Friday, Nov. 23, 1962

Japan's Rising Suntory

Since the Caesars, conquering armies have left their marks behind: Roman baths in Britain, Moorish palaces in Spain, whisky in Japan. Last year Japanese distilleries produced 9,000,000 gallons of whisky--two-thirds of which flowed from Kotobukiya, the country's oldest and largest distiller. Kotobukiya's prestige brew is "Old Suntory," a light, Scotch-type whisky that derives its musky flavor partly from imported Scottish peat and partly from Japanese water purified by filtering through lava beds. Old Suntory is palatable enough that Kotobukiya now exports it to 20 countries. But, says President Keizo Saji, 43, "our main market will always be Japan. We are aiming at our own people to become somewhat of an institution."

Gold in the Hills. In sake-sipping Japan, that takes some doing. Saji's father started the company in 1923 because he felt Japan should make its own whisky. Though he hired a Glasgow-trained Japanese chemist and traveled endlessly trying to convince bartenders to stock Old Suntory, the company was still in the red when World War II ended. Fortunately, it had a huge amount of unsold whisky stocked in the hills near Kyoto.

Came the G.I.s. When they wanted something stronger than beer, Kotobukiya was waiting for them. Soon the Japanese, emulating their conquerors, began to say kanpai (cheers) over Scotch and soda. Out flowed 86-proof Old Suntory, now $4.50 a fifth. For undemanding palates, Kotobukiya also puts out 74-proof Torys, a throat burner that sells for 85-c- a near fifth (21.6 fluid oz.). Last year Kotobukiya Ltd. bottled 6,000.000 gallons of Suntory and Torys, had profits of $5.5 million on sales of $66 million. This year it expects a gross of $75 million.

Snob Appeal. The only likely impediment to Kotobukiya's steady growth is Japan's plan to reduce tariffs on a wide range of manufactured goods, including whisky, in the near future. Imported whiskies, which now command $11 a fifth in Japan, may then sell for as little as $6 --which, given the snob appeal that foreign products enjoy in Japan, will make them closely competitive with Suntory. Preparing for that day, President Saji has launched a major advertising campaign, sponsoring such made-in-Hollywood TV shows as 77 Sunset Strip. The campaign sells prestige and national pride. One newspaper ad shows a Japanese man-of-distinction relaxing in his kimono and clutching a beaker of Old Suntory:

The north wind singing outdoors.

Fire in the stove.

Chopin on the hifi.

I sit deeply back and enter into dreamy

relaxation with, Of course, A glass of Suntory, The greatest Japanese whisky.

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