In November 2023, a bottle of The Macallan Valerio Adami 1926 60-Year-Old was sold at Sotheby's for $2.7 million. The sale broke the world record for the most expensive bottle of whiskey ever bought at auction until January 2024, when a bottle of Emerald Isle 30 year old from The Craft Irish Whiskey Co. sold for $2.8 million. However, ten years ago, the highest price paid for a single bottle of whiskey at auction was $800,000. Special bottles have been fetching high prices, and although prices have been rising steadily, the sharp occurrence of such a large price gap in such a short period of time is unheard of in the spirit world.
After the peak of the COVID-19 spirits, where overall spirits sales increased amid the lockdown and stay-at-home orders, sales of spirits, along with beer and wine, have now declined and continue to experience significant declines across the board. Conversely, the trend of ultra-premium releases being sold at exorbitant prices shows no signs of abating.
The rise in ultra-premium whiskey sales is seen as a counter-trend to the spirits industry as a whole, and whiskey in particular. Sales volume 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 saw declines. Agave spirits and Scotch whiskey are driving the ultra-premium movement, but American whiskey is not far behind.
“The ultra-premium category is growing a lot,” Jonny Fowle, head of spirits at Sotheby's Global, told the Observer. “As age statements increase, so does the rate of presentation and price.”
What does ultra-premium actually mean?
The truth is that there are no official requirements for the 'ultra-premium' classification. Like the term 'miniature,' there is no legal definition of ultra-premium, beyond price. And since the category is new, the threshold for entry is actually very low.. “Typically, spirits priced above $40 per 750 ml are considered ultra-premium,” Samson & Surrey's Jamie Van Haren told the Observer. While the standard entry point may seem low, the quality of the high-end releases should increase in value somewhat to increase the price point. This means that many brands are gambling on themselves by finding and putting down rare and mature spirits that take time to mature. Oftentimes, collectors who bought $800,000 bottles 10 years ago are the ones buying the $2.8 million varieties, but younger generations should also see the appeal. But really, how much better is a $2.8 million bottle than one that sells for $45?
In short, the answer is that it should be much better. Gordon Dundas of Ian Macleod Distillers explains: “Ultra-premium whiskey is different from regular premium whiskeys by its high price, rare provenance, age and special packaging. “The high price reflects its uniqueness and luxury, while the limited availability and senior statements add depth and sophistication that appeals to discerning collectors.”
While there are some great $45 bottles, the higher price point options come with more bells and whistles. For an ultra-premium finish, distillers will set aside some special liquids and carefully nudge them towards perfection through barrel finishing and blending, all in the hope of adding subtle complexity and flavors that taste like drinking a piece of history. Pair that with one-of-a-kind bottles, bases, or decanters, and it improves the odds for avid collectors with deep pockets who see this high-quality release as a worthwhile investment.
Who buys ultra-premium whiskey?
Ultra-premium tiers have grown steadily over the past 20 years, according to IWSR's Bevtrac consumer tracking data, but you don't have to spend millions of dollars to find the best bottle or investment. Collectors comprise the majority of high-end buyers, but the demographics of collectors themselves are changing, and an influx of new buyers, including young and gender-balanced people, is emerging.
Many millennial consumers (ages 27 to 42) are having a major impact on the market and are ultimately changing the way ultra-premium spirits are produced, packaged and sold. While the average millennial still buys the low end of ultra-premium options—about $55, per IWSR data—that range is still higher than before, with their typical purchases between $30 and $40. Thanks to those baby boomers and Gen X consumers who fueled the market in the first place, millennials and younger generations see whiskey as a solid high-value investment, whether it's saving or drinking. They may drink less, but they also drink better. This combination helps drive the price and expectations of future releases in the premium whiskey category.
What makes ultra-premium bottles special?
The incentive for brands to cater exclusively to the traditional whiskey drinker (adults and men, with higher incomes) has grown to reflect a wider appeal. Although this affects the packaging, it goes deeper to show the perfect type of luxury. These spirits are raising the bar all around, not just at the high end, with many whiskey brands aging for a long time in premium casks with rare finishes—think quality spirits and techniques from the past, married to the sustainable practices available today. .
Japanese Mizunara is often aged during an ultra-premium aging process, with additional time spent in port or sherry casks, and occasionally ex-bourbon, rum and tequila barrels. Some distillers, such as Tamdhu in Scotland's Speyside, are returning to old and new techniques by extracting old single malts and aging them in oloroso sherry casks. Another trick is to set aside special distillates for high-end collectors' sets.
Legendary brands such as Glenlivet and Craft Irish Whiskey Co., for example, have launched Eternal Collection and Emerald Isles releases, respectively. These releases include partnerships with non-spirit companies and artists who specialize in producing decanters and bases to take spirits to the next level.
The Glenlivet 55th Anniversary release is the first edition of the Eternal collection, and the oldest release date for the brand. It is placed on a geometric rose gold base designed by architect Michael Hansmeyer. The Craft Irish Whiskey Co.'s Emerald Isles set contains the oldest Irish whiskey available for purchase, and is housed in an 18-karat gold Fabergé Celtic egg, inlaid with emeralds and 22-karat gold Fabergé golden rose. and a sapphire watch. “Premium packaging—often featuring custom designs and fine materials—enhances a sense of refinement, making premium whiskey highly sought after and collectible,” Johan Radojewski, vice president of marketing for Pernod Ricard USA, told the Observer.
How to start collecting
Collecting whiskey is still possible, and enjoyable, for those with varying levels of spirits knowledge and budget. Premiumisation, however, means that the price of ultra-premium whiskey will continue to rise, and there is a need to educate new consumers in the market who may be wary or overwhelmed by the wealth of information. While it's understandable that new buyers may be wary of investing in high-end spirits that may drop in value or become overpriced, these high-end bottles are generally meant to be used, so feel free to experiment. At the moment, the rules that define ultra-premium aren't set in stone, but you can start by buying a few bottles for $55 to $200 that have decent ratings. This is very easy to find, and is a great way to familiarize yourself with the products and styles of the mill. When shopping, look for a high age statement or precise terms such as single cask, cask strength and limited release, which make a big difference in distinguishing between special bottles. Don't be afraid to start with a low price before jumping into a once-in-a-lifetime auction bidding war.
That said, old “dusty” bottles are becoming harder to find, and special and limited releases are more competitive to buy. Brands that want to compete in the ultra-premium space are planning for the future and putting in place specials.
Many products are distributed nationally through online platforms and stores, and a little research can yield excellent results. Ben Wald, head of beverage programming from The Flatiron Room in New York City recommends shopping at one store and building a relationship. Not only do they recommend new items within your price range, but they can help when you enter the lottery at government-controlled stores. In the end, however, whether you collect or just enjoy ultra-premium spirits, it all comes down to one thing: taste. “Whisky collecting is about the liquid itself,” says Fowle. “The most important step in expanding the bright future of whiskey collectors is to encourage everyone to experience whiskey in their own bottle rather than from a bottle on their shelf.”
