Distilleries

Balmenach

The Story

This is an old, deeply traditional distillery. James MacGregor took out his licence in 1824 on what was a farm, following a period of illicit production. According to Robert Bruce Lockhart, this transition to legality took place soon after MacGregor had received a visit from a local gauger (exciseman). When asked what a specific farm building contained, MacGregor claimed it was simply a peat shed. “Well, I suggest you take out a licence for it,” replied the gauger. Bruce Lockhart was related to the MacGregors, and his highly recommended book, Scotch, contains many fascinating details about old-style distillation as practised in Cromdale. The distillery eventually passed into the hands of Scotch Malt Distillers (DCL’s malt production arm), which expanded the plant to include Saladin maltings. The distillery was briefly mothballed between 1993 and 1997, after which it was sold to its current owner, Inver House Distillers (now part of International Beverage Holdings). Today, the site is also famous for producing the highly regarded Caorunn Gin using a rare 1920s Copper Berry Chamber.

The Character & Production

Situated a mile inland from the village of Cromdale, Balmenach is one of Speyside’s most traditional distilleries and makes what is definitively classed as an ‘old-style’ whisky. The fermentation is long, the stills are relatively small and run quickly, and the vapour runs into external cast-iron worm tubs rather than modern shell-and-tube condensers. This traditional setup produces a slow-maturing new-make character that is famously rich, heavy, and meaty. It is ideal for adding weight and “grunt” to blends, and it serves as an exceptional match for maturation in ex-Sherry casks. Inver House has no immediate plans to release this highly distinctive whisky as an official single malt. The reason for this is simple: the make (whose heavy style is incredibly unusual these days) is far too highly prized as a premium filling for blends, both by Inver House (for blends like Hankey Bannister) and other major firms. Consequently, single malt releases are almost exclusively the domain of highly sought-after independent bottlings.

The Facts

Capacity: 2.8 – 2.9 Million Litres Per Annum
Mash Tun: Copper-domed stainless steel (Semi-lauter)
Stills: 3 wash stills, 3 spirit stills
Condenser Type: Cast-iron worm tubs
Heat Source: Biomass boiler & bio-methane Combined Heat & Power (CHP) engine
Washbacks: 6 wooden washbacks made of Douglas Fir
Fermentation Time: 56 hours (mid-week) and 90 hours (weekends)
Water Source: Springs in the Cromdale Hills

Performance & Returns

Balmenach has a proven track record at the premium end of the market; for instance, a 1966 vintage Balmenach ‘Miltonhaugh’ Whisky Connoisseur 28-Year-Old sold in February 2021 for £5,000 at auction. For the liquid they produce, expressions are highly dependent on the maturation of the cask. Generally, Balmenach presents a nose of nutty biscuits, a touch of lychee, and apricot. The palate consists of oaky vanilla alongside summer berries and a smidge of almond, leading to a finish that is usually bright, spicy, and citrusy. The excellent news for investors is that having access to such an old, traditional distillery provides the potential to purchase a genuine piece of Scottish heritage. Because official releases are non-existent, independent bottlings command a premium. Today, a 14-year-old independent bottling of Balmenach (such as a 2010 vintage sherry cask) retails for around £80.00 to £85.00. Based on this trajectory, if you were to hold a cask for 14 years rather than the standard 10 or 12, the compound return potential is considerably higher.

“Undervalued but not underloved. We see a lot of potential in this distillery due to its low entry price. Great potential is always the key to achieving exceptional returns.”