Suntory Manager Talks About Whisky

[John]

I came across this article by Ian McConnell in the Herald Scotland, a little long but worth the read:

Hiroyoshi Miyamoto quips that his Japanese employer, Suntory, does not use Sean Connery to advertise its whisky any more because the Scottish actor is too expensive.

But it is not just a matter of cost. Miyamoto, whose business card signals to people that he is just as happy to be known as Mike as Hiroyoshi, hammers home his belief that there is absolutely no need for Japanese whisky to dress itself up as Scotch to sell.

He knows plenty about both Japanese and Scotch whisky.

Miyamoto has been executive general manager of Suntorys Yamazaki single malt whisky distillery, between the ancient Japanese capital of Kyoto and the city of Osaka, for five-and-a-half years.

Prior to that, he was based in Glasgow as deputy managing director of Suntory subsidiary Morrison Bowmore. This was his second stint at this Scotch whisky subsidiary, known best for its Bowmore single malt from Islay. He spent about five years at Morrison Bowmore on his first posting, while his second term in Scotland followed an interlude at Suntorys Tokyo office and as head of the Japanese firms Hakushu distillery.

Miyamoto is dressed in a fawn-coloured distillery uniform with purple piping, complete with hat. The uniform, particularly the hat, gives him the look of someone who might be going for a round of golf. Miyamoto has a laid-back air, in keeping with the Hiroyoshi (Mike) Miyamoto name on his card.

However, when he starts to speak it becomes clear he is driven by a real passion for the production of whisky at the Yamazaki Distillery. And he seems determined to build further the reputation of Japanese whisky on the world stage.

He talks of himself as a whisky engineer and about the science of the production process. He emphasises his belief there should be continuous improvement in the product. Miyamoto also highlights his view that the Scotch whisky industry is more resistant to change.

Suntorys old habit of using western actors to advertise its whisky brands provided the pretext for the fictional film Lost In Translation, in which a jet-lagged Bill Murray finds himself bemused at the instructions of an ultra-trendy and volatile director making a commercial for the Japanese drinks giants whisky. Murray is confronted in a subsequent scene by a photo-grapher who wants him to act like Roger Moore.

Asked about Suntorys use of famous actors, Miyamoto replies: We dont use Sean Connery any more. He is too expensive for us.

Miyamoto highlights the publicity which Suntorys whiskies receive from amateur bloggers and the boost from visits to the Yamazaki Distillery. Word-of-mouth is now a key marketing strategy.

About 110,000 people came to this distillery last year, he says. They went back with a good impression of whisky.

Eschewing the idea of using a very famous western actor to advertise Suntorys whisky these days, Miyamoto says: We dont want to give the consumer the wrong impression, that we are making the Scotch whisky-type. We are making Japanese whisky. Maybe 25 or 30 years ago, the image of Europe seems to be higher and better. That is why we might have decided on the European actor in our TV commercials for whisky, but the Japanese people these days understand the Japanese product should be good as well.

Miyamoto highlights the raft of gold medals won by Suntory whiskies, including Yamazaki, at prestigious international events.

As he conducts a tour of the Yamazaki distillery, which began production in 1924, he pays tribute to Suntory founder Shinjiro Toriis bold move to diversify into the production of whisky.

Suntory, founded in 1899 as a small merchant store in the Osaka area, was by the 1920s doing very well for itself, selling lots of fortified port wine or Akadama.

Miyamoto says of Toriis vision: He just wanted to make authentic whisky for the Japanese palate. At that time, Scotch whisky was too characteristic and unique to the Japanese palate.

The company board, Miyamoto declares, told Suntorys founder that he was insane to take such a step with a business which had made them wealthy. Miyamoto notes that, at that time, Japan was at a primitive or pre-advanced stage relative to the likes of the UK when it came to industrial processes.

However, he says that creating whisky for the Japanese palate was Shinjiro Toriis dream and his dream has come true now.

Asked about the differences between whisky production in Scotland and Japan, Miyamoto replies: Scotland is blessed with Mother Nature. That is why whisky-making started.

He noted that Japan, in order to overcome potential negative factors in terms of the environment for whisky-making, had to adopt a different type of approach and philosophy.

Miyamoto, however, highlights the quality of water at Yamazaki. He points out that a famous Japanese tea master, Sen-no-Rikyu, built a tea house there nearly 500 years ago.

Humidity is another vital factor to ensure whisky remains in good condition as it matures, notes Miyamoto. Scotland has no problem in this respect. Miyamoto says that it can often by too dry in Japan. However, he adds that three rivers merge at Yamazaki. These rivers are at different temperatures and their confluence causes a fog.

Yamazaki Distillery uses Scottish barley, with Miyamoto noting the Japanese equivalent is four or five times the price.

And he makes a big deal of the fact that the fermentation vats are made of wood. He says Yamazaki has moved from stainless steel vats to wood, whereas a lot of Scotch whisky companies have moved in the opposite direction.

Miyamoto is sure this is the right way to go because the small bacteria which play a part in the fermentation process stay in a wooden vat even after washing. Such bacteria would be wiped out at this stage if the vats were made of stainless steel.

In a whisky nosing and tasting session after the tour, Miyamoto points out the oriental incense and cinnamon aftertaste from the Japanese oak in the Yamazaki 12-year-old single malt, which sells in shops in Japan for the equivalent of about £50 a bottle. And he flags the sherry flavour of the 18-year-old Yamazaki, which retails for about £120.

Asked about the impact of the global economic downturn on the privately-owned Suntorys whisky sales, Miyamoto notes that there was an increase in volumes last year. This followed 26 consecutive years of decline.

Yamazaki increased its sales. Suntorys Hibiki blended whisky suffered a fall in sales, with Miyamoto pointing out this whisky is often bought for business entertaining and such expenditure appeared to have been reduced by most companies last year.

However, Suntorys Kakubin standard blend square bottle whisky did well, because of the successful promotion of this product as the base for a high-ball drink with soda, and this helped ensure the rise in overall volumes.

Miyamoto says Yamazaki now sells about 150,000 cases of 12 bottles each year in the Japanese market and about 25,000 cases overseas. He hopes for a significant increase in overseas sales in countries such as the UK, France, Sweden, the US, China and Taiwan.

UK supermarket giant Tesco has expanded the number of stores in which it stocks Yamazaki 10-year-old from 100 to 370. Hibiki was introduced last year to the UK market-place.

Asked if Morrison Bowmore had proved a good investment for Suntory, Miyamoto replies: Yes, indeed...It is a long-term investment. Now Bowmore is...one of the top 10 single malts in Scotch whisky.

Suntory acquired a minority stake in Morrison Bowmore in 1989 and took full ownership in 1994.

Miyamoto says: Scotch whisky people dont want to introduce something new to their system. They dont want to change things. On the other hand, as a Japanese whisky engineer, you like to be as progressive as possible. We like to be slightly better each day.

Asked what his colleagues at Morrison Bowmore think of Yamazaki, Miyamoto replies: They really appreciate the quality of the whisky we produce.

He adds: We sell lots of Bowmore in Japan today. We like to see both grow together.

Miyamotos time in Scotland has had a lasting impact not just on him but on his family.

He laughs when he recalls how his daughter, Yoshino, who went to the High School of Glasgow, speaks with a perfect Glaswegian accent.

This confused some in the industry when he took her to the Whisky Live event in Tokyo three years ago.

Japanese look but Glaswegian accent, he laughs.

John

[Carson]