A rare whiskey for drinking, not for investment

Whiskey Business: City AM’s monthly look at the world of whisky.

Founded in 2017, Casks of Distinction was created by Diageo to offer something different to the world’s most devoted whiskey collectors – 12 unique casks selected from the group’s vast whiskey collection known as “The Twelve.”

The drinks giant has around 30 distilleries across Scotland – 20 per cent of the country’s distilling capacity – as well as 20 million barrels aged at various locations in the country.

The majority of capacity produced across Diageo’s portfolio is used for blended whiskeys and most of the company’s distilleries have no single malts on the market.

“While renowned distilleries Talisker and Mortlach remain an important and central part of the cask list, there is increasing interest from collectors in lesser-known distilleries that may add a distinctive edge to their collection,” said Tod Bradbury, Global Private Client Director, Diageo.

A good example is the Glenlossie distillery. Renowned for its light floral nature, which is complemented by a fresh, grassy maltiness, more than 90 percent of Glenlossie’s production goes into blends. This year, Glenlossie 1994 Cask No. 110 is one of 12 casks alongside the star of the show, the 1984 Mortlach cask.

Keg No. 110 is a Glenlossie Speyside single malt cask, a first fill American oak sherry cask, estimated to produce 151 bottles. “Every once in a while we get a singularity like this… that can unearth something so remote, that it has an extra layer of specialness for a collector,” said Rajan Virdee, Private Client Manager, Justerini & Brooks.

With so many casks stocked in Scotland, it takes time for the Diageo team to identify 12 casks worth showing each year.

The team estimates that around 4,200 hours are spent each year by Diageo Master Blender, Dr Craig Wilson, in selecting the 12 casks.

The team looks for “singularities, these moments,” ensuring that “each whiskey is served at its peak, respecting the heritage of the distillery and the rarity of remaining stock,” says Tod.

“We carefully balance iconic distilleries with more esoteric offerings… there is increasing interest from collectors in lesser-known distilleries that might add a distinctive edge to their collection.”

Casks of Distinction: Selected for drinking

One thing that a Casks of Discintion scheme is not is a cask investment scheme.

When clients purchase one of these carefully selected casks, they can, if they wish, leave the cask at the Royal Lochnagar distillery on Royal Deeside for a further five years, but that’s the limit.

The program has been designed from the start to focus on the quality of the liquid, its age, rarity, and the experience of owning, visiting, and personally bottling the barrel.

Most clients are “emotionally attached” to their barrels, Raj said and only one or two want to sell them. “I don’t know anyone who has a stubborn attitude towards this product, like, I want to buy it, put it in a bottle, and put it on the auction market,” he added.

In fact, most clients bottle the casks before the five year mark. For example, last year, Casks of Distinction featured a 1975 Talisker.

Purchased at 49 years old, the buyer wanted to bottle the cask when the whiskey reached its 50th birthday. When bottled, it will be the only 50-year-old Talisker ever made. “But it’s a private collector, so you can’t own it,” Raj said.

Curate products

Clients can control everything besides the results. The total number of bottles produced depends on many factors. “There are so many variables that determine crop yields,” says Raj.

Yields depend largely on the type of barrel and the “angel’s share” (evaporation). A large Sherry butt can yield 450 bottles, while an older, rarer bin can yield as few as 117 or 133 bottles.

Interestingly, low yields are not always seen as a negative thing; for collectors, “a limited run (for example, 133 bottles of Mortlach) becomes part of the cask’s story, adding to its exclusivity and long-term value, not detracting from it,” says Tod Bradbury.

On the other hand, Raj notes that some clients avoid large kegs, and asks, “What would I do with 450 bottles?” He adds, “While smaller casks from lesser-known distilleries could be a great entry point for someone.”

The bottling process is included in the purchase price of the cask and is designed to give the whiskey the quality it deserves. If a client doesn’t have a specific date in mind, the whiskey team provides expert guidance on the “optimal moment” for bottling, ensuring the liquid is captured at its peak. For some clients, bottling is what matters most.

“We have some clients who, two barrels in a row, they want, instead of visiting the barrel, they want to attend the bottling,” Raj said.

“So we flew them in, checked their health and safety, and they watched the kegs being bottled,” he added. “And we arranged for them to write the first 12 labels themselves.”

For Diageo, packaging 133 bottles in a small batch would simply be a unique experience, and that’s what the team wanted to achieve.

As well as being present for bottling and label writing, clients can choose colours, artwork and add Dr Craig Wilson’s signature. But what is important is the ability to choose the age and use the distillery name, sourcing casks from “completely haunted” distilleries such as Pittyvaich (closed in 1993 and later bulldozed into a car park), or hidden gems, such as the Mortlach 1984 chosen specifically because it was aged in American oak refills that differ from the distillery’s typical Sherry-forward character.

Other casks included in the Casks of Distinction program include a 1979 Port Ellen, one of the last remaining casks from the legendary Islay distillery’s original stock.

There is also a 1977 Brora (Cask No. 2845), a 47-year-old cask that is the centerpiece of the 2024 “The Twelve” collection, one of a limited number remaining from before the distillery’s initial closure and a 1968 Glenury Royal: Vintage that matured for more than half a century, producing just 192 bottles.