The Macallan Sherry Oak 25 YO: Unsustainable Low Price Opens For Investment

The Macallan: The World's Most Prestigious Whisky Brand

The Macallan is a distilled treasure of the whisky world, renowned for its magnificent quality and character. Sitting firmly on the throne of high-end single-malt Scotch whisky, The Macallan is quite simply a powerhouse of dimensions. They are also responsible for some of the world's most exclusive and unique releases in the marvelous world of whisky, including the world's oldest commercially released whisky, the 81-year-old The Reach.

So it is no wonder that in November 2023, The Macallan became the record holder of the world's most expensive whisky when Sotheby's in London sold a bottle of The Macallan 1926 60 YO for €2.56 million. This was almost double the upper range of the valuation.

The Macallan's worldwide reputation for excellence and the ability to set world records did not come from building castles in the air. No, of course, it is built on a foundation of exquisite quality. Since 1824, The Macallan has built a legacy that today is historic and deeply rooted, and every single one of their single malt whiskies reveals their deep-seated commitment to the mastery of wood and spirit for more than two centuries. Their product portfolio is enviable, and their back catalog of aged whiskies and a well-executed and successful branding and marketing strategy has taken them to the top. Today, The Macallan is owned by the mighty Edrington Group, who, with massive capital and know-how in the spirits industry, are taking The Macallan to new heights.

The Time Has Finally Come To Invest In The Macallan Sherry Oak 25 YO

This is the first time we are offering The Macallan Sherry Oak 25 YO for investment, and it has nothing to do with quality. It simply has to do with market dynamics. Less than two years ago, the spread between what these bottles could be purchased from the producer and what they were traded for on the open market was enormous. And the 25 YO Sherry Oak was easily traded for over € 3,000*. At the time, we did not think it would be a responsible investment, so we sought alternative whisky cases with more attractive price points.

However, the uncertainty in the world has also affected the whisky market. The price is now much more enjoyable for the investor, which is why we now see attractive potential. Your investment price is currently € 1,550*. We buy directly from the producer, and the spread between this purchase price and the general market price has probably never been lower.

The lowest price for The Macallan 25 YO Sherry Oak 2023 release across Winesearcher.com and whiskybase.com right now is €1,742* for a single bottle, while the average price for The Macallan 25 YO Sherry Oak 2023 on wine-searcher.com is €2,492*. That makes our price 12% cheaper than the world's cheapest price. And you can invest in single bottles and even whole cases at no extra cost - and larger quantities in whole cases often dictate the price in the wine and spirits world.

The time is finally ripe to invest in Macallan Sherry Oak

*In perfect condition and ex. Duty, VAT and tax  

But What About The Future?

As mentioned, the price of a bottle of 25 YO Sherry Oak today is not what it used to be - and it is not because the product has become poorer or because The Macallan is flooding the market. Buyers are becoming more cautious in uncertain times, and those who used to drink 25 YO might settle for 18 YO or 12 YO for a while. But it would be odd that a bottle that just a few years ago easily fetched €3,000+ wouldn't cost that again when the basic premise of the product is unchanged.

Here's an example from winesearcher.com: The average price on winesearcher.com for 25 YO Sherry Oak 2020 and 2019 release in July 2022 was €3,396* and €3,273*, respectively.

But the case is not just based on the expectation that the world will once again experience economic recovery. No, the case is also backed up by The Macallan itself. It is quite rare that the price of a new release is not increased by the manufacturer, which inherently helps to keep the price of existing bottles in the market under control.

Add to this the fact that the average price of The Macallan 25 YO Sherry Oak on wine-searcher.com has increased by 341% over the last 10 years.

*in perfect condition and ex. Duty, VAT and tax 

Rising demand for whisky

According to Allied Market Research, the global whisky market is expected to grow by an average of 4.7% per year for the next 10 years, although this trend could quickly accelerate - significantly if a whisky-loving country like India reduces its import tariff:

"India is by far the world's largest whisky market and in fact the world's third largest importer of Scotch whisky (by volume) with 95 million bottles in 2020, according to The Scotch Whisky Association. However, while exports of Scotch whisky to India have increased by 200% over the past decade, it only accounts for roughly 2% of India's total whisky market. This small share is largely due to an Indian import tariff of 150% on Scotch whisky.

However, since the above whisky market forecast was made, the UK and India are close to agreeing a set of comprehensive post-BREXIT trade deals where the import tariff on Scotch whisky will be reduced from 150% to 100%. The Scotch Whisky Association estimates that a reduction in the tariff will result in increased exports to India of €1.1 billion over the next five years. To put this into perspective, exports to India almost doubled between 2021 and 2022 to a total value of €330 million - and the import tariff reduction hasn't kicked in yet."

The above quote is taken from our market analysis of whisky. To learn more about whisky as an investment, historical performance, and the future outlook for the whisky category, read more in the article: Whisky Investment: What you need to know about whisky investing.

RareWine Invest's Opinion

Undoubtedly, the world's most prestigious whisky comes from Scotland, and at the top of the Scottish stool is The Macallan. The Macallan 25 YO Sherry Oak is part of the distillery's absolute core portfolio - for the discerning super connoisseur seeking brand equity and sublime quality.

Demand for whisky is rising, and India could lead the way if import tariffs are reduced. Even if that doesn't happen, the future of whisky demand looks interesting for any investor.

This is the cheapest price in the market. And while that is a compelling argument in favor of investing, what’s more interesting is whether you also believe that the world will recover, and prices will follow suit...

The price level now certainly seems unsustainably low.