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Scotch Whisky 1 4 WHISKY MARKET REPORT 2018/2019 Ladies and Gentlemen, It is our great pleasure to present the fourth edition of whisky market report. 2018 was a special year. For the first time the barrier of one million pounds was exceeded at auction for a bottle of whisky. It was a limited edition of Macallan 1926 in a one of a kind bottle painted by an Irish artist, Michael Dillon. One of the indexes tracking whisky price at auctions – Knight Frank Rare Whisky 100 index – achieved a growth of 40 per cent during the year, outperforming other alternative investments, such as rare coins, wine, works of art or watches. Investors from Asia who use direct flights between Edinburgh and Beijing to invest in the most exclusive whisky on the market, have an undeniable influence on it. A growing interest in Scotch leads to numerous investments. New Scotch distilleries are being opened (in the previous year, there were 10) and corporations dedicate increasingly greater funds not only to the production, but also to tourism. For instance, Diageo announced that this year it is going to allocate USD 240 million for the extension of tourist attractions connected with Scotch whisky. At the same time, we are dealing with an increased scale of frauds on the whisky market. Companies are conducting research on new technologies which would determine the age of the whisky in the bottle. Asian and American markets are chasing their elder colleague from Scotland and also record growths. You can read about this and much more in this year’s edition of the report, which I strongly encourage you to read. Sláinte Krzysztof Maruszewski Foto Olga Kharina Foto 5 WHISKY MARKET REPORT 2018/2019 Table of contents 6 WHISKY MARKET REPORT 2018/2019 8 What is Scotch whisky 10 Map of Scotch distilleries 12 Types of whisky 20 Scotch whisky export in 2018 (SWA) 30 Millionaires’ Club – global whisky sale 32 American market 48 Japanese market 58 Investing in bottles 80 Investing in casks 86 Whisky festivals in the world and in Poland 88 Limited whisky editions – Diageo Special Releases 90 Whisky tourism 92 Counterfeits in the whisky market 98 Forecasts 7 WHISKY MARKET REPORT 2018/2019 What is Scotch whisky? In the 1880s Ireland had 28 distilleries, while Scotland had more than 170. 8 WHISKY MARKET REPORT 2018/2019 At the end of the 15th century, whisky was mentioned for the first time by a friar from Fife. In 1494, he purchased over a ton of malt, from which the golden beverage was supposed to be created. However, the beginnings of the whisky market date back to 1831, when its production on an industrial scale became possible. The sector was developing rapidly. Production breakdown took place in 1919, when prohibition began in the United States which influenced sharp decrease in sales. After 13 years, with the end of the prohibition, whisky started its second childhood. Nowadays, as illustrated by sales and export results, its popularity in the world is systematically growing. 