Licensing World - Issue 1 2023

Page 1

Zingibeer

Family

VALUES

MIKE MCMAHON

KEEPS IT TRADITIONAL AT

9% VAT rate to be retained for summer months off the menu

MOTHER MACS JJ Mahon & Sons boosts business with acquisition and expansion into the north west Into the West puts the fermented ginger drink back on the map
TIME FOR A REFRESH
Extra tax Issue 1 2023

Proud Sponsor of Ireland's Afternoon Tea Hotel Award

LICENSINGWORLD.IE 1 CONTENTS Contents Spring 2023 4 NEWS The latest updates from the on trade 8 VAT 9% VAT rate for the hospitality sector is to be retained throughout the summer months 12 DISTRIBUTION JJ Mahon & Sons is expanding its presence in the north west with its acquisition of Drino Drinks 15 COVER STORY Mother Macs’ Mike McMahon is keeping it traditional in Limerick 18 TIME FOR A REFRESH Zingibeer is putting the fermented ginger drink firmly on the map 15 20 18 12 20 LAST ORDERS 5 minutes with… Claire Canning, Homeplace Manager, Slane Distillery

Before the energy crisis, Mike McMahon, owner of Mother Macs Public House in Limerick, had to sell four pints of Guinness to cover his electricity costs. These days, he has to sell 34 pints before he starts to make any profit. Increasing energy costs coupled with the rising price of a pint are threatening the viability of pubs up and down the country, particularly rural pubs. The pub plays a vital role in Ireland and that connection isn’t being valued the way it should be. With rising costs pushing so many to breaking point, Mike believes more pubs may be forced to close their doors for good this year. Right now, his main ambition is to still be open in in 12 months’ time. “It's a conversation that most publicans are currently having; how do I mitigate closure in 12 or 24 months?” For more on Mother Macs, turn to page 15. Also in this issue, we chat with Rachel Byrne who launched Ireland’s first hard ginger beer onto the market in 2021. Zingibeer is most definitely not a beer flavoured with ginger, says Rachel. It’s best described as fermented ginger with a twist of lemon zest and a hint of botanicals and it’s a product that has defied all expectation since its launch. In 2022, just over 700 hectolitres (70,000 litres) of Zingibeer was produced. The target for 2023 is 1,500 hectolitres and there are also plans in place to start exporting. For more on Rachel’s plans for the new brand, turn to page 18.

Independent drinks wholesaler JJ Mahon recently announced its acquisition of Drino Drinks, a wholesale supplier to the hospitality industry based in Carrick-on-Shannon. Drino Drinks is to be rebranded as Connacht Bottlers and is set to be the largest independent drinks wholesaler in the region. The acquisition will allow Kildare-based JJ Mahon to expand into the north west of the country, into areas like Sligo, Cavan, East Mayo and Leitrim. For more on the bottler’s plans, turn to page 12.

We hope you enjoy this issue and if you’ve any thoughts or opinions, please drop us a line.

Editor

The Licensing World editorial team email: editor@licensingworld.com

Editor: Denise Maguire

Creative Director: Jane Matthews

Art Director: Lenny Rooney

Designer: Neasa Daly

Production: Claire Kiernan

Stock Photography: iStock.com

Sales Director: Trish Murphy

Managing Director: Gerry Tynan

Chairman: Diarmaid Lennon

Published by: Ashville Media, Unit 55, Park West Road, Park West Dublin 12 Tel: (01) 432 2200

ISSN: 1393-0826

All rights reserved. Every care has been taken to ensure that the information contained in this magazine is accurate. The publishers cannot, however, accept responsibility for errors or omissions. Reproduction by any means in whole or in part without the permission of the publisher is prohibited. © Ashville Media Group 2023. All discounts, promotions and competitions contained in this magazine are run independently of Licensing World. The promoter/advertiser is responsible for honouring the prize. ISSN 1393-0826

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EDITOR'S LETTER 2 LICENSINGWORLD.IE

The main events this spring...

Angie’s opens at Roly’s

Angie’s Wine & Cocktail Bar opened recently at Roly’s Bistro, giving customers a new place to sip pre-lunch and dinner cocktails, fine wines and enjoy dishes from the Roly’s Terrace menu. The new bar is named after Roly’s founder John O’Sullivan’s wife Angela and will serve up speciality and more expensive wines with new ‘by the glass’ technology that keeps opened bottles under a protected atmosphere as if the bottle had been newly opened.

Redbreast partners with The Horseshoe Bar

Redbreast Whiskey has partnered with The Horseshoe Bar in The Shelbourne to offer guests tasting flights, masterclasses and the chance to purchase a special gift box that includes three fine whiskeys and one of The Shelbourne’s bullet glasses. Masterclasses will feature Ger Garland, Midleton Whiskey Specialist and Deirdre O’Carroll, Blender at Midleton Distillery and will run until March 12th. All guests who enjoy one of the Redbreast tasting flights will get a Redbreast specialty cocktail menu in booklet format to keep as a souvenir.

