In 2024 The Macallan distillery celebrates its 200th birthday. Announced back in January with high-budget graphics and characteristic sleek styling, the number 200 morphed into the self declared essence of Macallan whisky, and the infinity symbol. Their birthday year has continued to be a star studded event. Collaborations with Bentley, events from Cirque Du Solie, songs from Emelie Sande as well as special releases like the new Red collection 72 year old, new home collection and latest Tales of The Macallan have already been announced, and we expect the celebratory releases and events to continue throughout the rest of the year.
Macallan has become so dominant in the whisky market over recent years that it can be easy to dismiss the “200 Years Young” launch. But while the official campaign may focus on the infinite future of the distillery, exploring their 200 year journey to reach this point offers fascinating insight into the brand. You do not become the world’s most traded single malt scotch whisky overnight and I’d argue that the symbolism might also be apt for describing the cyclical nature of the industry.
Macallan Was Founded In 1824
The Macallan distillery is by no means the oldest in Scotland. For scotch whisky distilleries only just turning 200 barely gets you into the oldest 30. The distillery itself was originally called The Elchies distillery when it was licenced to Alexander Reid in 1824. It was 1892 when Roderick Kemp took ownership and the distillery became known as Macallan-Glenlivet.
Back in the day the “Glenlivet” suffix was used by numerous distilleries as a popular marketing tool. Macallan dropped it in 1980. This was a pivotal moment in the distillery’s history as they fully shifted focus to promoting themselves as a single malt whisky distillery.
As with most historic distilleries, today’s physical distillery is much removed from that of 1824. It was rebuilt and expanded multiple times in its 200 year history. The latest completed in 2018 with a brand new multi-million pound distillery and visitor center that was purpose built to meet the needs of a global whisky distillery and luxury brand. The distinctive wave roof of the new distillery is even echoed in the 200 Years Young campaign branding.
The Macallan, The Market
However you feel about Macallan’s status as a collector’s item or the secondary whisky market, you cannot deny what they have achieved. Especially over the last 50 years.
After the Second World War the global demand for whisky had never been higher. Booming demand led many distilleries to overcompensate for shortfalls caused by the war and by the end of the 1970s the effects were already being felt. During the dawn of this uncertainty Macallan made the decision to switch their focus to promoting themselves as a single malt whisky. The market crash and the 1980s “whisky loch” saw 33 distilleries close, some permanently, others just for a few years. Macallan on the other hand were just getting started.
Signup now to make sure you don't miss out on the latest whiskey news and deals.
By Signing up, you accept and agree to our Terms of Services and you acknowledge our Privacy Statement. The Whiskey Wash is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply.
“There was stock of such quality [in the warehouse] that you wouldn’t have seen anywhere else in Scotland. It was a marketing person’s dream,” Hugh Mitcalfe explained to Scotchwhisky.com about joining Macallan in the 1970s. It put Macallan in an enviable position early on in their shift to single malt. By 1983 they were already able to release the Anniversary Malt 25 year old and 50 year old.
Older age statements in whisky are becoming more common. But even today not every distillery can release a 50 year old. Whisky casks’ status as wasting assets are based on the fact that they generally last less than 50 years. Getting casks past 50 often used to be based on luck, but today older casks are carefully monitored assets.
It is arguable that Macallan’s success can be traced back to the 1980s when they used the impressive stock of mature casks to launch themselves as a single malt. Those early releases—the 25 and 50 year old Anniversary Malts, the ongoing 18 Year Olds, the 1926 60 Year Old, just to name a few—have become the backbone for the secondary whisky market. It’s not that whisky from other distilleries wasn’t, or isn’t collectable, but those keystone series stand out because of their inherent collectability. Of course, high age statements and vintage whisky alone aren’t enough to create a luxury brand, and the incredible work done by the marketing team around those releases are just as important. The contributions of the team built by Willie Phillips, Hugh Mitcalf and the likes of David Holmes should not be understated.
The Industry Catches Up
It was 1993 before Bowmore released the first Black Bowmore and 2002 before Dalmore joined the premium single malt market. By 2002 Macallan had already held the record for most expensive whisky in the world for 20 years, having set the first and four subsequent records. The same year Macallan was preparing to release the Fine and Rare Series and the previous year had opened its visitor center.
