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Saturday
May242014

Global Pressure

There was a recent blurb in The New Yorker about the housing market in Vancouver; a city where the median income is $70K, yet the price of single family home is close to a million. James Surowiecki writes:

When price-to-income or price-to-rent ratios get out of whack, it's often a sign of a housing bubble. But the story in Vancouver is more interesting. Almost by chance, the city has found itself at the heart of one of the biggest trends of the past two decades––the rise of a truly global market in real estate.

That's a crazy idea––to think that you're competing for a place to live with people who don't live in your place.

Surowiecki continues:

The globalization of real estate upends some of our basic assumptions about housing prices. We expect them to reflect local fundamentals––above all, how much people earn. In a truly global market, that may not be the case. If there are enough rich people in China who want property in Vancouver, prices can float out of reach for the people who actually live and work there. So just because prices look out of whack doesn't necessarily mean there's a bubble. Instead, wealthy foreigners are rationally overpaying.

When the price of Macallan 25 went from $250 to $800, I thought we'd never sell a bottle again. Of course, that mindset reflected what I knew about the global market at that time. When I finally got the opportunity to buy Mac 25 again, after a multi-month shortage, it didn't take more than a day to sell every bit of it. A gentleman from Hong Kong called me immediately, said he'd take all sixty bottles ($50K worth of single malt), presented me with a bill of lading as not to pay local sales tax (showing his intention to ship the whisky back to China), and sent a driver to pick up the goods. I quickly learned there were K&L customers out there I never knew existed.

So when you see these ultra high-end bottles evaporating like the morning dew off of your front porch, yet you can't imagine anyone you know purchasing them, remember that it may not be someone from your neck of the woods; it may be someone from a land far away, with deep pockets full of a currency that stands strongly against our weak dollar.

The boutique liquor industry has quickly become a global economy. When supplies are limited, savvy consumers will look elsewhere for their desired share. That place might be your local liquor store, or it may be K&L.

-David Driscoll

Friday
May232014

Photo of the Day

-David Driscoll

Friday
May232014

A Reminder of the Microcosm

It's easy to get wrapped up in the issues of the most vocal, and even easier to believe that the most vocal represent the majority of opinion; simply because they're so vocal. The squeaky wheel gets the grease, they say.  But I watched Ted Turner's WCW wrestling promotion cater to internet "smarks" (smart fans) in the late 90's and crumble into bankruptcy after scripting their show to please a vocal, yet relatively small base of loyalists. I've also worked at several establishments that completely changed their operations due to one or two negative Yelp reviews, to the chagrin of the silent majority. That didn't end well either. When you read something online, or see a certain point-of-view repeated in print, you can't help but think to yourself: "This is what people think, eh?" But to get caught in that trap is to fall victim to a skewed sense of reality.

I think one of the most difficult aspects of the liquor business for whisky superfans to understand is how relatively tiny our influence is: both our vocal influence and our economic influence. Even more important is how little others care for the amount of passion we all exude. For those of us who communicate with the online community, we tend to look around at other blogs, message boards, and chat sites to see what people are thinking. What are they talking about? What are people excited about? What are they upset about? We sometimes think these vocal enthusiasts -- those writing and commenting -- are a representation of whiskey drinkers as a whole; at least I do. But everytime I think that way I realize quickly how wrong I am.

Let's look at some of the pet peeves of the online whisky world as an example:

Misleading Labeling/Packaging: Do you want to know how many times I've ever had a customer come back in anger when they found out that Whistle Pig rye was made in Canada, and not Vermont? Never. It's never happened.

Do you want to know what happens when I tell people that Whistle Pig is Canadian whiskey? Nothing. They might say, "Oh.....is it still good?" and then buy a bottle anyway. While provenance is a hot-button issue online, it means next to nothing in the day-to-day conversations of the K&L retail stores: and we're a store that actually caters to people who care about this!!! We tell people all the time about misleading label information and often they respond with, "Ok, are you done talking yet? I need to buy this and go."

Shortages/Price Increases: There's a very sarcastic and rather sardonic attitude online about what's really going on in the booze industry. Many people believe the idea of a whisky shortage is a marketing tool used to increase sales. Regardless of how true the information we're hearing is, there is one very simple motivator when it comes to retail capitalism: can you get something when you want it for the price it should normally cost?

We can write articles about how there's no real shortage, we can complain about rising prices due to these distribution blackouts, but in the end people don't rely on internet writers to tell them what is or isn't going on with their whisky. 99.999% of whisky consumers go to the store and buy what they want. If the bottles they want are not there when they want them, they get upset. If obtaining their whisky of choice becomes a hassle, they buy more the next time around so that they don't have to deal with the hassle in the future. You can call that a shortage, or you can call that poor distribution, but it really doesn't matter what we call it because it doesn't change the reality of the situation. People will figure out what's true and what isn't when they go back to the store and either find what they're looking for, or see a gaping hole where their favorite whiskey used to be.

