Suntory Pouring $77 Million Into Japanese Whisky Distilleries
February 10, 2023Suntory is investing a planned $77 million over the next two years to boost operations and the visitor experience at its Japanese whisky distilleries as global demand continues to rise. The drinks giant’s Yamazaki and Hakushu distilleries will be upgraded under the investment.
Among the initiatives slated to receive new funding, Yamazaki will see enhancements at its pilot distillery, which the company says “has been the root of enhancing Suntory Whisky quality through new technology development.” Suntory will also start floor malting, a traditional process of malting barley, at both the Yamazaki and Hakushu distilleries, while the Hakushu distillery will also introduce a process to cultivate yeast. Additionally, both distilleries will “refresh their facilities to elevate the visitor experience,” and will reopen this autumn.
Suntory’s Yamazaki and Toki brands have been among the labels driving growth in Japanese whisky lately. Yamazaki is the company’s flagship single malt and a sought-after whisky label globally, with its 55-year-old commanding some of the highest auction prices among all whiskies last year. Toki, meanwhile, is stoking broader interest in the category in the U.S., earning Impact “Hot Prospect” honors last year and reaching U.S. volume of 125,000 cases in 2022, according to Impact Databank.
Recent U.S. releases from the Suntory whisky stable have included high-end entries like the limited edition Yamazaki Tsukuriwake Selection ($450-$620 a bottle) and Hibiki Blossom Harmony ($160). Globally, Suntory has two Japanese whiskies among the top 100 spirits by volume worldwide, according to Impact Databank, with Suntory Kakubin up 17% to 6.1 million cases in 2022 and Torys up 2% to 2.9 million cases. This year marks the 100th anniversary of whisky-making at Suntory, whose founder Shinjiro Torii opened the Yamazaki distillery in 1923.
Overall, Japanese whisky exports have soared in recent years, reaching approximately 46 billion yen ($350m) in 2021, up roughly 70% from the prior year, with the U.S. a key contributor to growth. In addition to the Suntory range, Asahi-owned Nikka is another prominent brand stateside, handled by Hotaling & Co., and Kirin is now also making a U.S. push with its Fuji label.—Daniel Marsteller
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