Let's find some whiskey from the official Tmall store. The retail price of Macallan in 18 years was ￥2,388; however, the retail price of another brand, Tesca, in 18 years was ￥1,200.
At the same time, at the same store, Suntory, the 25-year-old Yamazaki was listed at a price of ￥38,888, while another 27 Lafferge in the store was priced at ￥5,280. They are all whiskeys, all made from grains and aged in barrels. Why is there such a big difference in price?
How does the distillery or parent company set prices for high-age, limited, or hot whisky? Do they consider using weighting algorithms for wine age and production? Do these prices show actual production costs? Or is it just a number guessing game for liquor companies, trying to maximize profits through "the rarest products"?
"I don't think their pricing conforms to any real laws or reasons," said Joseph Morika, chairman of the New Hampshire Liquor Commission. Morika supervised nearly US$865 million in alcohol sales and circulation in 2017, including some of the rarest and most expensive whiskies in the world: Granville 70, Gran Crown 50, Granger 1974, etc. Wait.
He is a whisky retail expert, but he can't even point out what exactly affects the price of the bottle. "Everyone seems to have their own pricing methods and standards," Molica said.
Teeling 34 year single barrel
The standard whiskey we see on the merchandise shelf contains a selling price based on actual costs: outer packaging, grain and brewing equipment, storage, taxes and duties, labor, transportation and marketing costs. To make a profit, you must add a little amount to the total cost to make them profit.
But for the rarest and most sought-after whiskey, these traditional cost figures have been out. At a time when transparency has become one of the most popular terms in the whisky world, not many companies are willing to share their insights on the highest-end product pricing scheme: although only a few wineries have ultra-high-end products.
Jack Teeling founded the Teeling Whisky Company in Ireland. The company recently released a 34-year-old single barrel whiskey (pictured above), which is said to be one of the oldest Irish whiskeys ever. Only 38 bottles are sold, and the suggested retail price is $5,000 (approximately ￥35,000). The entire Irish whiskey circle of is only now launching ultra-high-end whiskey products. They may not know the product pricing very well, but we can start with the production factors.
Factors of production: high vintage single barrel scarcity
"This wooden barrel (34 years), we are surprised that there is too little liquor left in it," Teeling said. "Either it was so ravaged by angels that it evaporates too much, or the people who work in the warehouse know it is the best (stealing)" .
He explained that the pricing of this wine is also an upgrade of Teeling's previous 30-year ($2,000) and 33-year ($4,000) single malt whisky pricing.
Factors of production: the necessity of mixing barrels with high vintages
The low output of old wine is not the only factor affecting prices. As the volume of liquid in the barrel decreases, the alcohol content of whiskey will gradually approach the risk factor (40%) in a humid climate where the alcohol content decreases over time.
"For example, Scotch whisky, when you develop this wine is very old, the 50-year-old Macallan, the alcohol content in the barrel is sometimes too low, and you can't barrel it into whiskey under the laws of Scotland. " rare wine boss Alex Bachman explained. "So they have to mix several barrels in the same age to reach the legal minimum of 40% ABV. These companies will use this as a reason to increase prices."
production factor: the necessity of luxury packaging
luxury packaging usually Is superA key component of high-end whiskey. However, to make a luxurious whiskey box, or choose to put high-priced whiskey in a simple package?
proved in real time that consumer desire seems to be motivated by this luxurious packaging, which of course will increase costs and selling prices. "Putting whiskey in a crystal bottle worth $300 is obviously a driving force for high prices," Bachman said. "These companies know that customers will be excited: especially when it comes to old wine, precious old wine is in a beautiful box."
And in order to prove the preciousness of liquor, many wineries will spontaneously choose the most luxurious for old wine Packaging : bottle information is engraved on each individual crystal bottle, individually numbered, hand-engraved sterling silver wine stopper, precious and heavy solid wood wine box... The Lalique Brilliant series is the best in Macallan The precious and most luxurious whiskey set, and on Lalique’s official website, similar to the shining series of bottles, without whiskey, each empty bottle costs thousands of dollars, which is even beyond the scope of liquor and enters the artwork category.
Factors of production: the expensive cost of limited wine
Jack Teeling explained that the single piece cost of limited edition whiskey has increased too much. Teeling used a gorgeous wooden box in 34 years, laser-engraved metal nameplate, and used gold on the bottle neck and wine cork.
"Every bottle, every box, every cork is such a unique packaging," he said. "If you produce 10,000 bottles, you can share the cost of your design on all 10,000 bottles. But it has only 38 bottles, which is incredibly expensive."
From the source, so many production factors will greatly affect the listing of whiskey. Price; tomorrow we will show you the far-reaching impact of the secondary market on the price of whisky.
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