See inside this 'ghost' whisky distillery in Scotland that's back from the dead

Sun, 05/05/2024 - 05:42

Whisky Stills in Port Ellen — Port Ellen is a distillery on the Isle of Islay, an island off the coast of Scotland.
Alexandra Bacon/Business Insider

Port Ellen Distillery has been a 'ghost' distillery for 40 years, inactive but with available stock.
It's become a cult favorite with whisky fans, and a two-bottle set can cost up to £45,000 ($56,000).
We visited the Port Ellen on it's reopening day, take a look inside.

The Isle of Islay — an island off the coast of Scotland — has a population of around 3,000 people.

But that doesn't stop it from being a key piece of the billion-dollar scotch whisky industry.

There are nine distilleries on Islay, some owned by conglomerates like LVMH and Diageo, and two more are set to open. Scotch whisky is easy to find on the island; there are even cases lining the airport waiting room.

Multiple people from Islay, from our taxi driver to former distillery workers, still spoke about a cask of Scotch whisky from Ardbeg distillery that was bought by an unnamed collector for $20 million back in 2022.

We were recently there to visit the reopening of Port Ellen. This distillery has only operated for 17 of the last 94 years but has become a cult favorite with whisky aficionados.

The distillery shut down in 1983 and has been sitting dormant, housing casks of aging whisky ever since. Renewed interest in the liquor and diminishing stocks led parent company Diageo to pour £185 million ($230 million) into reopening Port Ellen and another distillery, Brora, and improving its Scotch whiskey experiences.

We visited Port Ellen on the day it reopened in March to find out why people pay thousands of dollars for its single-malt Scotch whisky.

Port Ellen Distillery closed in 1983 due to a slump in the whisky market, which left them with more supply than they knew what to do with.

exterior of Port Ellen Whisky distillery — Alexandra Bacon/Business Insider

The distillery was established in 1825 and operated until 1983. Since then, it's been a "ghost" distillery, which refers to a distillery that has closed but still has stock available.

But shutting down gave the whisky time to mature into its signature smoky taste, and it became increasingly sought after by whisky fans.

entrance to the Port Ellen Distillery — Alexandra Bacon/Business Insider

The limited stock means that it's an expensive product; prices can stretch up to £45,000 ($56,000) for a set of two bottles.

Now it's reopening to the new fans it's gradually gained over the last 40 years.

plinths with port ellen whisky on top — Alexandra Bacon/Business Insider

The distillery is clearly made to appeal to a premium customer. Diageo commissioned artist Harry Morgan to design plinths to showcase its whisky in the warehouse. Visitors can even take a mini version of these plinths home with them as a memento for their coffee table if they have £3,900 ($4,800) to spare.

On one of the plinths was a Port Ellen whisky from 1980, one of only a limited number bottled to commemorate Queen Elizabeth II's visit to the distillery.

a bottle of port ellen whisky — Alexandra Bacon/Business Insider

Diageo told Business Insider that it bought this whisky back on the secondary market. The company didn't comment on how much it paid to get the bottle back, but its value on the secondary market was lower than usual as it has a sip taken out of it — which the company says could have been from Queen Elizabeth II herself.

The bottle pictured is actually a replica, the real one is too valuable to be displayed, the company said.

Visitors to the distillery will be able to choose from two tours. The least expensive tour comes in at £200 ($250) distillery and the price of the more premium "Atlas of Smoke" experience is available on request

Port ellen distillery lounge — Alexandra Bacon/Business Insider

It's a pricer trip than other distilleries on the island, like Diageo's Lagavulin, which charges just £22 ($27) for their classic tours, with their most expensive tour priced at £105 ($130).

The premium tour is made to appeal to a new type of consumer — those who aren't just interested in buying the whisky but want a whole experience alongside it.

port ellen distillery — Alexandra Bacon/Business Insider

For these customers, "It's not enough to just say this is 45-year-old Port Ellen cask. They want to say they journeyed to Scotland, tested all these different whiskies, and to tell you about the experiences they had," said Ewan Andrew, Diageo President of Global Supply Chain & Procurement.

They cracked open one of their casks from 1979 to commemorate the reopening.

Man opening a vintage whisky cask — Alexandra Bacon/Business Insider

Visitors on the Atlas of Smoke tour will also get a chance to draw directly from one of these casks.

Over in the distillery, these copper stills are used to produce the classic Port Ellen-style whisky

These "Phoenix" Stills are precise replicas of the original Port Ellen stills and are used to recreate the classic taste.

The experimental stills are on the other side. That's where private clients can choose to tailor the whisky to their own tastes.

Whisky distillation process — Alexandra Bacon/Business Insider

The new experimental stills will allow distillers to change the depth and smokiness of the liquid depending on private clients' tastes.

Since the whisky will take years to mature, there's little concern that the reopening will bring down prices.

inside mashing process — Alexandra Bacon/Business Insider

The whisky is known by whisky fans, but the company wants to increase awareness to new people.

But they're not worried about the price dipping with the new supply. The minimum age for Scotch whisky is three years old, Andrew told BI, and it takes even longer for the more mature flavors.

'"It's gonna be a long time before you see anything in a bottle from this distillery," said Ewan Gunn, Diageo Global Brand Ambassador for Scotch.

In time with the reopening, the company released 274 sets of Port Ellen Gemini — the two bottles come in at £45,000 ($56,000).

interior of Port Ellen whisky distillery — Alexandra Bacon/Business Insider

"It's never something we've actively put money behind marketing, it's really just been word of mouth. It's the community that's elevated it to the position of being so highly regarded," said Gunn.

We were given a tour of a secret tasting room in the pagoda, where private clients will be able to try different whisky blends and personalize them to their tastes.

A glass of whisky — Alexandra Bacon/Business Insider

Visitors can't take any photos of the tasting room, and the company won't release any photos either.

The reopening of the distillery brought together former employees and descendants of the original distillery owners.

Iain "Pinky" McArthur, a former employee at Port Ellen and Lagavulin, was a local whisky legend on Islay. He and his former colleagues all admitted that his tours were the most sought-after by visitors.

He eagerly recounted tales of the past when delivery drivers would show up at the distillery at 5 a.m. to pick up the whisky, and they'd both enjoy a glass on the job.

"We're not allowed to do stuff like that anymore — health and safety," he joked.

When he retired in December, his colleagues pitched in to get him a gift worthy of his 53 years of service: a bull for his farm.

"It's quite a tight community here so the skills and the knowledge have been passed down through the generations and refined over time," Gunn said.

The Isle of Islay naturally has the vital ingredients for single malt scotch whisky: barley, peat, and plenty of water. The peat on the island gives the whisky its signature smokiness.

The natural resources and community involvement have meant that whisky has been and remains, part of the fabric of Islay.

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Retail, Travel, Whisky, diageo, trending-uk, Luxury, scotch-whisky, spirits

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See inside this 'ghost' whisky distillery in Scotland that's back from the dead