The Lack of an Age Statement: See my experience with customers concerning misleading labeling and packaging.

I used to be very passionate about all three of these issues when it came to my writing because there wasn't much information out there when I started this blog (plus, these were new problems at the time). When it comes to my personal drinking, I still am. I want to know where my whiskey is made and who made it, for sure. It's what I enjoy about drinking and the research that I do. But, while it's important to many of us, don't assume that it's important to everyone. In fact, assume that it isn't (because really it isn't). It's not that people are idiots, it's that they don't care as much as we do. And there's nothing wrong with that. We can care about our issues all we want, but we shouldn't get mad when people ignore our explanations and continue to buy what they like.

As one blogger wrote me in an email a while back:

We should treat our readers like they're smart whisky lovers not dolts we're trying to save from burning themselves.

I couldn't agree more.

-David Driscoll

Thursday
May222014

Dramarama Deal #1

I'm a total gossip at heart, and I loooooove me some drama; hence my penchant for professional wrestling and reality television. The booze industry is rife with eccentric personalities, which is a big part of what I enjoy about working in it. That being said, while I love to hear about behind-the-scenes dirt and I constantly pepper my sales reps for juicy tidbits, I'm not someone who likes to talk shit myself. I don't have anything bad to say about any of our competitors and I don't really care about other people who work in the industry that don't affect K&L's day-to-day business. That means other retailers, other bars, and other booze companies -- I don't know what they're up to, I don't care what they're up to, I don't care what their pricing is, I don't look at their websites, I don't care what deals they're getting, and I don't care if they've got more hooch than us. I don't care. Period.

I do care about two things: getting our customers great booze at great prices, and forming strong relationships with the companies that allow me to do this. That's about as far as my concerns take me and doing those two things well requires me to focus completely upon their accomplishment. There's no time to worry about the other guys, especially when they can't keep up with our pace anyway. David OG and I can outwork and out-hustle anyone -- any time, any place, and day of the week. I react to a challenge by working harder, not by getting upset.

I take pride in my work and my dedication to this position. I've always let our actions and our products back up all of our hype. That's the best way to make a statement, in my opinion. I have never once complained to a rep about another store's pricing, bitched about another store's allocations, threatened a brand with dismissal to get favorable pricing, or influenced key accounts to change their attitude about competitors. Again, that would require me to care about other competitors, which I don't. Plus, it just makes you look bad, griping about like a disgruntled benchwarmer. It's embarrassing, really, and it doesn't reflect positively on the person doing it. Nevertheless, that's the way a few of our competitors are reacting to K&L's recent prominence in the booze world and this week's drama newsletter was full of more national retailers taking shots at us, complaining about our abilities, and wanting to diminish our success. The word spreads quickly though the industry grapevine, and I just have to laugh and take it as a complement.

Other than note that it's happening, I don't really have a reply. I try to let our deals do the talking, which is why -- to celebrate the recent drama regarding K&L in the booze world -- I'm going to unleash a K&L Dramarama deal of the week! The more hot deals we release, the more national drama we'll create, which will lead to more frustration and anger, and hence: more K&L Dramarama deals! The more I hear about complaints from competitors, the more I'm going to lower pricing. I'm going to turn this negative mojo into a positive for our customers. Let's start with this:

The Singleton of Glendullan 12 year old Single Malt Whisky 1L $27.99 (elsewhere $49.99) - A soft and easy-drinking 12 year old Speyside single malt from a marriage of both Bourbon and Sherry casks. Glendullan does a 75 hour fermentation to create a fruity, light-bodied profile in the style of other Dufftown area producers like Glenfiddich. The Singleton 12 year, however, is much more complex and richer on the finish than its larger competitor. A kiss of vanilla on the entry and a flurry of sweet grains on the palate make this a simple, straight-forward, and delicious deal. At $27.99 for a LITER, how can you say no? Why not get a case! (NOTE: due to the size of the 1L bottle this item ships like a 1.5L bottle which increases shipping costs a bit)

-David Driscoll

Wednesday
May212014

Whisky Season 2014 Kicks Into High Gear

The Signatory warehouse in Pitlochry is the warehouse that keeps on giving. This should wrap up the first batch of barrels due in at the end of summer. We'll get back to you in a few weeks about the second drop planned for later this winter.

