Annoyed at Rising Whisky Prices? Is Rum the New Arbitrage?

Yes, we’re back. I won’t bore you with the details but suffice to say accounting exams are hard.

I thought I’d write a piece about a holiday I went on recently, and visited Arehucas distillery. We did the usual tour, warehouse, still bottling place. It was nine euros, very enjoyable. Then we went to the bar. Now, a tangent…

Rum and whisky, though born from different raw materials, sugarcane for rum and grains for whisky, share strikingly similar production and aging processes. Both begin with fermentation, where the sugars are converted into alcohol, followed by distillation to refine and concentrate the spirit. Whether it’s a pot still or column still, the goal is the same: to shape the character of the liquid before it meets the barrel.

Aging is where the real transformation occurs. Both spirits can matured in oak barrels, which act as chemical reactors over time. The wood imparts vanillin, tannins, and other compounds that evolve the flavour profile, adding notes of spice, caramel, and toast.

Whisky and rum producers often use charred ex-bourbon or sherry casks to layer in residual sweetness and complexity. However, the climate they are aged in does effect the process. Rum is usually aged in tropical regions, maturing faster due to higher temperatures and evaporation, while whiskey aged in cooler climates develops more slowly and subtly.

However, when rum is aged for 18 to 30 years, it becomes a rare and luxurious spirit. The long interaction with oak and oxygen softens the alcohol and concentrates the flavours, producing a rich tapestry of dried fruits, tobacco, leather, and dark chocolate. The texture becomes velvety, the finish long and warming, and the wood influence profound.

From a chemistry perspective, aging is a slow interplay of esterification, oxidation, and extraction. Esters evolve, acids and alcohols react with wood compounds, and new flavour molecules emerge over time. It’s a living system, one that mirrors the complexity of whisky aging.

Aging rum this long in warm climates comes at a cost, evaporation can claim up to 70% of the volume. However, due to how cheap sugarcane is the price doesn’t reflect this.

I had a double glass of Captain Kidd:

Arehucas Capitan Kidd 30 Year Old 70cl Rum | Master Of Malt

For 8 euros. Now that’s a 30 yr old spirit. To compare I was once offered a single glass of 21 yr Glenfiddich for £26. So a quarter of the price per unit, and 9 more years.

I bought a bottle of their 18 yr for 34 euros ~ £29. Tell me the last time you’ve seen a small distillery 18 yr age statement for that?

I’m not trying to say rum will replace whisky in any fashion. But I am saying at the cost point, it’s worth picking up a few bottles and seeing how you feel.