The Ethical Spirits

The Ethical Spirits

Craft spirits distilled from upcycled sake lees.

HQ location
Tokyo, Japan
Launch date
Employees
Enterprise value
$5—8m
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$1.4m

Debt
Total Funding000k
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The Ethical Spirits & Co. is a Tokyo-based distillery venture founded in February 2020 with the mission of creating a circular economy. The company produces craft gin by distilling materials that would otherwise be discarded, most notably sake kasu (lees), the pressed cake left over from the sake brewing process. It also utilizes other materials such as expired beer and cacao husks.

The company was co-founded by CEO Yuya Yamamoto, COO Chikara Ono, and CTO and Master Distiller Ayumu Yamaguchi. Yamamoto, with a background in the sake industry, identified the issue of undervalued and discarded sake lees. This insight, combined with observing the craft gin boom in London, led to the company's creation. Ono brings a diverse international background and market perspective, having worked in consulting before co-founding an innovations firm in London. The founding team's vision is to highlight the hidden value, or "hidden gem," in these underutilized resources.

The Ethical Spirits & Co. operates on a direct-to-consumer (D2C) model and through retail channels. Its business model is built on creating a sustainable loop; the company purchases sake lees from breweries, distills it into award-winning gin, and uses a portion of the profits to support rice farmers, who in turn supply rice to the sake breweries. In 2021, the firm opened the Tokyo Riverside Distillery, an urban distillery featuring a retail store and a bar & dining space. It is also planning a second distillery in a repurposed elementary school gymnasium, which will produce "WoodSpirits," a novel alcoholic beverage made from wood.

The company's products have gained international recognition for their quality, receiving the highest national award at the World Gin Awards in 2021 and a record-breaking score for a Japanese gin at the International Wine & Spirits Competition (IWSC). This success has attracted investment from major corporations like Suntory Holdings, supporting the company's expansion into global markets. By focusing on exceptional taste, The Ethical Spirits & Co. aims to make ethical consumption a mainstream standard, where consumers choose their products for their superior flavor and discover their sustainable origins afterward.

Keywords: craft gin, sustainable spirits, circular economy, upcycling, sake lees, Japanese distillery, ethical production, food waste reduction, craft spirits, Tokyo Riverside Distillery, artisanal spirits, sustainable distillation, direct-to-consumer spirits, beverage innovation, social enterprise, eco-friendly alcohol, WoodSpirits, botanical spirits, waste valorization, sustainable brewing

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