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Food and drink exports reach record high

Bord Bia’s latest Export Performance and Prospects report reveals the value of Ireland’s food, drink and horticulture exports increased by 22% last year to reach a new record high of €16.7 billion. The increase, up €3 billion since last year and almost 30% on pre-pandemic levels (€13 billion in 2019), can be attributed to increasing unit prices due to inflation and rising input and operational costs, along with an increase in the volume of goods exported. Irish drink exports reached almost €2 billion (+22% year-on-year) for the first time, a 25% value increase on pre-pandemic (2019) levels,

which reflects the extraordinary recovery and now growth of the sector following difficult years in 2020 and 2021. North America continues to be the key export market, representing 52% of overall exports at just under €1 billion. Irish whiskey exports accounted for 60% of the overall value growth last year, with exports valued at almost €1 billion (up 25% on 2021) for the first time.

Bord Bia Chief Executive Jim O’Toole said the industry’s performance in the face of such challenging market conditions has been highly commendable. Looking ahead, he said the

Slattery’s brings the Buzz to Ireland!

The Slattery Group recently launched BuzzBallz Cocktails into the Irish market, a range that the company says brings fun, novelty and much needed excitement into the drinks trade. “This is something different from the other brands. The liquid tastes brilliant, the variety is amazing and I think consumers appreciate that they are getting a quality cocktail in a unique package at a great price,” said Karl Slattery, Managing Director. BuzzBallz Cocktails are available in six flavours including Strawberry Rita, Tequila Rita, Espresso Martini, Choc Tease, Chili Mango and Lotta Colada. All are produced with premium spirits, real fruit juices, natural flavours and ingredients. Unlike most pre-mixed readyto-drink brands, BuzzBallz are produced at bar-strength (13.5% ABV).

industry needs to be responsive to a range of oncoming challenges in 2023, as the challenging trading conditions of this year will endure and evolve. “As 2023 is predicted to be another disruptive year of economic difficulty and challenging supply chains, Bord Bia will continue to be agile and responsive to client and sector needs in what is likely to be a period of ongoing volatility. For Irish food and drink exporters, it will be increasingly important to be aware of how consumers respond to the current cost of living crisis and to position their products accordingly.”

The Imperial’s former restaurant at its South Mall entrance has undergone a makeover and is now home to a swanky new bar called No. 76. Open Thursday to Sunday, the bar serves the hotel’s signature cocktails which use 99% local ingredients, along with its own Imperial Pale Ale (IPA) which has an ‘8 miles to the tap’ ethos.

LICENSINGWORLD.IE 5 NEWS
No. 76 opens at The Imperial Karl Slattery, Managing Director, Slattery Group

Gunpowder honoured in San Francisco Liberalisation of licences

will see pubs on every corner – LVA

The Licensed Vintners Association (LVA) has said that the government’s decision to effectively liberalise the pub market from 2026 will eventually “see pubs on every corner in major towns and cities”. It added that the government’s proposal to allow anyone to apply for a pub licence will see more rural pubs “die off”, as the value of many of these premises will evaporate overnight.

Drumshanbo Gunpowder Gin took home gold for Ireland at the 2022 Wine Enthusiast Wine Star Awards in San Francisco recently. As well as winning the overall award for Best International Spirit of the Year, The Shed Distillery was also announced as the winner of the International Distillery of the Year. The brand was up against stiff competition in the category, the shortlist for which included brands including Buffalo Trace, Woodford Reserve and Ardbeg, as well as Dwayne Johnson's Teremana Tequila.

Take it handy with Jameson

These changes are contained in the Government’s proposed Sale of Alcohol Bill and although the LVA supports many of the measures outlined in the legislation, they are concerned the change to the ‘extinguishment requirement’ will see the number of pubs in Ireland soar over the coming years. The licensing regime exists to provide for regulatory control on the sale of alcohol, not to protect publicans from competition. With 6,800 pub licences in the Republic of Ireland there is a pub for every 738 people in this country, compared with one pub for every 1,415 people in the UK’s liberalised market. On top of this, in this country there are another 2,250 wine on-licences (restaurants), 514 special restaurant licences, over 1,000 hotel licences and 3,450 off-licences.

According to the LVA, approximately 1,800 pubs have closed their doors in the Republic of Ireland since 2005, an indication that the country is already “overpubbed”.

Jameson has unveiled a new responsible drinking advert as part of its commitment to tackling overconsumption and alcohol misuse. “Take It Handy” promotes responsible drinking by encouraging people towards more mindful, moderate consumption and reinforces the message that whether you measure, sip, or skip, noone should feel awkward for doing so. Co-written by and starring comedian Aisling Bea, the advert showcases a number of typical social drinking scenarios that consumers can find themselves in when they choose to moderate or skip a drink. Bringing to light the perceived societal pressures that lead to overconsumption, it inspires drinkers to forget the feeling of FOMO and embrace moderation, measurement or abstinence.

