February 2024
Rye whiskey has regained popularity in the market, driven by collectors’ interest in pre-Prohibition spirits. At a recent Sotheby’s auction on January 20th, 28 bottles of rye whiskey from Pennsylvania and Maryland, dating back to 1916 and 1917, exceeded expectations by selling 53% above the high estimate, totaling approximately $173,000. Notable sales included an 1863 bottle of Bakers Pure Rye Whiskey fetching $35,000 (133% above high estimate) and a bottle of LeNell’s Red Hook 23-year-old Rye for $40,000 (33% above high estimate).
Of the 170 lots sold, 56 were dedicated to Pappy Van Winkle and 28 to pre-Prohibition whiskey, with the remainder comprising post-Prohibition and bourbon whiskey. Notably, 71% of lots met or exceeded the high estimate, with only 4 selling below the low estimate. Pappy Van Winkle sales totaled $452,000 (27% above high estimate), with standout sales including an original case of Pappy 20-year-old for $162,500 (35% above high estimate).
Rye whiskey’s resurgence is fueled by its versatility in craft cocktails like the Manhattan, Old Fashioned, and the Sazerac. Originating in Pennsylvania where rye grew well by immigrants recreating whiskey from home. Rye whiskey was once more popular than bourbon, especially in the early 1800s when Pennsylvania was producing three times as much Rye whiskey as Kentucky was producing Bourbon. After prohibition, Rye Whiskey waned in popularity in favor of Vodka and Gin and was more difficult to produce than corn-based Whiskies. However, the new interest in Rye has collectors paying top dollar and producers like Buffalo Trace launching its annual Prohibition Line that include Pennsylvania-style rye whiskies.
Cask100 is closely watching rye whiskey in the marketplace and its place in the Cask100 portfolio. American Whiskey continues to show strength in a soft market, but the increased interest in Rye is revealing interesting pockets of collecting categories that have potential to do very well in the market as the overall market increases.
