My God! 6 milliard new potential whisky drinker!

Not surprising really as the Chinese national spirit "Bai Jiu" takes like diesel.

I simply cannot understand how selling more of something means that the price goes up! If demand for a product increases, then production must also increase to meet that demand. The answer is not to greedily stick the price up 10%! Ridiculous, and suggests a boycott of this companies products.

To Ken Grier at Edrington; where Sir did you study economics? If as you say the demand for Scotch whisky is growing and you attempt, or succeed in meeting this need, then your production costs will decrease and your sales will increase and the benefactors of this must then be the consumers. And whisky will sell at a price comparable to its increased output. Not necessary at a deflated price but most certainly at the current price. Should supplies be indeed in high demand in China or elsewhere then the market-place there will cause a price increase, or a black market, neither of which is the concen of Edrington. You sell what you produce and you can offer no more.
I cannot resist mentioning that the product Cutty Sark falls low in the category of Scotch Whisky and the efforts that are expended in manufacturing this inferior brew might be better utilized making more good whisky.

The earlier contributors miss out the fact that Scotch must mature in warehouses for at least 3 years (or more typically 8-10 years minimum for malts). The demand seen now is being met from past production which was insufficient hence the shortage and price rise. Production is increasing now throughout the industry, but this will not be available as Scotch for a number of years.

Virgil,

your knowledge of scotch whisky is v. poor. As kevT explains the laws of supply and demand have a major influence on price.

Perhaps you are judging scotch by the quality standards of Canadian rye, where it has been common practice to use additions of neutral spirit to help it last longer.

Finally, although CuttySark may not suit your palate, there is no such thing as poor quality Scotch. There are many varied flavours to suit all tastes.