Introduction.
‘Whisky’- the term derives originally from the Gaelic ‘uisge beatha’, or ‘usquebaugh’, meaning ‘water of life’. a i branch of Celtic spoken in the Highlands of Scotland.
When was Scotch Whisky first distilled?
In Scotland, Whisky has been distilled for hundreds of years. It has never been proved that Highland farmers did not themselves discover how to distil spirits from their surplus barley but there is evidence to show that the art of distilling could have been brought to the country by Christian missionary monks. The earliest historical reference to whisky comes much later, Mr J Marshall Robb, in his book ‘Scotch Whisky’, says: ‘The oldest reference to whisky occurs in the Scottish Exchequer Rolls for 1494, where there is an entry of ‘eight bolls of malt to Friar John Cor wherewith to make aquavitae’. A boll was an old Scottish measure of not more than six bushels. (One bushel is equivalent to 25.4 kilograms)
When King James IV was in Inverness during September 1506, his Treasurer’s Accounts had entries for the 15th and 17th of the month respectively: ‘For aqua vite to the King. . .’ and ‘For ane flacat of aqua vite to the King. . .’. lt is probable that the aquavitae in this case was spirit for drinking.
The earliest reference to a distillery in the Acts of the Scottish Parliament appears to be in 1690, when mention is made of the famous Ferintosh distillery owned by Duncan Forbes of Culloden.
There is also a reference to distilling in a private house in the parish of Gamrie in Banffshire in 1614. This occurs in the Register of the Privy Council, where a man accused of the crime of breaking into a private house, combined with assault, was said to have knocked over some ‘aquavitie’.
One of the earliest references to ‘uiskie’ occurs in the funeral account of a Highland laird in the year 1618.
An unpublished letter of February 1622, written by Sir Duncan Campbell of Glenorchy to the Earl of Mar, reported that certain officers sent to Glenorchy by the King had been given the best entertainment that the season and the country allowed. It stated: ‘For they wantit not wine nor aquavite.’ This ‘aquavite’ was no doubt locally distilled whisky.
Another writer affirms that aquavitae occasionally formed part of the rent paid for Highland farms, at any rate in Perthshire, but no actual date is given for this practice.
Types of whisky.
SCOTCH WHISKY
Scotch whisky is always spelled without the e. In order to be officially called Scotch whisky:
The spirit needs to mature in oak for at least three years
Production and maturation must take place in Scotland.
Single malt Scotch whisky must be made from 100% malted barley.
IRISH WHISKEY
Irish whiskey is always spelled with an e – this is a key difference between Irish whiskey and Scotch whisky.
Irish whiskey uses little or no peat, so there is usually no smokiness in these whiskies.
Irish whiskey may contain a distillate of malt, a barley distillate and a portion of grain spirit.
Irish whiskey is distilled three times.
Like Scotch whisky, Irish whiskey must be matured for a legal minimum of three years.
BOURBON
Bourbon is American whiskey that has been made from a minimum of 51% corn with rye and malted barley. Examples of bourbon include Jim Beam and Wild Turkey whiskey.
Bourbon is a very small area of Kentucky where bourbons were originally produced, but since 1964 American law has stated bourbon can be made anywhere in the USA.
In Bourbon whiskey, the residue from the pot still is mixed with the mash to create a ‘sour mash’ whiskey.
Distillation of bourbon usually takes place in a column still and then a pot still, but sometimes only column stills are used – Woodford Reserve operate a triple distillation in pot stills.
Bourbon spirit is always matured in fresh oak casks, which are charred to yield more flavour.
RYE WHISKEY
Rye whiskey is made in the same way as bourbon, but is made up of 51% rye. Examples of rye whiskey include Wild Turkey Rye and Jim Beam Rye.
Rye whiskies send to be spicier in character.
Tennessee whiskey is made in the same way as bourbon, but it is charcoal mellowed before maturation.
JAPANESE WHISKY
Japanese whisky came into being in the 1920s. It was inspired by Scotch whisky – Scottish academic institutions trained the first whisky makers of Japan. This means that the process of making Japanese whisky is very similar to Scotch whisky production, however Japanese whisky has no legal minimal maturation period.
