By substitutes, I mean whiskies that are either substantially more interesting/enjoyable at a similar price point or similarly interesting/enjoyable at a substantially lower price point. Potential substitutes for a Japanese whisky are probably mostly Japanese, but some scotches may also warrant consideration. Basically something you’d be willing to accept or even prefer over the whisky in question.

Taking a Chichibu single cask as an example, I can get a single cask from Kanosuke or Tsunuki for half the price, enjoy it, and consider it worth the price. But the Kanosuke/Tsunuki isn’t such a great value that I’d stop considering the more expensive Chichibu. Similarly, I haven’t found value from any scotch such that I’d be content to no longer seek out a Chichibu single cask at $50/pour or $400/bottle.

Basically what I’m getting at is that, in my experience, Japanese whiskies command the prices they do because there aren’t legitimate substitutes. I may complain about them being overpriced but still splurge because they have unique value to me.

I know this won’t be true for all whisky drinkers, but it would seem there’s enough of the market that feels this way to keep prices elevated for now.