Fine whisky market softens
The value of fine and rare single malt Scotch whisky has softened despite rising global demand from investors and enthusiasts, according to a new report by corporate finance boutique Noble & Co.
Noble & Co’s annual analysis of the whisky auction market has collected over 3m data points from more than 160,200 transactions over the last 12 months.
The results reveal a 7% year-on-year decline in the value of fine and rare single malts – defined as whisky sold at auction for more than £1,000. This comes despite the volume of bottles traded in that category increasing by 10% to over 8,500 sales in the year to October.
- Read more: Penfolds ‘Luxury & Icon’ wines join La Place
The softening value of the world’s rarest and most expensive whisky suggests a weak global economy, stifled by inflation, is having an impact on investor confidence.
The broader market – defined as any secondary whisky sale over £100 – has increased in volume by 17%, thanks to a steady stream of new investors in the market. However, sales in the broader market are now flat, representing a marked weakening in price compared to 2022, which saw the value of sales increase by 21%.
Duncan McFadzean, head of Food & Drink at Noble & Co, said: “It has been a difficult year for fine and rare whisky investors. While general interest in the category continues to drive overall volume growth in secondary whisky sales, at the top end investors are more cautious about price and value. While the rarest bottles are still breaking records, our analysis shows that even lower-value transactions are susceptible to price sensitivity. We expect this trend to continue into 2024 as weak global economic conditions prevail.”
The report comes despite the recent record sale of one of the world’s most valuable whiskies, The Macallan Valerio Adami 1926 (pictured). One of only 40 bottles ever produced, the 1926 Macallan sold at Sotheby’s for £2.1m earlier this month.
Duncan McFadzean added: “Fine and rare whiskies have enjoyed an almost unblemished reputation for being one of the best-performing alternative investments available. What we now see is a mixed picture, where a growing volume of transactions is accompanied by weakening value per transaction. While there will always be stand-out moments, such as the recent 1926 The Macallan sale, the broad picture suggests the market is softening.”
The Noble & Co analysis found the fastest-growing whisky brands by volume in the secondary market are Tamdhu, The Dalmore and The Glenturret. The Macallan remains the most popular distillery in the secondary market, with over 26,500 bottles being traded in the last 12 months.
The Noble & Co Whisky Intelligence Report is produced in conjunction with decision intelligence company Brainnwave.
Keywords:
Search
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
