.” While the general entry point may seem low, The quality of the highest-end version must add value in some proportional way to increase the price point. This means that more and more brands are finding and placing rare and older spirits that need time to mature to gamble. Typically, collectors who bought the $800,000 bottle 10 years ago will also buy the $2.8 million version, but the younger generation must see the appeal as well. But really, how much better is a $2.8 million bottle than a $45 bottle?
In short, the answer is it should be a lot better. Gordon Dundas of Ian Macleod Distillery explains: “Ultra-premium whiskeys differ from regular premium whiskeys because of their high price, rarity, age and special packaging. High prices reflect exclusivity and luxury, while limited availability and older statements add depth and complexity, appealing to discerning collectors.”
While there are great wines available for $45 a bottle, the pricier options also have more bells and whistles. For the most ultra-premium wines, winemakers set aside certain special liquids and then carefully push them toward excellence through barreling and blending, all in the hopes of adding subtle complexity and flavors that taste like they’re drinking a history. Paired with a one-of-a-kind bottle, base, or decanter, it increases the likelihood that avid collectors with deep pockets will recognize these high-status releases as a worthwhile investment.
Who is buying ultra-premium whiskey?
According to IWSR’s Bevtrac consumer tracking data, ultra-premium wine has continued to grow over the past 20 years, but you don’t necessarily need to spend millions to buy wine that’s premium or worth investing in. Collectors make up the majority of the highest-end buyers, but the demographics of collectors themselves are changing, with an influx of new buyers, including a younger and more gender-balanced demographic, emerging.
Millennial consumers (mostly aged 27 to 42) are having a major impact on the market and ultimately changing the way super-premium spirits are produced, packaged and sold. While the average purchase size of Millennials is still on the lower end of the ultra-premium range (about $55, according to IWSR data), the range is still higher than that of their predecessors, whose typical purchases were between $30 and $40 . As those older Baby Boomer and Gen X consumers first drove the market, Millennials and younger generations view whiskey as a reliable, high-value investment, whether it’s for keeping or drinking. They may drink less, but they also drink better. This blend is helping to drive prices and expectations for upcoming launches in the ultra-premium whiskey category.
What makes a super premium bottle so special?
The motivation for brands to cater solely to the stereotypical traditional whiskey drinker (older, male, higher income) has been broadened to reflect a wider appeal. While this affects packaging, it reflects a more comprehensive form of luxury. The premiumisation of the spirit has raised the bar in all aspects, not just at the top end, with more and more brands aging their whiskey for longer periods of time in premium casks with unusual finishes – think of the past of premium spirits and technology, combined with today’s sustainable practices.
Japanese Mizunara is often found in super-premium aging processes, spending extra time in port or sherry casks, and occasionally in ex-bourbon, rum or even tequila casks . Some distilleries, such as Tamdhu in Speyside, Scotland, are returning to old techniques combined with new ones, distilling whiskey from older single malts and aging them in Oroso sherry casks. Another strategy is to reserve extra special distillates for high-end collector sets.
For example, well-known brands such as Glenlivet and Craft Irish Whiskey Co. have launched Eternal Collection and Emerald Isles whiskeys respectively. These products include collaborations with non-spirits heritage brands and artists who specialize in creating decanters and bases to take spirits to the next level.
The Glenlivet 55th Anniversary Edition is the first edition of the Timeless Series and the brand’s earliest release date. It sits on a geometric rose gold base 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 housed in a Fabergé Celtic Egg made of 18 karat gold, accented with emeralds, and 22 karat gold. Bergé rose gold and sapphire timepiece. “Premium packaging often features customized designs and high-quality materials, enhancing the sense of sophistication that makes super-premium whiskey a sought-after experience and collectible,” Johan Radojewski, Pernod Ricard’s vice president of marketing in the U.S., told The Observer.
How to start collecting
For those with varying degrees of knowledge about spirits and budgets, collecting whiskey is still possible and even enjoyable. However, premiumization means that the price of super-premium whiskey will continue to rise and new consumers in the market will need to be educated, who may be wary of or overwhelmed by information. While new buyers may understandably be wary of investing in high-end spirits that may be devalued or overpriced, these high-end spirits are typically meant for consumption, so feel free to try them. Currently, the rules for what defines ultra-premium wine have not been set, but you can start by buying some well-ranked $55 to $200 bottles. These are easier to obtain and a great way to become familiar with the brand and distilling style. When shopping, look for high age claims or precise terms like single cask, cask strength, and limited release, which can go a long way in distinguishing a special bottle. Don’t be afraid to start in the lower price range before getting involved in a bidding war at that once-in-a-lifetime auction.
That said, old “dusty” bottles are getting harder to find, while special and limited-edition bottles are more competitive. Brands that want to compete in the ultra-premium segment are planning for the future and launching special vintages.
More and more brands are distributed nationwide through online forums and stores, and a little research can yield excellent results. Ben Wald, director of beverage programs at The Flatiron Room in New York, recommends buying from a store and forming a partnership. Not only can they recommend new items in your price range, but they can also help when entering sweepstakes at state-controlled stores. Ultimately, however, whether you collect or just enjoy super-premium spirits, it all comes down to one factor: taste. “Whiskey collecting is about the liquid itself,” says Fore. “The most important step in promoting a bright future for whiskey collectors is to encourage everyone to become familiar with the whiskey in the bottle, not just the bottle on the shelf.”