9 WHISKY MARKET REPORT 2018/2019 ORKNEY 38 38 49 49 Kirkwall HIGHLAND Cape Wrath 57 HIGHLAND MALT John Thurso o'Groats 13 LEWIS 12. ABERFELDY John Dewar & Sons R Stornoway 13. ABHAINN DEARG Abhainn Dearg Distillery Wick 45 14. ARBIKIE Arbikie Distilling HARRIS Lochinver 15. ARDMORE Beam Suntory 16. ARDNAMURCHAN Adelphi Distillery 17. ISLE OF ARRAN Isle of Arran Distillers 37 Brora 21 Ullapool 18. BALBLAIR Inver House Distillers Bonar Bridge 25 18 19. BEN NEVIS Ben Nevis Distillery NORTH UIST 22 94 20. BLAIR ATHOL Diageo 52 Tain 33 85 93 SPEYSIDE 36 Invergordon 99 84 65 21. CLYNELISH Diageo 67 89 Torridon 31 22. DALMORE Whyte & Mackay Dingwall 47 60 82 42 Portree 46 Banff Fraserburgh 23. DALWHINNIE Diageo Forres 78 61 SOUTH 34 Nairn 100 76 97 96 Macduff 24. DEANSTON Distell International UIST 51 91 92 29 INVERNESS 81 88 102 25. DORNOCH Dornoch Distillery Co. Kyleof Lochalsh 69 SKYE 72 86 64 103 107 30 26. EDRADOUR Signatory Vintage Ness Huntly h 80 90 c 58 59 Fort Augustus o 104 63 87 27. FETTERCAIRN Whyte & Mackay L 54 74 55 83 77 41 70 62 98 95 Oldmeldrum 28. GLENCADAM Angus Dundee Distillers plc SpeyAviemore 106 68 Mallaig 75 71 73 Inverurie 29. GLENDRONACH, THE Brown-Forman 105 66 15 Kingussie ABERDEEN 79 30. GLEN GARIOCH Beam Suntory 19 101 31. GLENGLASSAUGH Brown-Forman 16 Ballater Fort William 23 Banchory Ben Nevis LochEricht 32. GLENGOYNE Ian Macleod Distillers 43 1343 m Stonehaven 48 33. GLENMORANGIE Glenmorangie Co. Tobermory 26 Glen Coe 27 34. GLEN ORD Diageo 53 Loch Rannoch Pitlochry 20 35. GLENTURRET Edrington 28 Aberfeldy MULL Montrose Blairgowrie 36. GLENWYVIS GlenWyvis Distillery Ltd Oban 12 37. HARRIS Isle of Harris Distillers Loch Tay 35 Arbroath 14 Carnoustie 38. HIGHLAND PARK Edrington 44 Loch Awe Perth Dundee 50 Crieff 39. ISLE OF JURA Whyte & Mackay Inveraray 56 121 istillery Co. Auchterarder 40. LOCH LOMOND Loch Lomond Group Callander 116 Dunblane ISLAY Loch St Andrews 41. LONE WOLF BrewDog 5 Lomond Kinross 2 Lochgilphead Stirling 6 24 Glenrothes 120 42. MACDUFF John Dewar & Sons Helensburgh 7 JURA Falkirk 108 43. NCN’EAN Drimnin Distillery Company Greenock 115 Port Askaig 39 Tarber Dumbarton Diageo 4 40 119 44. OBAN North 118 Berwick 45. PULTENEY Inver House Distillers 1 17 EDINBURGH 3 32 GLASGOW Port Ellen 46. RAASAY R&B Distillers 8 111 47. ROYAL BRACKLA John Dewar & Sons 9 Brodick East Kilbride ISLAY Malt 117 48. ROYAL LOCHNAGAR Diageo 10 ARRAN Kilmarnock Campbeltown 114 Troon 49. SCAPA Chivas Brothers Biggar 1. ARDBEG Glenmorangie Co Ltd Prestwick Melrose Ayr 50. STRATHEARN Strathearn Distillery 2. ARDNAHOE Hunter Laing & Co. 12 LOWLAND 51. TALISKER Diageo 11 3. BOWMORE Beam Suntory 109 52. TEANINICH Diageo Hawick 4. BRUICHLADDICH Bruichladdich Distillery Company Moffat 53. TOBERMORY Distell International 5. BUNNAHABHAIN Burn Stewart Distillers plc 54. TOMATIN The Tomatin Distillery Co. 6. CAOL ILA Diageo 113 55. TORABHAIG Mossburn Distillers 7. KILCHOMAN Kilchoman Distillery Co Ltd Dumfries 56. TULLIBARDINE Tullibardine Ltd 8. LAGAVULIN Diageo Stranraer Annan 57. WOLFBURN Aurora Brewing Castle Douglas 9. LAPHROAIG Beam Suntory Wigtown 110 112 10 ORKNEY 38 49 Kirkwall Cape Wrath John Thurso o'Groats LEWIS R Stornoway Wick HARRIS Lochinver Brora Ullapool Bonar Bridge NORTH UIST Tain Invergordon RAPORT Z RYNKU WHISKY 2018/2019 99 Torridon 67 85 65 Dingwall 97 93 89 84 94 76 The world Portree 78 60 82 Banff Fraserburgh Forres Nairn Forres 96 61 SOUTH 92 86 