Drinks Industry Ireland Magazine - July/August 21 Issue

The traditional pub in the great outdoors “The heart is back beating again for many towns and villages” -- VFI President Paul Moynihan

Molloy’s - NOfflA’s Off-licence of the Year also

Cider Draught beer Poitín Gin

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OPINION

July/August 2021 | DRINKS INDUSTRY IRELAND

Here’s wishing a short shelf-life to the vaccine cert AS WE GO to press all eyes are on the success or otherwise of reopening outdoors.

The general feeling remains that there’s more to be done on behalf of both trade and suppliers.

“While indoor hospitality should be opened safely in the short term, we need a roadmap back to a hospitality experience with fewer and then, in time, no restrictions,” pointed out Claire Tolan, Managing Director of Irish Distillers, recently.

She’s quite right.

For it’s clear that the current operating protocol must be for the short term only, pending a satisfactory societal vaccination level, generally agreed to rest at around 80%.

It’s imperative that normality returns then to the hospitality trade to allow pubs and restaurants beef up the presently slim chance of re-establishing their businesses built over many many years’ toil.

In effect, the present arrangement offers a ‘sunset clause’ for the trade.

After all, nobody wanted this arrangement, with most considering it deeply problematic from a practical enforcement point-of-view.

“There will be real questions and concerns in the coming weeks as to whether everyone claiming to be vaccinated will be,” predicted Licensed Vintners Association Chief Executive Donall O’Keeffe, “It’s also deeply unfair and discriminatory towards hospitality staff and others who may not yet have been vaccinated or who’re unable to do so for various reasons.

“We’re expecting major problems on the ground such as individuals seeking to gain access under false pretences,” he continued, “Tourists that arrive here on a negative PCR test won’t be permitted indoors.”

So, while the present arrangement is far from ideal, it will hopefully have a relatively short shelf-life considering what we’ve all just been through.

“It’s imperative that normality returns then to the hospitality trade to allow pubs and restaurants beef up the slim chance of re-establishing their businesses built over many many years’ toil” Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

NEW S

DRINKS INDUSTRY IRELAND | July/August 2021

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8 Research reveals Ireland’s appetite for eating and drinking out after long lockdown

Over half of Irish adults plan to go out more often than pre-Covid Consumers in Ireland are keen to make up for lost time in pubs, bars and restaurants, are ready to spend more and take advantage of outdoor areas - but restrictions and safety concerns are likely to hold down sales for now according to new research from leading business insight consultancy CGA Strategy.

The food and drink research consultancy has released findings from its latest Consumer Insights report showing that over half (53%) of Irish consumers plan to eat and drink out more than they did before the pandemic while a third (32%) say they’ll spend more than they usually do over the next 12 months.

The research reveals pent-up demand for Ireland’s hospitality sector, with venues having opened for outside service on the 7th of June.

The figures were revealed as hospitality venues in Ireland were settling into the new trading arrangements. These remain subject to restrictions on Social Distancing with indoor service scheduled to return on the 19th of July at time of going to press.

In Northern Ireland, indoor hospitality resumed on the 24th of May.

Value of outdoor service CGA’s research highlights the value of outdoor space to the confidence and spending of consumers in Ireland.

Three in five (59%) say they feel confident about visiting venues with outdoor areas — 17 percentage points higher than the number feeling confident about eating and drinking out in general (42%).

“The pent-up demand revealed by our research could make it a good Summer for pubs, bars and restaurants,” says Jonathan Jones, CGA’s Managing Director for the UK and Ireland.

Well over a quarter (28%) of consumers think outlets’ outdoor spaces are now more important than they were before the pandemic.

“The pent-up demand revealed by our research could make it a good Summer for pubs, bars and restaurants,” says Jonathan Jones,

CGA’s Managing Director for the UK and Ireland, “However the experiences of Britain and other countries suggest that sales will be held back for some time by trading constraints and lingering consumer anxiety and that they will be subject to the vagaries of the Irish weather.

“Operators and suppliers are going to have to work hard together to show hesitant consumers that they can eat and drink out safely and keep their fingers crossed for sunshine. Until all restrictions are loosened, trading is likely to remain well below pre-Covid levels and businesses may need sustained external support to tide them through these tentative early weeks of trading.”

CGA’s in-depth Consumer Insights research has much more analysis of the impacts of Covid-19 on the on-premise and consumers in Ireland including levels of confidence, likely behaviours in visits and reviews of topics including health and hygiene, locality, delivery and drinks trends.

It forms part of CGA’s new suite of services for the Ireland market, pairing consumers’ views with volumetric On-Premise Measurement data.

8 Whole sectors of society struggling to get insurance cover

Alliance’s “Don’t leave anyone behind” plea The Alliance for Insurance Reform has urged the Government to avoid leaving any sector behind in the implementation of insurance reforms.

The AIR brings together 41 civic and business organisations from across Ireland (representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students) in highlighting the negative impact of persistently high premia.

It has called for real reforms that will quickly reduce liability and motor insurance premia to affordable levels and keep them that way. AIR members include the Vintners Federation of Ireland, the Licensed Vintners Association, the Irish Hotels Federation and the Restaurants Association of Ireland.

At a recent meeting with Sean Fleming, the Minister of State at the Department of Finance with responsibility for Insurance, the Alliance presented the experience of 21 sectors (all attending the meeting) which struggled to get insurance cover or which were increasingly vulnerable due to a lack of competition among insurers in their sector.

“We warmly welcome the implementation of the new judicial guidelines on personal injury awards which came into effect in April” said Peter Boland, Director of the Alliance, “and we expect this and other measures in the pipeline to apply significant downward pressure on premiums. But all that reform is of no value if you cannot get cover or

there is only one underwriter prepared to offer cover. We have identified 35 sectors in this predicament.

“The number of sectors represented at this meeting gives an indication of the scale and urgency of the supply issue,” concluded Peter Boland, “The market, if left to its own devices, will respond to ongoing insurance reforms like an oil tanker not a speedboat. So Government must intervene on behalf of the sectors represented here today as well as others that we have identified.

