In-depth profiles of specific rare spirits distilleries, their history, and why they are valuable investments
Image 1 Pappy Van Winkle 20 years old Family Reserve and Ardbeg Lord of the Isles, two
diamonds in their categories.
In this article we are going to analize the historical reasons of the success of certain distilleries among whisky enthusiasts and collectors. It is not easy, otherwise, to understand why only few of the old spirit bottles can gain the “investment-grade” title. Beyond the scenes of a prestigious brand there are often familiar dynamics, geopolitical facts and personal occurrencies of men who had been working in the distilleries for decades. Here we we’ll speak of two of the most valuable distilleries, one in USA, the other in Scotland. Enjoy!
Pappy Van Winkle
The Stitzel-Weller Distillery flourished under Van Winkle’s leadership, producing high-
quality bourbons for decades. However, the distillery was sold in 1972, and for years, the
Van Winkle name drifted into obscurity. It wasn’t until Julian Van Winkle III, Pappy’s
grandson, revived the brand in the 1990s that Pappy Van Winkle’s whiskey began its
ascent to legendary status. By sourcing aged barrels from the old Stitzel-Weller stocks and
partnering with Buffalo Trace Distillery, Julian III reintroduced Pappy Van Winkle as a
premium bourbon, sparking a cult-like following among whiskey connoisseurs.
Several factors contribute to the extreme rarity of Pappy Van Winkle bourbon.
Image 2 Van Winkle’s historical distillery, in partnership since 2002 with Buffalo Trace to
produce the sought-after Pappy Van Winkle line of bourbons.
The Stitzel-Weller Distillery flourished under Van Winkle’s leadership, producing high-quality bourbons for decades. However, the distillery was sold in 1972, and for years, the Van Winkle name drifted into obscurity. It wasn’t until Julian Van Winkle III, Pappy’s grandson, revived the brand in the 1990s that Pappy Van Winkle’s whiskey began its ascent to legendary status. By sourcing aged barrels from the old Stitzel-Weller stocks and partnering with Buffalo Trace Distillery, Julian III reintroduced Pappy Van Winkle as a premium bourbon, sparking a cult-like following among whiskey connoisseurs.
Several factors contribute to the extreme rarity of Pappy Van Winkle bourbon.
– Limited Production: Unlike mass-market bourbons, Pappy Van Winkle is produced in very small batches. With only a few thousand bottles released annually, supply is always far below demand.
– Aging Process: The whiskey is aged for exceptionally long periods—ranging from 10 to 23 years. This extended maturation process allows for deep flavor complexity but also results in significant evaporation, leaving fewer barrels for bottling.
– Strict Quality Control: Buffalo Trace Distillery adheres to stringent quality standards, ensuring that only the best barrels make it into the final product. This further limits the number of bottles available each year.
– Cult Status and Demand: Celebrity endorsements, critical acclaim, and whiskey aficionados praising Pappy Van Winkle’s superior taste have created an almost mythical status around the brand. The annual release leads to long waiting lists and secondary market prices skyrocketing.
The Pappy Van Winkle label is immediately recognizable. The bottles feature an old-fashioned label with a distinct portrait of Pappy Van Winkle himself. The labels include information such as the age of the bourbon, with expressions such as Pappy Van Winkle 15 Year Old, Pappy Van Winkle 20 Year Old, and Pappy Van Winkle 23 Year Old being the most iconic. These aged versions of the bourbon are the most coveted, with the 15, 20, and 23-year-old varieties representing the pinnacle of the brand’s offerings.
The Investment Value of Pappy Van Winkle
Pappy Van Winkle isn’t just a whiskey; it’s a high-value investment. Bottles that originally retail for a few hundred dollars can command thousands on the secondary market. Due to its rarity and increasing demand, Pappy Van Winkle bourbons appreciate significantly in value. Some bottles have sold for over $10,000 at auction. Plus, many collectors view Pappy as the pinnacle of bourbon collecting, and its scarcity makes it a prized possession. The brand’s association with prestige and luxury makes it a status symbol, further driving up demand.
Ardbeg
Image 3 The Ardbeg distillery, one of the most famous premium scotch producers in the
world, highly renowned for the peaty character of its precious whiskies.
Ardbeg is one of the most renowned distilleries in the world, particularly famous for its heavily peated Scotch whisky. It’s located on the Isle of Islay, which is known for its distinctive, smoky whiskies.
Founded in 1815: Ardbeg Distillery was officially established in 1815, though it’s believed that illicit distillation may have been happening in the area long before this. It was founded by John MacDougall, and for much of its early years, it was a small-scale operation.
Throughout its history, Ardbeg experienced various ownership changes. In the 19th century, it passed through several hands and even faced a closure due to financial difficulties. The distillery’s fortunes fluctuated over time, particularly during periods of economic hardship and war, with operations temporarily halted.
The closure and the revival of Ardbeg
By the late 20th century, Ardbeg faced significant decline. In 1981, the distillery ceased production altogether. The site was put into mothballs, and many feared it might never reopen.
In 1997, a significant turning point came when the Glenmorangie Company bought Ardbeg, and the distillery was revived under new management. The new owners were committed to restoring the brand and producing some of the finest peated whisky on Islay.
Under the guidance of Glenmorangie, Ardbeg has flourished. Its distinctive style of heavily peated whisky, combined with a focus on quality and tradition, has attracted a loyal following worldwide. The distillery produces a range of expressions, with a focus on powerful, smoky, and rich flavors.
Over the years, Ardbeg has earned numerous awards and recognition in the whisky world. Some of its expressions, like the Ardbeg 10 Year Old, have become staples among whisky enthusiasts.
Curiosity: The distillery also celebrates its unique brand through events like Ardbeg Day, which coincides with the annual Islay Festival of Music and Malt. These events have helped solidify Ardbeg’s position as a cult favorite.
Innovations: Ardbeg has also introduced several experimental expressions, pushing the boundaries of whisky making. Some of these limited-edition releases have been highly anticipated by collectors.
Today, Ardbeg remains one of the most iconic distilleries on Islay, with a strong reputation for producing bold, peated whiskies that are celebrated by whisky lovers around the world.
The investment value of Ardbeg
Ardbeg, being one of the most prestigious brands in the Islay whisky scene, stands out as an attractive option for investment, particularly in the secondary market where bottles can often fetch higher prices than their original retail value.
Rare Ardbeg bottles, especially those released in limited quantities, have fetched high prices at whisky auctions. For example, a bottle of Ardbeg 1975 sold at auction for more than £13,000 in recent years. Similarly, some of the distillery’s special releases and cask-strength expressions have seen significant price increases.
As the global market for Scotch whisky grows, especially in emerging markets like Asia, the demand for premium brands like Ardbeg has risen. This increase in demand, combined with the distillery’s limited production and special releases, means that the value of Ardbeg bottles is likely to continue rising.
Why invest with The Spirits Club?
Our expertise is to identify the labels suitable for investment purposes and capable of generating profits above the market average.
- Investment in rare and prestigious bottles worldwide
- High experience in the search and availability of bottles
- Product and management transparency
- Exclusive ownership of the investor
- Pool of experts at the top of world collecting in spirits
- Portfolio managers experienced in the management of luxury assets
- Ongoing advisory approach to investors
- Indication of the best moment of liquidation of the product
- Possibility to liquidate at any time in case of need.
