Nikka Whisky Maker Invests 6 Billion Yen to Boost Exports

18 Jun, 2024

Nikka Whisky Maker Invests 6 Billion Yen to Boost Exports

Japan's Nikka Whisky Distilling Co, renowned for its Taketsuru, Yoichi, and Miyagikyo brands, is set to invest 6 billion yen this year to enhance its storage facilities and boost production capacity to meet the surging demand for Japanese whisky overseas. This investment, focusing on increasing barrels at its Tochigi plant north of Tokyo, will expand the company's storage capacity by approximately 10 percent compared to 2021 levels.

Marking the 90th anniversary of its predecessor, Dai Nippon Kaju Co, Nikka has already invested heavily in boosting whisky production, with 6 billion yen spent between 2015 and 2017 and another 6.5 billion yen between 2019 and 2021. Asahi Breweries President Kazuo Matsuyama emphasized the company's strategy to accelerate exports of its high-priced products, stating, "The more we can make, the more we can sell."

Japan's diverse climates contribute to the production of smooth and elaborate whisky brands, which are increasingly popular with international consumers. However, the long maturation periods required for high-quality whisky, often over 10 years, pose a supply challenge.

To address this, industry leaders like Suntory Holdings Ltd and Kirin Brewery Co have also made significant investments in their distilleries. In 2022, whisky exports from Japan were valued at approximately 56.05 billion yen, a 21.5 percent increase from the previous year, demonstrating the strong global demand for Japanese whisky.