“The actions identified by us have been backed up by the Competition and Consumer Protection Commission market study of last December and must be implemented with real urgency.”

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NEWS

July/August 2021 | DRINKS INDUSTRY IRELAND

8 Guinness 0.0 available from mid-July

Guinness launches 0.0 Guinness is launching its alcohol-free pubs around Ireland will be made Brewing 0.0 Guinness this month. possible thanks to another world-first The St James’s Gate brewers start by Initially scheduled to launch in innovation from the team at Guinness brewing Guinness exactly as they’ve Ireland in November last year, the – Guinness MicroDraught. Nonalways done before gently removing launch of Guinness 0.0 - or Guinness alcoholic beers such as Guinness 0.0 the alcohol through a cold filtration Zero - went ahead in the UK at cannot be poured via traditional beer method. the end of October but had to be lines and keg systems; however this The cold filtration process allows withdrawn from the market there and new cutting-edge technology finally the alcohol to be filtered out without delayed “as a precautionary measure” makes it possible, states the brewer. presenting thermal stress due to microbiological to the beer, thus protecting contamination which may the integrity of its taste and have made some cans of character. The brewers then Guinness 0.0 unsafe to carefully blend and balance consume, said the company in the flavours to ensure the a short statement at the time. distinctive flavour profile “Since this precautionary and taste characteristics of recall our teams have been Guinness. working to introduce a This freshly-brewed new filtration process and Guinness 0.0 will be additional quality assurance packaged and delivered to measures through the the on-trade around Ireland production process,” stated St in a unique “keg so small it James’s Gate. comes in a can”.

Alan McAleenan, Marketing Guinness 0.0 being packaged and delivered to the on-trade Guinness 0.0 will be Director at Guinness Ireland, around Ireland in a unique “keg so small it comes in a can”. available in 500 ml can added, “We’re 100% confident format in off-licences and that consumers’ expectations of our Irish consumers will now have the supermarkets from the end of August quality standards will be met with our chance to enjoy a non-alcoholic and will be rolled out to global new non-alcoholic Guinness 0.0”.

Guinness 0.0 whether in-pub or markets beginning this Summer.

The launch of Guinness 0.0 in at-home this Summer, he said.

n Johnnie Fox’s pub, the Glencullen tourist attraction, saw retained profits rise 38% to €886,183 from €641,295 according to the Abridged Financial Statements for the year to 31st of March 2020. Pre-tax profit for the year was down from €396,588 to €262,234 for the pub. The bar also reduced its staff number by five during the year to 43 while remuneration for the two directors Tony & Geraldine McMahon, at €200,000, was up 26%.

8 Around 60% of beer sales and 45% of cider sales take place in pubs, restaurants and hotels around the country

Alcohol consumption down 20% in Q1 Alcohol consumption declined by 19.7% in the first three months of this year compared to the same period last year due to the closure of the hospitality sector.

Revenue Clearance figures for the January to March period this year show that beer sales were the hardest hit, down by 34.5% to 2.3 million litres of alcohol from 3.5 million in Q1 2020, while cider sales saw a substantial fall of 15.9% in volume.

Around 60% of beer sales and 45% of cider sales take place in pubs, restaurants and hotels around the country, according to Drinks Ireland, which represents Ireland’s drinks manufactures and suppliers.

The fall in sales was recorded across all categories, with Revenue figures showing that spirits sales fell by 8.2% and wine sales by 3.4%.

Irish hospitality’s closing down in the middle of March last year hit sales at the time. This new data illustrates a further fall.

The Revenue from beer fell by 32% from €86.3 million to €58.5 million in the first Quarter of this year when compared to January-March 2020 while spirits revenues actually increased by 0.5% to €83.6 million as did wine revenues, rising 1.4% from €88.4 million to €89.6 million.

Cider revenues decreased 15.9% from €10.7 million to €9.0 million in Q1.

Overall, alcohol consumption declined last year by 6.6% to its lowest level in 30 years.

“This new Revenue data clearly shows that alcohol consumption continues to substantially decline in Ireland as a direct result of the Covid-19 pandemic despite commentary to the contrary,” said Drinks Ireland Director Patricia Callan, “While this decline was accelerated by Covid, it should be noted that it’s in line with the trend of consumption falling generally in Ireland over the past 30 years.

The average alcohol consumption in 2020 was 29.8% lower than the peak of 2001.”

DRINKS INDUSTRY IRELAND | July/August 2021

NEWS

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8 New stout developed in collaboration with consumers and customers over 2-year period

Heineken Ireland launches Island’s Edge

at north of 10% and that’s probably Heineken Ireland is launching a new was led by Heineken Ireland’s Head conservative.

Irish Stout.

Brewer PJ Tierney in Cork’s Leitrim “It’s a very different taste Aimed predominantly at consumers Street brewery. profile” she explained, “and it’s between 28 and 35, Island’s Edge “When we started developing an opportunity to bring the next will be available “in coming weeks” Island’s Edge we played with generation of stout drinkers into the as pubs and bars prepared for the over 100 recipes and countless category even though they might not reopening of indoor service. ingredients to see what we could have considered stout in the past.

An initial soft launch sees Island’s add to stout to achieve a really “This is a mainstream stout for a Edge appearing in some 300 Dublin refreshing taste,” said PJ, “When mainstream audience,” Paula Conlon pubs followed by wider distribution we discovered that adding a touch told the Irish Independent. later this year. A full nationwide rollof tea at just the right moment out is planned for August/ softens the bitterness September. of stout, making it With this stout launch smoother-tasting, we the Cork brewery aims knew we’d landed to rejuvenate Ireland’s on an unexpectedly iconic stout category and refreshing pint of stout. have the brand become “We also kept a mainstream product. the heritage of the It’s being backed by traditional stout pour significant marketing but we knew Island’s investment over coming Edge needed a months including TV, different type of glass.

Out Of Home, social and “After trying three digital advertising as well types, consumers as in-pub promotions. told us they loved the Heineken Ireland’s feel of the tall conical other two stout brands glass.”

