Rare whisky investment reaches record high

Sales of The Macallan on the secondary market have plummeted, despite the amount of investable Scotch whisky sold at auction reaching a record high.

The Macallan’s Diamond Jubilee fell in value in 2014, taking the brand from the most investable whisky, to seventh place

The number of rare Scotch whisky sold at UK auctions in 2014 grew by 68.22% to 33,998 bottles, up from 20,211 sold in 2013.

As such, the value of collectable bottles soared by 69.37% to £7.65m, up from £4.52m in the previous year.

The findings, gleaned from Rare Whisky 101’s annual collectors and investors review, demonstrate the increasing popularity of valuable bottles among both collectors and investors.

Andy Simpson, co-founder of RW101, said: “The interest in buying single malts at auction is very much from those who appreciate the drink, the packaging and all that Scotch whisky encapsulates as much as it is from investors with a keen eye for something that’s rising in value.

“The niche aspects of Scotch whisky investing means that from an investment viewpoint it is mainly of interest to private individuals rather than institutions, who’d struggle to buy a meaningful allocation in the asset class.”

But despite the record auction sales, market leader The Macallan, which accounts for 25% of the entire market, experienced a considerable drop in both demand and value, the latter of which fell by 7.5% in the year.

The decline was felt across limited edition and modern The Macallan expressions – The combined value of The Royal Marriage, Coronation and Diamond Jubilee bottles fell in value by 17.7% during the year from £3,190 to £2,625.

Simpson noted: “The most striking change to the overall landscape of collectable Scotch through 2014 is Macallan’s movement from top place down to seventh place in the investors index.”

Taking The Macallan’s top spot on the investors index was Brora, which moved up one place by the end of 2014.

While The Dalmore and The Balvenie took second and third place respectively, other less traditional brands such as GlenDronach and Arran saw robust growth, as did those from silent distilleries including Banff, Littlemill and Glenugie.

Also enjoying growth during the year were independent bottlings from silent distilleries, which grew at a faster rate than official distillery bottlings.