Most blended Japanese whiskies do use an amount of Scotch malt whisky in their composition – usually this is aged over five years old.
PRODUCTION.
Pot Still Distillation.
The invention of distillation made high-proof spirits such as whisky possible in the first place. During distillation, an alcohol-water solution (beer or wort) is heated in a pot, and the alcoholic vapour is collected via a bent pipe. For the production of whisky this technique is applied with copper pot stills. The fermented liquid is filled into a big distillation pot and heated from below or from inside. The vapour is led up through the neck and subsequently cooled down so it becomes liquid again. After some hours the distillation is finished. This process is repeated one or two times in whisky production. However, the pot must be cleaned before the next batch.
In the original whisky-producing countries Scotland and Ireland, some whisky is still produced in a way that the taste is characteristically connected to the production process.
Column Still Distillation
During the industrialisation the principle of column still distillation was developed in Britain. This method allowed a continuous distillation process without having to clean the stills laboriously after each batch. This laid the foundation for affordable whisky. Especially the cheapest whiskies are produced this way today. In the big distilleries in the United States, all whiskey was distilled in column stills right from the start. You only rarely find a pot still there.
Whisky making.
THE MAKING OF MALT WHISKY
The origins of malt whisky distilling in Scotland are lost in the mists of antiquity. They date back at least to the monks of the 15th century and probably long before.
Although the distillers’ art has been understood since earliest times, the subtle aromas and flavours of whisky have never been fully explained, even today. The ancient term “uisge beatha”, which is Gaelic for the Latin aqua vitae or ‘water of life’, was corrupted in the 18th century to usky, and then to whisky. The following description is a generalisation of the process.
It should be remembered that each distillery has its own unique specifications.
1. Malting
Best quality barley is first steeped in water and then spread out on malting floors to germinate. It is turned regularly to prevent the build-up of heat. Traditionally, this was done by tossing the barley into the air with wooden shovels in a malt barn adjacent to the kiln.
During this process enzymes are activated which convert the starch into sugar when mashing takes place. After 6 to 7 days of germination the barley, now called green malt, goes to the kiln for drying. This halts the germination. The heat is kept below 70°C so that the enzymes are not destroyed. Peat may be added to the fire to impart flavour from the smoke.
2. Mashing
The dried malt is ground into a coarse flour or grist, which is mixed with hot water in the mash tun. The water is added in 3 stages and gets hotter at each stage, starting around 67°C and rising to almost boiling point.
The quality of the pure Scottish water is important. The mash is stirred, helping to convert the starches to sugar. After mashing, the sweet sugary liquid is known as wort. The spent grains – the draff – are processed into cattle feed.
3. Fermentation
The wort is cooled to 20°C and pumped into washbacks, where yeast is added and fermentation begins. The living yeast feeds on the sugars, producing alcohol and small quantities of other compounds known as congeners, which contribute to the flavour of the whisky. Carbon dioxide is also produced and the wash froths violently. Revolving switchers cut the head to prevent it overflowing. After about 2 days the fermentation dies down and the wash contains 6-8% alcohol by volume.
4. Pot Stills
In some mysterious way the shape of the pot still affects the character of the individual malt whisky, and each distillery keeps its stills exactly the same over the years.
In distillation, the still is heated to just below the boiling point of water and the alcohol and other compounds vaporise and pass over the neck of the still into either a condenser or a worm – a large copper coil immersed in cold running water where the vapour is condensed into a liquid.
5. Distillation
The wash is distilled twice – first in the wash still, to separate the alcohol from the water, yeast and residue called pot ale – the solids of which are also saved for use in animal feeds.
The distillate from the wash still, known as low wines, and containing about 20% alcohol by volume, then goes to the spirit still for the second distillation. The more volatile compounds which distil off first – the foreshots, and the final runnings called feints where more oily compounds are vaporised, are both channelled off to be redistilled when mixed with the low wines in the next batch.