“As the hospitality sector continues on its path to reopening and – Murphy’s & Beamish Tea reduces consumers make a fond return to their locals, we’re thrilled that a – hold but single-digit bitterness in a way refreshing pint of Island’s Edge will await them.” - Paula Conlon and PJ shares of the overall stout that’s “unexpectedly Tierney with the new stout. market, worth €750 in refreshing”, which is 2019, which itself accounts completely new in the Development of Island’s Edge stout category, he said. for 25% to 30% of the Long Alcohol The product was developed in Drinks market.

With an ABV of 4%, Island’s Edge is collaboration with consumers and Despite the Lockdown, production a creamy smooth stout. customers over a two-year period. of Irish stout grew by 2.2 percentage “Island’s Edge offers a modern During the development process, points last year to 66.5% of all beer take on stout with a refreshing a “hero ingredient” new to stout was production here with off-trade stout taste and a progressive attitude,” discovered – the addition of tea. sales growing nearly 70% in the year commented Paula Conlon, “The “This collaborative approach has to May the 23rd according to recent unexpected addition of tea to the resulted in a new brand and product NielsenIQ figures. stout has resulted in a smoother, that was built from scratch with “There’s one dominant player creamier, more accessible stout which consumers and feels progressive and of course we want to take consumers loved in taste tests. As and relevant to their lives today, our fair share and invest heavily in the hospitality sector continues on while also resonating with the next it,” Heineken Ireland’s Marketing its path to reopening and consumers generation of stout drinkers,” believes Manager Paula Conlon told the make a fond return to their locals, the brewery.

Irish Independent recently, “If I was we’re thrilled that a refreshing pint of The innovative brewing process pushed… we’d definitely be looking Island’s Edge will await them.”

n Charjon Investments, the holding company for the Goat Grill in Dublin’s Goatstown area, turned in a loss of €60,671 in the year to the 31st of March 2020 according to its Unaudited Abridged Financial Statement for the year. Accumulated profits totalled €2,276,605 for the year, down from the previous year’s €2,337,276 figure. At 76, staff numbers for the year remained much the same as the previous year (77) while remuneration for the two Directors Bernice and Jennifer Chawke totalled €216,184.

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NE W S

July/August 2021 | DRINKS INDUSTRY IRELAND

8 Global beverage alcohol expected to gain 3% in volume in 2021

Global beverage alcohol already showing signs of recovery

According to comprehensive new forecasts from IWSR Drinks Market Analysis, globally beverage alcohol is already showing positive signs of recovery and is projected to grow in volume by 2.9% by the end of the year.

Resilience in key markets coupled with the brand owners’ swift response to changing market conditions has led IWSR to forecast that alcohol consumption will grow by a Compound Annual Growth Rate 1.5% between 2021 and 2025.

Indeed by 2023 IWSR expects total beverage alcohol consumption to return to pre-Covid levels, with consumption steadily increasing through to 2025.

Recovery will be boosted by the industry pivoting rapidly in

key markets, the momentum of e-commerce, RTDs and the increasing sophistication of the at-home occasion in many markets.

The two fastest-growing categories, according to IWSR forecasts, are No-Alcohol spirits (projected to grow at 30.6% CAGR 2021-2025) and RTDs (growth projection of 10.2%).

“In many global markets Covid-19 accelerated the impact and growth of key industry drivers such as the development of e-commerce, premiumisation, the rise of the ‘home premise’, moderation and the need for convenience in product formats,” says Mark Meek, Chief Executive of IWSR Drinks Market Analysis, the leading authority on the global beverage alcohol market, “These are the trends that will also underpin the industry’s resilience as it pivots to meet consumers where they are in the years to come.

“Additionally, across many markets, some segments of the population now have significantly more disposable income than they did in 2019, some of which will be spent on beverage IWSR forecasts that alcohol consumption will grow by a Compound Annual Growth Rate 1.5% between 2021 and 2025. alcohol products.”

Beverage volumes down 6% in 2020 Based on IWSR’s exhaustive examination of data from 160 countries across the globe, total beverage alcohol volume decreased by 6.2% in 2020, impacted by the near complete shutdown of bars and restaurants around the world.

Though an unprecedented downturn, the 6.2% decline was less than previously forecast as several factors ultimately helped the industry last year such as: acceleration of e-commerce (up 45% from 2019 to reach $29 billion in 2020), growth of RTDs, strong at-home consumption in key markets and resilience and growth in the US and China.

Another pre-Covid trend that will continue to accelerate beverage alcohol recovery is product premiumisation.

Though the economic impact of Covid-19 has led to restricted spending for some, alcohol is an affordable luxury for those willing to spend. IWSR forecasts that premium-and-above wine and spirits will increase by 25.6% in total volume between 2020 and 2025 (compared to 0.8% volume growth over the same period for brands in lower price tiers).

n The company behind the Oval bar in Dublin city centre, Alazwar, saw a fall in accumulated profits from €1,234,818 to €1,233,823 in the year to the 31st of July 2020 according to its Abridged Financial Statements lodged with the Companies Registration Office. The pub was closed for over a third of its financial year due to Lockdown which would account for the 40% fall-off in turnover from €1.3 million to €778,104. The company’s directors, Charlie Chawke and Edward Bohan, number among the average of 12 employed at the pub. This figure stood at 14 the previous year.

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10 “The heart is back beating again for many towns and villages” ONE & ONE

July/August 2021 | DRINKS INDUSTRY IRELAND

-- Paul Moynihan

Forgotten industry Certainly, Paul feels that the licensed trade was simply forgotten when all this kicked-off back in March 2020.

“We’ve been the longest closed industry,” he points out, “It seemed to us at the start of the pandemic that we were the forgotten industry but the introduction of the Covid Restrictions Support Scheme was a gamechanger for most publicans financially.

“And going forward, the Employment Wage Subsidy Scheme to help us get our staff back is a great initiative from the government.”

Staffing shortage

The Vintners Federation of Ireland’s new President speaks to Pat Nolan about the challenges for the rural licensed trade going forward.