Up to now the ‘extinguishment requirement’ has meant that anyone who wishes to open a new pub or off-licence must first purchase a licence from an existing outlet. Those licences could then be transferred to another location in any part of the country. For small pubs in more rural locations, this was one of the few measures that ensured their pubs retained value and were an asset to their livelihoods. However the LVA has warned that if the government’s plan to scrap this process is adopted, they will effectively be wiping out the value of thousands of rural pubs overnight. “The government has claimed that this liberalisation is being adopted in order to ensure there are more pubs in rural areas. That’s not what is going to happen. Rural pubs are closing because they don’t have a market. Their customer base is vanishing. New pubs aren’t going to appear in locations that aren’t commercially viable. Any new licences will be for areas where there is a market and that mostly means the urban parts of the country,” said Donall O’Keeffe, Chief Executive of the LVA.

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Celebrations at The Powerscourt Distillery

Powerscourt Distillery has won six major awards already this year. At the 2023 World Whiskies Awards, the Distillery took home two Irish category wins for Fercullen Distillery Select and Fercullen Italian Gardens. At the 2023 Icons of Whiskey Ireland Awards, the Distillery also received a Highly Commended award for ‘Irish Whiskey category Brand ambassador 2023’ which went to Alan Malone (European Sales Manager for the Distillery). “We're delighted with these awards that reflect the hard work of the team. Two whiskeys that reflect the best of our home, Co Wicklow, both in concept and collaboration. We look forward to these whiskeys taking their place in the world’s best whiskey competition at the end of March,” said John Cashman, Head of NPD & Brand at The Powerscourt Distillery.

Whiskey distilleries attract 677,000 visitors in 2022

Irish whiskey distilleries around the island of Ireland attracted 677,000 visitors in 2022, an increase of 425% on 2021 but still a third down on the pre-Covid peak of 1.02 million. The Irish Whiskey Association announced the new figures as part of its annual survey of Irish whiskey distilleries for 2022. According to the survey, the top four markets for visitors to Irish whiskey distilleries in 2022 were:

• United States/Canada - 34%

• Ireland - 15%

• Germany - 9.5%

• Britain - 9% Commenting on the distillery visitor numbers for 2022, Chairperson of the Irish Whiskey Association James Doherty said: “While overall numbers are still down on the pre-Covid peak, we are targeting full recovery in 2023. Irish whiskey tourism makes a substantial economic contribution to local communities around Ireland, particularly in rural areas. Based on previous assessments conducted in conjunction with Fáilte Ireland, we assess that tourists spent over €40 million in local communities linked to visits to distilleries. “It is expected that at least 26 Irish whiskey distilleries will be open to visitors in 2023, directly employing over 400 people. Details on Irish whiskey distilleries to visit are available at www.IrishWhiskey360.ie.”

History made at Boann Distillery

Towards the end of 2022, Boann Distillery celebrated the Winter Solstice by unveiling its first Irish Single Pot Still Whiskey at its base just outside Drogheda, Co Louth. On the same date three years ago, it filled nine, specially handselected casks with whiskey spirit from its inaugural distillation. In 2019, the single pot still distillate was filled into different wine and spirit casks, including NEOC (New Era of Oak Cask), PX, Armagnac, Sauternes, Moscatel, Chardonnay, Bordeaux, Rum and Marsala and matured in the solitude of the distillery. The first bottles of 'Solstice', matured on site, came from a Pedro Ximenez hogshead 250ltr cask.

A select group of whiskey enthusiasts became the first to taste the newly-matured

spirit at the celebration in the family-owned distillery. According to Pat Cooney, Boann founder and entrepreneur, there were once 18 distilleries in Drogheda, with the last silencing its stills in the late 1850s. “It has always been our family dream to lead a renaissance of Irish whiskey and to craft and distil our own. That revival has begun and Irish whiskey is now quickly becoming the fastest growing spirit in the world. In late 2019, the first spirit flowed from the Boann Distillery copper pot stills, the first to flow in Drogheda in over 160 years. Our state-of-theart distillery, with its three custom handmade copper pot stills and our access to the best casks to mature our spirit, ensures that we produce unique whiskeys of great character and provenance with a real sense of place.”

LICENSINGWORLD.IE 7 NEWS
Alan Malone, European Sales Manager, Powerscourt Distillery Pat Cooney, Founder, Boann Distillery

Extra tax off the menu

9% VAT RATE FOR THE HOSPITALITY SECTOR TO BE RETAINED THROUGHOUT SUMMER MONTHS

After much toing and froing, the government finally signed off on another extension to the lowered VAT rate of 9% in its latest cost-of-living package. The news that the entire industry will continue to benefit from the 9% rate until the end of August has been universally welcomed. The government has been adamant that this will be the last extension and that the rate will increase at the end of the summer. That’s despite the fact that at 13.5%, Irish consumers will be paying the second highest tax rate in the EU for dining out and staying in hotels.

