Kirin’s Mercian Corporation has identified the US as the world’s largest spirits market, while noting rising demand for Japanese food and beverages in Thailand, positioning both as key growth markets for its distilled spirits business.
These insights are based on data from IWSR, a global data and insights provider for the beverage alcohol industry.
The firm aims to accelerate the growth of its distilled spirits export business, which already has an established presence across Asia Pacific markets including Australia, South Korea, and Malaysia, as it looks to diversify beyond its domestic base.
“In recent years, the global gin market has increasingly recognised Japan’s unique ingredients and production methods, driving the expansion of Japanese gin exports,” the company said.
“Furthermore, traditional Japanese distilling techniques, including those used for shochu, attracted global attention after being registered on UNESCO’s Intangible Cultural Heritage list in 2024.”
Industry players see such international recognition as an important driver to promote traditional Japanese spirits for overseas consumers, supporting premium positioning in export markets.
The two new product ranges – craft gin YATSU BOSHI and the YATSU shochu collection – are made from natural ingredients sourced within Japan, blending traditional distilling techniques with flavour profiles designed to resonate with international palates.
Furthermore, shochu is a distilled spirit that typically contains lower alcohol than whisky or vodka, making it more versatile for both straight consumption and mixed drinks. This has helped shochu gain traction among consumers seeking lighter yet flavour-forward spirits.
Both YATSU BOSHI and YATSU shochu will be rolled out in the US and Thailand from January 2026.
Blending heritage with globally trending flavour profiles
In the mature spirits markets, flavour innovation is key for standing out.
Japanese producers have increasingly leaned on indigenous ingredients to carve out distinct identities beyond traditional Western flavour profiles.
The latest launches feature trending flavours, including citrus notes and distinctly Japanese ingredients such as sweet potato and sesame, with a strong emphasis on mouthfeel as a point of differentiation.
The YATSU BOSHI gin is made from three Kumamoto-grown citrus varieties – Aoyuzu, Shiranui, and Banpeiyu – delivering what Mercian describes as a “refreshing and complex” flavour with notable textural depth.
As for the YATSU shochu range, it comes in four distinct flavours that features sweeter notes – rice, black sesame, sweet potato, and barley.
For example, the black sesame shochu offers a “toasty aroma” and a “clean, crisp finish”, while the sweet potato shochu has a smooth texture that is reminiscent of mango, jasmine, and honey.
The barley shochu, on the other hand, comes with notes of roasted grain, honey, and nuts, offering a smooth, rounded mouthfeel and a pleasant, lingering finish.
These familiar yet distinctly Japanese flavours aim to weave a compelling brand story to appeal to global audiences, who are leaning towards versatile brews with rich heritage.
Exports as a growth driver
Exports have become an increasingly important pillar for Mercian as domestic alcohol consumption in Japan plateaus.
By prioritising distilled spirits with premium positioning, the company is seeking to build higher-margin overseas revenue streams that are less exposed to demographic pressures at home.
Mercian’s overseas expansion reflects a broader trend among Japanese alcohol producers seeking growth beyond their domestic market, as consumption of traditional categories such as sake continues to soften in Japan.
Industry observers attribute this to a declining youth population and shifting consumer preferences.
For instance, younger consumers are increasingly gravitating towards low- or no-alcohol options, prompting producers to rethink portfolio strategies.
As a result, premium distilled spirits positioned around craftsmanship, heritage, and export appeal are emerging as a key growth avenue for Japanese firms seeking to remain competitive globally.