M

oynihan’s bar sits opposite a junction of ways in the County Wicklow village of Donard. A forlorn petrol pump, having long since dispensed its last some 20 years ago, marks the pub’s exterior.

Donard’s ‘local’ has been in Paul Moynihan’s family since the 1940s. Paul’s dad ran it until 1996 before Paul took over the reins together with his wife Anna and now his son Jack Francis.

“I was reared in the pub” the new Vintners Federation of Ireland President tells me on a quiet nothing-much-happening early June afternoon out in the back beer garden, “then I went to college before going around the world.”

Paul was also involved in the trade in London. His brother still runs a pub in Cambridge and another has now retired from the scene altogether.

“We used be open at half-ten in the morning here and we also sold petrol from the pump outside the pub” remembers Paul, “but now we only open from 5.30 in the

evening Monday to Friday and from 2pm on Saturdays and Sundays.”

This cutback in opening hours, perhaps more than anything else over the last 20 years, reflects the national decline in the rural licensed trade as a whole outside the major conurbations which now needs to expand its offering.

Donard’s population of just 500 means that Paul’s customers comprise mainly agricultural, rural types such as farmers and forestry workers as well as Dublin commuters now.

“Like most publicans, we get to know our customers well over the years, what they like and - just as importantly - what they don’t like,” says Paul, “New trends in drinking culture usually start in Dublin then work their way across the country. The average rural publican will spot the trends, take advice from reps and listen to customers. At the end of the day, the customer is always right and will get what they demand.”

Having said that, pints of lager and stout remain hugely popular in rural pubs, he adds.

“At this stage our priority is to get pubs open indoors and ensure we never return to the profound uncertainty of lockdowns.”

Since the hospitality industry reponed problems in getting staff have made themselves felt.

“During Lockdown a lot of foreign staff simply went home and students fell to drawing Pandemic Unemployment Payments,” he says, “And despite being back open now, they’d prefer to have a social life for the Summer.

“Hopefully we’ll get them back but it’s experienced staff we’re looking for.

“From talking to my fellow publicans, getting hold of chefs seems to be a major issue at the moment with some having been redeployed in other industries.”

Having reopened outdoors, he can see the need for about 50% more staff on top of what he already works with purely to ensure efficient outdoor service.

“You always need someone behind the bar serving but at the same time you currently need orders delivered to the tables in the outside areas,” he explains, adding, “Even when we’re back inside, it won’t affect the need for extra staff as it will still be Summer and people will still want to spread themselves outside as well as inside.”

Pandemic change The pandemic has accelerated what had been a more gradual evolution for the rural pub.

“The pandemic will bring so many changes to Irish society that we can’t even begin to understand what they’ll mean for the pub. At this stage our priority is to get pubs open indoors and ensure we never return to the profound uncertainty of lockdowns.

“We know people are happy to return to the pub outdoors during fine weather, which is a great shot in the arm for the trade, but

ON E & ONE

Paul Moynihan on...

8 ... customers’ reaction: “From the pubs that have reopened with outside space we can see such happiness from our customers.”

8 ... staffing: “During Lockdown a lot of foreign staff simply went home and students fell to drawing Pandemic Unemployment Payments and despite being back open now, they’d prefer to have a social life for the Summer.

“Hopefully we’ll get them back... but it’s experienced staff we’re looking for.

“From talking to my fellow publicans, getting hold of chefs seems to be a major issue at the moment with some having been redeployed in other industries.”

“Having reopened, I can see the necessity for about 50% more staff on top of what we already work with, purely to ensure an efficient outdoor service.

“You always need someone behind the bar serving but at the same time you currently need orders delivered to the tables in the outside areas.

“Even when we’re back inside, it won’t affect the need for extra staff as it will still be Summer and people will still want to spread themselves outside as well as inside, so those increased staffing needs will remain.”

8 ... the pandemic: “The pandemic will bring so many changes to Irish society that we can’t even to begin to understand what they’ll mean for the pub.

“It’s also been said to me that when the pubs were closed during the pandemic it felt like the heart had gone out of a lot of villages around the country so being open now seems like the heart is back beating again for many towns and villages.”

8 ... Presidential priorities: “It’s important that we’re part of the nighttime task force so that we can represent publicans going forward in this.”

“We’re also aware of an initiative being introduced by Heather Humphreys’ Department similar to the ‘Pub is the Hub’ one in the UK for rural pubs to remain relevant in their environment.”

“Going forward our licensing laws are going to have to be consolidated under Minister McEntee - so that’s going to be a big issue for the VFI to be part of those discussions over the next six months.

This could very easily dilute the 7-Day Licence and nobody would like to see that…”.

we don’t yet know if 16 months of socialising at home will alter the landscape.

“People have got used to the below-cost prices offered by supermarkets so publicans have to meet the challenge head-on, remind people that there’s nothing like the local for meeting up. Who wants to stay at home anymore? We’re all sick of it!

“Long-term, publicans have to ensure their offering stands up to all the other competitors for our discretionary income. It’s not like the 1980s - we have to fight for every customer and it won’t be for the faint-hearted.”

Of the non-food pub’s future

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Presidential priorities The Federation has fought in crisis mode for the last 16 months, he says, but the VFI remains relevant to the many ongoing issues irrespective of Covid-19’s onslaught.

“It’s important that we’re part of the nighttime task force so that we can represent publicans going forward in this,” he offers, outlining a few more topics that will need the Federation’s undivided attention.

“We’re also aware of an initiative being introduced by Heather Humphreys’ Department similar to the ‘Pub is the Hub’ one in the UK for rural pubs to remain relevant in their environment.”

A pilot scheme supporting the use of rural pubs as community spaces and hubs for local services is being considered by the Department of Rural and Community Development as part of its recentlypublished policy on rural development, Our Rural Future - Rural Development Policy 2021-2025.

Studies are saying that takeaway food will be of increased economic value to a premises going forward, says Paul.

“But while food will become increasingly popular there will always be demand for traditional pubs. The rural pub that offers a space away from work and home will always be in demand.

“There’s no doubt that demographics and tastes are changing so it’ll be vital for publicans in traditional venues to ensure their venues reflect what customers want.

