Why So Expensive?

So what makes whisky so expensive?

Age? Rarity? Collectors? Greed?

To be honest.... all of the above.

Well there are a number of factors I suppose. The cost of equipment, employees, storage facilities, bottling and the associated cost of that process, not to mention shipping costs. The length of time the spirit must remain in the barrels, be it 3, 10, 20 or more years. The 'angels share', that amount of the spirit that is lost to evaporation and seepage through the barrels. So yes, there are many factors that add to the cost the ones listed above are just a few, there are many more. 

OK, but does more expensive mean better? That is a question for the experts or the Gods and I have mentioned before, we are no experts nor are we Gods ;) But on that statement, no, expense doesn't always mean better. I've had the pleasure of having sampled several 'expensive' whiskies, from around $800.00 to $3200.00 and while there is definitely a taste difference, that's where it ends for me. I buy whiskies to drink them, not collect them. Its the collectors who are ruining the experience for the average whiskey enthusiast, in my opinion. Why would you buy something and never know what it tastes like and even if you did taste it, doesn't the thought of 'cost' per dram enter your thought process every time you pour a dram?

Another factor, well at least for us here in Ontario Canada, is the fact there there is a true lack of competition for selling. You see we have a government agency that run our availability of spirits and wine, its called the Liquour Control Board of Ontario, commonly known as the LCBO. Now, while they are OK at supplying the basic liquours, they don't cater to the more educated whiskey lovers, but when they do (every so often) the charge stupid amounts of money. Typically the LCBO adds 60% to 70% to their cost of a bottle and then we still have to pay sales tax of 13% on top of that. To give you an idea I bought a bottle of Laphroaig Lore at the distillery when I was over on Islay in 2022. That bottle cost me 59 UK pounds, now doing the currency conversion that make it $99. That same bottle in the LCBO would have cost me $210.00, but to be honest its not worth >$200, sadly.

Their pricing structure and tactics, keep most small distillers, take Two Brewers from the Yukon , out of their stores because the LCBO wants the distiller to sell to them at reduced margins, while the LCBO makes upwards of +70% markup. Not to mention that they want the distillers to be able to supply enough product for all of their store. Then here's the kicker, if the product doesn't move well in stores, it will be de-listed, never to appear on the LCBO's shelves again, no matter how good the product is.