Why old whiskeys are expensive?

Answered by Daniel Conrad

Why Are Old Whiskeys Expensive?

As an expert sommelier and brewer, I have had the pleasure of working with various types of whiskies and understanding the factors that contribute to their pricing. One of the key reasons why old whiskeys are expensive is the ageing duration and the loss from evaporation.

Ageing is a crucial process in whisky production, where the spirit is left to mature in oak for a specific period of time. During this time, the whisky undergoes chemical reactions with the wood, absorbing flavors and characteristics that develop its unique profile. The longer the whisky ages, the more complex and refined its flavors become.

However, as the whisky ages, a small portion of it evaporates each year. This phenomenon, known as the “angel's share,” occurs due to the porous nature of the oak barrels. On average, whisky evaporates at a rate of 1% per year. So, for a 20-year-old whisky, around 20% of the original volume may be lost to evaporation.

The evaporation loss poses a significant challenge for distilleries as it reduces the final yield of whisky from each barrel. To compensate for this loss, the price of older whiskies needs to be higher to cover the production costs and ensure profitability for the distillery. The longer the ageing duration, the greater the evaporation loss and, consequently, the higher the price.

In addition to the evaporation loss, the extended ageing process also requires more time, resources, and storage space. Distilleries have to invest in quality oak barrels, which can be quite expensive, and maintain suitable aging conditions such as temperature and humidity control. These factors contribute to the overall cost of producing older whiskies, making them more expensive than their younger counterparts.

Furthermore, there is a growing demand for old whiskies among connoisseurs and collectors. The limited supply of well-aged whiskies, combined with the increasing interest in premium , drives up their prices. Whisky enthusiasts are willing to pay a premium for the depth of flavors and complexity that older whiskies offer.

Personal experiences have also taught me that the taste and quality of older whiskies can be truly exceptional. The prolonged ageing process allows the spirit to interact with the wood, resulting in a smoother, richer, and more refined flavor profile. The intricate balance of flavors, including notes of oak, vanilla, spice, and fruit, is highly sought after by whisky enthusiasts, further contributing to the demand and higher prices.

The high cost of old whiskies can be attributed to the ageing duration and the loss from evaporation. The evaporation loss results in a reduced final yield, necessitating higher prices to cover production costs. Additionally, the extended ageing process requires more resources and storage space, further driving up the cost. The limited supply and increasing demand for older whiskies also play a significant role in their higher prices. Ultimately, the exceptional taste and quality of well-aged whiskies make them a desirable and sought-after luxury item among whisky enthusiasts, justifying their premium price tag.