Japan's Whisky Revolution

Japan’s whisky industry was, up until the turn of this century, a virtually unknown quantity. Then a slump in its home market allowed single malts to be sold internationally. Awards followed, its profile rose, and a cult following began, one which shows no signs of flagging. 

All of this was achieved in those early days by two firms, Suntory and Nikka (and in time Chichibu) who were wholly committed to export. Although some more have since joined (Mars, Fuji-Gotemba), Japan seemed resistant to the global whisky distilling boom. A decade ago, there were only 10 whisky distilleries. Now, though, there’s 150. The field has changed. 

The New Wave

Japan has always approached whisky-making through the same foundational principles which lie behind its craft and industry: kaizen (continual improvement) and monozukuri (value of craftsmanship). Nothing is fixed in this world - other than the drive for quality. It is a constant reinvention, a questioning at every point of creation. That the new wave are approaching whisky in a new way is no surprise.

The new players consist of whisky lovers taking the plunge, craft brewers like Kiuchi which owns the Yasato distillery, and Nagahama) and, as well as sake producers (Sakurao), and shochu distillers such as Kanosuke and Osuzuyama. 

They are following the lead of Ichiro Akuto’s Chichibu which in 2007 showed not only that a small, independent distilling was possible, but that it could do so by focusing on the local. It opened up new possibilities.

In 2015, Akkeshi on Hokkaido also began to explore the possibilities of location with the ultimate aim of making a 100% Hokkaido whisky from local barley, peat, yeast and oak.

Climate

Akkeshi’s approach also involves exploring microclimates within Hokkaido to see how they might affect maturation. With the exception of Yoichi (also on Hokkaido) Japan’s founding distilleries were concentrated in a relatively small area of Honshu. While there were subtle differences in conditions, now the extremes are greater. 

Whisky is being made and matured from the northernmost tip of Hokkaido (Kamui on Rishiri island) to Nagahama’s maturation cellars in tropical Okinawa, one of the firm’s four warehousing sites - an abandoned school, a disused railway tunnel, and three island locations, Okinawa, one near Nagahama, the last on Lake Biwa.

It, in turn, is taking inspiration from Hombo Shuzo, owner of Mars Shinshu in the south Japanese Alps, as well as its sister distillery Mars Tsunuki in the most southerly of Japan’s main islands, Kyushu. It also has a warehouse on sub-tropical Yakashima Island. Whisky is swapped between the sites, offering new flavour possibilities for blending. 

In similar vein, Sakurao’s eponymous whisky is aged in the humid conditions of the distillery, next to the Inland Sea, while its Togouchi releases mature in a damp, windy, disused railway tunnel in the mountains.

Local barley

The examination of conditions doesn’t stop with climate. Many of the new distillers are also looking at raw material. As Japan’s majors grew in the 1960s, their need for malted barley outstripped the local supply. 

Today, 90% of the malt used in Japan is imported. What though if older varieties could start being grown once more? Again, Chichibu was at the forefront of this, with Akuto working with local farmers to grow Sai-n-o-Hosi and the old industry standby, Golden Melon. 

Now Akkeshi is using Ryofu, Yasato is trialling Kaneko Golden, while Osuzuyama is malting Harushizuku and Haruka 2-row. Sky Golden now accounts for half of Okayama’s requirements, and Shizuoka is aiming to do the same with Sachio Golden. The volumes are small, but in terms of flavour and a move to greater sustainability they are important.

Multiple Streams

Shizuoka is also an example of how newer distillers are adapting existing practises. The distillery makes in excess of 10 different distillates using a variety of malts, smokes, yeasts - and stills. One of its wash stills runs on steam. The other is wood-fired. The former gives a gentle light distillate, the latter robust and roasted.

The Japanese tradition of multiple distillate streams was the consequence of a decision taken by the majors in the industry’s early days. Although, like Scotch, Japanese whisky was built on blending, firms refused to exchange stock (the Scottish model). As a result, they had to produce a variety of flavours from each site. A commercial decision led to increased creativity. 

Kyushu’s Kanosuke is another producer taking this approach. Its three stills allows them to make double-, partial triple- and triple-distilled new make. With the lyne arms at different angles, the variety of new makes is increased further.

Neither is the new Japanese whisky restricted to single malt. Kanosuke’s Hioki shochu distillery makes a ‘pot still’ from unmalted pearl barley and malt. Sakurao is also doing something similar. 

Both are also examples of how shochu and sake techniques are being adapted for whisky, the barley mix being converted and fermented simultaneously, while distillation - as with many of the shochu whisky converts - is in stainless steel vacuum stills. 
Some of the shochu producers (such as Hikari) are also mellowing their new make in ceramic prior to wood… and wood is the apposite word. While oak makes up the vast majority of casks, there is widespread exploration of different types - mizunara inevitably, but also a range of European oaks, as well as chestnut, and acacia. There are casks with heads made from cedar, or sakura, as well as reused ex-shochu casks.

Majors not been quiet

The use of cedar was first trialled by Suntory, an indication that while the excitement might focus on the sparkly new players, that the principles of kaizen and monozukuri remain at the core of the majors. Fuji-Gotemba has had a $60 million investment in production with the aim being to move away from the old style of light, easy-going whiskies (often including imported stock) to a 100% Japanese range that emphasises fruit and richness.

Suntory has installed a small malting floor at Yamazaki as well as releasing the first mature products from it experimental column still at Hakushu - including a rye whisky. The firm has also been making rice whisky at its Osumi shochu distillery on Kyushu. Nikka, too, has used its wider estate using its Moji and Satsumatuskasa  shochu distilleries to make a grain whisky in stainless steel stills.

Elephant alert

There are, almost inevitably, issues arising from this sudden rise in production. While Japanese distillers have to cope with higher fixed costs, the prices of the new distilleries’ releases are high. The majors adopted a strategy of steep price increases to try and dampen down demand at a time when stocks were low. If anything, this just encouraged people to buy and speculate. Now, many of the new players are launching young whiskies at the same price as the old guard’s brands. 

While the domestic market initially accept this, excitement has dwindled - and prices are excessive for an export market where value is becoming an increasingly important element of purchasing. Some radical readjustment is needed if all of the new players are to survive. The local market cannot sustain 150 distilleries but export is almost impossible at current prices. 

On the production side, volumes of local barley will never reach commercial levels without independent, local maltings. Work is also needed to persuade farmers to either switch from other grains (soba, rice for sake) or include barley as part of their mix.

The issue of legislation continues to haunt the category. Although there is a labelling agreement among members of the trade organisation defining what Japanese whisky is and a new logo which will appear on all genuine Japanese whiskies, the rules only apply to those members. Until laws are passed, bad actors can still import bulk whisky and relabel it as Japanese, or bottle barley or rice shochu and sell it as whisky in the US.

It was never going to be straightforward, but over 100 years the industry has shown it’s resilient. The best will prosper and the endless process of kaizen and monozukuri will continue. It's what Japan does.