Navigation
Search This Blog

Return to KLWines.com

Spirits Journal Podcast Archive

Spirits Journal Twitter Feed

K&L Uncorked Blog

K&L Spirits Tasting Schedule:

Weds from 5 - 6:30 PM

4/23 - Redwood City: Ardbeg Single Malts (w/the chopper!)

2014 K&L Exclusive Scotland Whisky

1988 Littlemill 25 Year Old K&L "Exclusive Malts" Single Barrel Cask Strength Lowland Single Malt Whisky IN STOCK NOW!


1996 Bowmore 16 Year Old Faultline Single Cask Strength Single Malt Whisky IN STOCK NOW!


Bladnoch "Young" K&L Exclusive Heavily Peated Single Barrel #57 Cask Strength Single Malt Whisky IN STOCK NOW!


Bladnoch 11 Year Old K&L Exclusive Lightly Peated Single Barrel #303 Cask Strength Single Malt Whisky IN STOCK NOW!


Bladnoch 23 Year Old K&L Exclusive Single Barrel #1054 Cask Strength Single Malt Whisky IN STOCK NOW!


Talisker "The Speakeasy" K&L Exclusive Single Barrel Cask Strength Single Malt Whisky IN STOCK NOW!


2005 Glenrothes 8 Year Old K&L Exclusive "Sovereign" Single Sherry Barrel Cask Strength Single Malt Whisky IN STOCK NOW!


1997 Glengoyne 16 Year Old K&L Exclusive "Sovereign" Single Barrel Cask Strength Single Malt Whisky IN STOCK NOW!


Kilchoman K&L Exclusive Single Bourbon Barrel #172 Cask Strength Single Malt Whisky IN STOCK NOW!


Kilchoman K&L Exclusive Single Bourbon Barrel #74 Cask Strength Single Malt Whisky IN STOCK NOW!


2013 K&L Exclusive Scotland Whisky Still Available

1991 Cambus 21 Year Old K&L Exclusive Signatory Single Barrel Cask Strength Single Grain Whisky 750ml IN STOCK NOW!


2002 Bowmore 11 Year Old K&L Exclusive "Exclusive Malts" Single Barrel Cask Strength Single Malt Whisky 750ml IN STOCK NOW!


2005 Island Distillery 7 Year Old K&L Exclusive "Exclusive Malts" Single Barrel Cask Strength Single Malt Whisky 750ml IN STOCK NOW!


2001 Royal Lochnagar 10 Year Old Faultline Single Barrel Cask Strength Single Malt Whisky 750ml IN STOCK NOW!


1995 Glendronach 18 Year Old Single PX Barrel Cask Strength Blended Scotch Whisky 750ml IN STOCK NOW!


1994 Benriach 19 Year Old Single Bourbon Barrel Cask Strength Blended Scotch Whisky 750ml IN STOCK NOW!


1989 Cragganmore 23 Year Old Faultline Single Cask Strength Single Malt Whisky IN STOCK NOW!


1992 Longmorn 21 Year Old Faultline Single Cask Strength Single Malt Whisky IN STOCK NOW!


1987 Mortlach 25 Year Old Faultline Single Cask Strength Single Malt Whisky IN STOCK NOW!


1983 Miltonduff 30 Year Old Faultline Single Barrel Cask Strength Single Malt Whisky 750m IN STOCK NOW!


« Spirits Tastings Tomorrow! | Main | Things Are Simple, Except When They're Not »
Saturday
Jun162012

Blowing Up the Bubble

I've had some interesting conversations with various whisky industry folk over the past week.  None more interesting than those concerning the price of whisky.  I need to do some more analysis and serious thinking before extrapolating further on this topic, but I thought it would be interesting to leave you all with this thought in the meantime:

We all know how scarce and how sought after Pappy Van Winkle Bourbon is.  Nevertheless, we all know how much they cost (we've generally sold the 15 year for around $70).  At K&L, we know we could put these bottles on our auction site, or charge double that price and make a lot more profit than we currently do.  We choose not to because, as a company, we're more concerned with helping our customers than selling to the highest bidder.  We believe that the goodwill we sustain by selling products for an honest price results in more business down the line.

Now apply this analogy to the whisky producers in Scotland, except this time K&L is the customer.  The American whisky market is an afterthought compared to the other thriving booze regions of the world.  It takes more work to sell us whisky (bottles have to be changed to 750ml from 700ml) and we might not pay as much as businesses in China or Taiwan.  I'm having trouble understanding why producers would sell us a cask when someone else might pay double what we're offering, plus provide an easier path to that actual sale.  My question is: is there any advantage to maintaining business relationships with the American retailers when double or even triple the profit can be made elsewhere?

So far this scenario hasn't been too big of a problem, but it has impacted a few of our deals.  I want to also state clearly that I'm not implying anything about the ethics of any producer either, I'm just pondering out loud here.  If I had a car to sell for $5000 and someone offered me $10,000 for it, I'd probably take the $10,000.  It's not really a question of ethics, as maybe it is with the Van Winkle analogy, but rather a question of actual worth.  Is that three bedroom house in Modesto actually worth $600,000?  I'm hoping that, as a planet, we don't start overpricing our whisky because it could take a long time for the industry to pay off that mortgage.

-David Driscoll