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  1. #1
    Connoisseur
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    Diageo Special Releases

    Diageo has announced the 2013 special releases. As was the case in 2012, they once again substantially raised prices on some items. There is now a 37 year Lagavulin priced at a breathtaking £1,950. The new Port Ellen is £1,500 - take a look at the Port Ellen price history:

    2010: Port Ellen 10th...34yo.....£250
    2011: Port Ellen 11th
    ....32yo.....£350.....40% YOY price increase
    2012: Port Ellen 12th
    ....32yo.....£600.....71% YOY price increase
    2013: Port Ellen 13th
    ....34yo...£1,500...150% YOY price increase

  2. #2
    Guru
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    To infinity, and beyond!
    ¡Geaux Tigers! - ¡Visca el Barça!

    "Really though, my hands are sore. The tool was doing it's thing with a flex hose." -Barrel_Proof

  3. #3
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    Re: Diageo Special Releases

    Quote Originally Posted by ChainWhip View Post
    To infinity, and beyond!
    This looks to be more correct than you might think. Take a look at the second derivative and you will see the rate of change (YOY price increase) nearly doubled each of the last three years. Port Ellen is on an exponential growth trajectory! Doing the math this would mean that with current trends:

    2010: Port Ellen 10th...34yo......£250
    2011: Port Ellen 11th
    ....32yo......£350.....40% YOY price increase
    2012: Port Ellen 12th
    ....32yo......£600.....71% YOY price increase
    2013: Port Ellen 13th
    ....34yo....£1,500...150% YOY price increase
    2014: Port Ellen 14th....32yo....£6,000...300% YOY price increase

    Quite obviously, this will not happen, but it goes to show how unsustainable and out of control these price increases are.


  4. #4
    Bourbonian Of The Year 2013 and Guru
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    Re: Diageo Special Releases

    Quote Originally Posted by LostBottle View Post
    This looks to be more correct than you might think. Take a look at the second derivative and you will see the rate of change (YOY price increase) nearly doubled each of the last three years. Port Ellen is on an exponential growth trajectory! Doing the math this would mean that with current trends:

    2010: Port Ellen 10th...34yo......£250
    2011: Port Ellen 11th
    ....32yo......£350.....40% YOY price increase
    2012: Port Ellen 12th
    ....32yo......£600.....71% YOY price increase
    2013: Port Ellen 13th
    ....34yo....£1,500...150% YOY price increase
    2014: Port Ellen 14th....32yo....£6,000...300% YOY price increase

    Quite obviously, this will not happen, but it goes to show how unsustainable and out of control these price increases are.

    Not unsustainable so far!!
    JOE

    Wag more.
    Bark less.

    "Every bottle is its own learning experience." -- Sensei Ox-sama

  5. #5
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    Re: Diageo Special Releases

    Some commentary on the subject: "Whiskey for Fools"
    That yella whiskey runnin' down my throat like honey dew vine water and I took another slash…

    Nullum Gratuitum Prandium
    Ne Illegitimi Carborundum

  6. #6
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    Re: Diageo Special Releases

    I am of two minds about this Port Ellen price increase. On one hand, it drives the price well beyond the reach of most people, which is a bit sad. However, the reality is that the price was already pretty much at that point and many bottles were being sold on the secondary market for extravagant sums anyway. This new price increase effectively drives speculators out of the market and put the profits directly in the hands of the producer - better to have someone who actually had a hand in producing the product see the proceeds than some rent-seeking middleman who did nothing...

  7. #7
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    Re: Diageo Special Releases

    Agreed, and for a quick history lesson on my behalf. Is the driver of the price the age, or more to the fact it's a long gone distillery?

  8. #8
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    Re: Diageo Special Releases

    The Port Ellen phenomenon is the culmination of the facts it is a good malt of substantial age, it is a silent distillery with shrinking stocks, and the general whisky madness that has pervaded the globe. These have all combined to turn it into the obscure darling of the Scotch world - the trophy bottle.

    In regards to the remaining stocks, Diageo has been very cagey on this issue; some speculate there is more PE left than what they let on as they have been claiming low supply for years now. I know Diageo was aggressively buying back Port Ellen stock from independents. I would guess they paid a high price for some of it as they wanted to own the PE market to ensure continued releases while also eliminating some competition and allowing them to charge at will.

    Perhaps some of the price increase is recouping increased cask costs, perhaps some of it simply increasing profit margins because they know they can get it. The bottom line is that I have no doubt that even into this new four figures pricing, this will not be found on the shelf - I am just wondering how far they can actually push the envelope.

  9. #9
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    Re: Diageo Special Releases

    The Diageo Special Releases went on sale at 6am PST this morning at Royal Mile Whiskies (pre-orders). Even with the new pricing scheme, the Port Ellen 13th and the Lagavulin 37 look to have sold out within minutes.
    Last edited by LostBottle; 11-11-2013 at 12:04.

  10. #10
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    Re: Diageo Special Releases

    Quote Originally Posted by LostBottle View Post
    The Diageo Special Releases went on sale at 6am PST this morning at Royal Mile Whiskies (pre-orders). Even with the new pricing scheme, the Port Ellen 13th and the Lagavulin 37 look to have sold out within minutes.
    How many bottles of each did you order?

 

 

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