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Stock Up Now: There’s a Looming Japanese Whisky Shortage

Distilleries are responding to demand by keeping their whisky in the barrel.

BY RICHARD CARELTON HACKER ON AUGUST 3, 2018
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Nikka Whisky From The Barrel

Movie fans and Japanese whisky aficionados may recall Bill Murray’s famous line from the 2003 Academy Award-winning motion picture, Lost in Translation, when he says, “For relaxing times, make it Suntory time.” The whisky he was toasting towards the camera was Hibiki 17 Year Old, a flagship single malt and grain blend from Suntory’s Hakushu distillery. But those relaxing times provided by Hibiki will soon be over, because—inconceivable as it may seem—Suntory is halting production of their best-selling Hibiki 17 Year Old, along with their other award-winner, Hakushu 12 Year Old Single Malt. In addition, Suntory’s Yamazaki distillery will not be releasing their highly anticipated Yamazaki Limited Edition for 2018, in spite of previous successes with their 2015, 2016, and 2017 bottlings. Other vintage Japanese whiskies may soon be disappearing from shelves as well.

 

 

 

The reason for the planned obsolescence of many of Japan’s most popular whiskies is that they have become too popular, and as a result, supplies are dwindling. After all, it takes a minimum of 12 years to create the 12 Year Old Hibiki. It’s a complex blend of over 30 different single malts, of which only the youngest is actually 12 years old.

Thus, in spite of Suntory having invested more than $250 million since 2013 to increase production in their Yamazaki and Hakushu distilleries, the fairly recent (and unexpected) rise in demand for Japanese single malts and blends has caught the industry off guard, just as the boom in American bourbon has resulted in current shortages of some of the most popular U.S. brands. But while American distillers are ramping up production and resorting to allocations, some of their Japanese counterparts are trying to catch up on the aging process by keeping their whiskies in barrels and away from the bottling plant, in order to have sufficient quantities of aged spirits for the future.

 

“Recent discontinuation of some of the most popular aged expressions of Japanese whisky, the Suntory Hibiki 17 and the Hakushu 12 included, will, in the first instance, drive up prices of these age statement expressions, as collectors aim to secure their favorites,” says Makiyo Masa, founder and director of Tokyo-based and family-owned Dekanta, the world’s largest mail order retail specialist of Japanese whiskies. “This is likely to mean that many of these wonderful whiskies will remain on (collector’s shelves), rather than being drunk, as they become rare and revered collectors’ items.”

 

 

 

Reflecting this, Dekanta’s website currently lists their remaining supplies of Hibiki 17 Year Old at $689.99 a bottle. Furthermore, as a result of the dwindling number of vintage-dated Japanese whiskies, there is now an increase in No Age Statement (NAS) spirits, as a way of stretching existing stocks while newer distillates are maturing. That is not to say there are no older whiskies in these NAS single malts and blends. The bottles just don’t carry a vintage year on the label.

“Japanese whisky producers have been preparing for this situation,” says Masa, “and are putting effort into producing exceptional NAS stock. We are starting to see many more whiskies with no age statement, and these will be the ones we’ll be enjoying and drinking in the coming years.”

An excellent example of this is the new NAS multi-cask blended Nikka Whisky From The Barrel ($65), which was introduced in Japan in 1986, but which finally landed on our shores in August 2018. It is a complex blend, made even more distinctive by its square-shaped bottle. Nikka Whisky From The Barrel is produced at Nikka’s Yoichi and Miyagikyo distilleries and is composed of more than 100 different single malt and grain whiskies that have been aged in ex-Bourbon barrels and puncheons, as well as in ex-sherry butts that have been refilled, recharred and remade into hogsheads. This pot-distilled whisky’s high 102.8 proof helps compress its wide array of flavors, which are enhanced by an additional three to six months of aging in Nikka’s cellars. The thick and fruity result is teeming with notes of apricots, citrus, and cherries, with a gentle underlying caress of sweet smoke.

“These (NAS whiskies) are likely to have a positive impact on the diversity of the Japanese whisky market,” says Masa. “So far, Suntory and Nikka have undoubtedly dominated, but if their popular whiskies become prohibitively expensive, then Japanese whisky fans may turn to smaller producers, such as Chichibu, Eigashima/White Oak and Yamazakura, to name but a few who are making wonderful, interesting whiskies that have yet to gain international recognition.”