Only the pure centre cut, or heart of the run, which is about 68% alcohol by volume is collected in the spirit receiver.
6. Spirit Safe
All the distillates pass through the spirit safe – whose locks were traditionally controlled by the Customs & Excise. The stillman uses all his years of experience to test and judge the various distillates without being able to come into physical contact with the spirit.
The newly distilled, colourless, fiery spirit reduced to maturing strength, 63% alcohol by volume, is filled into oak casks which may have previously contained Scotch whisky, bourbon or sherry, and the maturation process begins.
THE MAKING OF GRAIN WHISKY
1. Scotch grain whisky is usually made from 10-20% malted barley and then other unmalted cereals such as maize or wheat. The starch in the non-malted cereals is released by pre-cooking and converted into fermentable sugars. The mashing and fermentation processes are similar to those used for malt whisky.
2. The wash is distilled in a continuous or Coffey still, named after its inventor Aeneas Coffey. It has two tall columns – a rectifier and an analyser. Cold wash is pumped in at the top of the rectifier and meets steam. The columns in fact act like a heat exchanger. The alcohol is cooled, condenses and flows away as Scotch grain spirit at about 94% alcohol by volume.
3. The distilled grain spirit is lighter in character and aroma than most malt whiskies and therefore requires rather less time to mature. The bulk of matured grain whisky is used for blending.
THE MATURATION PROCESS
While maturing, the whisky becomes smoother, gains flavour, and draws its golden colour from the cask. A proportion of the higher alcohols turn into esters and other complex compounds which subtly enhance each whisky’s distinctive characteristics.
By law all Scotch whisky must be matured for at least 3 years, but most single malts lie in the wood for 8, 10, 12, 15 years or longer. Customs & Excise allow for a maximum of 2% of the whisky to evaporate from the cask each year – the Angels’ Share. Unlike wine, whisky does not mature further once it is in the bottle.
THE ART OF BLENDING
While the distinctive single malts produced by individual distilleries are becoming increasingly popular, blending creates over 90% of the Scotch whisky enjoyed throughout the world.
By nosing samples in tulip-shaped glasses the blender selects from a wide palate – from the numerous Highland and Speyside malts to the strongly flavoured and peaty Island malts, and the softer and lighter Lowland malts. These malts are combined with grain whiskies – usually 60-80% grain whiskies to 20-40% malt whiskies, and are then left to ‘marry’ in casks before being bottled as one of the world-renowned blended whiskies.
A blend of a range of malt whiskies, with no grain whisky included, is known as a blended malt.
The way we make Scotch whisky has evolved over several centuries, but the history of Scotch whisky embraces a much wider heritage; that of Scotland and its people.
Whisky is big business for the UK economy, with 10,000 people working in the Scotch whisky trade in Scotland alone.
The Scotch Whisky Association says the sector accounts for a quarter of UK food and drink exports, at £1.7 billion in the first half of 2015, and caters to 200 markets around the world.
But it’s not just drinkers who are enjoying the benefits of a single malt – collectors are raising a glass to strong profits.
How to invest in whisky.
If you are prepared to accept the risks and can afford to lose any money you invest, there are a number of ways to tap into the whisky market – from buying up bottles and investing in specialist funds to purchasing a share of the liquid in a cask. Here’s a closer look at some of the options.
Auctions
The Bonhams auction house is offering two rare whisky bottles during its Christmas auction on Wednesday December 9. There is a Laphroaig Old Liquer, bottled in the early 20th century that is expected to fetch between £6,000 and £7,000.
Alternatively, you could get your hands on a 60-year-old Royal Brackla. This bottle was part of a collection of 62 bottles made from a cask in 1924 that lay undisturbed until 1984.
The distillery was closed in 1985 but reopened in 1991 by United Distillers, with 62 bottles given to local dignitaries.
Very few of the bottles have ever been sold on the open market and this one is expected to get £3,500 to £4,500.
The very rarest tipples can go for an absolute fortune. Last year, a Macallan M Imperiale 6-litre Lalique decanter sold for £381,620 at a Hong Kong auction.
