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Scotch has ‘nothing to fear’ from Japan’s rising exports

Scotch has ‘nothing to fear’ from Japan’s rising exports

The trade group behind Scotland’s national drink says the industry has little to fear from fast-growing global sales of Japanese whisky.

Japan’s whisky distilleries are expanding capacity as their malts threaten to become serious rivals to Scottish and Irish brands.

Exports are said to be booming at Nikka – owned by Asahi Group Holdings – and Suntory Holdings, which is ramping up production at its Yamazaki distillery for the first time in 45 years.

But the Scotch Whisky Association (SWA), which promotes and protects the interests of Scottish distillers at home and abroad, said Japanese producers still had a long way to go to catch up with their bigger rivals in Scotland.

An SWA spokesman added: “Japanese whisky exports remain small compared to global Scotch whisky shipments, which are 10 times larger by volume.

“With Scotch whisky exports up 87% in value over the past decade, we are seeing encouraging growth for a range of whisky categories and that reflects the opportunity for premium products in both mature and emerging markets.”

Japan’s whisky export market is relatively small compared with Scotland’s, whose overseas sales in 2012 were worth £4.3billion. Expansion of the industry in Japan is being driven by increased sales overseas and growing domestic demand after a prolonged slump.

But the country’s distilleries could be caught out again if enthusiasm for whisky in the home market changes, as it did in the 1990s, when several smaller players shut down as drinkers shifted to beer, clear spirits and imported liquor.

Experts say the drop in Japanese demand in the 1990s meant Suntory and Nikka had to cut production, leaving distilleries with a shortage of stock for their youngest single malts after whisky made a comeback in 2008.

Suntory has since stopped making its 10-year Yamazaki and Hakushu single malts and introduced “no age” versions instead.

Nikka is expected to phase out its 12-year Taketsuru single malt after releasing a “no age” variety this year.