Scotch terminology can be a bit confusing at first. Even the name itself, Scotch whisky, is confusing? Where did the "e" go? Well, I'm not going to get into that one right now, but I am going to explain some terminology that describes different types of Scotches, and what those terms actually mean to the Scotch drinker (if anything).
The easiest way to understand it is that there are two major ways of classifying Scotches. First is by where and when they are made, and second is by what they are made from. The term "single malt" actually addresses both of these questions.
Where and when a Scotch is made. In addition to the regions (which I won't get into here), this is a question of how many distilleries and how many seasons the Scotch is made in. A single Scotch was distilled at a single distillery, in a single season. Blended Scotch, vatted Scotch, or scotch that doesn't specify, is usually a mix of Scotch from different distilleries, and/or year.
What Scotch is made from is also, obviously, important. A malt whisky is a whisky made exclusively from malted barley, often and traditionally kilned over a peat-fueled fire. Grain whisky is still made primarily from malt, but also contains other grains (unmalted barley, rye, wheat, or corn typically).
So there are essentially four categories here:
Single Malt Scotches are Scotches made only of malted barley, at one distillery, in one distilling season.
Single Grain whiskys, contrary to their name, are made from multiple grains, but are distilled at one distillery, in one distilling season.
Vatted whisky is a "blended" whisky made entirely of single malt Scotch. That is, it is all malted barley, but can be a mixture of different years and different distilleries.
Blended whisky is a blend of whiskys mad from different grains, in different years, and/or at different distilleries.
So what's the best? Single Malt, right?
Well, this is where people have a lot of misconceptions. Everyone thinks single malt Scotch is inherently better than the rest. They certainly can be the most expensive. My challenge to these people would be to taste Johnny Walker Blue or Double Black Label against Glenlivet 12.
The reality is that no one category is inherently "better" than any other.
Single malts tend to be the most expensive, for a very good reason that has nothing to do with quality. When they're gone, they're gone. Since the law requires single malts to be distilled at a single distillery, in a single season, each year, for example, there is only so much Glenlivet which has been in cask for 12 years. If they sell all of it, there is no way to produce more "on the fly." Distilleries often distill, age, blend, and bottle more than one brand of whisky, so there are definitely ways to adjust, for instance, using more or less in blends vs. single malts, etc. But those decisions have to be made before blending and bottling, and often before barrel aging, requiring a prediction on what demand will be like for certain whiskys 8, 10, 12, or even 25 years in advance.
The reality, however, is that there is an easy argument to make that vatted or blended whiskys are actually a better quality product. At the very least, they are more consistent. If a barrelmaster does not like a Scotch he tastes out of the barrel, or does not think it is consistent with the brand's profile, he has two options if that barrel was intended for a single malt. 1) bottle it anyway, especially if the variation is slight but it is still a high quality whisky; 2) give up on making it a single malt and either blend it or throw it away.
On the other hand, when a barrelmaster tastes a cask intended for a blended whisky, he can make infinite adjustments. If it is too dry, he can add some whisky which was finished in sherry casks. If it is not smokey or peaty enough, he can add more peaty whisky. The goal in making a blended or vatted whisky is to create a whisky each bottling which not only tastes great, but is consistent to the previous year.
And, the reality is, there are only a handful of companies in the Scotch game. Most of them own several distilleries and several brands. They make a lot of whisky, and each year, they taste tons of casks. Those which are most similar to their "big name" single malts get bottled as single malts. Those that aren't, or those that are in excess of the quota they've set for their single malts, get blended.
So you are often drinking the exact same whisky, prepared by the exact same people, when you sip on a single malt and a blended whisky, even if the label is different.
So in short, don't worry about price point or about what type of Scotch you're drinking. Find one you like. The single malts will vary slightly from year to year, but should stay in a very similar flavor profile. If you find a blend you like, it should stay consistent year to year! Cheers!
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