Business Case Studies & Business Publications

Japanese Whisky: Over a Barrel?

Kim, K. Dennie, Se...

Case

Japanese Whisky: Over a Barrel?

Kim, K. Dennie; Sesia, Aldo; Tang, Christine

S-0415 | Published October 30, 2024 | 9 pages Case

Collection: Darden School of Business

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In January 2016, Suntory Holding Ltd. (Suntory) CEO, Takeshi Niinami acknowledged that it would take 10 years for the company to replenish the stock of its Suntory brand Japanese age-statement whiskies. Because it took years to make age-statement whisky, distillers needed to predict demand in 6, 8, 12, or 15 years or more. Suntory needed to address its supply shortage given the complexity of whisky making and the emergence of Japan as a leading producer of the distilled spirit. This case study provides students with an overview of the whisky industry, the growth in Japan, and competitive pressures. Should Suntory invest in its age-statement products, knowing they would not hit the market for six or more years, or should it look to innovate? Could it launch new whiskies with much shorter maturation periods? If it did, what were the risks, if any, to the reputation of Japanese whisky? Given no requirements existed for what could be labeled “Japanese whisky,” how far could Niinami and leaders at Suntory push the envelope?