It was not the only distillery to open a visitor center, and again wasn’t the first by far. Neither was Macallan the only or first distillery to do artist collaborations, 60 year old releases or any of the other micro decisions that have culminated to put them where they are 200 years after they distilled their first whisky. But what they do, it is arguable that they have done it better and across more mediums, than everyone else.
Macallan has held the world record for most expensive bottle of whisky more times than any other distillery. It was a bottle of theirs that was first to break the one and two million pound marks. Bottles from the distillery dominate the secondary auction market in terms of both value and volume. They almost certainly endorse the secondary whisky market because high value sales benefit their status as a brand, but they are also carefully distant from it.
The Peak Of Secondary Whisky Market?
Back in 2022 the secondary whisky market was booming. Both short term investors looking for an alternative to dismally low bank savings rate and longer term bottle buyers with a high disposable income created a thriving auction market and record setting prices.
This was also a boom time for the likes of crypto markets, and there are similarities to be seen; young investors following online trends and easily able to buy and sell for a quick profit while success stories were celebrated and widely circulated through social media. The buoyancy of the 2022 whisky market was perhaps epitomized by the sale of a Folio 1 for £16,000; a bottle which retailed at £250 in 2015. Skip forward to 2024 and we are in a very different landscape.
The end of 2023 saw a new record for the world’s most expensive whisky but the general trends in the whisky market have been down. The Macallan Folio 1 is a prime example of the changes: prices dropped steadily through 2023 and by January 2024 you could add the once £16,000 bottle to your collection for a tidy £4,100.
What Does That Mean For Macallan?
Macallan has a disproportionate impact on indexes because of how dominant they are in the volume of sales in the secondary auction market. This is itself a testament to their overall success in positioning themselves as a luxury status symbol.
By far the biggest volume of bottles on the market are bottles favored by short term, get rich quick investors that had been hoping to buy the next Folio 1 and retire early. As these investors withdraw from the secondary market due to external economic factors—recessions, cost of living crises, high bank savings rates etc.—then that portion of the auction market becomes disproportionately impacted.
It’s not just Macallan that is down in this area. Other infamous flipping bottles from the likes of Springbank are also seeing corrections. In 2024 the era of flipping bottles for huge profits in a matter of weeks may be coming to an end. Or at least on hold.
However, significant price corrections are largely for that type of bottle; bottles bought and sold by people who came to the whisky market to make a quick profit. Few bottles have seen the kind of 75% drop in value seen for the Folio 1. The general trend across indexes is down a few percent, which isn’t too worrying for patient, long term investors who have made considered investments. Drilling down you can also see variation in performance between distilleries that shows some are even up over the last 12 months.
Let’s be clear, in large portions of the auction market it remains a buyers market right now. But that doesn’t mean the whisky market is over. In fact it is something a considered investor can take advantage of.
Macallan In 2024
There are a couple of things to consider in terms of the effects on Macallan itself. Firstly, the bottles at auction are ones Macallan have already sold and turned a profit on. Secondly, Macallan has remained consistent with their retail pricing for the bottles that are prone to flipping; it has been the open market driving prices up rather than the distillery.
While the secondary market is likely important to Macallan in terms of driving status, at the very pinnacle of the secondary market they are still the most expensive. In fact they’re so dominant that the record was extended even when the rest of the market was showing signs of slowing. All this means they are somewhat insulated from the changes within the secondary market.
The secondary whisky market is in a period of change in 2024. But it is hardly the first time that has been said throughout the 200 year history of whisky distilling at Macallan. Even the last 50 years where they have been focused on single malt.
The Macallan, The Disruptors?
Macallan were the disruptors of their day. The 1980s whisky loch was the downfall for many other distilleries but marked the start of Macallan’s next era. It is easy to trivialize Macallan’s achievements in the light of their dominance today. However it is narrow minded to focus just on negatives, a snapshot performance, or singular bottles within a huge secondary market. The dominance they have achieved is—to borrow a word from Macallan’s own marketing—remarkable.
As we look at the current changes within the auction market perhaps the infinity symbolism within Macallan’s 200th year logo is more apt than you might first realize, marking the cyclical as well as continual nature of the whisky industry and market.