Suntory and the $800,000 Whisky - Japanese Whisky Business Documentary
Published 2020-08-31
Days ago, a bottle of Suntory’s Yamazaki 55 sold at auction for $800,000 USD. There was a time when Japanese whisky collected dust on shelves, so what changed?
0:00 Introduction
0:35 Cultural History
5:12 Whisky Tasting
8:02 Inelastic Supply
8:52 Supply and Demand
12:15 Substitute Goods
13:05 NAS Japanese Whisky
14:14 “Japanese” Whisky
16:05 Holdouts
16:42 Secondary Market
17:54 Perceived Value
19:52 Closing and Easter Egg
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In 2003, Sofia Coppola’s movie Lost in Translation introduced Suntory Whisky to a mostly unfamiliar western audience. The movie featured Bill Murray as Bob Harris, filming ads for Suntory whisky. The famous catchphrase: For relaxing times, make it Suntory time, still persists in the culture surrounding Japanese whiskies.
In 2009, Suntory became a new company, Suntory Holdings Limited, more suited to act as the parent company of Suntory’s many different sectors, including soft drinks and food, beer and liquors, and wine.
In 2014, Suntory became an even more ubiquitous presence in Western markets when they purchased the largest American bourbon producer, Beam Incorporated, producer of Jim Beam, for $16 Billion dollars. This deal made Suntory without question one of the world’s largest spirits makers, behind only Diageo and Pernod Ricard.
In November 2014, the world of Japanese Whisky hit the big time, when renowned whisky writer, Jim Murray, named Yamazaki Sherry Cask as the “best whisky in the world.” This brought the niche world of Japanese whisky right into the spotlight of the whisky world, and the effects have been felt ever since.
Japanese whiskys became the most highly-sought after drams in the whisky world. In 2015, Will Lyons asked in his Wall Street Journal article, “Is Japanese Whisky better than Scotch?” Reading this article is when I first wised up to Japanese whisky. In 2015, already late to the game, I was able to try a glass of Suntory’s Hibiki 17 and a glass of Suntory’s Hibiki 12. For the record, I preferred the 12.
We know that when demand goes up for a product, its price goes up. Well, American demand for Japanese whisky certainly went up - In 2014, American imports of Japanese whisky were $6 million dollars. In 2018, just four years later, that figure increased by almost 700% to $40 million dollars. Yamazaki 12, which once collected dust at $100 a bottle are now moving at $140. Bottles are continually flipped on the black market for markups well above the already premium price of retail. Other competitors, wanting a piece of the action, have bumped into the market. What was once the very sleepy world of Japanese whisky became a hotbed of activity, practically overnight. But these whiskies take 12, 17, 21 years, or more to be crafted, so what happens when there is a huge spike in demand, and no extra supply?
All Comments (18)
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If you enjoyed this video, check out my video about Johnnie Walker’s pricing strategy! 🥃 👇 https://youtu.be/Xl004gZ6VOk
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Hibiki 12 is almost impossible to get, it cost about $600USD in Taiwan, hope you enjoy it.
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Wow $80,000 bottle of whiskey... very interesting stuff, had no idea Japanese Whiskey was a rare thing. Nice video
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I bought a bottle of Hibiki 12 "Kacho Fugetsu" at Narita... a few years ago. The cheapest "age - statement" Hibiki available at the time. It was pricey at $100 bucks and I'm not really sure why I picked it up? It sat in the liquor cabinet for years. Now it see I could easily sell if for $1200 ~ $1500 bucks. Amazing. So happy I didn't crack it.
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I’m pretty sure Suntory announced that they officially discontinued to produce the Hibiki 12 year expression! I don’t think we’ll ever see a bottle in a liquor store again sadly. Glad I have one definitely gonna sell mine. :) Cheers
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Awesome video brother. Very well done, interesting, and you indeed know your stuff.
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The age statement in the bottle is the age of the youngest cask in the bottle. A "12 year old" whisky could have 17, 21 or older whiskies in there.
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Great video. Love me some Japanese whisky. 8-9 years to get to the stage where we’re not saving our whisky and can freely drink will definitely be long. What are your favourite scotch?
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Mannn nice video... great info. My buddy got so into Japanese whisky. Flying to japan for some yearly events where they could pick up some limited bottles. Didn’t know any of this tho...
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Hey guys have you ever thought about the economics behind one of your favorite purchases?
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waaaw I am a whiskey lover! thanks for sharing this video! big like!
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From Tokyo it’s hard to find any aged Suntory although I do know where to pick up a Yamazaki 12 and a Hakushu 12 for ¥26000. I also know of a Hibiki 21 for ¥99800. I’m almost tempted to pick up the Yamazaki 12 as I would be surprised if it stays around that price this time next year. Don’t open that Hibiki 12… that is a special one. Video Arigato.
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I have a bottle of Hibiki 17 Year Phoenix Limited Edition sealed in the box. Any offers??? (located in Canada)
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Wow
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Wow that is pretty crazy
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How many times did you have to “reshoot” the drinking scene, after this video was over?
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I am as good as you are looking for