Commenting on the move, the Licensed Vintners Association (LVA) said that it is “positive that the government has kept the extra tax on consumers off the menu” by pushing back the VAT increase on hospitality until after the summer season. It also warmly welcomed the extension of The Business Energy Support Scheme (TBESS) and the commitment to simplify the application process. “We are glad that sense has seen out and that the VAT rate for hospitality will not be changing until after the summer. While we would have preferred to have seen this measure postponed for 2023, it is positive that the government has kept the extra tax on consumers off the menu for now. In our view, it made no sense for the government to be pushing up prices while there are such cost of living challenges in this country. It would have also been shortsighted to introduce extra taxes just at the beginning of the tourism season. Everyone in the hospitality industry will be breathing a sigh of relief with this news,” said Donall O’Keeffe, CEO of the LVA.

30% 50%

TBESS THRESHOLD QUALIFICATION IN UTILITY COSTS DOWN COMPARED TO THE SAME PERIOD LAST YEAR

The coming six months are vital for the pub trade, with the St Patrick’s weekend seen as the traditional start of the tourist season and on into summer, said Paul Clancy, Chief Executive at the Vintners Federation of Ireland (VFI). “Maintaining the 9% VAT rate will assist those businesses serving food and bring an element of confidence. However, we are in a situation where the problems an increase in VAT will bring, namely pub closures and job losses, will re-emerge later this year once the extension lapses. Our message to government will remain the same – the hospitality sector needs VAT at 9% until 2026 when tourist numbers are expected to return to pre-pandemic levels.”

The VFI Chief Executive says the expansion of the Temporary Business Energy Support Scheme (TBESS) is welcome. “Since TBESS was announced during Budget 2023, the VFI has lobbied on behalf of the significant number of our members who were omitted from the scheme because they are not connected to the natural gas network, so the announcement that pubs using LPG and kerosene can now apply is a big boost for businesses facing massive energy costs. We recognise that Government is offering considerable support to our sector at this time but the external pressures on our members is unprecedented and will continue for the foreseeable future.”

RELIEF

50% 40%

TBESS – how it’s set to change

» The threshold for qualification will be cut from the current 50% increase in electricity or gas costs compared to the same period a year ago, to a 30% increase. These changes will apply retrospectively from the start of last September

» The level of relief is set to increase from 40% to 50% of eligible costs from March 1st

» The payment will remain subject to a monthly limit, but will also rise from the current €10,000 to €15,000 per month per trade or profession from next month

» Payment will be subject to an overall cap of €45,000, up from €30,000 where the business is carried on from more than one location

» Government is also looking at introducing a new grant to help businesses that use LPG, kerosene or fuels other than natural gas or electricity.

8 LICENSINGWORLD.IE NEWS
LEVEL IS SET TO INCREASE OF ELIGIBLE COSTS FROM MARCH 1ST
"Everyone in the hospitality industry will be breathing a sigh of relief with this news”
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Photo: John Byrne,Owner Maynooth Bookshop, Trócaire

As the oldest licensed distillery of its kind, the Kilbeggan Distilling Company has occupied the same spot on the River Brosna in the humble town of Kilbeggan since 1757. For 200 years, it was an unlikely success story, as a dot on a map managed to produce a whiskey beloved the world over. But by 1953, tough times had ground its gears to a halt. The doors were deadbolted and the building was auctioned o . When the doors of the Kilbeggan Distillery were shut in 1953, the people of Kilbeggan could’ve easily accepted defeat. They could’ve acknowledged that times had changed and that fate had dealt them more than their share of bad breaks. They would do no such thing. The distillery meant too much to too many in the town. They would never let its smokestack be reduced to a monument, no matter what the world threw at them.

They couldn’t buy back the building, so the townspeople bought time, by paying the distillery license year after year. After three decades of paying and waiting, they received the key to the building and set out to restore it to its former glory. It took long nights and sacrificed weekends, but the town came together and the distillery came roaring

WHISKEY ALWAYS FINDS A WAY

back to life. At Kilbeggan, we say from copper stills and iron wills, you can feel the strength of an entire town in a single grain. Today, Kilbeggan Irish Whiskey can be enjoyed by whiskey lovers throughout the world and every bottle is proof the spirit of Kilbeggan never left.

WHISKEY ALWAYS FINDS A WAY

This remarkable story has yielded some equally remarkable whiskeys throughout our 266 year history, including our Kilbeggan Traditional Irish Whiskey, the perfect blend for an Irish co ee and our Kilbeggan Single Pot Still, which is made in small batches every day at Kilbeggan Distillery. Now a part of Beam Suntory, a world leader in premium spirits, Kilbeggan’s portfolio of whiskeys continue to challenge conventions while remaining true to classic distilling traditions.

KILBEGGAN BLACK SIGNATURE COCKTAILS

The newest addition to our range is Kilbeggan Black, a lightly peated blend, whose smoky notes gives a tasteful nod to Kilbeggan’s sister-brand – Connemara. With mellow notes of green fruits and cereals developing into hints of peat smoke, this whiskey can be enjoyed neat, on the rocks or in a cocktail. Our professional mixologist highly recommends serving it as one of our signature cocktails – a Kilbeggan Black & Ginger or a Kilbeggan Black Whiskey Sour, both served over ice with an orange peel.

