Taiwan has long been one of the most important whisky markets in the world.This proud result arose from solid consumption in stir-fry restaurants and karaoke establishments.Nowadays,however,the instant drinking market has gradually ebbed,replaced by the rise in investment whiskys.The price of Nikka Yoichi 20 year old single malt whisky has increased several folds,from less than NT$4,000 to over NT$40,000 a bottle,and the price is still soaring.Even the price of a regular drink has this potential,let alone that of a rare and old whisky.In April 2018,at an auction in Bonhams (Hong Kong) Ltd.,a pair of bottles of Macallan 60 year old whisky distilled in 1926 were sold for US$1.2 million.When this pair went on auction in 2007,they were only worth US$75,000.The demand for them on the auction market and the soaring price for collection-level alcohols have elevated whisky from simple beverages to valuable collectors’items.

The selection of items for collections and investment has thus become a topic of study for everyone in the market.Here,I will provide some guidelines from the perspective of the auction market.

To select objects to collect,first and foremost you need to pay attention to the production location.Whiskys produced in different regions have different features and are embraced by different groups of whisky drinkers.In the largest alcohol trading market in the world,London,Scotch whiskys are the mainstream.In the United States, bourbon is the leader in New York,the second largest market.Although the internet has blurred market boundaries,the divisions in the whisky market are still worth noting.The second key consideration for collecting and investing in whisky is the brand.The brand spirit of Dalmore is“to the brave,”and it positions its brand as“the world’s most expensive whisky.”By contrast, that of Glenfiddich is the“pioneering spirit,”and its brand image is“whisky that dares to challenge and innovate.” To consumers,brand spirit and image are not only an attitude toward life and a choice of taste;a vivid brand image and clear market position reflect the strategy and direction behind brand management.These dramatically influence the value of collecting items from a brand.

The third critical factor is the year of distillation and bottling, and the age.The influence of a whisky’s vintage on its price is typically related to the history of a whisky distillery or special incidents.For example,Ardbeg 1977 represents a rare lightly peated period of the distillery.Compared to vintage, in the world of whisky,what is more often discussed is the age,or the time the liquor has spent in an oak barrel.Although the age cannot absolutely guarantee the quality of a whisky,an older age certainly reflects the thought and effort invested by a distillery.For example,after the Balvenie 1952 50 Year Old Cask 191 was in an oak barrel for 50 years,its angel’s share reached 77%, and what remained in the barrel filled only 83 bottles. The loss over time made the remaining whisky rare and valuable,and this rarity is naturally reflected in a higher price. What is interesting is that online and physical auctions in the past two years have revealed that some of the buyers’attention has shifted from aged Scotch whiskys to a taste for bygone eras. Old bottle works such as Laphroaig 10 Year Old Unblended from the 1980s has started to be pursued by collectors.

The fourth key is rarity.The most interesting feature of whisky is that even with the most precise scientific management,the liquids distilled each year and aged in each oak barrel cannot be identical.The launch of single cask whiskys is the clearest demonstration of the diverse characteristics of whiskys and the irreplicability of each barrel.Be they single-cask whiskys such as the Macallan Fine and Rare or classic small batch works like Balvenie Tun 1491,they all represent the rarity and the limited quantities of whisky.It is exactly this irreplicability of whisky that gives each bottle its unique meaning and story.The market for each bottle must be studied as an independent individual,and their uniqueness contributes to both the difficulty in investing in whisky and the fun in building collections.

The Hurun Report,which specializes in investigating the consumer habits of the rich, published their“China HNWIs Whisky Consumption Behavior Report 2017”,in which several trends were identified.First of all,compared to five years ago, the favor that whisky has attracted in high-net-worth individuals (HNWIs) has increased by 83%.Whisky now ranks behind only wine and Chinese liquor.Cognac,which was dear in the past,has lost popularity.In the meantime, the complex flavors,the style,and the emphasis on the characteristics of whisky have won the favor of under-30 HNWIs.In the last 3 years,87% of them have increased their frequency of drinking whisky,and this group has become an emerging consumer group in the market.What is particularly worth noting is that among HNWI consumers,50% of them buy whisky as gifts.For them,the unique taste and sense of value represented by the brand is the key factor in gift selection.Another 32% make purchases for their collections.What they care about most is the age of the whisky.For them,18 years is basic,and they focus primarily on limited editions, high-price editions,and special memorial editions.Finally,single malt whiskys present a high-end and high-quality image and are chosen by 50% of HNWIs for drinking.Single malt and high-end blended malt whiskys are expected to be in highest demand in China in the future.China is now seen as an emerging whisky collecting and investing power.China’s choices will greatly influence the development of the market and will drastically influence global whisky collectors, and they are worthy of attention.

A bottle of whisky reflects a history.Without knowing the story behind it,one cannot comprehend the uniqueness of a bottle,nor can one see its rarity or true value.At a time when more and more players are entering the whisky market,the market price is fluctuating and rumors abound,causing uncertainty. Whisky lovers should not focus only on investment and lose the fun of collecting whisky.