IF EVER YOU NEEDED PROOF that Japanese whisky had established itself among the world heavyweight whisky producers it came at a recent whisky show in Paris.

The finest whiskies the country has to offer were not in the world whiskies area, but in a room called Grandes Nations de Whisky. 

“Japanese whisky has crossed over from novelty or esoteric into the senior school playground,” says Marcin Miller, who owns the Number One Drinks Company, which imports rare Japanese whisky. “Japanese whisky now has British supermarket listings, good visibility in travel retail and there are even groovy London bars devoted to the subject.

“I can’t comment for the big producers but there is a feeding frenzy surrounding the whiskies I work with. Single cask Karuizawa sells out immediately upon launch and the new Chichibu whisky is on allocation only. Long may it continue.”

The signs that the trend will indeed continue are good. For, while Japan is now being accepted as one of the original or ‘old world’ nations for whisky producing alongside Scotland, Ireland, Canada and Kentucky, it’s taken 90 years of production to do so. And, after a surge of interest over the past 10 to 15 years, Japan is only now properly getting all its ducks in a row, overcoming some serious supply issues caused by the fact that it was taken by surprise by the huge volume of awards that came its way and was unprepared for the surge in demand as a result.

Japan’s whisky industry is small. It has two principle whisky makers: Suntory, which owns the Yamazaki and Hakushu distilleries, and Nikka, which owns Yoichi and Miyagikyo. In addition, the country has one craft distiller, Ichiro Akuto, who has built his own distillery, called Chichibu. There is also a small quantity of whisky from closed distilleries but it is becoming harder and harder to get hold of and commands huge prices.

Old whiskies from the main producers are scarce, too, because the companies didn’t lay down enough stock 25 years ago to respond to the new demand.

Don’t make the mistake of seeing Japanese whisky as a somewhat parochial and small backwater. It is anything but. Because there are so few distilleries and because Nikka and Suntory have no supply agreements with each other as distilleries in Scotland do, the distilleries each company has are highly complex. 

A range of stills, several different yeasts and a range of casks for maturation ensure that each distillery can produce several styles of malts. While most of this is for blending purposes, it still means that each company has the potential to release malts covering a wide range of flavour profiles.

That said, on the whole Japanese whisky models itself on Scotland and, unlike many of the whiskies coming from new territories, Japan has sought to produce whisky that sits nicely alongside Scotland taste-wise. 

If there is a difference it’s that Japan isn’t scared of big, bold flavours and both with sherry wood and bourbon barrel-matured the whisky is sometimes the oral equivalent of a sledgehammer. Not for the faint-hearted.

At the older ages, a Japanese taste comes to the fore. It’s sort of mushroomy and highly distinctive, and for many it’s the holy grail in whisky drinking.

Having been caught out by the increase in world demand once, the producers don’t intend for it to happen again and both the major companies are investing in their distilleries to ensure Japan meets the demand for its whiskies going forward. 

“In order to meet the long-term demand and prepare for the further expansion in the Japanese and global markets, Suntory will be investing approximately five billion yen – $50m – this year and in 2014 to increase productivity at the Yamazaki Distillery and Ohmi Ageing Cellars,” says Keita Minari, Suntory’s European brand manager.

“These are good times for Japanese whisky. It is well respected, connoisseurs love it, sales are up in the UK and we’re constantly winning awards for our luxury expressions.”

In the UK Japan has had a patchy history, but sales are booming elsewhere. America and France are key markets, and the Far East is also gaining in importance.

“Our whiskies do well in Japan of course,” says Marcin Miller. “But France is important, too. The French have long appreciated ‘La Japonisme’  and the strong mutual respect has resulted in staggering success for Karuizawa and Chichibu, thanks to (French retailer) La Maison du Whisky. Scandinavia appreciates top-quality whisky and we are exporting our first shipment to the States.

“But Taiwan is our biggest market. It seems that they simply cannot get enough old, sherry matured single malt whisky.”

Keita Minari agrees. “Our whiskies sell strongly in the US and France, which are our key export markets,” he says. “We have a foothold in the UK market and our sales are growing in China and Taiwan. It seems the Highball phenomenon has spread across the Far East.”