“A traditional pub will always be a proud part of our culture but the publican of the future will have to adapt in ways previous generations never had to think “People have got used to the below-cost prices offered about. by supermarkets so publicans have to meet the challenge “In many ways I head-on, remind people that there’s nothing like the local can’t even guess what for meeting up.” the pub of tomorrow will offer other than the fact that adapting to “The scheme will support publicans who change will become a constant in the lives of wish to develop new offerings that promote publicans.” local community involvement and enterprise alongside the traditional pub service. We Customers happy out see this pilot developing into a full-scale Encouragingly, Paul envisages a more programme that will boost the pub’s sanguine future for the rural pub. standing in local communities.

“Post-pandemic rural/town pubs might “As I said, the local rural pub will always find themselves at something of an advantage be a feature of Irish life but this new pilot in that there’s a degree of decentralisation scheme introduced by Minister Heather from offices with people working from home Humphries will assist pubs in moving now - and that’s a positive. towards where local people want to be.”

“It’s also been said to me that when the There are also insurance issues that have to pubs were closed during the pandemic it be dealt with on an ongoing basis, he adds. felt like the heart had gone out of a lot of “Going forward, our licensing laws are villages around the country, so being open going to have to be consolidated under now seems like the heart is back beating Minister McEntee - so that’s going to be again for many towns and villages.” a big issue for the VFI to be part of those There’s clearly enthusiasm from customers discussions over the next six months. keen to get back to their local - inside or “This could very easily dilute the 7-Day outside.

Licence and nobody would like to see that…”.

“From the pubs that have reopened with And Paul Moynihan intends to be there outside space we can see such happiness to ensure that such a threatening prospect from our customers.” doesn’t come one inch closer. n

DRINKS INDUSTRY IRELAND | July/August 2021

OFF-TRADE DEVEL OPMEN T S

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8 Irish drinks producers welcome new standards for online alcohol sale & delivery

New online alcohol sales standards launched With the closure of the hospitality sector, alcohol consumption declined last year by 6.6% to its lowest level in 30 years. But e-commerce sales here and internationally increased, with global online sales up by a third during the pandemic with its attendant underage and inappropriate service risks.

A number of major Irish drinks producers have now signed-up to an international initiative focused on supporting consumers’ increasing demands for greater convenience with enhanced standards of responsibility to prevent the sale of alcohol to those underage and reduce harmful drinking.

Drinks Ireland, which represents drinks manufacturers and suppliers, has welcomed the launch of the first-ever global standards for the online sale and delivery of alcohol.

Growth of alcohol e-commerce Recent figures from Empathy research indicated a doubling from one-in-five to two-in-five in the number of consumers purchasing online while Amárach Research found that one in three Irish alcohol shoppers now expect to do most if not all of their alcohol shopping online in future.

Globally, between 2015 and 2020 the value of e-commerce alcohol sales grew 120% with total sales last year worth $36.8 billion.

The Covid-19 pandemic accelerated the online trend and online sales of alcohol are forecast to grow by over 74% across 20 of the world’s key markets by 2024 as consumers become more accustomed to buying their favourite drinks online.

Last year e-commerce alcohol represented 4% of all retail alcohol sales by volume.

The top 10 markets for e-commerce alcohol purchasing was topped by China last year, according to data from market researchers Euromonitor.

China recorded a 15.2% increase

Drinks Ireland, which represents drinks manufacturers and suppliers, has welcomed the launch of the first-ever global standards for the online sale and delivery of alcohol.

(to 3.77 million litres) while e-commerce alcohol purchasing in the US, in second place, recorded growth of 133%, with France up 43.2%, Japan up 28.4% and the UK up 19%.

Global partnerhsip In response to this growing online alcohol purchasing trend, a global partnership of 12 leading beer, wine and spirits companies forming the International Alliance for Responsible Drinking together with 14 global and regional online retailers, as well as e-commerce and delivery platforms, have identified five key safeguards to help ensure that robust standards are in place throughout the entire online supply chain and customer journey to combat harmful drinking.

The standards outlined in the document recently launched include: • improving safeguards and security measures that aim to prevent minors from being able to buy alcohol • putting in place mechanisms to prevent beer, wine and spirits being delivered to minors, to individuals showing visible signs of intoxication or where prohibited by law • providing tools, information and education or other support to

drivers to empower them to deny delivery • enhancing consumer information and control • promoting global standards as a resource to support the development of national level codes and practices for the online sale and delivery of alcohol that build on local and national regulation.

“Irish drinks producers are proud to abide by some of the strictest rules and regulations with regard to the sale and marketing of alcohol in the world,” said Drinks Ireland Director Patricia Callan, “These have been effective in tackling alcohol misuse resulting in the average alcohol consumption in 2020 being 29.8% lower than the peak of 2001.

“Underage alcohol consumption is also declining. A Health Behaviour in School-aged Children survey released last year by the World Health Organisation found that Irish 10 to 17 year-olds who reported having ever been drunk declined by 19% between 1998 and 2018 to 18.3% and we have a very low level of underage drinking compared with other countries.

“These new international standards are an additional layer and a targeted response to the fact that consumers are increasingly buying alcohol online.”

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O F F - T R ADE

July/August 2021 | DRINKS INDUSTRY IRELAND

Molloy’s win puts Liberties outlet “on the map” Molloys in Dublin’s Liberties area won this year’s National Off-Licence of the Year award.

Pat Nolan paid the Francis Street outlet a visit to see just what it takes to make a NOffLA winner.

B

eer is big in Molloys Liquor Store in Dublin’s Francis Street - especially the extensive range of chilled craft beer on offer here which spreads itself across three fridges as well as a number of shelves, easily matching the other fridges full of the more traditional ‘macro beers’ in the this Liberties outlet.

At 3,000 sq ft (or 2,200 sq ft retail) this off-licence in the heart of Dublin won this year’s National Off-Licence of the Year award.

On-trade origins Molloy’s originated in the on-trade but over the years the company saw the attraction for - and trend towards - takeout and began off-trading from a hatch in its original Tallaght pub, The Fox’s Covert.

