Rare whisky market smashes £25m as global demand soars

The UK’s rare whisky auction market has exceeded £25 million in a single year for the first time as global demand for liquid gold soars.

The findings are part of the 2017 annual report published today by whisky analyst, broker and investment experts Rare Whisky 101.

According to the report, both the volume and value of rare Scotch whisky sold at auction increased by record amounts.

The value of collectable bottles of Single Malt Scotch whisky sold at auction in the UK rose by a staggering 76.33 per cent to a record £25.06 million (2016 £14.21 million).

The number of bottles of Single Malt Scotch whisky sold at auction in the UK increased by 42.47 per cent to 83,713 (2016 58,758).

The most expensive bottle to sell at auction in the UK was a bottle of 62 year old Dalmore (one of 12 originally released) for £95,000.

RW101’s leading index for rare whisky, the Apex 1000 Index, which tracks the best performing 1000 bottles of rare whisky, closed the year up 27.51 per cent, once again outperforming the Liv-Ex Fine Wine 100 (5.28 per cent), FTSE 100 (7.63 per cent), Brent Crude (17.78 per cent) and Gold (13.59 per cent).

December alone saw 8,848 bottles of Scotch sold at auction in the UK, a record month and a large part of the 25,123 bottles sold through the final quarter of 2017.

Just four years ago in 2013, a total of 20,211 bottles were sold throughout the full year.

From a value perspective, December saw £3.148 million sold, slightly ahead of 2012’s full year sales value of £2.911 million.

At the end of 2016, ten distilleries had seen a single bottle sell at auction in the UK for more than £10,000. One year on and that number has grown to fourteen.

Andy Simpson, director and co-founder of Rare Whisky 101 said: “We were fully expecting to break £20 million for the first time. However, £25 million shows the level of pure demand in the market at the moment. The volume of bottles on the open market is at record highs, but demand for the right bottles, for now at least, continues to excess these record levels of supply.”

Co-founder of Rare Whisky 101, David Robertson said: “We are experiencing increasing demand from almost all parts of the globe. South East Asia remains a key factor for the market, but is by no means the exclusive driver. Demand from the domestic market, central Europe and further afield is higher than we’ve ever seen.

“From a rare whisky perspective, approaching on the horizon are the dynamic economies and the burgeoning middle classes of mainland China and India; neither have got to the starting blocks yet, let alone begun to try and win the rare whisky acquisition race. When, and indeed, if they do, we’re expecting demand to hit levels unlike anything we’ve ever seen.”

Mr Simpson added: “As a category, Scotch is appealing to more and more buyers, and the pinnacle product, single malt, is becoming ever more popular with connoisseurs, collectors and investors. Older spirit is still very challenging to come by in the cask and is commanding ever higher prices. We don’t see that changing.

“In certain parts of the world, collecting and investing is still very much in its infancy, but wealthy status buyers are targeting high value bottles and consuming them as they were always intended. This is, in turn pushing prices north, with rarities increasing in price with almost every single subsequent sale.

“The growing importance, almost dominance, of the UK’s auction market, which is the largest in the world, will continue to be underpinned by the rapidly increasing number of rare whisky retailers running auctions in parallel to their traditional retail business. The rare-whisky acquisition landscape has changed forever as the consumer, rather than the retailer, now decides what price they will pay for a bottle of rare and collectable whisky.

“We’ve talked about rare whisky being in an almost perfect storm of diminishing stocks (through consumption) and skyrocketing demand. That situation looks like continuing as the bulls remain in control of the market.”