Ah, the Highball phenomenon. If Japanese whisky has struggled to keep up with demand at the high premium end of the market, meeting demand for the entry-level malts has been just as tough. A few years ago serving Yamazaki in a long glass with a round ice ball and soda water became fashionable among young and affluent Japanese whisky drinkers – a group who had traditionally eschewed home-produced whisky for Scotch.

Such was the demand that there were stories Suntory was recalling younger expressions of Yamazaki from export markets to meet the demand at home.

“Whisky drinkers in Japan were traditionally male and relatively old,” says Keita Minari. “The Highball helped to engage a new generation of whisky drinkers. Younger drinkers found whisky intimidating so Suntory helped to develop a new generation of Highball bars where whisky could be sold as an alternative to beer. Sales have been up more than 10% a year for the past three years, proving the new strategy is working and is showing no signs of stopping.”

Win-win situation

What it all adds up to is the fact that Japan is in a win-win situation with two very different but parallel whisky markets to service. With demand for whisky worldwide such that prices are rising for it across the board, Japanese entry-level whiskies – never cheap – don’t stand out so dramatically any more. And at the high end, the super-premium market rates Japan’s whisky up there with Scotch and ahead of other whisky markets. Some whiskies, such as Karuizawa, have taken on almost mythical status.

“The end of Karuizawa is imminent,” says Marcin Miller. “There will be none left in two to three years. Every time you have a glass of it you are drinking irreplaceable Japanese liquid history. Consumers are learning this and want to have the experience before it is too late. I daresay some people are buying bottles to sell later.

“But Chichibu is Japan’s only craft distillery and the whisky maker, Ichiro Akuto, perhaps illustrates that, with drive, energy, determination and passion, it is possible to build your own distillery and win plaudits worldwide. His attention to detail epitomises all the clichés about Japanese meticulousness in the search of perfection.”

While Japanese whisky has a certain amount of novelty value, even now and despite its 90-odd year history, it is no longer the only curio in the whisky marketplace – not by a long shot. 

Whisky is appearing from places as diverse as France, Italy, Argentina and Australia and even Taiwan has a highly successful and impressive distillery in Kavalan. But the Japanese producers welcome the new boys, believing that anything that drives the world of whisky will benefit them.

“Competition is good,” says Keita Minari. “Anything that grows the category and excites the consumer about whisky is positive and should be welcomed.”

Marcin Miller points out that many of the new producers are making whisky that is very different in style to Scottish and Japanese whisky and aren’t necessarily competing directly with it.

“In some ways the recent success of Japanese whisky in terms of reputation will have encouraged fanatics the world over to begin distilling whisky,” he says. 

“Japanese whisky, to a greater or lesser extent depending on the distiller, is very much based on the Scotch whisky model. Producers around the world are not making Scotch but creating something different, often with local ingredients. Will Japanese whisky see Mexican single malt as a threat? It’s doubtful.”

Just the beginning

Despite the many years of experience behind them, you sense that the Japanese whisky companies think that their journey is only now starting. Nikka and Suntory both have new product developments lined up for 2014, and Chichibu will be launched as a five-year-old single malt whisky next year. 

Then there’s the opportunity to ‘cross pollinate’ with other whiskies. Suntory, for instance, owns Morrison Bowmore and in Scotland at the moment there are ex-Yamazaki casks, made from the distinctive Japanese oak Mizunara, which have been filled with Bowmore. Exciting stuff.

As a result all the main players expect the country’s whisky to go from strength to strength.

“At the moment all things Japanese are considered exceptionally cool, and we have seen an explosion of Japanese culture in lots of places,” says Keita Minari. People have come to understand how beautifully and precisely Japanese things are made and they understand the quality of Japanese products. Japanese whisky is riding high as a result, and enjoying the trend.”

Marcin Miller agrees. “These are exciting times,” he says. “Our whiskies are not cheap but the market is rampant. The best whisky I tasted this year was not one of mine but it was Japanese – a 1988 single cask Yoichi bottled for the European market. That makes me optimistic for the category in the future.”