By Sophie Knight and Ritsuko Shimizu
TOKYO, Dec 31 (Reuters) – After years of being overshadowed
at home and practically unheard of overseas, Japan’s whisky
distilleries are expanding capacity as their malts become
serious contenders against Scottish and Irish brands.
Exports are booming at Nikka, owned by Asahi Group Holdings
, and at Suntory Holdings, which is ramping
up production at its Yamazaki distillery for the first time in
45 years as domestic sales recover from a prolonged slump.
But some are concerned the distilleries may be caught out if
the enthusiasm for whisky changes as it did in the 1990s, when
several smaller players shut down as Japanese drinkers shifted
to beer, clear spirits and imported liquor.
“At the moment, no one can see this boom busting. The
difficulty is that you’re making it today for 20 or 50 years’
time,” said Marcin Miller, an importer of small-batch Japanese
whisky with his British company Number One Drinks.
The drop in demand during the 1990s meant Suntory and Nikka
had to cut production, industry experts say, leaving
distilleries with a shortage of stock for their youngest single
malts when whisky made a comeback in 2008.
Last year, Suntory stopped making its 10-year Yamazaki and
Hakushu single malts and introduced “no age” versions. Nikka is
expected to phase out its 12-year Taketsuru single malt after
releasing a “no age” variety this year.
The slump had more a serious impact on minor distilleries
such as Karuizawa, Mars and Hanyu. All three were mothballed by
2000 and their stock left dormant until a run of international
awards for Japanese whisky brought buyers knocking.
BOOTLEG TO BLOCKBUSTER
In its earliest incarnation, Japanese whisky was a bootleg
adulterated with spices and perfume. Lacking strict regulations
of the Scottish and Irish varieties, it was largely ignored by
foreign connoisseurs for much of its 90-year history.
“I thought going to drink Japanese whisky would be a bit
like drinking a Welsh claret,” Miller said of his first trip to
Japan in 1999, when he was editor of Whisky Magazine. “I
wondered ‘Will my hosts be offended if I drink gin and tonic?’.”
Miller was soon converted but he found no one to share his
enthusiasm with back in Britain, where Japanese whisky exports
were practically non-existent.
The turning point came in 2001, when Nikka’s 10-year Yoichi
single malt won “Best of the Best” at Whisky Magazine’s awards.
Japanese makers have stormed competitions ever since, with
Suntory winning “Distiller of the Year” at the International
Spirit Challenge for the third time in July and the Trophy prize
for its 21-year Hibiki blend.
The acclaim nudged Japan’s distilleries to market overseas
and sales jumped. Nikka’s exports grew 18-fold between 2006 and
2012, while Suntory is looking to double overseas shipments to
3.6 million bottles by 2016. They grew 16 percent in 2012.
While that is still a wee dram compared with sales of more
than 72 million bottles at home, Suntory and Nikka export only
premium varieties to the United States and Europe. In Japan,
premium bottles make up 6 percent of sales.
A MATTER OF TIME
Distillers and blenders toiled for years to replicate
traditional techniques, following notes brought from Scotland in
1920 by pioneer Masataka Taketsuru, who worked for Suntory
before founding Nikka.
Japan’s mountain water and icy winters proved ideal. Foreign
fans rave about the authentic taste of Japanese whisky, a result
of attention to every part of the process – from imported peat
to the blending.
“While Scotch is about maintaining the flavour of a certain
brand or label, Japanese distillers think mainly about
increasing flavours,” said Atsushi Horigami, owner of the
Zoetrope bar in Tokyo, which specialises in Japanese whisky.
Horigami said most Japanese drinkers go for blended whisky
but the leftover stock from the mothballed distilleries – sold
as single casks – has been a hit with foreigners.
Aficionados and speculators alike await the releases of
batches of the Karuizawa stock, which was bought by Miller’s
Number One Drinks in 2011. Miller says most bottles are snapped
up within seconds, going for as much as GBP12,500 ($20,700).
But with just two years of auctions left and the remaining
bottles from Hanyu and Mars also in short supply, some wonder
where Japanese whisky lovers are going to find their single cask
kicks in years to come.
“We may be on the crest of a wave now and in a few years see
a completely different scene,” said Stefan van Eycken, editor of
Nonjatta, a blog on Japanese whisky.
That’s where Suntory and Nikka hope to step in. But time
will tell whether they can sustain the fashion for their brands
for the decade or more it will take to produce their famed
single malts.
