Dai Thao’s Post

https://lnkd.in/gdXJKhx2 As part of today's Scotsman Whisky Supplement, I was asked about some of the issues anyone looking to build a new distillery should be considering. If you would like to discuss this or anything else relating to the whisky sector, please do get in touch, we would love to help #dentons #DentonsHomeGrown #scotland #whisky #scotlandfoodanddrink #foodandbeverage 🥃

How do I know what whiskey to invest in? Single malt whiskies can be a good choice of investment due to their limited releases and collector's value. However, blends tend to be a more accessible option and are often more affordable. One of the key aspects that can determine the value of cask whisky is the maturation process

Some really interesting perspectives in this article from Mark Littler, considering the question of how new distilleries can continue to stand out in such a competitive landscape. With malt distillery numbers increasing by over 40% in the last 10 years, new entrants no longer benefit from having the spotlight purely shining on them, with it now feeling like every few months brings a new distillery announcement, first cask being laid down, or inaugural release. Martin Purvis & Duncan McFadzean's Spirits Business newsletter last week emphasised the challenges around the "0% income, 100% investment/overheads" phase of a new distillery and the need to ensure a robust revenue strategy in order to build a viable business, which will survive through to the point that cased goods sales reach a volume to make the business sustainable. Those financial challenges are hard enough, but combine them with the increasingly competitive landscape for new distilleries, and it becomes clear that owners face a real battle. Fortunately, demand & enthusiasm continues to be strong around new releases, but new distilleries & products must be built on a strong backstory, clear core values, a striking visual identity, and alignment with the expectations of their target market (particularly around ESG) in order to flourish. If nothing else, this has given me the incentive to support some of my favourite new kids on the block when selecting my Friday dram(s)!

Surely, older whiskies can demand much higher selling prices: 50-year-old whiskies can fetch as much as $60,000 a bottle, while a 25-year-old Macallan will run close to $3,000.  So, should distilleries focus on producing old whiskies? Not so simple. Older whiskies tie up your capital, not to mention production risk and market risk. So, what shall a distillery do? Upon visiting some distilleries in Scotland and then meeting with others in Australia, Hossein Jahandideh (Google), Kevin McCardle, Behnam Fahimnia (University of Sydney) and I examined the above questions and develop solutions for distilleries to make a gradual transition to produce younger and older whiskies to maximize expected profit. Delighted to have our paper published in the Decision Sciences Institute (DSI), and featured in the current issue of UCLA Anderson School of Management's online magazine Anderson Review. The summary written by Michael Totty is unrivaled, and the support of the editor Jeff Bailey is unsurpassed. Besides good teamwork, I get to sample different whiskies from different countries. I am also impressed by the smoothness of some Japanese whiskies. #ucla #uclaanderson #whisky #scotland #australia #japan #revenuemanagement

Steve Hawley, President of the American Single Malt Whiskey Commission, spearheads efforts to define and promote American single malt whiskey. 🥃 Despite regulatory hurdles, Hawley and the Commission have rallied over 100 member distilleries to advocate for formal recognition and protect the category's integrity. American single malt whiskey stands out for its innovative production and diverse flavors, driven by the creativity of distillers like Hawley. As American single malt whiskey gains momentum, the Commission's efforts to establish a formal definition and educate consumers are crucial. Despite challenges like production costs and categorization issues, the involvement of big brands and ongoing educational initiatives bode well for the category's future. ✨ With a growing number of distilleries entering the market and increased consumer interest, the American Single Malt Whiskey Commission is poised for global recognition and expansion, marking an exciting chapter in the whiskey industry's evolution. Read Exclusively here: https://lnkd.in/d2jXM2Mm #spiritsbusiness #spiritsindustry #bartenders #mixologist #usa #chicago Westland Distillery Tyler Pederson Marshall Altier Kiser JasonBennett Jenna Sagmoen Balcones Distilling Headframe Spirits Manufacturing Virginia Distillery Co. Copperworks Distilling Company Santa Fe Spirits FEW Spirits Triple Eight Distillery Westward Whiskey Laws Whiskey House Long Island Spirits Bellemara Distillery Lost Lantern Spirits Black Heron Spirits Boulder Spirits Breuckelen Distilling Company Inc. Perlick Distillery Rabbit Hole Distillery Sid Patel Malvika Patel Bartenders Business Beverage Trade Network