With a media plan in support to highlight our signature cocktails to over one million consumers this March, make sure you add them to your menu today!

Every bottle of Kilbeggan, whether it’s Kilbeggan Single Pot Still or the newly launched Kilbeggan Black, holds the spirit of the town
10 LICENSINGWORLD.IE PARTNER PROFILE

Pat Rigney elected Chairperson of Drinks Ireland

Drinks Ireland has announced the election of Pat Rigney as its Chairperson for the next two years. Pat is the Founder and Managing Director of ‘The Shed Distillery of PJ Rigney’, best known for Drumshanbo Gunpowder Irish Gin. Speaking about his appointment, Pat said:

“I am passionate about our sector which is of huge importance to Ireland, especially the rural economy such as Leitrim, our local identity and heritage, with breweries, distilleries, cider producers, visitor centres and hospitality venues bringing jobs to communities throughout the country. I and my peers across Ireland are enormously proud to be part of this industry and its Irish heritage. I look forward to contributing to this great indigenous industry as Chair of Drinks Ireland.

“Too often the drinks industry is misrepresented and maligned at home. Our mission in 2023 and beyond will be to rebalance the debate and to highlight the reality that alcohol consumption in Ireland is more balanced and moderate having fallen by a third since 2001, with Ireland’s consumption now within European consumption norms. Indeed, clear evidence is emerging that consumers, particularly young Irish adults are consuming our products in a more balanced and moderate way and are ahead of the often times outdated stereotypes put about in Ireland. I look forward to working with Director Cormac Healy, his team and the Drinks Ireland members as we continue to highlight the importance of the drinks industry to our economy, our heritage and communities throughout Ireland.”

Sales up at Diageo

Diageo has announced that organic net sales rose 9.4% in the six months to December 31st 2022, beating analyst forecasts for a 7.9% rise. The growth reflected organic volume growth of 1.8%, indicating 7.6 percentage points of higher price growth. Organic operating profit grew 10%.

The company has stated that its premium plus brands drove 65% of its organic net sales growth.

“We believe we are well-positioned to deliver our medium-term guidance of consistent organic net sales growth in the range of 5% to 7% and sustainable organic operating profit growth in the range of 6% to 9% for fiscal ‘23 to fiscal ‘25,” Chief Executive Ivan Menezes said in a statement.

Coca-Cola bottler warns prices, glass costs to rise

Coca-Cola Europacific Partners (CCEP) has stated it expects to hike prices further and that glass costs would rise by the "mid-teen to low double digits" this year at a time when it is trying to sell more returnable glass bottles. Glass shortages have persisted for beverage companies and other manufacturers since the pandemic, with the issue compounded by Russia's invasion of Ukraine. In an article on Reuters, Nik Jhangiani, finance chief of CCEP, which bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand, said: "It's quite significant and part of it is also led by the shortages that we had, given the unfortunate war breakout between Russia and Ukraine, as we had a lot supply there. So we had to look at alternative sources of supply as well, to ensure that we could continue having our products available on shelf.” The bottler has been investing in its programme to sell more products in glass bottles that can be returned to hotels and restaurants, amid concerns about waste. CCEP has rolled out returnable glass bottles in France, Spain and Belgium. "We will take pricing in 2023 and we'll work through in our markets the timing and the right levels of pricing," CCEP's Jhangiani said. "We didn't take prices up at the same rate because it comes back to taking it in more manageable, bite sized chunks."

LICENSINGWORLD.IE 11 NEWS

JJ MAHON & SONS IS EXPANDING ITS PRESENCE IN THE NORTH WEST WITH ITS ACQUISITION OF DRINO DRINKS

UP

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L to r: Kevin Mahon, CEO, JJ Mahon & Sons; Bernard Jackman, former rugby player; Kevyn Mahon, JJ Mahon; and David Mahon, Sales Director, JJ Mahon

Independent drinks wholesaler JJ Mahon & Sons has been synonymous with the licensed trade in Kildare since it first began operating in 1949. Founded by JJ Mahon, today the business is owned by David Mahon and his uncle Kevin Mahon. The family also own and run a pub in Kildare town, described by David as the county’s “best kept secret”. Just recently, JJ Mahon announced its acquisition of Carrick-on-Shannon based Drino Drinks, a wholesale supplier to the hospitality industry in the north west, west and midlands. “When Counterpoint exited the market in 2021, we saw an opportunity to grow the business into the north west. We also felt there was an opportunity for an independent wholesale bottler to take more of a market share. We took on a couple of the Counterpoint reps once they finished up and started to grow the business incrementally. When the opportunity to acquire Drino Drinks came up, we jumped at the chance,” said Sales Director David Mahon.

