Japanese tastes turn to imported whiskies

Between January and December 2011, whiskey imports in the country surged 38 per cent from 19 million litres to 27 million litres, with whiskey from the UK and the US accounting for majority of the imports. Overall, whiskey imports grew just 1 per cent in volume terms last year.

Mariko Takemura, research analyst at Euromonitor, attributes the growth of imports to a spillover effect of highball drinking, a cocktail made by mixing whiskey and soda.  

“The highball bandwagon was a prominent feature of 2012 and the growth of whiskies was due to the fact that consumers who entered the whiskey category by drinking highballs started to enjoy whiskies in different ways, including on the rocks,” Takemura said.

It is perhaps this potential that has prompted a major distribution change of imported whiskey brands in Japan. Japan’s leading beverage company Suntory has made a bid for US-based Jim Beam Brands, which also owns Maker’s Mark. Previously, Jim Beam brands were being distributed by Asahi, while Suntory distributed Brown-Forman’s Jack Daniel’s and Early Times. Asahi began distributing Jack Daniel's and Early Times this year.

In 2009, Diageo formed a joint venture with Kirin to distribute its brands. It also strengthened its distribution partnership with Moët Hennessy in Japan. Recent news reports also suggest that Diageo and Suntory are mulling a joint takeover of Jim Beam. 

Domestic whiskies still account for more than 80 per cent of total volume growth. Premium whiskies, including Suntory’s Yamazaki and Hakushu, are increasing their presence. 

Local players also added several new brands to their portfolios. Suntory last year introduced a non-aged range under the Yamazaki and Hakushu brands, which are priced lower than aged whiskies. The move paid off with Yamazaki and Hakushu seeing significant increases in sales. Hakushu’s sales during the period skyrocketed 190 per cent.   

At present, Suntory’s Kakubin and Nikka Whiskey’s Black Nikka are the leading whiskey brands in Japan with 24.6 and 15.7 million litres sold, respectively. The leading brands are not premium brands and are available across a variety of retail channels in Japan.