Japanese Whisky, Average Supermarket Price Up 20%
Exports Increase and More Tourists Visiting Japan Pay Premium
Supply Expansion Difficult Due to Aging Period
As the shortage of Japanese whiskey continues, prices of some premium Japanese whiskeys such as Suntory Hibiki Harmony have surged nearly 40% over the past five years. This is due not only to increased whiskey exports but also to a rise in foreign tourists visiting Japan to purchase whiskey and growing domestic demand fueled by the popularity of highballs.
Given the sudden surge in demand and the nature of whiskey requiring aging periods, supply cannot be quickly increased, so prices of Japanese whiskey are expected to continue rising for the time being.
On the 13th, Nihon Keizai Shimbun reported that an analysis of Nikkei POS (Point of Sale) data collected from supermarkets nationwide showed the average store price of whiskey and brandy was 1,624 yen (about 14,200 won) last month. This represents an increase of about 20% compared to October 2018, five years ago.
When analyzing purchase amounts per person by category, the price increase of premium whiskey stood out. The two major pillars of Japanese whiskey, Suntory Hibiki Japanese Harmony and the single malt whiskey Yamazaki, saw prices rise 40% and 25%, respectively, over the past five years. Nikka’s whiskeys Yoichi and Miyagikyo, affiliated with the Asahi Group, also experienced price increases.
The reason Japanese whiskey prices are rising so rapidly is that supply cannot keep up with demand. Nihon Keizai interpreted that from the 2000s through the 2010s, Japanese whiskey gained recognition overseas, establishing high-quality Japanese brands.
As a result, Japanese whiskey exports have increased significantly. According to Japan’s Ministry of Finance trade statistics, whiskey export value reached 56 billion yen last year, 22 times higher than ten years ago. Volume also increased sevenfold.
Not only is whiskey exported overseas, but many foreign tourists visiting Japan purchase whiskey. According to a representative of a liquor specialty store in Japan, the selling price of "Yamazaki 12 Years" has risen to about 18,000 yen. Although the suggested retail price is 10,000 yen (excluding tax), many visiting tourists pay a premium to buy it.
Suntory raised retail prices from shipments in April last year, citing increased costs due to expanded production facilities, but prices have risen sharply as supply has not kept pace with demand. A Suntory representative responsible for Yamazaki expressed frustration over transactions occurring at prices diverging from the suggested retail price.
Furthermore, domestic demand is also increasing as the popularity of highballs expands within Japan. According to Nikkei POS data, the share of whiskey and brandy sales among alcoholic beverages sold at supermarkets nationwide was below 30% five years ago but has now risen to nearly 40%. With such increased demand, it has become difficult for wholesalers and retailers in Japan to procure whiskey.
Nihon Keizai stated, "Whiskey requires an aging period before it can be sold on the market, so production volume cannot be easily increased like manufactured goods," adding, "The domestic whiskey market was stagnant until the early 2000s, and companies reduced supply during that period, which has increased scarcity."
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