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By Jessie Spigel, Fine Art Specialist for Chubb Personal Insurance
In the world of wines and spirits, the Japanese whiskies phenomenon exploded on the scene in 2014 when journalist and critic Jim Murray proclaimed a single malt whisky from the Yamazaki distillery “as the best in the world,” as reported by Bloomberg.com. Since then, prices and demand worldwide have skyrocketed, sending retailers into a spin as they try to locate these precious goods.
There are many other reasons why collectors have increasingly been adding Japanese whisky to their treasure chests. Japanese whiskies age well, and thus is good for long term collection. Furthermore, they do not need to be stored at cold temperatures, but rather, can be kept in wet bars and butler pantries under lock and key, or in separate rooms adjacent to wine cellars.
Whiskies 101
Whisky production in Japan began around 1870, but the first commercial production was in 1924. Today, two of the best-known and most widely available distilleries are Suntory and Nikka, both of which have created winning combinations while successfully catering to a diverse audience and changing up flavor profiles. There are currently nine distilleries in Japan, compared to 108 in Scotland.
Japanese whiskies use the traditional Scottish spelling of “whisky” instead of “whiskey.” Whiskies made in Japan also use Scottish distilling techniques and try to replicate their Scottish counterparts.
Many Japanese whiskies are high end – averaging $75 and up per bottle. For example, Hibiki Japanese Harmony sells for $65, alongside Hibiki 17 for $150 and Hibiki 21 for $250. Moreover, Ichiro’s Malt “On The Way” is a sweet and spicy blend of older whiskies, selling for $200, while the smokier Ichiro’s Malt “The Peated” sells for $250, according to an August 2015 article on Bloomberg.com.
Imagine collecting 10 or 20 of these whiskies – and you can see how your collection can add up in value. Protecting these bottles thus becomes paramount.
Risks and Rewards
The risks to these whiskies are much the same as the risks to any fine wine collection. Collectors should make sure the whiskies are assessed in value and covered under a scheduled valuables article policy in case of theft, or in case of a natural disaster where recovering the bottles is simply not an option.
It is advisable to talk to your insurance agent about the policy that’s right for you. As the public’s obsession with Japanese whisky continues to grow, demand will remain high, rendering it difficult to quickly replace any lost or damaged items.
Source: http://riskconversation.com/blog/personal/2015/12/14/the-wonders-of-japanese-whiskies/