This time of year marks the publication of annual and half-year reports from some of the whisky industry’s leading players, and we are very encouraged by what we see.

From the Edrington and Diageo yearly reports, we can see that consumers are continuing to trade up and opt for malt whisky over blends, in increasing numbers. Diageo’s malt whisky revenues grew by 12% in year 2018/19, largely thanks to the success of the Game of Thrones collection. This compares to total Scotch revenue growth of 6%. Edrington’s revenues grew at a much faster rate (9%) than case volumes (2%) reflecting a shift away from blends and toward malts, as well as successful price increases. What is also notable from the Edrington report is that ”The results …..have resulted in strong growth for The Macallan with global demand once again outweighing supply”. Market-wise, it is Asia and the US which are driving the growth of malt whisky. Interesting to note also that American whisky is growing faster than all other types of whisk(e)y in the US. Is this a reflection of “America first” or is there something else going on? 

Elsewhere, we are eagerly waiting for the half-year report on the UK auction market from our friends at Rare Whisky 101. More on this next month, but we are led to believe that sales of malt whisky at auction continued to rise at a very healthy pace in the first six months of the year. What is becoming apparent is that consumers are changing their behaviour when it comes to the brands they are buying. We have seen some radical price adjustments on some high valued bottles. We see this as a natural local correction. The art of ”cherry-picking” is becoming more and more critical for those looking to invest in whisk(e)y. The Irish eyes continue to smile, with the news that Redbreast 12 YO Single Pot Still Whisky, won the Worldwide Whisky Award for 2019, at the most recent and highly reputed International Wine and Spirit Competition. 

July has been another good month for The Single Malt Fund, in terms of sourcing direct from the whisk(e)y industry. Our sourcing manager Glen made a trip over to Scotland and met with; Brown Forman (The GlendRronach, The BenRiach, and Glenglassaugh); Glenallachie, owned by the serial Scotch entrepreneur and influential master distiller, Billie Walker; Douglas Laing and Hunter Laing, famous independent bottlers; all of whom agreed to supply us. Closer to home, we also opened an account with the Walsh Whisky company, owners of The Irishman and Writer’s Tears. These additions make us confident that we have now secured direct supply from c 50% of the Scotch whisky trade and over 80% of the Irish. This is an important factor for the fund, as the fund relies both on the market’s development, and also sourcing, investing, directly from the producers. We continue to work on growing these numbers. 

Up to the end of June, we have secured; a cask of 1977 Littlemill, the oldest liquid from the oldest distillery in Scotland; some stunning bottles of Brora and Port Ellen from recent Diageo releases. From Ireland; a full collection of the Midleton Very Rare from 1984 to 2017; the first three releases from the new Athru distillery, as well as the delicious range of Spot whiskys. In July, the buying has continued, and we are delighted to announce the purchases, among others, of the following rare gems listed below. 

Slainte!
Ed Forrest
MD, The Single Malt Fund