Drino Drinks, which is being rebranded as Connacht Bottlers, will be based at the existing distribution centre at Grange, Carrick-on-Shannon. All staff employed by Drino Drinks on the date of the takeover will transfer to Connacht Bottlers, which will become the largest independent drinks wholesaler in the region. “That additional facility will allow us to grow the business as we’re at capacity in Kildare. We’re aiming to expand into the north west of the country, into areas like Sligo, Cavan, east Mayo and Leitrim.” JJ Mahon already has a strong presence in the Dublin market. After the Celtic Tiger crashed, David and the team decided to expand into new areas, including the capital. “We took aim at Dublin and focused a lot of our time and energy there. Initially it was quite difficult, but I think there was an appetite for a family-run wholesale distributor like ourselves as opposed to a more corporate outfit. The fact that we’re publicans also helped build trust. We ended up growing our business quite significantly in Dublin; today we have 300 pubs in the capital that deal with us.”

Back in the 1970s, JJ Mahon used to manufacture its own soft drinks under the brand names ‘Curra Orange’ and ‘Curra Lemonade’. “We were forced to stop manufacturing the soft drinks in the late 1970s due to the fuel crisis in the Middle East. It became too cost prohibitive. We decided to focus on becoming a route to market for a lot of the main brand owners. We're in a very low margin business – it’s all about volume and trying to preserve your margins as best you can. Over the years, we worked really hard to

develop the business as a credible route to market for the brand owners, which in turn has made us more relevant in the eyes of the publicans. Trust is hugely important in this industry. We’ve worked hard to build and maintain relationships with our customers and with the acquisition of Drino Drinks, we’ll be working even harder.”

With almost 700 customers on JJ Mahon's books, maintaining that personal touch won’t be an easy task. “There was a time when I would have known every single customer on our books, but that has become very difficult. The challenge now is guaranteeing the same level of service that we’ve always provided our customers. We’ve grown very quickly, almost doubling our turnover from 2019 to 2022. Right now, we’re focused on consolidating and ensuring we’re in a position to scale up while providing the best possible service.”

With a shrinking market, are there plans to expand JJ Mahon’s reach nationwide? “I wouldn’t say going national is on the radar right now. The way it’s worked within this industry is that each bottler had their patch and that was it. With so few bottlers left today, there’s scope for that tradition to shift. In a few years, we may sit down and review our expansion plans, but for the next two or three years we'll be knuckling down and capitalising on the acquisition."

LICENSINGWORLD.IE 13 DISTRIBUTION
"I think there was an appetite for a family-run wholesale distributor like ourselves as opposed to a more corporate outfit. The fact that we're publicans also helped build trust”

Family VALUES

MOTHER MACS’ MIKE MCMAHON IS KEEPING IT TRADITIONAL IN LIMERICK

At the 2022 Bar of the Year Awards, Mother Macs Public House in Limerick took home the award for best ‘Traditional Bar’. Always one of the most hotly contested categories, Mother Macs came out ahead of Dublin institutions John Kehoes and The Stags Head. It was, says Mike McMahon, acknowledgement that they’re doing something right. “The award was great in that it recognised the level of customer service that our staff work exceptionally hard to deliver. Our regular customers also took great glory in it! Awards like these are important because from a brand perspective, we’re now recognisable throughout Ireland. Myself and my

LICENSINGWORLD.IE 15 PUBS

brother James celebrated on the night but the next day it was back to business. It’s nice to get an award, but maintaining the standards and the quality you've been recognised for is the hard part.”

Sitting on the cusp of the Milk Market in Limerick City, Mother Macs dates back to 1787. Over the years, the distinctive round-shaped building has served as a pub, a grocery and a whiskey/wine/ tea merchants. Brothers James and Mike bought Mother Macs in 2015. It’s a pub the two boys used to pass every day on their way to school. “It’s literally about 200m from our family home. We mightn’t have seen the inside of it too often, but it’s a building that we knew and loved so when the

opportunity to purchase it came up, we decided to trade in our 9 to 5 jobs for something a bit different.”

There are no TVs in the pub (“we encourage conversation”) which boasts probably the largest selection of whiskies in Limerick. Customers can also choose from the 12 pouring taps of local craft beer. “I suppose we like to do things a bit different here. Over Christmas, we ran ‘Opera on the Lane’ in conjunction with the Limerick Opera Festival. We brought two singers onto the laneway beside us in the bitter cold one evening and about 200 people gathered to listen to them. We ran that event for free. We organise quite a lot of events and make sure we utilise the space around the pub.

Business might be good but less money in customers' pockets is a concern. Visits to the pub are now occasion driven, with less people opting to go for a pint just because they simply feel like it. “The Irish pub plays a huge cultural role in this country. It’s a gathering point, a meeting place and it’s something that countries all over the world have tried to replicate, but only in Ireland is it as unique as it is. I think people appreciated that more before Covid and were definitely more inclined to go out. Post Covid, the cost of living crisis means people have less money in their pocket so they’re just not going out as much and when they do, they want a bigger bang for their buck. So they’re going out to celebrate a birthday or anniversary or a specific occasion, as opposed to just meeting the lads for a pint at the counter.”

