Why Single Malt Whisky Is So Expensive: 6 Important Factors

Single malt whisky is like the gold standard of whisky. 

And its price tag? 

It can swing from a friendly $50 to a jaw-dropping $1 million and more for rare finds. Take the Macallan Fine and Rare 60-Year-Old 1926, for instance. It fetched an eye-watering $1.9 million at a 2019 Sotheby’s auction. 

The big bucks are really for what's behind the drink: the careful making, the rarity, a brand's reputation for top-notch quality, and more. In a nutshell, buying single malt is like buying a little piece of history bottled up for your enjoyment!

This article will unravel the six reasons why single malt whisky is so expensive. You’ll also find out the investment potential of single malt whisky and how you can invest in whisky casks (through Vinovest).

6 Factors That Make Single Malt Whisky So Expensive

These are the primary reasons why the finest of this whisky comes with hefty price tags:

1. Production Processes and Craftsmanship 

​​Every drop of single malt whiskey is a testament to the artistry and dedication of master distillers. 

Single malt whisky is crafted exclusively by a single distillery, using a grain such as malted barley. This allows for a consistent process and quality control, which ultimately contributes to a distinct flavor profile that can be traced back to that specific distillery.

It also uses copper pot stills in its production process. (This is not to be confused with single grain whisky, which is created by a single distiller using a variety of grains and column stills.)

The labor-intensive single malt scotch production process demands unwavering attention to detail. It involves selecting the finest malted barley to meticulously controlling fermentation and distillation, and more.

Here’s a closer look at the production process:

• Malted barley, carefully selected for quality, is soaked, germinated, and dried in a process known as malting.
• The malted barley is then ground into a coarse flour called grist.
• Hot water is added to the grist in a mash tun to extract sugars, creating a sugary liquid known as wort.
• The wort is transferred to fermentation vessels, where yeast is added to convert the sugars into alcohol through fermentation.
• The resulting liquid, known as wash, undergoes distillation in pot stills to separate alcohol from impurities and concentrate flavors.
• The distilled spirit is then transferred to an oak barrel for maturation, developing complexity, character, and desirable flavors over time.
• After years of aging, the whisky is carefully selected, blended if necessary, and bottled, ready to be savored by whisky enthusiasts worldwide.

2. The Impact of Angel’s Share and Devil’s Cut

In single malt whisky, an ethereal phenomenon is the "Angel's Share" and its counterpart, the "Devil's Cut." They play a pivotal role in shaping the final product's quantity and cost. 

What is Angel’s Share?

As the whisky ages in oak casks, a portion evaporates into the air, aptly named the Angel's Share. This natural loss, while contributing to the maturation process and concentration of flavors, reduces the overall volume of the whisky available for bottling. 

Here’s a glimpse into the effects of Angel’s Share if a cask has 200 liters before maturation:

• A 10-year-old whisky may have 160 liters after maturation
• A 15-year-old whisky may have 140 liters after maturation
• A 25-year-old whisky could only have 100 liters after maturation

And, what does Devil’s cut mean?

Devil's Cut refers to the whisky absorbed by the wood of the oak or sherry cask, which remains trapped and cannot be extracted. 

Angel's Share and Devil's Cut create a remarkable paradox. While these losses enhance the complexity and quality of the whisky, they also contribute to its scarcity, elevating its price on the market.

3. Unique Flavor Profiles: The Influence of Terroir and Aging

Single malt whisky tantalizes the senses with its distinct flavor profiles, partly due to terroir and aging. 

Like wine, the geographical factors of the distillery's location, including the climate, water sources, and soil composition, imprint their indelible mark on the whisky. 

They give a unique character and adds the flavor nuances that set single malt whiskies apart. 

That’s not all. 

The aging process also imparts depth and complexity to single malt whisky. As the whisky matures in the oak barrel or sherry cask, it interacts with the wood, extracting flavors such as vanilla, caramel, and spices. 

It absorbs compounds from the cask, such as remnants of previous contents like sherry or wine. 

This marriage of terroir and time elevates the costs of single malt whisky. This is because the journey from barley to bottle is meticulous, yielding a liquid masterpiece that can never be replicated.