There are now seven offlicences and two pubs in the Molloys chain and the awardwining Liberties outlet has lived here these past 16 years having opened in January 2005.

It’s the first such win for Molloys and the staff here have noticed an increase in footfall since winning the title according to Paddy Burke who manages the outlet.

Molloy’s Liberties-winners (from left): Paddy Bowes, Mark Walsh, Store Manager Paddy Burke, Richard Molloy and Assistant Manager Darryl Maxwell. Front row (from left): Jim Brindley & Gavin Furlong.

“It puts us on the map too,” adds Richard Molloy who oversees the overall Molloy’s operation, “It can be hard enough for some people to find us but over time the store has got a reputation and sales have been increasing over the years even before this win.”

“They’re always willing to help and they have the knowledge. This is what separates the independent off-licences from the supermarkets”

But this award (plus living in Covid times) means that people are now actively seeking it out, he says.

“Our customers are also proud to have been the shop’s original customers before our award was announced,” he adds.

At the moment, it’s hard to differentiate between whether this rise in customer numbers is because of the award, because of Covid-19 or because... it’s Summer; most probably all three. But comments fed back to the staff from customers suggest that a lot of them are well aware of the shop’s win.

Some visitors might even be fellow off-licensees.

“When anyone else won the NOffLA award before, I’d go out to visit it to get inspiration from it,” says Richard.

Large picture windows complement the spotless exterior frontage. As the judges remarked at the time, “All tidy outside and this is a very busy street, lots of pedestrians and lots of traffic”.

What makes a winner?

Always a perplexing question, Paddy Burke ventures that “the staff” would form a large part of the answer here.

“They’re good guys who know their product,” he says.

“Yes, staff Number One,” agrees Richard, “They’re very welcoming and always have a smile on their face. It’s simple things like that that are hard to instil in people. They’re always willing to help and they have the knowledge. This is what separates the independent off-licences from the supermarkets.

OFF-T RADE

DRINKS INDUSTRY IRELAND | July/August 2021

“But it’s also the range of goods and specialist items like limited editions - the hard-to-get stuff, premium products, things that are considered to be in short supply, ‘though we’re also very good on craft beers, wines and spirits etc; rather than it being any one thing, it’s a good balance,” he concludes.

Rarities Molloy’s certainly has something of a reputation for having rare whiskeys, says Paddy.

“When there’s a new “When Midleton release we we can can get up to 20 calls a day,” he remarks, adding that the demand for rare whiskeys is more from tourists than the local trade.

beers at around 40% of the outlet’s turnover. Wines and spirits would each contribute around 30% to overall turnover, he adds.

“It’s the refrigeration of the beers here that sets us apart. We can’t compete on price alone, although we come pretty close, but we can offer a huge variety of cold chilled beer to our customers.”

Even so, Guinness remains one of the mainstays in the beer category, becoming huge during Covid-19.

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“It’s what the younger adult generation are looking to buy,” he says, “It goes bigger in the Summer as do spirits - anything to do with cocktails - including cocktail constituents and purees for cocktails or even our eight-piece cocktail kits - is huge, as is demand for Irish whiskey.”

Another winning arm for the outlet is Molloy’s Express Delivery service for same day delivery or collection.

there’s a new Midleton release get up to 20 calls a day”

Gifting a speciality

Among the outlet’s strengths as noted by the judges are ‘good parking’, ‘big shop with lovely windows’, ‘knowledgeable and friendly team’ and personal touches like Training prioritised ‘will wrap foc any wine in The store’s staff cellophane’. complement comprises Gifts form a significant a manager, an assistant part of the store’s manager, two full-time and appeal. two part-time staff.

“At some point in the “We do a lot of training year our customers will with the staff,” explains need a gift,” points out Richard, “We encourage Paddy Burke, “They them to do the Wine & mightn’t buy one every Spirits Educational Trust week but as one of our courses and we also make staff once said, ‘It’s a use of wine specialist customer’s birthday Molloy’s buys a lot of its wine direct from the producers and in Maureen O’Hara to help us presenting this to consumers it has instigated a rating system to help every day’.” the shopper appraise the wine pre-purchase. with wine appreciation.”

And so the Liberties When opportunities to outlet offers gift items visit breweries and distilleries arise, for Fathers’ Day or for Valentine’s Wines of uniquity the staff are encouraged to go visit, Day which the staff will happily giftMolloy’s buys a lot of its wine direct go learn. from the producers and in presenting wrap for free for the customer.

“A lot of the time it’s down to the “Around Christmas we’ll have a this to consumers it has instigated person and what they’re passionate few hampers etc,” says Richard, a rating system to help the shopper about at home,” says Richard, “That’s appraise the wine pre-purchase.

“Gifting is an area we’re always where the real knowledge and trying to grow.”

“Wine can be quite daunting and passion comes through.

Together, the gift and cocktail confusing but in this day and age “We’d always have had one or two markets are “exploding” he says, “... everything is reviewed” Richard who’re particularly good at craft and they’d been doing so to some explains, “so we got Maureen O’Hara beers or wines etc. extent in the years leading up to to rate our own wines against “You need huge product the pandemic. internationally-recognised brands.” knowledge in a specialist off-licence, “We’d been trying certain things unlike a clothes or sports shop,” he in that area but they’d not been Cocktails on the bounce points out, “Here, you need to know happening for us - but with the These days cocktails sell particularly where the product is distilled, what’s pandemic, sales there increased well following the huge bounce they the history of it etc - and the range is received from Lockdown as did wine as people got to wondering, ‘How constantly expanding too.” can I recreate the bar experience at and Prosecco. There has also been home?’.” a tendency towards treating oneself Beer appeal The answer, it seems, was a bit more when visiting the offBeer remains the largest-selling sales not available from the local licence. category in Molloy’s.

Ready To Drink is another category supermarket.

“Craft has overtaken the macroBut it was available from this year’s enjoying a boom in sales - especially beers,” claims Richard, estimating Off-Licence of the Year. n the Hard Seltzers.