In recent times, Mike has seen a fourfold increase in his energy costs. “Before all this madness over energy costs started, I would have had to sell four pints of Guinness before I started to make any money. So four pints just to pay for my

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There are no TVs in the pub (“we encourage conversation”) which boasts probably the largest selection of whiskies in Limerick
Mother Macs receiving the 'Traditional Bar of the Year' award at the 2022 Bar of the Year Awards

electricity. Today, I have to sell 34 pints of Guinness every single day just just to cover my electricity costs.” Increasing energy prices coupled with the rising price of a pint are threatening the viability of pubs across the country, particularly pubs in rural regions. “From talking to some rural pubs, they’re really feeling the pinch right now. The pub plays such an important role in Ireland and it’s not valued to the extent that it should be. We’ve already lost too many pubs and unfortunately, I think we’ll lose some more before the year is out.”

The licensed trade is up against it at the moment but there are opportunities to grab hold of too, says Mike. “Customers are more open to new experiences so publicans have a great opportunity to expand their portfolio of products, to highlight and showcase local and artisan beers and spirits and support small operations. Customers today are exceptionally well travelled. They want something different, they want high quality and of course they want value for money. It’s difficult to meld all that together, but it also presents publicans with a huge opportunity if they can do it.”

Mike's main ambition is to still be open in 12 months’ time. “We’re taking measures to ensure

we are, but there are no guarantees. With rising energy costs, the increasing cost of wages and supplier costs going up, it’s a genuine risk. It's a conversation that most publicans are currently having; how do I mitigate closure in 12 or 24 months?” Mike has no regrets about buying Mother Macs. “We knew what it was to run a pub and since 2015, we’ve learned what it is to own a pub. It’s a whole new world for us. As a cultural entity, the pub is absolutely amazing. The energy you feel, the conversations that go on, you feed off it. The quality of my life is better since buying the pub, my soul is fuller. Long may it continue.”

LICENSINGWORLD.IE 17 PUBS
" The quality of my life is better since buying the pub, my soul is fuller. Long may it continue”

Time for a

RefreshIreland’s first hard ginger beer hit the market in 2021 and has defied all expectation ever since. The brainchild of brewer Kevin Byrne and daughter Rachel, Zingibeer is described as fermented ginger with a twist of lemon zest and a hint of botanicals, as opposed to a beer flavoured with ginger. 2022 was the brand’s first full year of trading and it couldn’t have gone better, says Rachel. “We seem to have

18 LICENSINGWORLD.IE GINGER BEER
Kevin and Rachel Byrne
GOOD OLD-FASHIONED GINGER BEER IS BACK ON THE MENU, THANKS TO ZINGIBEER

hit that elusive gap in the market where we’re not a beer, but we’re also quite different to other ginger beers on the market. Lemon zest gives the product a really refreshing element, which is something Irish people enjoy. We find that when people try it at tastings, they’re almost surprised that they like it, it’s not something they were expecting to enjoy. We also won some awards last year; we took home bronze at the World Beer Awards in London and gold at Blas na hÉireann. So that was a really great way of ending out our first year of trading.”

The recipe for Zingibeer was developed by Kevin Byrne, who previously led Persistence Brewing Company. With the onset of the pandemic, his business of selling kegs to the on trade disappeared overnight and so he focused on perfecting his recipe for ginger beer. The next step was establishing a company with ex banker Rachel to sell the liquid. “Coming up with the right recipe was a lengthy process, there was a lot of trial and error. There were quite a few plastic buckets containing spice mixes around the place and we were grating a lot of ginger root back then! But we got there in the end. At the moment production is outsourced, but we’re hoping to develop our own facility when volume reaches a certain level.” Just over 700 hectolitres (70,000 litres) of Zingibeer was produced last year. For 2023, the target is 1,500 hectolitres. That’s a lot of ginger beer. “It just seems to sell really well! We’re in about 25 Super Valu stores as part of the Food Academy and in 20 Tesco stores. We’re also stocked in a good number of independent off licences around the country.” Zingibeer is distributed by Grand Cru Beers. “They've been a brilliant partner to grow the brand with. Without them, we definitely wouldn’t have gotten the type of distribution that we’ve gotten to date. They’ve really backed the brand and we’re appreciative of their support.”

Zingibeer is the only ginger beer available on draft in Ireland, with approximately 80 taps dotted around the country. “It ticks the box for people who are looking for a more clean label alternative to the usual beers and ciders. It’s gluten free, contains no preservatives and has a low abv so it’s appealing to people who are perhaps that bit more health conscious.” A refreshing ginger beer over ice sounds great on a hot summer’s day, but was there any concern over the brand’s viability during the winter months? “Yes of course, but we’ve been pleasantly surprised on that front. Obviously, it’s a drink that sells well in summer but we’ve continued to see growth in sales outside of the warmer months. People feel like it’s something they want to pick up, even in the colder weather.”