Fun Fact: The famous Japanese whisky brand Yamazaki ages its prestigious single malt whisky exclusively in mizunara casks. The use of the mizunara oak tree can be traced back to World War II when export bans to Japan forced the nation to rely on its own trees, despite the challenging nature of working with mizunara casks.

4. Brand Reputation and Prestige of Single Malt Whisky Brands

The reputation and heritage of single malt whisky distilleries hold immense sway over the pricing. Different distilleries like the Macallan Distillery and the Yamazaki Distillery, have garnered a prestigious status among whisky enthusiasts. 

The aura of exclusivity and the marketing storytelling by with these brands add an intangible value that translates into higher prices. 

All of this contribute significantly to the pricing of each single malt whisky bottle.

5. The Perceived Superiority of Single Malt Whisky over Blended Whisky

Single malt whisky is often regarded as the connoisseur's choice, valued for its individual character and the craftsmanship of a single distillery. 

While blended malt whisky combines spirits from various distilleries, single malt whisky is exclusively crafted from malted barley and distilled at a single location. 

This approach allows different distilleries to showcase their distinct flavors and expertise, sprinkling in an aura of exclusivity and prestige. 

This perceived superiority of single malt whisky contributes to its higher price point, promising a singular experience for whisky enthusiasts.

6. Limited Production and Scarcity

One factor contributing to expensive whisky is its limited production capacity compared to larger-scale blended whisky operations. 

Single malt distilleries often have smaller production volumes, focusing on quality rather than quantity. For instance, The Macallan only produces about 2,000 bottles of its Genesis Single Malt Scotch Whisky annually. 

This limited output and the increasing demand for single malt whiskies create a sense of scarcity that drives up their price. 

Collectors and enthusiasts eagerly seek out these rare expressions of expensive whiskey.

The Investment Potential of Single Malt Whisky

Single malt whisky has also gained recognition as a collectible item and an enticing investment opportunity. 

Between 2021 and 2023:

• The 1964 Bowmore 'Black Bowmore' The Last Cask 50-Year-Old Single Malt Scotch Whisky rose by 27%, from $104,269 to $132,597.
• The Karuizawa Ruby Geisha 38-Year-Old Single Malt Japanese Whisky rose by 84%, from $29,155 to $53,651.

Notable auction results have further fueled the notion of single malt whisky as a compelling investment avenue. For example:

• The Aston Martin and Bowmore’s Wild Whisky limited edition decanter filled with a 52-Year-Old Single Malt Scotch sold for an incredible $300,000 at a 2023 auction.
• In 2019, The Macallan 1926 60-Year-Old Scotch sold for nearly $1.9 million at a Sotheby’s auction.

Some of the most investment-worthy single malt whiskies include:

• The Yamazaki 55-Year-Old Single Malt Whisky, Japan ($911,159)
• The Macallan Lalique 50-Year-Old Single Malt Scotch Whisky ($299,166)
• The Craft Irish Whiskey Co's The Devil's Keep Single Malt Irish Whiskey ($28,105)
• 2017 The Macallan M Single Malt Scotch Whisky ($9,494)
• The Macallan Unfiltered Cask Strength Single Malt Scotch Whisky ($7,354)

The collectability and investment potential of single malt whisky have added yet another dimension to its allure.

Now, what’s the best way to dive into whiskey investment?

The quickest and safest way is to invest in whiskey casks through Vinovest, a trusted online platform. 

Invest in Whiskey Casks Through Vinovest

Vinovest will help you buy, store, and sell whiskey casks from anywhere in the world. 

The Vinovest team will also:

• Eliminate middlemen, ensuring all savings go directly to you.
• Insure and store your casks under ideal temperature conditions in bonded warehouses.
• Send you a sample bottle every year.
• Offer the opportunity to view your cask.
• Guide you on the optimal holding time for your cask, whether it’s a single malt whisky, single barrel whisky, Japanese whiskey, or your favorite Canadian whisky. When it reaches maturity, Vinovest will handle the sale on your behalf.
• Arrange bottling and delivery for your whiskey should you choose to keep it.

Rest assured that Vinovest will take care of your investment. So sign up and reserve a cask today!