Expensive Whisky: What’s the Reason Behind Their High Prices?

It is a fact that liquor is pricier than the average beverage selection out there, and generally, the cost of whisky ranks highly in that premium spectrum. Here’s why whisky is expensive and let’s learn how to decide on a good bottle of liquid gold the next time you’re shopping for some. 

What is whisky? 

Whisky is a liquor distilled from grains like corn, rye, barley, and wheat that’s subsequently aged in oak barrels. The characteristics of a whisky depend on the grains, ageing duration, bottling techniques, and quality of ingredients used throughout its production. 

Typically, every distillery has its established way of producing whisky that contributes to the brand’s distinctive reputation and desirability. 

Types of whisky 

Scotch

There is a whole lot of history behind Scotch whiskeys. Aside from the apparent rule of being made in Scotland, Scotch whiskeys are distilled to no higher than 95% alc/vol and matured in oak casks for at least three years before being bottled at a minimum strength of 40% alc/vol. 

There are five categories of Scotch whiskies—single malt, blended malt, single grain, blended grain, and blends. 

Irish whiskey

Irish whiskey comes from malted or unmalted barley with any other added grain. It has to be distilled to a maximum of 94.5% alc/vol and aged in wood casks for at least three years. A common Scotch character is its smoother and lighter flavour compared to other whiskeys, making it a very versatile variety. For this reason, Irish whisky is a popular spirit for cocktails. So, if you’re a fan of Irish Coffee or the Emerald, you know what to get. 

Bourbon

As America’s pride and joy spirit, bourbon is a USA-made whisky that consists of 51% corn. It can be distilled to no higher than 80% alc/vol. It must be aged in new, charred oak barrels at a maximum strength of 62.5% alc/vol and bottled at a minimum of 40% alc/vol. 

Rye whiskey 

Despite being one of the most popular whiskey varieties in the United States, rye whiskey doesn’t have to come from the US. As it turns out, Canada is also a primary producer of this type of whiskey. By law, rye whiskey produced in the US has to be 51% rye, and the rest of the rules follow those of bourbon. 

Canadian whisky 

People commonly dub Canadian whisky “rye whiskey” since it usually has higher rye content. The two terms have gradually become unanimous after being used interchangeably for around two centuries. The Canadian law states that whisky made in this region has to be at least 40% alc/vol. The grains are fermented, distilled and aged locally, and the ageing process has to be at least three years. 

Canadian whisky is often a blend of several grains such as corn, rye, and malted barley. It is typical for these grains to be processed separately, unlike other varieties. 

Japanese whisky

The Japanese were relatively late to the whisky production game—they didn’t start making whisky until around the 1870s. Traditionally, Japanese whisky was first produced to mimic the taste of Scotch. Since then, the variety has branched out in style and no longer relies on the rules that bound Scotch whisky. 

There aren’t any laws governing the production of Japanese whisky, so its characteristics and flavours can vary greatly from one to the next. 

What makes whisky special? 

Complex flavours

Whisky is a complex beverage. Its endless combinations of incredible flavours and smells make you ponder while you explore its diverse possibilities. The journey of finding the perfect whisky that suits your taste while trying ones that challenge your palate will never get old. 

Health benefits 

Whisky is a source of zinc, iron, vitamin B1, and vitamin B3. A glass of whisky a day can boost your brain and heart health, all thanks to the plant-based antioxidants in it. 

These antioxidants help to maintain a chemical balance in your brain. Studies found that whisky effectively reduces the risk of dementia and slows down the progression of Alzheimer’s Disease. 

Whisky may also reduce the risk of stroke and heart diseases by lowering the level of bad cholesterol (LDL) in your blood. 

Good investment 

More and more people see whisky as an excellent investment opportunity. Whisky matures beautifully with time, both in flavour and historical value. An expensive bottle of whisky will gain value with age and demand, earning you a much higher price tag, if you’re patient enough to wait. 

When done well, collecting whisky can bring you great returns, making it a worthwhile long-term investment. 

Whisky as high-end alcohol 

A bottle of whisky can range from below a hundred dollars to over a million dollars. What is the reason behind that? 

The alcoholic concentration of whisky plays an essential role in its high selling price. Whiskeys are typically bottled at 60 to 75% alc/vol, if not its full cask strength. Thus, the higher the alcohol percentage, the fewer bottles a batch of grains can produce, hiking up the price per bottle. 

Whiskies take longer to mature than their alcoholic cousins, but their demand only grows continuously. An ever-expanding market for whisky and its low availability make this drink a rare treasure. It is especially true for whiskies from famous distilleries like Glenfiddich and Yamazaki that have guaranteed quality products for many years. 