The rising cost of glass, sugar, packaging materials and ginger root saw Zingibeer’s price point rise in 2022. “We use a specific ginger from Malaysia and we like to use it consistently to ensure

continuity of flavour. We tried to hold off passing the cost increases onto the customer for as long as possible but eventually we had to. As the only Irish-made ginger beer on the market, I think we’re priced very competitively. All our competition are UK imports; we’re really proud of the fact that we’re Irish and that we’re supporting the local economy.”

Zingibeer is participating in Foodworks 2023, an accelerator programme for high potential, ambitious food and drink start-ups. Irish companies interested in going down the export route are encouraged to sign up. “Towards the end of 2023, we’d like to be in a position to start exporting. Foodworks will give us the knowledge that we need to get that side of the business moving.” The rest of the year is about brewing more liquid and introducing Zingibeer to a wider market. “We’ve got Zingibeer to where it needs to be in terms of quality and taste. Now, it’s all about building the brand and working towards a route to export.”

LICENSINGWORLD.IE 19 GINGER BEER
“We seem to have hit that elusive gap in the market where we’re not a beer, but we’re also quite different to other ginger beers on the market"

significantly. We are weathering the storm and expect the elevated costs to continue for at least another year, but we are focused on energy cost saving projects as part of our sustainability efforts.

WHAT COCKTAIL TREND WOULD YOU LIKE TO SEE DISAPPEAR?

Edible cocktails. I prefer to keep things traditional and sip cocktails the classic way!

WHAT’S YOUR FAVOURITE DRINK TO MAKE?

I love a Whiskey Sour; starting with making my own simple syrup, shaking until just foamy enough and then adding a few dashes of bitters before topping with a maraschino cherry. Perfect!

WHAT’S YOUR FAVOURITE DRINK TO ENJOY?

I can never turn away a margarita – a whiskey based one that is! You have to try it, just switch out the tequila for a great quality whiskey.

WHAT WAS YOUR FIRST JOB IN THE INDUSTRY?

CLAIRE CANNING

minutes with 5

Homeplace Manager, Slane Distillery

HOW WOULD YOU DESCRIBE THE MENU AT SLANE DISTILLERY?

When it comes to our drinks menu, we always let Slane Irish Whiskey do the talking. You can taste any of our expressions in whatever way you enjoy your whiskey and sample our delicious handcrafted cocktails too. Our resident mixologist has created a whiskey twist on some of the classics like The Amplifier, which is our version of the popular Negroni. We love to work with local Boyne Valley producers where possible throughout our drinks menu too, incorporating some of their fabulous ingredients into our serves.

WHAT WOULD YOU SAY IS THE SPIRIT OF THE MOMENT?

Last year, Irish whiskey was the second fastest-growing spirit category in the US, leaping forward by 17.8% to 5.9 million cases. If that trend continues, it’s set to eclipse its age-old rival across the Irish Sea in its biggest market within a decade. It’s so exciting to be a part of this growing industry, especially working for a brand like Slane Irish Whiskey. It’s now available in every US state across the country and just one of only five new-to-world premium+ whiskeys to reach 25,000 cases in the US since 1990 (IWSR).

WHAT’S THE MAIN CHALLENGE OF MANAGING A DISTILLERY TODAY?

Like many businesses across the country, we are trying to manage the cost of inflation and our costs of goods have increased

I started off in the tourism industry as a tour guide and mentor for international language groups in my hometown of Derry. From there I made the move abroad, working and living across the UK and Australia. When I returned to Ireland in 2017, I joined the team at Slane Distillery in the project phase, so it’s been rewarding to watch the business and brand grow over the past five years and to play a part in that success.

WHAT DO YOU ATTRIBUTE YOUR SUCCESS TO?

Pushing myself outside of my comfort zone on many occasions during my career has allowed me to gain knowledge in a wide range of areas and allowed me to grow both personally and professionally. I like to throw myself into every opportunity I’m given, always open to learning from others and not to forget to roll up my sleeves and work hard!

20 LICENSINGWORLD.IE LAST ORDERS
The Orchard Forage using Slane Extra Sherry Wood and Cockagee pressed apple juice from The Cider Mill Slane
"Our resident mixologist has created a whiskey twist on some of the classics like The Amplifier, our version of the Negroni"
21 AUGUST 2023 AWARDS 2023 THE OF THANK YOU TO OUR 2023 SPONSORS ENTER NOW AND RAISE THE BAR The 2023 Bar of the Year Awards will take place at CLAYTON HOTEL BURLINGTON ROAD Visit www.baroftheyear.ie for more information For any queries related to the awards contact Jill Thornton, Senior Event Manager Tel: 01 640 1700 | Email: jill.thornton@ashvillemediagroup.com For sponsorships or advertising opportunities contact Trish Murphy, Sponsorship Director Tel: 086 837 9246 | Email: trish.murphy@ashvillemediagroup.com #BARAWARDS2023

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