Whisky brokers
You could also buy direct from a broker or whisky collector, such as Aceo or RareWhisky101, but be prepared to dig deep into your wallet.
Last year, a collection of 100 bottles of a 50-year-old Glenlivet went on sale for £18,000 each.
There is no regulation or accreditation scheme for whisky brokers but it is worth getting recommendations from trade body the Scotch Whisky Association.
Do your research to make sure you are happy with the people you are dealing with.
Platforms
Rather than buy a bottle or cask, you can buy whisky as it matures. For example, WhiskyInvestDirect deals in litres of pure alcohol units and charges 1.75 per cent commission on trades.
Investors choose a distiller on the platform and their investment matures in the cask, for a minimum of three years. It is then bought back by one of the big whisky brands to be sold on the open market.
The investor gets any returns from the price paid and any profits made.
The minimum storage fee is £3 a month. WhiskyInvestDirect offers barrels from nine distilleries – Ardmore, Auchroisk, Benrinnes, Blair Athol, Cameronbridge, Dailuaine, Glen Spey, Inchgower and North British.
Funds and shares
You could also buy into whisky investment funds.
There are no UK funds doing this so you would have to look to an offshore investment, such as the Hong Kong-based Platinum Whisky Investment fund. You would need a lot of wealth to buy-in as the minimum subscription is $250,000.
This would not be protected by the FSCS, but you could also put money into a fund investing more generally in drinks businesses to spread your risk. You could also buy shares in big drinks producers.
THE COST OF WHISKY INVESTING
The set up costs for being a whisky investor can be low depending on how many bottles you want to buy and their price.
There are no other costs unless you want to pay a company for storage of a large collection and to insure it.
Whisky only needs to be stored at a constant level at room temperature and kept upright avoiding contact between the cork and the spirit inside.
There may be capital gains tax to pay when you sell up.
If you buy into a fund there would only be capital gains tax to pay if you hold it outside an Isa.
The tax treatment is complicated for those holding the bottles or actively trading them.
It is based on HMRC rules regarding ‘chattels’ or personal possession.
If you are not actively buying and trading then it could be treated as a ‘wasting asset’ and not be liable for capital gains tax.
But there are also rules that CGT is due when the proceeds of a single chattel is more than £6,000.
It is worth checking with an accountant or tax expert before buying or selling.
In Romania
Revenue in the Whisky segment amounts to US$85m in 2017. The market is expected to grow annually by 3.2 % (CAGR 2017-2021).
From an international perspective it is shown that most revenue is generated in the United States (US$9,842m in 2017).
In relation to total population figures, per person revenues of US$4.34 are generated in 2017.
The average per capita consumption stands at 0.3L in 2017.
While in other countries the production of whisky has a long history, in Romania it was announced recently only the beginning.
On September 11th 2017, Alexandrion Group has declared the debut of the first production of malt distillate which will stay at the roots of the first Single Malt produced in Romania. This marks a historical moment in Romania’s industry and the company will be the first to hold in its portfolio a 100% single malt made inland.
In the initial stage, the company will import raw materials but the future intention is to use only Romanian resources for the first 100% Romanian Single Malt. The product will be twice distilated and stored in casks and maturated at least 3 years in Bucov, Plesa.
THE ANGEL’S SHARE
The Angel’s Share is a complicated feature of Scotch whisky maturation. It is also a most amusing film by Ken Loach which explores the shenanigans around a mythical cask of Malt Mill.
As much as 5% of the volume of the new spirit we put into a cask will be quickly absorbed into the thirsty wood when it is initially filled – but it does not stop there. A smaller proportion, up to 2%, will go right through the grain each year and out into the atmosphere to be lost forever (unless you are an angel). It is therefore not uncommon for a cask that is fifteen years old to be half empty by the time it is bottled.
A number of physical factors can influence the rate at which the angels help themselves. The skill of the cooper who made the cask will obviously have an effect. Also, oak is a natural substance that varies, and so there will be differences between casks, even if they were made at the same time by the same cooper from materials from the same source. The skill and attention of the warehouse man also comes into play over the years. Casks that are turned regularly will not develop the tiny cracks which form over time in those staves which are not in direct contact with the liquid.
