Kanpai to the Japanese whisky industry! | Japan Inc. | Professional Journal archives from AllBusiness.com
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Kanpai to the Japanese whisky industry!

By Hutcheon, Kym

Thursday, September 22 2005
Published on AllBusiness.com

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Ten years ago, try to order a Japanese single malt in almost any bar on the planet, and your best return would probably be a doubtful "Japanese whisky? From, uh Japan?" Not anymore, however. The world of whisky has been made anew.

Just a decade ago the idea of Japan producing whisky, and very good whisky, would have been a source of wonder for most tipplers around the globe. Fast-forward to a better-informed present, and we now have the noted beverage writer Michael Jackson predicting that by 2020 Japan could rival current industry leader Scotland. Understandably, Jackson's claim has not found universal agreement--a thoughtful pause would probably be a better description--but the parallel between Japan's rise and the challenge to France's traditional dominance by New World wines is hard to miss.

Japanese distillers may seem to have appeared on the international scene out of nowhere. Yet the top two local companies, Suntory and Nikka, have actually been gradually building their overseas businesses since the late 1950s. But it was not until 1994, when Suntory acquired Scotland's award-winning Morrison Bowmore group, trumping Nikka's 1989 purchase of the Ben Nevis distillery, that the Japanese industry really announced itself.

Even at this point, many probably saw the acquisitions as simply glory buys--a natural progression from the golf course purchases of the 80s. This changed significantly in 2001, when Nikka took first place in Whisky Magazine's biannual tasting competition. Suddenly people were showing Japanese whisky a little more respect. Suntory proved Nikka's win was no anomaly by pulling off a similar gold-medal coup at the 2003 International Spirits Challenge, followed by a series of equally desirable awards in 2004 and 2005.

Distilling a Japanese market

If this seems like a dramatic turn in the story of Japanese whisky, it is only par for a heavily twisting narrative. The industry has come a long way in its brief 80-odd-year history, but if Suntory founder Torii Shinjo had heeded general opinion when he announced his plans to produce locally, it would probably not exist at all. Fortunately, as he had been on previous occasions, Torii was sure of his judgment, and established Japan's first distillery at Yamazaki near Kyoto in 1923.

The naysayers had a straight-forward case: Scotch-style whisky's full-bodied flavor would be too strong for sensitive Japanese taste buds. However, while Torii was a man with a vision, he was not blind to his market. His mission was to produce a whisky with a delicate taste pleasing to Japanese palates and compatible with the subtle flavors of traditional dishes.

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