In response to the surging international appetite for Japanese whisky, Suntory Spirits, one of the most esteemed premium Japanese whisky suppliers, has embarked on a substantial expansion effort. The company’s President, Nobuhiro Torii, recently announced plans to increase production capacity and revamp two of its iconic distilleries, the Yamazaki distillery in Osaka Prefecture and the Hakushu distillery in Yamanashi Prefecture. The two-year renovation project comes at a cost of approximately ¥10 billion ($66 million), showcasing the company’s commitment to meeting the growing global demand for their acclaimed whisky products.
Over the past decade, Suntory has invested more than ¥60 billion in enhancing production capacity, including the expansion of storage facilities. These investments signify Suntory’s dedication to preserving the rich heritage and quality of its whisky as it adapts to evolving global market dynamics.
While the expansion efforts are substantial, whisky enthusiasts may need to exercise patience. Suntory’s President, Nobuhiro Torii, noted that it takes time for whisky to mature, and the increased production may not yield a significant output until around 2027. Despite this, Suntory remains undeterred, with Torii expressing that the company is “keeping its foot on the gas pedal” to bolster production.
The soaring popularity of Japanese whisky on the global stage is exemplified by record-breaking auction results. Sotheby’s reported that Suntory’s Yamazaki 55 Years Old single malt whisky achieved staggering prices of up to $780,000 at auction, surpassing Karuizawa 1960 as the most expensive Japanese whisky. The demand for these premium spirits has solidified Japanese whisky as the second most valuable whisky category in the secondary market.
This growing interest in Japanese whisky has led to a significant increase in the number of craft whisky distilleries in Japan. According to data from the National Tax Agency, the number of licensed distilleries specializing in whisky production has swelled more than fivefold by 2021 compared to a decade earlier. As the craft whisky movement gains momentum, it is clear that Suntory’s expansion efforts are well-timed to meet the increasing demand.
President Torii also highlighted the company’s commitment to improving the quality of its overseas distilleries. After Suntory Holdings acquired U.S. spirits maker Beam in 2014, they have diligently reviewed processes and adjusted aging periods to enhance their U.S.-made whisky. Torii expressed hope that in the next decade, Beam Suntory’s American-produced whisky would gain even greater international recognition.
In a testament to the global appeal of Japanese whisky, Suntory recently brought together blenders from around the world at the Yamazaki distillery to exchange ideas and expertise. This international collaboration is a reflection of the industry’s dedication to continuous improvement and innovation.
Adam Carmer, an assistant professor at the University of South Florida and a whisky connoisseur, noted the remarkable evolution of Japanese whisky. He emphasized that “a hundred years ago, Japanese whisky production was simply copying Scotland, but today’s Japanese whisky has matured and achieved a unique status.” This evolution and distinctiveness are part of what has drawn global attention to Japanese whisky.
In an effort to ensure the continued quality and authenticity of Japanese whisky, major distillers in the country, including Suntory, Nikka Whisky, and Kirin Holdings, have come together under the Japan Spirits & Liqueurs Makers Association to establish voluntary standards. Starting from April, these standards will be fully implemented, specifying that Japanese whisky must be made with malt and water harvested in Japan. This move seeks to maintain the integrity of Japanese whisky and differentiate it from other products.
Despite these voluntary standards, President Torii believes that the industry must go further. He expressed the need for legislative measures to further clarify the definition of Japanese whisky. This call for greater legal clarity underscores the industry’s commitment to preserving the tradition and quality of Japanese whisky as it continues to captivate palates worldwide.
Suntory Spirits’ significant expansion efforts, coupled with the global recognition of Japanese whisky, exemplify the industry’s dedication to excellence and the enduring popularity of this exceptional spirit. As the world eagerly awaits the fruits of Suntory’s labor, Japanese whisky enthusiasts can look forward to a bright future filled with exceptional products that showcase the best of this time-honored tradition.
(Source: Japan Times | Bloomberg)
