How Trader Joe's Scores High-Quality Scotch For Incredibly Low Prices

Trader Joe's sells all kinds of wine and liquor under its private label, and among them is a bottle of booze that's worth snagging — a 10-year, single malt Highland Scotch, sourced from distillers in Scotland. It's an entry-level whiskey that some whiskey enthusiasts compare to Glenfiddich 12, a single malt Scotch that usually retails at about $40 a bottle. The Trader Joe's version costs only $20.

Glenfiddich Scotch is distilled in Scotland, just like Trader Joe's Highland Scotch, and the two brands of alcohol provide similar experiences. So, how does Trader Joe's get away with selling its comparable version of Highland Scotch for half the price? The answer has everything to do with how the grocery giant operates and the partnerships it creates with other businesses.

Trader Joe's is all about fostering customer loyalty and offering reasonably priced products that are high-quality and exclusive. The brand's 10-year single malt Highland Scotch is in company with other Trader Joe's products that shoppers love, like the brand's chill-lime chips, dried mango slices, and Everything But The Bagel seasoning. Trader Joe's makes deals directly with suppliers, purchases in bulk, and makes other efficient moves that result in more value — and a wide array of unique products — for their customers.

Trader Joe's tends to keep its manufacturing partnerships close to the vest — for example, we may never know who makes Trader Joe's wines. However, some of its sources are public, and we do know that Trader Joe's sparkling wines are made by a California winery. We also know that the Trader Joe's 10-year Single Malt Highland Scotch arrives at the grocer from the American whiskey merchant and independent bottling company, Alexander Murray & Co. This company sources aged, single malt, single cask, and blended whiskey from distilleries in Scotland and is also the company behind bottles at Total Wines and the Kirkland band Scotch at Costco.

Alexander Murray & Co doesn't give too many details about where it finds the Scotch that it bottles and exports and just provides general geographical information for each bottling. In 2018, a team member at Trader Joe's shared with Serious Eats that the strategy is to find small bottlings and leftovers from Scotch distilleries that haven't been sold for a variety of reasons. Alexander Murray & Co states on its website that its success hinges on intentional relationships and carefully nurtured business partnerships — the same strategy Trader Joe's uses to provide unique and valuable products under its private label.