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1 hour ago, PapaDisco said:

Geez, more shortages?  Just how much whisky can the world drink?  Is this more a case of buyers stocking their cellars?  

I guess unlike beer or vodka you can’t just make more of it—at least not yet. I remember reading somewhere that the rule of thumb used to be that only the Italians would consume whiskey younger than 8 years old. I suspect the larger companies are investing heavily in accelerated aging schemes.

 

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38 minutes ago, Fuzz said:

Accelerated aging? Possible, but controversial. Would you prefer to drink a NAS whisky that has been age accelerated to 12 years, or a properly aged 12 yr old whisky?

Well if it all tastes the same...gimme the cheaper one.

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57 minutes ago, Fuzz said:

Accelerated aging? Possible, but controversial. Would you prefer to drink a NAS whisky that has been age accelerated to 12 years, or a properly aged 12 yr old whisky?

With demand and prices like they are, plebes like me won’t get the choice!

Seriously though, I remember taking a tour of the Jack Daniel’s factory years ago and thinking, wow, even the cheap stuff is aged. Most aged spirits were probably undervalued then, and since they weren’t that popular we really had it pretty good. I knew they were the good old days, but for some reason I didn’t stock up. Must have been too drunk.

 

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2 hours ago, Fuzz said:

Accelerated aging? Possible, but controversial. Would you prefer to drink a NAS whisky that has been age accelerated to 12 years, or a properly aged 12 yr old whisky?

KaVaLan is sort of one of those.  Aged at a higher ambient temperature (not deliberately, it's just what ambient happened to be) it produces a whisky that tastes more mature.  Can't say I'd advocate boiling whisky in the barrel, but it was a happy, accidental discovery.  We're in the habit of aging things at low temps, perhaps that's mostly a habit learned from wine?  There's little that definitively says whisky should be aged the same though, other than tradition.  Even cigars, we keep those under 70F for the sake of beetle prevention, but maybe they'd mature better warmer (assuming hydration was set right).

Anyway, I've now exhausted my minimal info on the topic! :P 

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4 hours ago, PapaDisco said:

KaVaLan is sort of one of those.  Aged at a higher ambient temperature (not deliberately, it's just what ambient happened to be) it produces a whisky that tastes more mature.  Can't say I'd advocate boiling whisky in the barrel, but it was a happy, accidental discovery.  We're in the habit of aging things at low temps, perhaps that's mostly a habit learned from wine?  There's little that definitively says whisky should be aged the same though, other than tradition.  Even cigars, we keep those under 70F for the sake of beetle prevention, but maybe they'd mature better warmer (assuming hydration was set right).

Anyway, I've now exhausted my minimal info on the topic! :P 

But Kavalan do not claim or state that it is older than what it actually is, only that it tastes more mature than others of a similar age. My issue with accelerated aging is claiming that it is as good as or has been accelerated to an X year old whisky.

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11 hours ago, Fuzz said:

But Kavalan do not claim or state that it is older than what it actually is, only that it tastes more mature than others of a similar age. My issue with accelerated aging is claiming that it is as good as or has been accelerated to an X year old whisky.

fuzz, not sure that there is anyone out there, other than shonks, that is making that claim. my understanding is that those regions with warmer and other conditions more conducive to quicker ageing might state that but i don't think there is an attempt to, say, claim a ten year whisky that is only six. 

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21 minutes ago, BeerPimp said:

I have been meaning to pick a bottle of Japanese whiskey is there a middle of the road bottle you guys recommend?

At the very least, if you can, pick up Nikka from the Barrel. Otherwise, both the Hakushu and Yamazaki Distiller's Reserve are viable options, in my opinion, for you.

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If wishes were horses beggars would ride that’s all I am saying on the subject of cigars and jap whiskey 

all my good stuff is nearly gone but on the upside I drank and shared with my friends ❤️

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21 hours ago, bpm32 said:

I guess unlike beer or vodka you can’t just make more of it—at least not yet. I remember reading somewhere that the rule of thumb used to be that only the Italians would consume whiskey younger than 8 years old. I suspect the larger companies are investing heavily in accelerated aging schemes.

 

With a booming global market, I expect other countries to take up the slack (or try to, at any rate).  How many years until the experts choose an Indian, Swedish or German whisky as the Next Big Thing?  

