I lived in Scotland for 6 years, and developed quite a taste for fine single malts. Now, I'm personally partial to the smokier Islays, particularly Ardbeg. I recently had a nice long visit to several of the distilleries and questioned them about pricing. There are several factors, the most important of which is just plain old increased demand for a product that hasn't kept up supply. The worldwide recession has apparently not affected whisky drinkers very much.
Here's something to think about. While in Aberdeen, I began to collect various examples, especially from closed and/or dismantled distilleries. I figured what's better than a consumable collectible? I occasionally check the retail prices of some of the rarer bottles, and can assure you that those prices have gone sky high in recent years. Examples...I paid 30 pounds (about $50) for a bottle of 1973 Longrow. That bottle is now worth over $2000. 1966 Springbank Local Barley at 70 pounds, now going for $3000. The point here is not the value of this collection, but rather that, just as in audio, folks will pay up for the best. If the supply of the best is limited, prices must rise. Pretty fundamental stuff.
I'll share one more little story. In 1996, I bought a bond from the founders of the Arran distillery. They sold this to start production, buy the equipment, and so on. In return, the boldholders received 7 cases of 'Founder's Reserve' single malt. Arran makes a very fine whisky, which I would describe as similar to one of the less peated Islays. Highly recommended if you can find it. meanwhile, if you're ever in the Houston area, come on by for some music and a dram or two.
