Quotes:
“We’re a little bit heartbroken that some of these distilleries sold themselves out, really, you know?”
“We can only produce with how much barley we have, and we can only produce what the traditional methods will allow.”
“In order to be classed a single malt Scottish whisky company, all the ingredients must be grown in Scotland.”
“In February of last year I could have bought a bottle of McCallen’s 10 year standard for about 35 pounds a bottle. By the June the same year, it was 230 pounds a bottle, because they had flooded the foreign market with this whisky.”
“So if McCallen’s don’t do well on the foreign market, they’ve lost their customer base in Scotland. ‘Cause we felt that was quite, well, quite rude.”
“Any time very expensive, private bottles of whisky went to auction, it’s also been Japan that’s bought them. So they’ve been perfecting their techniques in making single malt whisky.”
“The rules of the best single malt whisky in the world competition is a bit silly. You can only ever win it once. Which means, unfortunately, that at some point in time, the worst whisky in the world is going to win the best whisky in the world award.”
SHOW NOTES
A Midlife Traveler Podcast; Season 1 Scotland Speaks
EPISODE: HELLO ASIA & EFFECTS OF whiskey globalization
Global Beverage Company Buys a Scottish Distillery & Tries to Produce More
A large company, global drinks company called Diageo, bought a lot of distilleries in Scotland. And they wanted the distilleries to produce more whisky. But we can only produce with how much barley we have, and we can only produce what the traditional methods will allow.
So Diageo tried to take a genetically modified form of the Scottish barley, plant it in America, and ship it to the UK. But immediately, the Scottish executives said “By all means, do that, but your company is no longer a single malt Scottish whisky company.” In order to be classed a single malt Scottish whisky company, all the ingredients must be grown in Scotland. And you know, that was to protect the standard more than anything else.
Whiskey Prices in Scotland Skyrocket after New Markets Increase Demand
Perhaps they didn’t understand the product that they purchased, and what it really takes in production processes and time to be classed as a true single malt Scottish whiskey. Increasing the global demand for a product without capacity to similarly increase supply has had a terrible effect on prices in Scotland for the labels being flooded into foreign markets.
For example, in February of last year I could have bought a bottle of McCallen’s 10 year standard for about 35 pounds a bottle. By the June the same year, it was 230 pounds a bottle, because they had flooded the foreign market with this whisky. And then they went back to McCallen’s asking for more to sell and maybe the conversation went something like this;
Diago: “That was brilliant! The world really loved that, it sold very well. When can we have more?”
McCallen’s: “Well, 10 years.”
Diago: “No no, that’s not quick enough.”
McCallen’s: “But it’s a ten year single malt.”
Diago: “Uh huh”
McCallen’s: “So it takes ten years.”
So, there seems to have been a misunderstanding of the process and it resulted in dramatic price increases within Scotland due the imbalance of supply and demand. Many of the hotels here in Scotland, and whisky bars in Edinburgh were having to buy this whisky back from countries like Spain, Germany, and France, at inflated prices because they have it on their menus.
Many loyal Scottish drinkers change brands, “We’re a bit heartbroken, you know?
So unfortunately for McCallen’s, they have lost a 140 year old Scottish market, because the Scottish men have religiously drank McCallen’s for a very long time are saying “Well that’s disgusting what you’ve done. I have been a loyal client for 40, 50 years, and I now have to pay 230 pounds a bottle ’cause you sold it on the foreign market.”
So if McCallen’s don’t do well on the foreign market, they’ve lost their customer base in Scotland. ‘Cause we felt that was quite, well, quite rude. So many Scotsmen are a bit upset about this globalization of some of the distilleries within the Diageo company, and we’re a little bit heartbroken that some of these distilleries sold themselves out, really, you know?
Hello Asia: Japan Wins the Best Single Malt Whiskey in the World Competition?
So because of this big new market that’s opened up in Asia, it’s a huge market, especially in Japan. The winners of the best single malt whisky in the world, 2015 to 2016, was Japan, the Sapporo company. They won the best single malt whisky 2015 into 2016.
And that makes sense. Any time very expensive, private bottles of whisky went to auction, it’s also been Japan that’s bought them. So they’ve been perfecting their techniques in making single malt whisky.
Whiskey Competition Rules: Helping the Worst Whiskey Win as Best Whiskey
But I’ll be fair with this, because the rules of the best single malt whisky in the world competition is a bit silly. You can only ever win it once. Which means, unfortunately, that at some point in time, the worst whisky in the world is going to win the best whisky in the world award.
I’m a bit spun out by these rules, because it doesn’t seem to promote competition. If a company is producing the best single malt ten years in a row, it should win that award ten years in a row.