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1 minute ago, gweilgi said:

With a booming global market, I expect other countries to take up the slack (or try to, at any rate).  How many years until the experts choose an Indian, Swedish or German whisky as the Next Big Thing?  

Whisky (and whiskey) requires too much sitting around to reach a high level and vodka is pretty much a scam (any decent chemist can make you ultra-pure ethanol tomorrow). I doubt the booze industry has really pushed gin as far as it can go (or absinthe or any spirit featuring ethanol redistilled from botanicals). Those can be legitimately complex, but you can make them fast.  

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2 hours ago, kyee said:

Makes me wish I had purchased even more bottles when Costco was carrying both Hibiki 12 & 17.

 

 

 

Hibiki1.jpg

Hibiki2.jpg

 

Yup i believe this was couple years ago... well, hindsight is always 20/20...!  Back then I thought $120 for Hibiki 17 is too much when it was $90 and widely available in Japan.  The hotel I used to stay even give you a generous pour for free.  Little I knew... 

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14 minutes ago, bpm32 said:

Whisky (and whiskey) requires too much sitting around to reach a high level and vodka is pretty much a scam (any decent chemist can make you ultra-pure ethanol tomorrow). I doubt the booze industry has really pushed gin as far as it can go (or absinthe or any spirit featuring ethanol redistilled from botanicals). Those can be legitimately complex, but you can make them fast.  

You don't even need a decent chemist to make 90%+ pure ethanol.  What you need is a still and a few ingredients.  Been there, done that.  Gin is so easy to make that they now sell DIY kits in shops ... all you need, really, is a bottle of neutral grain spirit (e.g. vodka) and a few botanicals that can be had from any supermarket.

And yes, whisky does take rather longer (as do calvados, armagnac etc); the point I was groping for is that it is being made all over the world and if demand cannot be met from one country, sooner or later it will be met from elsewhere.  For example, there is considerable distillation capacity in Central Europe thanks to a long tradition of distilling not just fruit but grain, so making whisky is less a question of creating something from scratch than a matter of diversification.  

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2 hours ago, BeerPimp said:

I have been meaning to pick a bottle of Japanese whiskey is there a middle of the road bottle you guys recommend?

Nikka's pure malts are good stuff.  I personally like the white, which has more peat influence along with a strong melon note.

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58 minutes ago, OZCUBAN said:

If wishes were horses beggars would ride that’s all I am saying on the subject of cigars and jap whiskey 

all my good stuff is nearly gone but on the upside I drank and shared with my friends ❤️

Well said mate :) 

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If wishes were horses beggars would ride that’s all I am saying on the subject of cigars and jap whiskey 
all my good stuff is nearly gone but on the upside I drank and shared with my friends
Was it the hibiki 21 we had together? Incredible....

Sent from my SM-G965F using Tapatalk

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24 minutes ago, gweilgi said:

You don't even need a decent chemist to make 90%+ pure ethanol.  What you need is a still and a few ingredients.  Been there, done that.  Gin is so easy to make that they now sell DIY kits in shops ... all you need, really, is a bottle of neutral grain spirit (e.g. vodka) and a few botanicals that can be had from any supermarket.

And yes, whisky does take rather longer (as do calvados, armagnac etc); the point I was groping for is that it is being made all over the world and if demand cannot be met from one country, sooner or later it will be met from elsewhere.  For example, there is considerable distillation capacity in Central Europe thanks to a long tradition of distilling not just fruit but grain, so making whisky is less a question of creating something from scratch than a matter of diversification.  

Ah, sorry, I misunderstood. I think what you’re saying might already be happening, at least in the States. It seems like a huge number of distillers with a lot of passion for whiskey are popping up, it’s just that none of the booze is really ready yet. 

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gin has seen a massive explosion. one has to wonder when it will run out of steam with so many getting on the bandwagon. my thoughts are that a while back, a lot of people, in all sorts of places, decided craft whisky would be the go. they either started and realised that it takes a whack of time, or they decided before even starting, all too hard. gin can go from distillery to dollars in no time at all. whisky needs many years. who wouldn't take that road. there might be plenty of barrels of whisky also matured, one hopes so, but the push with gin is dolar driven in many cases. 

 

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