Now get ready for more barrels from someone besides Signatory! But, of course, check through these first:

1992 Bruichladdich 21/22 Year Old Signatory K&L Exclusive Single Barrel Cask Strength Single Malt Whisky $139.99 - Now that Bruichladdich has been purchased by Remy and the older stocks have become harder to find, we just couldn't pass up the opportunity to bottle a 20+ year old hogshead of the unpeated Islay distillate -- especially for a price this hot! At 53% cask strength, the malt is bold enough to offer a bit of a kick, yet reduced enough to allow the more delicate side of the whisky to shine. The salty, supple notes are apparent right on the initial sip, bringing back memories of Bruichladdich's "Waves" expression, albeit with much more complexity and age. The stone fruits are soft and enticing, with more saline, maritime notes undulated under "waves" of richness and oily textures. If you were ever a fan of Bruichladdich from the old Susan Purnell days here at K&L, then this whisky is like a nostalgic ride down memory lane. This is the flavor that many a K&L customer cut their teeth upon, and at the price we're selling it for, it's not all that much more than it cost back then. For all the whiskies we taste in Scotland each year, this is the flavor profile I've found most difficult to duplicate -- mature Island whisky without smoke. (David Driscoll, K&L Spirits Buyer)

2002 Bowmore 12/13 Year Old Signatory K&L Exclusive Single Refill Sherry Hogshead Single Malt Whisky $74.99 - Bowmore is ALWAYS such a sleeper for us. Each year, we find a cask or two of Bowmore that we absolutely fall in love with. There are so many reasons why Bowmore is special, it's hard to pinpoint why exactly we love it so much. Is it because they are malting more than 25% of the barley on site? Or perhaps it's the fact that the distilleries main warehouse sit below sea level. Maybe it's the incredible resources and expertise that the distillery has or the peculiarity of the stills. Either way, we are absolutely entranced by most millennial Bowmore. This 2002 was so taught and powerful at full strength that we decided to experiment with bottling at lower proof. When we added water the whisky turned around and smacked us right in the face! What started as a sharp spear of smoky and peat seemed more like a catapult with a flaming ordinance. Not as bracing or angular, the lower proof actually broadens the whisky considerably. It's smoked seawater, strange spices, and wisps of wild dried fruits. Bowmore deserves to be expensive, but this whisky delivers far beyond its price point. Inevitably it will go unnoticed, until you know, someone notices and buys it all. It's always the same with Bowmore, so get a head of it. (David Girard, K&L Spirits Buyer)

1983 Caol Ila 30/31 Year Old Signatory K&L Exclusive Single Barrel Cask Strength Single Malt Whisky $259.99 - We just can't stay away from these old Caol Ilas. Maybe it's because they're the last old Islays available, but we keep coming across these casks of Caol Ila that are just on fire. Caol Ila (arguably the most unsung Islay distillery) was spared closure in 1983, while its sister distillery Port Ellen was not so lucky, and reliably churned out whisky throughout the 80's whisky slump to provide a smoky base to the big name blends. While collectors the world over search for the final few bottles of Port Ellen left out there, few realize that if they just expanded their horizons slightly, they'll find equally wonderful old Islay whisky is still being produced and I might even call it affordable. This spectacular cask from the Signatory warehouses is strikingly different from the 32 year we released last year. Here, we have much less focus on the exotic wood, earth and funk and much more classic Islay in every sense. We can go down the list and describe the expected and clearly evident flavors, smoke, ash, brine, lemon peel, oyster shell, nuts, it's all there. It takes a slightly herbal turn on the finish, but remains above all other things powerful yet balanced. Of course, that doesn't tell you anything about how special this whisky actually is. All I can say is that Caol Ila is one of our favorite distilleries and this malt is exactly why. (David Girard, K&L Spirits Buyer)

1998 Laphroaig 15/16 Year Old Signatory K&L Exclusive Single Refill Sherry Butt Cask Strength Single Malt Whisky $159.99 - Des McCagherty is a man of few words, but when he said to us, "You might want to load up on Laphroaig this year," we listened. Apparently, this is one of the most difficult and costly distillates to purchase on the independent market and stocks are depleting faster than ever from Signatory's Pitlochry warehouse. A yearly barrel of two of Laphroaig at K&L has become commonplace since we started our barrel program and we don't want that to change -- at least not while we can help it. That's why we snagged this 16 year old sherry butt of peaty goodness, full of big smoke, cinnamon, tar, and brine, but rounded out by a rich, sherry-laden note that fans of Laphroaig's PX edition will recognize. That combination of sweet and peat is one of the most popular flavor profiles on the market right now, which always adds a few dollars to the cost. In this case, it's fully worth it. The sherry adds the perfect raisiny balance to the bold, ashy flavors of the 61% spirit. If you've already loaded your cabinet with numerous, collectable bottles from Islay's iconic distillery, then I won't say that this bottle will offer anything new to your selection. However, if you've been taking mature, full proof, relatively-affordable, single barrel expressions of Laphroaig for granted, you might want to start thinking about snagging a few of these. That's what we did, at least. (David Driscoll, Spirits Buyer)

-David Driscoll