Pricing at the end of 2006

[corbuso]

During the last weeks, there has been a fair amount of new bottlings, but I have the impression that the prices are increasing.

My question is the following:

[kallaskander]

Hi there,

well corbuso, got called off in the middle of asking the question?

The answer is 42, of course

Greetings
kallaskander

[irishwhiskeychaser]

Well I answered Yes but do not think much about it really.

Basically you have a thing called inflation which is runing at anything of between 2 - 3% each year for the last 10years. There fore it would not be unusual for companies to increase prices every couple of years. Unfortunately that's life. But as long as your getting a min of a 5% increase in you wages every year you have nothing to worry about

[Scotchio]

In some areas prices are climbing. Products from the distilleries closed in the early 80s can't be younger than 24 and seem likely to increase in price as stock is older and scarcer. Also there is the new Diagio approach to marketing and bottling these malts as special editions that will eek out stock and set a higher premium.The early 90s closures are also hitting that teenage stage so you can expect to pay more for malts like Rosebank now that the FF12 is all but gone. More mainstream malts are still very competitively priced due to the competitive nature of the supermarkets and of course we are approaching that most wonderful time of the yearwhen whisky gets cheaper.

[Marvin]

Havent really noticed it. Inflation is on the rise though. So are interest rates...

[jimidrammer]

I've noticed a slight increase along with almost everything else. The drastic changes have been with some very popular brands, Balvenie and Highland Park come to mind, 2 of my favorites, seem to have catipulted their prices due to repositioning the "premium" market or awards won, which I see as shooting theirselves in the foot. I buy less of them now. Others have gone up due to availability so as to stretch their stock, but I can see that reasoning. All business, I'm sure, but not good news for the consumer. To me Macallan have priced theirselves out of the market, at least mine and I'm starting to narrow my purchases to reasonable favorites and new releases. My exceptions are the top end malts like the Talisker 20 & 25, Glenfarclas 25, Glenrothes '74, and even Balvenie 21, which were expensive, but worth every penny. Everything in perspective, you know.

[Marvin]

You can get HP12 for £20 in most supermarkets

[Wave]

You can get HP12 for £20 in most supermarkets

In the UK, yes. In the States however the only single malts you'll find at the major supermarkets if at all is a generic Glenfiddich and maybe, just maybe a Glenlivet too.

[Marvin]

Unlucky. Perhaps you should start your own store.

[Wave]

Unlucky. Perhaps you should start your own store.

Unlucky? Check this example,
At Binny's in Chicago a Bowmore 1989-16yr Old Cask Strength OB that goes for around £48GBP Inc VAT (which comes out to a tad over $91USD) in the UK goes for in the States (Binny's & others) for $49.99USD with Chicago's sales tax at 9% comes to a grand total of $54.49USD (£28.73GBP), plus we get 750ml bottles (75cl) as opposed to 70cl bottles.

When I buy whisky in Scotland I make sure it's whisky I'll never see here because if it's here in the States more often than not I can get it cheaper.


Cheers!

[Admiral]

We obviously have to take inflation into account, and - in the case of Australia - rising excise & tax costs on imported alcohol.

Notwithstanding that, prices have gone up tremendously in the last six months.

Macallan 18yo has increased from $140 to $185 - an increase of over 30%, significantly more than inflation or rising excise.

Also, I used to say that you could get a decent malt for around $65. The reality now is that most decent malts are in the the $75-$90 range. (Lagavulin 16yo now retails for $99!!!)

So in this little corner of the universe, I'd definitely agree that prices are rising.

Cheers,
AD

[Mr Fjeld]

I think it has to do with increased demand from the BRIC countries (China, Russia, India & Brasil). My bet is on China as one of the single largest factors behind the price hike. I guess whisky - both blends and single malt will become more and more expensive from now on

[kallaskander]

Hi there,

on advice from Mr Fjeld (thank you Christian) something I posted elswhere.

http://www.whiskymag.com/forum/viewtopic.php?t=4716

and a bit more.

http://news.scotsman.com/scotland.cfm?id=1602722006

http://www.dailyrecord.co.uk/news/tm_he ... _page.html

http://www.theherald.co.uk/business/73238.html

The last one together with the question whether Whyte&Mackay will be sold to India or not goes to show that the Asians not only have an appetite for Scottish whisky but for Scottish whisky makers as well. Panta rei, everything is flowing but where to?
Japan is engaged in the Scottish whisky sector for years now. The French are involved, too with the consequence that some whiskies are directed to France only.
Whisky is international business and the international owners sell where the prices are good or even better. The re-direction of the whisky flow will increase prices here because it will get harder and harder to come by good whisky and in sufficient amounts. Quote:
Duncan Baldwin, regional director at Angus Dundee Distillers, told The Grocer: "We have noticed there is not much whisky available to buy any more and what there is sells at a much higher price. The bigger players have realised that sales forecasts for their brands in places such as China mean they need to guard their stocks to furnish this demand. Demand from China is not losing its momentum. Unquote.
Things flow and we can not really be sure we will like the outcome. That goes for American whiskey as well at the moment. It is hard to find some bourbons in Germany at the moment because distillers from Kentucky are satisfying the ever growing demand from China mainly and Mocsow as well for higher prices.
Irish whiskey does well at the moment worldwide, too. Good news for the industries but we will have to pay with higher prices and reduction of the availability of certain whiskies.

Greetings
kallaskander