📈🥃 At Brindiamo, managing over 300,000 barrels of aging whiskey across the US, Ireland, and Scotland gives us a unique perspective on the global spirits industry and the current state of whisky production and inventory management worldwide. A collaboration between Duncan McFadzean of Noble & Co and our colleague Martin Purvis, this interesting article provides a comprehensive analysis of the factors influencing the swelling inventories of maturing whisky. From the post-COVID surge in brown spirits consumption to the strategic decisions facing new distilleries amid fluctuating economic conditions, this article offers valuable insights into the complex interplay of production, market demands, and future forecasts. 🔎 The detailed examination covers the challenges and strategies of managing whisky inventories in Scotland, Ireland, and the US, highlighting the impacts of consumer behavior and economic pressures on the spirits market. #Whisky #SpiritsIndustry #InventoryManagement #GlobalMarkets #Brindiamo #BarrelManagement #CaskManagement #InvestInWhiskey

Does the water used during production have an impact on the whisky produced? Yes, but perhaps not in the way you think! Given it is one of the few ingredients used in Scotch Whisky, and the marketing around babbling brooks and heather-lined streams, you would be right in thinking that the industry places a great deal of importance in their water sources. The water added pre-distillation is not as important as post-distillation though. Distillation is essentially a separating process, so a great deal is removed from the wash in search of the spirit's heart. There are two occasions when water can be added after the distillation process where its quality is vital. The first is when casks are filled with new make spirit. The spirit comes off the still around 70% ABV (Alcohol By Volume). Can vary from distillery to distillery based on differences in equipment and distillation regime. Most casks are filled around 63.5% ABV, so the spirit is often cut back with water to bring it down from still strength to filling strength. The second occasion is during bottling. Whisky is often bottled at a drinking strength between 40-46% ABV. If the cask strength of the whisky is higher, then it is again cut back with water to the desired drinking strength. Distilleries do not want to be mixing tainted water into their beautiful amber liquid. Given that distilleries take so much care in regards to the water they add, you should also be mindful of the water you use at home when reducing the strength of the whisky in your glass! Slainte.

What's in a name? If you poke around whisky cask investment sites for even a short amount of time, you will come across casks labelled with names like "Teithmill", "Blue Hill" or "Wardhead". A small amount of digging will lead you to the perplexing discovery that there are no distilleries under these names. So... where are these casks from? These are what are referred to as fillings or trade names. If you buy a cask of whisky which is labelled with a fillings name, there are restrictions on how you can label the liquid when it is bottled. Usually, the distillery cannot be mentioned by name even if you know for sure where it is from. In the case of Wardhead, it can only be bottled as a blended malt, not a single malt. There are other fillings which are similar in this regard. So, why do they exist? These brands essentially exist to protect the brands of the distilleries. Because their distillate is in someone else's care, they have no control over how it is matured, and eventually bottled. So should you consider buying one of these casks? Well the answer is, it depends. On the plus side, they are usually cheaper than a distillery branded cask. On the other hand, the reputation of the distillery is more difficult to leverage when labelling and selling the whisky. Some bottlers have worked out some slightly cheeky ways to get around this, but that is a story for another day! If you know, you know. Slainte!

Since the earliest days of American whiskey, many distilleries have provided liquid for brands other than their own. Known as contract distillation, the arrangement benefits both parties: The distillery owner gets immediate cash for services, while the contract client receives high-quality spirit, often made to their specifications, without having to assume any of the risk or upfront investment that comes with owning the means of production. And consumers benefit from more variety. Contract whiskey has ebbed and flowed with the overall industry, but in the last decade, the practice has been bolstered by the boom in bourbon. Both existing and new distilleries are expanding their contract services at large scale. The outcome of this expansion won’t be just more bottles of whiskey for sale, but a wider array of flavors and styles — although, to be sure, there’s about to be a whole lot more whiskey, too. But is this a good thing or a bad thing for the industry? Read Susannah Skiver Barton's latest: https://lnkd.in/eEdUXw6A #bourbon #whisky

The craft cocktail movement emerged in the early 2000s, but it wasn't until nearly a decade later that the transparency movement began in the whiskey industry. I was surprised to learn that some of my favorite bourbons came from different distilleries. However, this changed as more grain-to-glass distilleries were introduced into the market and consumers became more educated and curious. It was an exciting time for the industry as advocates like Dave Schmier and John Little amplified their use of sourced whiskey while the term "craft distillery" was being defined. Fast forward to today, and we're seeing a new trend in the industry: distilleries being built solely for contract distilling. In my opinion, this will take a lot of pressure off of brands that feel compelled to build a distillery in a specific location. What if a business didn't have to spend millions building a distillery and instead invested in branding, marketing, and sales support? Would they have a chance against bigger brands with larger budgets? Would consumers be upset if they visited a tasting room or experience instead of a distillery? What do you think? #SpiritsIndustry #SourcedWhiskey #CraftSpirits