Japan: Suntory Spirits to increase whisky output to meet growing global demand

Premium Japanese whisky supplier Suntory Spirits said output could increase in 2027 as it expands capacity to meet growing global demand, The Japan Times reported on November 6.

Suntory Spirits has begun two-year renovations at its Yamazaki distillery in Osaka Prefecture and its Hakushu distillery in Yamanashi Prefecture, at a cost of about ¥10 billion ($66 million), President Nobuhiro Torii said in an interview. The company has invested more than ¥60 billion in increasing production capacity over the past decade, he said, including expanding storage facilities.

Since it takes time for whisky to mature, Torii — the great-grandson of Suntory founder Shinjiro Torii — said the maker "may be able to ship out a little more” only by around 2027.

Suntory, which marks the 100th anniversary of its whisky business this year, is "keeping its foot on the gas pedal” to increase production, he added.

Sotheby’s has said Suntory’s Yamazaki 55 Years Old long-aged single malt whisky has achieved prices of up to $780,000 at auction, and surpassed Karuizawa 1960 as the most expensive Japanese whisky — symbolizing the popularity of the beverage in overseas markets. The auction house also called Japanese whisky the second most valuable whisky category on the secondary market.

Suntory’s expanded capacity comes as the number of craft whisky distilleries in Japan increases to take advantage of the boom. The number of licensed distilleries specializing in whisky production swelled more than fivefold by 2021 compared to a decade earlier, according to the latest data from the National Tax Agency.

Torii said the quality of its overseas distilleries was improving. After Suntory Holdings acquired U.S. spirits maker Beam in 2014, it has reviewed processes and changed the firm’s aging period. Torii said he hoped that in the next 10 years, the U.S.-made whisky produced by Beam Suntory would receive even better international recognition. Late last month, Suntory’s blenders from around the world gathered at the Yamazaki distillery to exchange opinions, he said.

"A hundred years ago, Japanese whisky production was simply copying Scotland, but today’s Japanese whisky has matured and achieved a unique status,” said Adam Carmer, an assistant professor at the University of South Florida who specializes in hospitality and founded whisky-only bar The Whisky Attic.

In a bid to ensure quality as Japanese whisky grows on a global level, major distillers in the country — including Suntory, Nikka Whisky and Kirin Holdings — have agreed to come up with voluntary standards to ensure quality under the Japan Spirits & Liqueurs Makers Association. From April, those standards will be fully applied, stipulating that Japanese whisky must be made with malt, along with water harvested in Japan. Whisky products made from rice by craft brewers will no longer be counted as Japanese whisky.

Still, Torii said the new voluntary standards aren’t enough.

The industry "must make efforts to go one step further,” he said, including a need for laws to further clarify the definition of a Japanese whisky.

06 November, 2023