Suntory Whisky’s Chief Blender Shinji Fukuyo on Preserving a Legacy

When Shinjiro Torii founded the Yamazaki Distillery in 1923, few would have been able to forecast the enormous force his company, Suntory Whisky, would go on to become a century later.

Over the past decade in particular, Japanese whisky has evolved from a curiosity known only to connoisseurs into a powerhouse beloved in every corner of the whisky world. As chief blender for Suntory Whisky, Shinji Fukuyo has spearheaded this modern surge, and enjoys a unique position as the House of Suntory celebrates its 100-year anniversary.

“Witnessing the global impact of Suntory whiskies brings me great personal fulfilment and fuels my passion for creating beloved whiskies for everyone to enjoy,” Fukuyo says. Over the 100 years the company has been producing whisky, he is only the fifth person to hold the title of chief blender. He was named to the position in 2009 after an extensive history working for the company at the Yamazaki Distillery, Japan’s first whisky distillery.

Suntory has been hosting a year of celebrations in honour of its centennial, the highlight of which has been the release of a suite of Centennial Limited Edition whiskies. The lineup includes Yamazaki 18-year-old Mizunara (US$1,500), Hakushu 18-year-old Peated Malt (US$1,200), and a centennial bottling of Hibiki 21-year-old (US$5,000). Each of the three was blended by Fukuyo to showcase a unique flavor profile and characteristic that stands apart from its typical bottlings. The Yamazaki and Hakushu whiskies were released this May, while the Hibiki debuted in a separate release last month.

Suntory has been hosting a year of celebrations in honor of its centennial, the highlight of which has been the release of a suite of Centennial Limited Edition whiskies. The lineup includes a centennial bottling of Hibiki 21-year-old (US$5,000).
House of Suntory

Another component of this year’s ongoing Suntory centennial fete was the Sofia Coppola directed Suntory Time tribute film, as well as the Roman Coppola directed docuseries, The Nature and Spirit of Japan, both of which starred Keanu Reeves. Elsewhere around Japan, other prominent businesses have been getting in on the fun as well. For instance, a 30-minute drive from the Yamazaki Distillery, Hotel the Mitsui Kyoto’s signature restaurant Toki—which happens to share the name of a Suntory Whisky product—has unveiled an elaborate Hibiki whisky pairing dinner, while its Garden Bar has offered an exclusive menu of Hibiki cocktails.

Fukuyo spoke with Penta about the century-long legacy of the House of Suntory, as well as the creation of this year’s honorary Centennial Limited Edition whisky releases.

Penta: What does this special occasion signify for you?

Shinji Fukuyo: Shinjiro Torii’s legacy began with a dream to create an original whisky that would suit the delicate palate of the Japanese consumers that is blessed with the riches of Japanese nature and craftsmanship. As chief blender, I am dedicated to upholding Suntory’s rich legacy and traditions, while expressing our craftsmanship through the whiskies that my team and I create.

As Japanese whisky has soared in popularity over the past decade, what are the qualities that define Suntory’s whiskies and have helped make them so special for drinkers around the world?

We use high-quality natural water, which has been nurtured over many years, to produce a delicate spirit. The natural environment and climate of where our distilleries sit in Japan also influences our whiskies. Our climate highlights the dynamic changes of the four seasons, including humid, hot summers and dry, cold winters to give our whisky a deep sense of maturity.

The quality of whisky is showcased in the flavor and aroma that is developed over time by producing a rich distillate from good raw materials and placing it in high-quality casks. Also, to bring out the harmony of flavor and aroma, we carefully proceed and blend various types of whiskies in a skillful balance, which I believe embodies the delicate Japanese craftsmanship.

What was your approach with this year’s limited-edition whiskies?

The existing Yamazaki 18-year is a product that combines American oak, Spanish oak, Mizunara oak, and smoky Yamazaki malt to express complexity while highlighting the character of Spanish oak. On the other hand, the limited-edition Yamazaki 18-year-old Mizunara uses only malt whiskies aged in Mizunara barrels for a minimum of 18 years and features cinnamon and nutmeg aromas, with undertones of Japanese incense, sandalwood, and dry coconut emphasized in the finish, with subtle spices.

For Hakushu, both our existing Hakushu 18-year-old and the limited Hakushu 18-year-old Peated Malt are blended with various whiskies aged in Hakushu, including American and Spanish oak, heavy peated and non-peated, for a smoky yet fruity and sweet finish. The limited edition is balanced with several peated Hakushu malt whiskies aged in American oak for over 18 years to produce a fresh and crisp smoky taste.

Celebratory bottles for existing core whiskies include a special Hakushu 12-year-old (US$185).
House of Suntory

Looking ahead to the next few decades, how do you envision Suntory continuing to evolve? How about Japanese whisky as a category on the whole?

For these 100 years, we have been striving to create a culture where Japanese consumers can enjoy whisky. These are values we still prioritize today, as our team is constantly in the pursuit of enhancing our quality and craftsmanship. As we look to the future, we have seen a growing global interest in Japanese products and believe that there are further opportunities to spread the excellence of Suntory Whisky throughout the world.

This interview has been edited for length and clarity.

AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.

Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.

Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.

Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.

But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.

Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.

Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.

The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.

How the companies have responded to the possible agentic future is telling.

Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.

Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.

Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.

This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.

Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.

The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.

That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.

To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.

Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.

That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.

Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.

Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.

History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.

Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.

Suntory Whisky’s Chief Blender Shinji Fukuyo on Preserving a Legacy

AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.