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F O O D S E R V IC E

July/August 2021 | DRINKS INDUSTRY IRELAND

8 2022 before majority of foodservice industry can return to pre-pandemic trade levels

Pub foodservice levels to reach 80% of 2019 levels by ‘22 Foodservice levels in pubs on the Island of Ireland should be back to nearly 80% of pre-pandemic 2019 levels by the end of 2022 according to Bord Bia in a new revised report on the Island of Ireland foodservice market.

While foodservice levels in pubs were down 64.6% in 2020, Bord Bia expects that there will be a slight increase in foodservice levels this year of 2.4% and its prediction for 2022 is for a 117.3% increase.

The report found that last year, 2020, pubs’ foodservice levels were running at just 35.4% of 2019’s prepandemic levels and are expected to increase slightly this year to 36.3% of 2019 levels. However as hospitality opens more fully, 2022 is likely to see a healthy increase in foodservice in pubs to 78.8% of 2019 levels.

But the hiatus in service caused by the pandemic is also likely to see pubs lose share of Island of Ireland turnover to other sectors thus the report reckons that 2019’s 16% share for pubs will reduce to 14% in 2022.

Foodservice market to grow 11% The Irish foodservice market as a whole – including restaurants, hotel food and beverage, pubs, office catering and other segments that provide food away from home – will grow by 11% on last year (which declined by nearly 48% compared to 2019) to reach almost €5 billion by the end of this year.

In response to the ongoing impact of Covid-19 on Ireland’s foodservice industry and the knock-on effect on Irish food and drink producers, Bord Bia has published revised outlooks and a new report charting growth forecasts for the remainder of 2021 and into 2022 as the industry moves towards a full reopening.

Bord Bia’s revised report, launched recently, predicts an additional 56% (€2.8 billion) growth for 2022. Indeed, much of the surge originally predicted for the second half of this year has been pushed into 2022.

Last year, following eight years of consecutive growth, the foodservice

market fell by a stark 47% (from €8.5 billion to €4.5 billion) and Bord Bia believes it will be the end of 2022 before the majority of the industry could return to close to the pre-pandemic levels of trade.

Previous Bord Bia reporting on the impact of Covid-19 provided preliminary forecasts for the Irish foodservice industry’s recovery in 2021 but the ongoing restrictions have been more longstanding and impactful than originally estimated.

‘Outlook on the Irish Foodservice Industry Post-Pandemic’ The ‘Outlook on the Irish Foodservice Industry Post-Pandemic’ report, co-authored by global foodservice research specialists Technomic, has been developed to equip the industry and Irish food and drink suppliers servicing this market with up-to-date data and insights as they plan for the period ahead. It includes key trends and recommendations for businesses across the sector.

“Our end of year Market Insights report published in November 2020 documented the huge hit that the industry had taken as a result of Covid-19,” said Maureen Gahan, Foodservice Specialist with Bord Bia and co-author of the report, “At that stage we estimated that even in a ‘worst case’ scenario 2021 would see growth rates of 16%; however, we had not anticipated the length nor depth of the Lockdown that was to follow.

This has resulted in a lowering of the overall expectation for growth in 2021 to 11%, lower than the ‘worst case’ scenario laid out late last year.

“That being said, foodservice in Ireland has displayed resilience in the face of the most prolonged shutdown in modern memory. The industry has shown adaptability, perseverance and tenacity to survive and with the assumption that the worst part of the

According to the report, “Coming out of the pandemic, foodservice operators are reporting challenges finding any type of labour and ongoing labour shortages could have longer term ramifications on industry recovery”.

crisis has passed, will begin to emerge and grow again in 2021 and beyond.

“We’re forecasting a strong second half to 2021 as the vaccine roll-out continues at pace, coupled with pentup demand and consumer savings and we remain confident on the longerterm viability and resurgence of the industry.

“As the economy recovers and consumers grow more confident living in the age of Covid-19, this will see a parallel recovery in the Irish foodservice market.”

Trends and recommendations The latest Bord Bia report outlines trends and recommendations for businesses as they forward-plan and adapt their positioning, products and services.

For example, even as dine-in reopens there will be a need for offerings that can easily transition from on-premise to off-premise occasions and provide a great experience.

Segment-specific expectations The report states that, “Many pubs have not had their doors open for business in 16 months (since March 2020).

“Food-led pubs fared slightly better during Summer 2020 and in some instances, having been using delivery for survival, but this has been more the exception than the rule. Wetled pubs are open for outdoor since June 7th but until all restrictions are lifted will continue to suffer at lower turnover rates. As a result, the pub experience is likely to see the largest change of nearly every foodservice segment until such time as Social Distancing is a thing of the past.”

The need for skilled labour was a >>

DRINKS INDUSTRY IRELAND | July/August 2021

concern even before Covid-19 but it is now further exacerbated due to job uncertainty experienced by many during the pandemic.

According to the report, “Coming out of the pandemic, foodservice operators are reporting challenges finding any type of labour and ongoing labour shortages could have longer term ramifications on industry recovery”.

Labour-saving solutions will continue to be sought after by foodservice operators.

David Henkes, Senior Principal at Technomic and the report’s other co-author, believes that Ireland’s foodservice industry and the Irish food and drink suppliers servicing this market are facing prolonged and significant changes due to the pandemic and many of these shifts will be permanent.

“This report highlights the key trends that have been identified and/ or accelerated over the past 12-14 months,” he says, “For example, with the strong demand for off-premise food (including delivery, takeaway and drive-thru) restaurant models are adapting to accommodate what’s widely expected to be elevated demand, even as the pandemic ends.

Seating areas are being re-thought, with more outdoor space being added.

For some quick-serve restaurants, dining areas are being reduced in size or eliminated altogether.

“Meanwhile, technology has been a key enabler for restaurant and foodservice operator survival and success during the pandemic and further investment in this space will move forward at an accelerated pace while the importance of sustainability, particularly in packaging, but also in food waste, local sourcing and other critical areas, is expected to return and accelerate.