Reasons some whiskies are more expensive than others

What’s the difference between cheap and expensive whisky? Well, many things influence a whisky’s price point, mainly ingredients used, the distillation process, and ageing duration. 

Quality of ingredients 

Expensive whiskies are fermented with high quality and fresh grains, while cheap whiskies may come from grains of inferior quality. In certain recipes, synthetic ingredients are added to make up for flavours brought by organic materials. 

The quality of water used to dilute the whisky’s cask concentration to a lower bottled proof also influences its price. 

Distillate ratio

Whisky distillate is divided into three sectors depending on the order in which the liquid runs off the still. These are the Head, Heart, and Tail. As you might’ve guessed, the Heart has all the good stuff you want in your whisky. On the other hand, the initial part of the Head (the foreshot) and the Tail contain toxic methanol and a mixture of unwanted flavours. 

It is up to the distillery to juggle the ratio of Head, Heart, and Tail to produce a whiskey that is both safe and delicious to consume. Naturally, a whiskey composed primarily of the Heart will be more expensive since more of the remaining distillate must be discarded. 

Ageing duration

Single malt whiskies may spend more than 20 years maturing in a warehouse, so some of the alcohol inevitably evaporates during this long process. On average, whisky evaporates at a rate of 1% a year. For a 20-year-old whisky, 20% of the barrel might be lost by the time it is done ageing. As a result, the price of an older whiskey has to be hiked up to compensate for the loss from evaporation. 

Single malts

Single malt whiskeys refer to the ones made in a single distillery, unblended with those from another source. One of the defining characteristics of cheap whisky is that it is often a blend of different whiskies. The purpose of this procedure is to conveniently improve the whisky’s flavour by adding a variety that carries the desired characteristic. 

5 traits of a high-quality whisky 

  1. Colour 

The type of oak cask, how charred its inside is, and the ageing duration influences the shade of a whisky when it comes out of maturation, which ranges from a light yellow hue to a deep brown. The colour of a whisky indicates its flavour and quality to a certain extent. 

A darker brown usually means that the whisky is older or richer in malted grain. It could also indicate that the spirit was aged in a new cask, allowing more of the wood’s colour to impart on the liquid. With these boxes ticked, the resulting whisky can give a more intense mouthfeel. 

  1. Aroma

The scent of a whisky not only defines your overall perception of the drink. It also tells you a lot about its origin. A sharp alcohol sting in the nose often translates to a younger whisky, while an aroma with layers of different flavour notes is a good sign of a well-aged and high-quality whisky. 

  1. Complex flavour profiles

A good whisky should give you a robust tasting experience, from the beginning to the middle to the end of a sip. The interaction between flavours brings out subtle undertones that contribute to the complexity of a fine whisky. 

Below are the fundamental flavour families that help define the taste of a good whisky: 

  • Woody 
  • Cereal 
  • Floral
  • Peaty
  • Fruity
  • Winey 
  • Feinty 
  • Sulphury  
  1. Balanced 

It is incredibly rewarding to find a whisky that tingles your palate in all the right spots. A balanced—or “rounded”—whisky is the epitome of a good whisky. It delivers all the punches you’re looking for but not in an overbearing way. In other words, the flavours are well-integrated and in perfect harmony with each other. 

  1. You love drinking it 

When it comes to subjective adjectives like “good” or “bad”, there’s nothing more important than your personal preference. Nothing else matters as long as a whisky keeps you wanting more after a sip. Congrats—you’ve found the perfect whisky for you! 

Why you should invest in a good whisky

Now that we’ve gone through everything you need to know about whisky, you must be thinking—is expensive whisky worth it?

Whether you’re looking to splurge on a limited edition whisky as part of your collection, impress a certain somebody with a new high-end addition on your shelf, or you’re simply exploring the world of whisky, there’s always a celebrative reason to own a good bottle. 

Where to buy the best whiskies

At Whisky.my, we carry a wide selection of whiskeys that will satisfy your palate, regardless of region, age, vintage, and brand of single malts or blends you’re looking to buy. 

If you’re unsure of what to get your hands on, check out our very own curated list of Top 10 Whisky Brands in 2022 to get started right now! 

Conclusion 

You don’t have to know everything about whisky to start enjoying it. After all, appreciating whisky is about enjoying its complexities and the feelings that come with it. 

Knowing how the price of whisky influences its characteristics and quality will help with your selection the next time you go whisky shopping. With that said, we hope you found our guidelines for expensive whisky helpful in your search for your perfect bottle.