Super-premium

There are Luxury Whiskeys. Then There are These…

by David Klemt

Some investors look at whiskey as a luxury good worthy of parking their dollars, with some outperforming gold and the S&P 500 Index.

In fact, super- and ultra-premium whiskey has at times outperformed gold over the past decade. According to some reports, investments in whiskey casks performed better than gold, the S&P 500, and Bitcoin just a few years ago.

Of course, the hospitality and spirits worlds have long been reporting increased interest in luxury whiskey. Really, consumers have shown interest in premium, super-premium, and ultra-premium spirits across several categories.

In other words, it appears that the “drink better” movement continues to accelerate.

This is, of course, great news for operators. Premium and above spirits command higher prices on-premise, boosting revenue.

But there’s luxury, and then there’s luxury. There are ultra-premium spirits, and there are truly exclusive bottles. I suppose hyper-premium describes these incredibly rare expressions. After all, there are hypercars and hyperyachts, and the owners of such vehicles are the people who can afford hyper-premium spirits.

Two examples of such spirits made headlines recently, and wow—their prices are eyewatering.

The Highland Park 54 Year Old

Interested in a taste of the late ’60s? This Scotch was laid down back in 1968 by Highland Park.

And back in 2008, Highland Park master whisky maker Gordon Motion combined four refill butts and six refill hogsheads. That was also the year that Gordon Motion was named master whisky for the distillery. It seems Motion wasted no time in creating an awe-inspiring whisky for Highland Park.

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Highland Park’s 54-year-old whisky is stunning, and just 225 bottles are available. This is, of course, a nod to the distillery’s big 2023 anniversary celebration. Highland Park was founded in 1798; 2023 is their 225-year anniversary.

So, what’s a 700ml, 46.9% ABV bottle of Highland Park 54 Year Old going for? Each one carries a price tag of £39,000, or nearly $47,000 USD. There is, of course, no telling what each bottle will be valued at in the future (or if they’ll appreciate, so be careful, investors).

As far as flavor profile, there are, of course, woody and peaty notes. However, there’s also camphor, pistachio, kiwi, and lychee. However, I’m sure whatever I write here will never do justice to experiencing a dram of 54 Year Old.

Gordon & MacPhail Generations 80-Years-Old

For once, I’m nearly speechless. This is the world’s oldest Scotch. And, until we learn otherwise, world’s oldest whisky.

Of particular note, this is Glenlivet liquid rested by father-and-son duo John and George Urquhart in a Gordon & MacPhail cask.

The liquid was laid down on February 3, 1940 and bottled on February 5, 2020. There are 250 decanters available, and these vessels are as stunning as the whisky they contain.

Architect and designer Sir David Adjaye OBE (knighted in 2017) designed the decanter and oak case. Glencairn Crystal Studio stepped up for production of the decanter. Wardour Workshops crafted the case from sustainably sourced oak.

As I stated above, Highland Park’s 54-year-old Scotch costs nearly $50,000. So, what does this Gordon & MachPhail 80-Years-Old Scotch cost?

Well, we won’t really know until October 7 of this year. That’s the date that Sotheby’s will auction off Generations 80-Years-Old Decanter #1.

The world-renowned luxury marketplace is estimating this lot will go for between $120,000 and $255,000. Although, that price could be driven higher should the auction heat up.

Some of the tasting notes from Charlie MacLean MBE include: almond oil, scented hand-soap, sandalwood, dates, salted plums, figs, dry Oloroso Sherry, and a menthol finish.

The Takeaway

I’m not suggesting that operators drop tens of thousands of dollars on hyper-premium bottles. While doing so could translate to hefty margins per ounce sold from such bottles, it’s not realistic for most restaurants and bars.

However, it’s clear that consumers are showing interest not only in learning about luxury spirits but also an inclination to splash out for a taste.

Are 50- to 80-year-old spirits extreme examples of luxury? Absolutely. Do they point to interest in more affordable examples of luxury? Again, absolutely.

Decades-old spirits are rare but not, if this makes sense, uncommon. While the two bottles above are generating headlines, there are others out in the world garnering interest. Examples are Morthlach 70-Year-Old and 75-Year-Old.

Moreover, these rare expressions generate interest in the distilleries that produced them. So, while the average guest may not be able shell out for a 50-year-old single malt, they could be persuaded to try one from that same distillery that’s half that age.

This is, of course, where storytelling comes into the guest experience. An educated, interested, and engaging front-of-house team can be a sales powerhouse.

Image: Anthony Torres on Unsplash

Código 1530 Tequila Closes the Loop

by David Klemt

The evidence that consumers are showing increasing interest in luxury spirits continues to mount, with tequila benefiting greatly.

According to DISCUS, the luxury category of tequila continues to grow. Sales volume is up 30.7 percent annually since 2015 for luxury tequila brands.

While it’s easy to point to brand recognition, cache and perception, there may be another reason for this growth.

In a word, “responsibility.”

Sustainability is Sexy

Episode 57 of Bar Hacks features Collin De Laval. He’s the company mixologist for Código 1530 Tequila, and he’s intimately familiar with the brand.

So, De Laval knows more than every nuance of each Código 1530 expression. He also understands the ethos that drives the brand and its processes.

One of Código’s values is responsibility, which it manifests through sustainability efforts. As De Laval explains, “we try and close a lot of the waste loop, as much as we can.”

Not only does Código utilize naturally filtered water, they cut the water back out of their heads and tails. That water is then reused. The brand uses broken pieces of barrel and spent agave to char new barrels.

Further, Código is a small craft distiller. They don’t level thousands upon thousands of agave each day. Instead, they’re selective and take only what’s necessary.

“We’re treating the land a lot better in that way,” says De Laval.

These efforts are increasingly appealing to consumers. It’s not just the liquid in the bottle that matters. How that liquid got into the bottle is important to them.

“Now it’s like, ‘I know this brand. I know they do good stuff,'” De Laval says.

That “good stuff” doesn’t reference only the quality of the spirits but a brand’s responsibility and sustainability.

Drinking Better

“People are drinking ‘up’ now,” says De Laval. “Gone are the eras of, ‘Let me get whatever’s well.'”

He’s not talking about how a guest orders their drink. By “up” De Laval means they’re choosing top-shelf spirits.

Six years of steady growth for luxury or ultra-premium spirits supports this claim.

De Laval isn’t the only Bar Hacks guest who notices this trend. During episode 56, Pernod-Ricard Prestige sales manager Maxime Lecocq mentions the trend as well.

If luxury spirits and wines had suffered during the pandemic, that would’ve made sense. It could’ve been explained as people being cautious with their money.

Indeed, consumers were cautious. However, not in the way that many would assume. The numbers support the belief that consumers were spending more to drink higher-quality bottles.

Interestingly, drinking better doesn’t appear to refer only to quality or price. Many small, luxury craft distillers enjoy the perception as more responsible than large, industrial producers.

Drinking better now seems to mean drinking what’s better for the environment. And if what’s more responsible and sustainable happens to be ultra-premium, consumers are willing to pay for it.

Image: Spencer Pugh on Unsplash