Even these variables are by no means the end of the story however. New make spirit is, in simple terms, around 70% pure alcohol and 30% water. The rate at which the two are drawn through the wood and out into the arms of the angels varies according to the humidity levels in which the casks are stored. Casks stored in humid conditions lose a greater proportion of alcohol than those stored at lower humidity levels. Conditions of low humidity draws more water through the staves – leaving a higher proportion of alcohol in the cask. So the rate of loss is not consistent. It varies according to geographical location.
There are other factors too. Temperature plays a part, as do other variables such as salinity. This why Islay maturation is of fundamental importance to Bruichladdich. It will be apparent that the unique cool, humid, maritime conditions in which our precious spirit spends those long years maturing plays a major part in shaping the character of our whiskies. We refuse to compromise on this most important issue. If we cannot mature our spirit on Islay we will stop distilling. It is as simple as that. There can be no compromise.
Interesting facts.
• With a license to distill Irish whiskey from 1608, the Old Bushmills Distillery in Northern Ireland is the oldest licensed whiskey distillery in the world.
• From 1920 to 1933, the American Prohibition era banned all production, sale, and use of alcohol.
However, the federal government made an exception: the prescription of medicinal whiskey from a Doctor, to be sold through a licensed pharmacy.
• When whiskey comes off the stills it’s perfectly clear –the dark colour comes from the white oak in which it’s aged. According to Chris Fletcher, Assistant Master Distiller at Jack Daniels, a barrel provides whiskey with 60 percent of its flavour and 100 percent of its colour.
• Whiskey is beer that’s been distilled two or three times. To distil whiskey, you first have to make beer. Beer is a technical term for whiskey wash, regardless of the type of raw ingredients used.
• Nikola Tesla drank whiskey every day. If anything Tesla was a workaholic, not an alcoholic. Yet he drank whiskey every day, while he labelled tea and coffee as unhealthy stimulants. Tesla was also practically a vegetarian and he did not smoke. He thought whiskey would make him live longer.
• The world’s largest producer and consumer of whiskey is in India.
• Tabasco sauce is actually aged in barrels that previously contained Jack Daniels whiskey.
• According to Scottish legend: people used to light some of the scotch on fire to determine how much alcohol was present. The colour of the flame indicated whether or not the alcohol content was right. If it burnt too hot, there was too much alcohol. They usually sold it to the distillery workers cheap.
• Blended whiskies take whiskies from various distilleries and combines them. The standard ratio of malt to grain is 60% grain whiskey and 40% malt whiskey. Each whisky used in the blending process has typically aged for approximately 5 years. It’s important to have it taste the same year after year.
• A closed bottle of whiskey will be good for 100 years, and after it’s opened, a half-full bottle will remain good for 5 years.
• In order to prevent workers from stealing whisky, distilleries would often give them a “whisky allowance”. This may have contributed to problem drinking with some workers.
Conclusions.
Bibliography
• ‘WHISKY HISTORY’, <https://www.scotchwhiskyexperience.co.uk/about-whisky/history>
• ‘WHISKY OR WHISKEY?’, <https://www.scotchwhiskyexperience.co.uk/about-whisky/whisky-or-whiskey>
• ‘Types of Whiskies’, <https://www.whisky.com/information/knowledge/production/overview/types-of-whiskies.html>
• ‘SCOTCH WHISKY – “THE WATER OF LIFE”’, WHISKY MAKING, <https://www.scotchwhiskyexperience.co.uk/about-whisky/making>
• ‘Would you pay £6,000 for a single malt? How to start whisky investing and make sure your returns don’t go sour’ <http://www.thisismoney.co.uk/money/diyinvesting/article-3350838/From-auctions-online-platforms-start-whisky-investment-make-sure-returns-don-t-turn-sour.html>
• “The Angle Share” < https://www.bruichladdich.com/article/the-angels-share >
Originally published 15.10.2019