1、Has Japanese Whisky Been Overpriced?Whiskystats Insights Report 2024 Mid-Year UpdateWhen a market experiences strong growth rates,momentum takes over,and the traditional ruleset no longer applies.During the dot-com bubble,for instance,every company loosely related to the new internet technology expl

2、oded in value,even though the business fundamentals did not support these stratospheric valuations.The fundamentals of whisky are quality and scarcity.If a particular whisky is highly regarded among whisky aficionados but not readily available,secondary market prices will climb.However,in the years

3、leading up to the market peak in 2022,this rule was largely irrelevant.Whiskies that received average consumer ratings at best and for which scarcity was purely a marketing tactic massively gained value.But when momentum ceases,the funda-mentals once again become essential.While it is true that most

4、 whiskies lost value over the past two years,there are clear market segmentations.Those whiskies which gained the most value for no apparent reason have now lost the most.On the other hand,whiskies,for which the underlying fundamentals are correct,are once again realising fair prices.Regarding the s

5、econdary whisky market,the elephant in the room is Japanese whisky,particularly Karuizawa.Auction prices are in free fall with no signs of a turnaround.Of course,scarcity is a given for a closed distillery,but this raises the all-important question of quality.Do Karuizawas live up to the high expect

6、a-tions?Were enough consumers ever able to taste these rare whiskies?Or was the perceived quality not an issue,but the high prices simply did not reflect the bottles contents?Only time will tell,but for now,at least,we are witnessing a profound correc-tion in the secondary market.I hope you enjoy ou