Learn about Single Malt Scotch

An acquired taste

Single Malt Scotch
is a type of single malt whisky, distilled by a single distillery in a pot still, using malted barley as the only grain ingredient, in Scotland. As with any Scotch whisky, a Single Malt Scotch must be distilled in Scotland and matured in oak casks in Scotland for at least three years (most single malts are matured for longer).

"Single" indicates that all the malts in the bottle come from a single distillery. Multi-distillery malts are usually called "blended malt", "vatted malt" or "pure malt".

"Malt" indicates that the whisky is distilled from a single "malted" grain. Not all grains can be malted (rye is another grain which can be malted) but in the case of single malt Scotch, barley is always the grain used.

Single malts are produced all over the world, but the best known single malts come from Scotland, Ireland and Japan.

Makers of Glenfiddich release 50-year-old single malt that will sell for $16,000 a bottle – though it could be worth more in a few years on the 'whisky market'

Ed Patrick owns 1,000 pricey bottles of single malt Scotch. A collector for two decades, he has paid as much as $3,500 for just one bottle.

But even he's a bit overwhelmed by the latest offering from the makers of the storied Glenfiddich: a 50-year-old single malt whisky that will sell for $16,000 (U.S.) a bottle.

Scotland's William Grant & Sons Distillers Ltd. said yesterday that it is releasing just 500 bottles of the special whisky – 50 a year for the next 10 years.

Ed Patrick at his Toronto home

To Mr. Patrick, a 66-year-old Toronto connoisseur, his one taste of 50-year-old Scotch tasted too much like the barrel. “It tasted okay, almost on the cusp of being overpowered by wood,” he said. “I drink more than I collect.”

William Grant & Sons is counting on another kind of collector: The investor.

“The buyer can say, ‘I don't want to have the bottle, leave it in Holland but I can see what the value is. Is it growing, is it going down?' ” — Michel Kappen, who launched the World Whisky Index

Investing in whisky has grown in popularity in recent years. The whisky market “is going well,” said Michel Kappen, who launched the World Whisky Index, or WWI, two years ago in the Netherlands. “We are creating an exchange where people can see the market value of rare whiskies that you can't buy any more in the shops or that are difficult to find,” he said.

The WWI has nearly 5,000 bottles listed and prices for some have jumped more than 30 per cent year over year. The most expensive bottle currently on the exchange is a 50-year old Springbank whisky distilled in 1919. It was recently listed at $83,000 (Canadian).

Mr. Kappen said the market attracts roughly 1,500 buyers and sellers from all over the world, including Canada.

Many investors assemble “whisky portfolios” or collections of bottles held by WWI. The price of each bottle in the portfolio, and the value of the overall portfolio, is posted daily.

The exchange operates something like a commodity market where investors rarely take delivery, preferring to pocket trading gains instead. “The buyer can say, ‘I don't want to have the bottle, leave it in Holland but I can see what the value is. Is it growing, is it going down?,'” Mr. Kappen said. He said WWI is holding nearly $4-million worth of whisky.

“Whisky drinkers aren't usually investors. They'd buy it to drink it. So it goes back to these generally being publicity stunts. ” — Kevin Erskine, a Virginia-based author who runs The Scotch Blog

Mr. Patrick has no doubt Scotch drinkers and investors will snap up the new Glenfiddich. Each bottle, individually numbered, is made from hand-blown glass and encased in hand-stitched, leather-bound cases. Each also comes with a leather-bound book that details the whisky's history.

“You'll find that collectors all over the world will buy one or two bottles, they'll put them in their vaults and 10 years from now they'll be offering them for sale at a much increased price,” he said. He added that he is holding some of his own collection for investment purposes as well.
Others question the growth of whisky investing and say the Glenfiddich announcement is a publicity stunt.

“Like any investment, it's only worth something if someone else wants to buy it at a later time,” said Kevin Erskine, a Virginia-based author who runs The Scotch Blog and has written a book about single malt Scotch. “And whisky drinkers aren't usually investors. They'd buy it to drink it. So it goes back to these generally being publicity stunts. And you'll see the distilleries argue over who has the most expensive bottle, like it's some point of honour.”

“It's only $1,750 a shot. ” — Bar owner John Maxwell

For distillers, taste is a common problem because single malt whisky has to sit, unmixed, in a barrel for decades and 2 per cent of it is lost to evaporation annually.

Glenfiddich 50 Year Old's producers are seeking to assure buyers that taste won't be a problem. In a gushing announcement, company chairman Peter Gordon called the whisky “beautifully harmonious [to the nose] with an uplifting, vibrant and complex aroma” and it tastes “initially sweet with a zesty orange marmalade and vanilla toffee,which then cascades through a wonderful series of layers; aromatic herbs, floral and soft fruits, silky oak tannin and hints of gentle smoke.”

Glenfiddich will have one likely customer in Canada for the new Scotch.

“I'd be very interested in having it,” said John Maxwell who runs a bar in Toronto called Allen's, which has 302 bottles of whisky.

The Glenfiddich 50 Year Old would be cheap for Mr. Maxwell. He paid $32,000 for a 50-year old Balvenie last year and now has it on the drink menu at Allen's. The price?

“It's only $1,750 a shot,” he said.

Additional related reading, previously posted:

How to drink scotch whiskey
Scotch whiskey correct pronunciation

Source:
Globe and Mail Update
Last updated on Friday, Jul. 31, 2009 07:49AM EDT

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