Stateways

StateWays Jan/Feb 2016

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays ■ www.stateways.com ■ January/February 2016 24 receiving large allocations, since the category's fi rst big push was carefully controlled. "By only exporting a limited quantity to the United States in the early 2000s, the Japanese were able to hook a niche group of whiskey drinkers," explains Erin Rober- tie, Liquor Department Manager of Hazel's Beverage World, a 35,000-square foot retail store in Boulder, Colorado. "Almost a novelty, Japanese malts entered the market as something different. Something a little weird." In this way, connoisseurs were encouraged to set the reputation of Japanese whisky. They liked what they drank. Japanese whisky gained status among American consum- ers as an approachable, nuanced alternative to Scotch. Demand increased. Then, when Suntory whiskies won a slew of global awards between 2010 and 2012, demand exploded. B ottles do not last long on store shelves. Shipments are limited. Connoisseurs and curious drinkers grab what they can. The cost to purchase can rise well beyond the suggested retail price. This may sound like a description of the diffi culty in acquiring Pappy Van Winkle Bourbons, whose quality and scarcity have lifted the brand into legendary (and ex- pensive) status, but it's not. The entire Japanese whisky category currently experiences the same challenges. Is this good for the category? And how did we get here? MEASURED EXPOSURE Numerous factors are behind the current Japanese whisky craze. Distillers set aside a good portion of their output for domestic markets, which leaves less juice for the rest of the world. However, America was not always Demand for Japanese Whisky in America Outweighs Supply BY KYLE SWARTZ LEADING JAPANESE WHISKY BRANDS IN THE CONTROL STATES, 2012-2014 (9-Liter Cases) '13/'14 Brand Supplier 2012 2013 2014 % Chg Suntory Yamazki Beam Suntory 736 856 1,290 50.7% Suntory Hiniki Beam Suntory 31 112 266 137.5% Nikka Anchor Distilling -- 103 299 190.3% The Hakushu Beam Suntory 2 23 65 182.6% Yoichi Anchor Distilling -- 9 25 177.8% Top Five Leading Brands 769 1,103 1,945 76.3% Source: The Beverage Information & Insights Group from NABCA data.

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