81 Macduff 100 of Scotch UIST 69 107 58 95 87 88 INVERNESS 102 91 Kyleof Lochalsh 72 77 SKYE 79 64 70 103 whisky 90 104 73 80 HuntlyHuntly Ness 63 66 h 98 71 c 74 o 59 Fort Augustus L 62 LOWLAND MALT 83 68 108. ABERARGIE The Perth Distilling Company 75 106 105 Oldmeldrum SPEYSIDE 109. AILSA BAY Wm Grant & Sons SpeyAviemore 110. ANNANDALE Annandale Distillery Company Ltd Mallaig Inverurie 111. AUCHENTOSHAN Beam Suntory SPEYSIDE MALT 112. BLADNOCH Bladnoch Distillery Kingussie 113. BORDERS The Three Stills Company ABERDEEN 114. CLYDESIDE Morrison Glasgow Distillers 58. ABERLOUR Chivas Brothers 83. GLENLIVET, THE Chivas Brothers 115. DAFTMILL The Cuthbert Family 59. ALLT A’BHAINNE Chivas Brothers 84. GLENLOSSIE Diageo 116. EDEN MILL Eden Mill 60. AUCHROISK Diageo 85. GLEN MORAY Glen Turner Distillery 117. GLASGOW Glasgow Distillery Company 61. AULTMORE John Dewar & Sons 86. GLENROTHES Edrington Ballater 118. GLENKINCHIE Diageo 62. BALLINDALLOCH Ballindalloch Distillery 87. GLEN SPEY Diageo Banchory 119. INCHDAIRNIE John Fergus & Co. Fort William 63. BALMENACH Inver House Distillers 88. GLENTAUCHERS Chivas Brothers Ben Nevis LochEricht 120. KINGSBARNS The Kingsbarns Company of Distillers 64. BALVENIE, THE Wm Grant & Sons 89. INCHGOWER Diageo 1343 m 121. LINDORES ABBEY Lindores Distilling Co. 65. BENRIACH Brown-Forman 90. KININVIE Wm Grant & Sons 66. BENRINNES Diageo 91. KNOCKANDO Diageo Stonehaven 67. BENROMACH Gordon & MacPhail 92. KNOCKDHU Inver House Distillers CAMPBELTOWN MALT Tobermory 68. BRAEVAL Chivas Brothers Ltd 93. LINKWOOD Diageo Glen Coe 69. CARDHU Diageo 94. LONGMORN Chivas Brothers Ltd 9. GLENGYLE J & A Mitchell & Co Ltd 70. CRAGGANMORE Diageo 95. MACALLAN, THE Edrington 10. GLEN SCOTIA Loch Lomond Group Loch 71. CRAIGELLACHIE John Dewar & Sons 96. MANNOCHMORE Diageo 11. SPRINGBANK J & A Mitchell & Co Ltd 72. DAILUAINE Diageo 97. MILTONDUFF Chivas Brothers Rannoch Pitlochry 73. DALMUNACH Chivas Brothers 98. MORTLACH Diageo 74. DUFFTOWN Diageo 99. ROSEISLE Diageo GRAIN WHISKY Aberfeldy 75. GLENALLACHIE Chivas Brothers 100. SPEYBURN Inver House Distillers MULL 76. GLENBURGIE Chivas Brothers 101. SPEYSIDE MontroseSpeyside Distillers Co 122. CAMERONBRIDGE Diageo 77. GLENDULLAN DiageoBlairgowrie 102. STRATHISLA Chivas Brothers 123. GIRVAN Wm Grant & Sons Oban 78. GLEN ELGIN Diageo 103. STRATHMILL Diageo 124. INVERGORDON Whyte & Mackay 79. GLENFARCLAS J & G Grant 104. TAMDHU Ian Macleod Distillers 125. LOCH LOMOND Loch Lomond Group 80 GLENFIDDICH Wm Grant & Sons 105. TAMNAVULINArbroath Whyte & Mackay 126. NORTH BRITISH The North British Distillery Co. Loch Tay 81. GLEN GRANT Glen Grant Distillery Co 106. TOMINTOUL Angus Dundee Distillers 127. STARLAW Glen Turner Distillery 82. GLEN KEITH Chivas Brothers Carnoustie107. TORMORE Chivas Brothers 128. STRATHCLYDE Chivas Brothers Loch Awe Perth Dundee 11 Inveraray Crieff istillery Co. Auchterarder Callander Dunblane Loch St Andrews Lomond Kinross Lochgilphead Stirling Glenrothes Helensburgh JURA Falkirk Greenock Port Askaig Tarber Dumbarton North Berwick EDINBURGH GLASGOW Port Ellen Brodick East Kilbride ARRAN Kilmarnock Campbeltown Troon Biggar Prestwick Melrose Ayr Hawick Moffat
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