Nikka aims for world top 10 with ¥40 billion in warehouses

Nikka Whisky, one of Japan’s major whisky makers, is pursuing a long-term strategy with its eye on its centenary. According to Nihon Keizai Shimbun, the company has set itself the goal of joining the world’s top 10 in premium whisky. It plans to invest about ¥40 billion over ten years to increase its storage capacity for maturing whisky, and to spread the brand abroad, including in South Korea and Taiwan.

The place where whisky waits to mature was the biggest constraint

Whisky only becomes a product after distilled spirit has been filled into wooden casks and left to age for many years. The amount of space available for storing casks therefore sets a ceiling on how much can be sold several years from now. For Nikka, this storage capacity was the bottleneck in whisky production, and the latest large-scale investment is aimed squarely at it. Whisky filled into casks today will not be bottled for many years. The phrase used in the article, “a plan for a hundred years”, captures well how long whisky-making takes.

From a distillery that chars its casks to the markets of Asia

One of the company’s sites is the Sendai Miyagikyo Distillery in Sendai, Miyagi Prefecture, in Japan’s Tohoku region. Red-brick buildings stand on grounds surrounded by a clear river and deep greenery, and inside them wooden casks are charred one after another. Scorching the inside of a cask is an important step that shapes the whisky’s colour, its toasty notes and its sweet aroma.

Overseas, the company intends to build brand awareness in markets such as South Korea and Taiwan. By increasing storage it secures future supply, and at the same time it raises the value of the brand abroad. These can be seen as the two pillars of its challenge to the world with a whisky refined at home.

How to enjoy it in Europe, and what to watch

When choosing a Japanese whisky in Europe, checking the distillery name, age statement and cask type on the label makes the differences easier to see. Start by nosing a small measure neat, then add a few drops of water and see how the aroma opens up. Served as a highball (with soda water), which is widely enjoyed in Japan, it also goes easily with food. The additional whisky this investment will produce will not reach the market for several years. Alongside how the brand strategy in Asia unfolds, it will be worth watching how the line-up of Japanese whisky on European shelves changes.