“Many of these changes are here to stay and we would encourage all foodservice operators and suppliers to remain informed and use these insights to refocus and reboot the foodservice aspect of their business in order to best service their customers as the market reopens.’

Bord Bia presented summary findings from its Outlook on the Irish Foodservice Industry Post-Pandemic report via an hour-long webinar recently.

FOOD SERVI CE

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8 #SupportIrishHospitality campaign aims to help reboot hospitality businesses countrywide

Musgrave MarketPlace invests €650,000 to support hospitality reopening

From left: Michael McCormack, Managing Director of Musgrave MarketPlace, with the Chief Executive and Founder of the Gourmet Food Parlour Lorraine Heskin and RAI Chief Executive Adrian Cummins at the launch of #SupportIrishHospitality.

Musgrave MarketPlace has announced a €650,000 investment to support the reopening of Irish hospitality.

As part of this it launched a range of new initiatives to support the industry and assist the reboot and recovery of the sector.

Rolling-out a nationwide campaign to encourage consumers to support their local hospitality businesses, #SupportIrishHospitality included press ads in seven national dailies and nationwide radio, digital and social media advertising campaigns calling on consumers to help the industry get back on its feet by dining out responsibly.

Musgrave MarketPlace also used its social channels to spotlight local hospitality businesses around the country throughout the campaign as well as giving consumers a chance to win vouchers for their favourite local eateries.

It’s estimated that the foodservice industry was worth €6.3bn pre-Covid, employing between 150,000 and 250,000 and making it vital to the recovery of the economy.

In addition to rallying consumer support, Musgrave MarketPlace has also created a series of new measures to help hospitality businesses get back up and running.

“As an Irish family-owned business with 145 years supporting hospitality here, local is in our DNA,” commented Michael McCormack, Managing Director of Musgrave Wholesale Partners, “Our #SupportIrishHospitality campaign is about giving our customers and indeed the hospitality sector as much support as we possibly can as they reopen whether that be through our reboot resource designed in collaboration with our customers or an advertising campaign aimed at encouraging the consumer to support hospitality.

Luck alone will not be enough – the sector needs all our support.”

To find out more visit www.musgravemarketplace.ie or visit Facebook. n

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M A I N S T O RY

July/August 2021 | DRINKS INDUSTRY IRELAND

The traditional pub in the great outdoors

Since June the 4th, some traditional outlets have been offering an outdoor service to their customers.

How has this gone? We spoke to a few of those who’d not usually get involved in an outdoors adventure.

H

ow are publicans finding the great outdoors as a business model for the future? What has been learned from serving outdoors rather than inside? And what are the staffing implications of having to offer an outdoor service? We thought we’d ask a few publicans for their take on the great outdoors.

“It’s a stepping stone for us to get inside,” says Willie Ahern of The Palace bar in Dublin’s city centre, “We were blessed with the first two weeks weatherwise but the weather has changed in the last day or two.

“We’re somewhat limited in numbers for outside service so we’re just treading water really. It’s helping support staff and paying some of the bills.”

Ronan Lynch in the Swan Bar in Dublin’s Aungier Street has found outside reopening ‘a different model’.

“There are a lot of learnings in it,” he says. He prepared both the pub and his staff for reopening last month by bringing them in a couple of weeks

early, reskilling some and ensuring that the right protocols were in place so that everybody could do their job properly.

“It’s important to give the consumers confidence,” he stresses, “So a lot of work was put into setting out the right protocols and getting the tills sorted.”

He found business very good in the first week of reopening outside and was happy; but the second week found busines a bit back and the third had not been great, largely thanks to the deteriorating weather.

“People seem reluctant to go out in this kind of weather” he observes, “so I’m keen to reopen inside.”

Beyond Dublin Pat O Riordan of O’Riordan’s in Coachford, County Cork, has been busy since he reopened.

Willie Ahern finds himself “mentally jaded” with the on/offendess of it all.

“We’ve had to take on more staff because of the huge amount of extra work,” he admits.

“There’s a lot of walking in and out and getting change back and forth etc but the customers are clearly delighted to have a drink and a chat.”

Denis Murray of Murray’s bar in Macroom, County Cork, has found business to be very good as there are only a couple of Macroom bars in a position to reopen outside. So he’s getting customers he wouldn’t normally get who’ve freely told him that they’ll be taking their leave when their own locals reopen in the town.

“We now open at four o’clock instead of five because business is so good,” he beams.

Murray’s bar seats between 70 and 80 people of which 40 can sit comfortably undercover.

Of course there’s now way more work in it and he’s lucky he has three teenage daughters and his wife to help out when the pub gets busy. He also employs a full-timer and a part-timer.

“Previous to this whoever opened at five would be the one person who’d do it all, but now you need at least two to open and perhaps three for the night or four at least on a Saturday and Sunday,” he says.

DRINKS INDUSTRY IRELAND | July/August 2021

MAI N STORY

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Outdoor teachings/lessons

Drinks makeup

19th July doubt

It’s interesting too just what you learn when operating outside your premises.

The Palace always had a couple of barrels outside the bar, so it has pushed things out a bit by placing a few more across the road.

“But in the city centre you have to keep an eye on everything,” warns Willie, “There’s been a lot of antisocial behaviour of late and you have to keep an eye out to ensure that no incidents occur from troublemakers.

So a bit of stress comes with it. The suburban fellows would tell you different, perhaps....”

The Palace has been very wellsupported by its regulars during the last few weeks where the demand for product has tended to follow traditional lines, says Willie, “We also got a bit of training in during the week and so we’re doing a few Summery whiskey drinks and whiskey cockails.”

He makes the valid point that craft beers could be losing out during the outdoor service era “... as customers aren’t able to see what’s at the counter they tend to return to the ‘old reliables’.”

Ronan Lynch finds himself disheartened at any implied threat to the 19th indoor reopening as we go to press.

“We’ve put in the hard yards outside and we’ve done it for weeks now,” he says glumly, “And it’s tough on the staff.

“At this stage, after going through the last 16 months, we’ve been part of the harshest hospitality restrictions in Europe.”

Denis Murray hopes that it will all open up on the 19th too but in reality he doesn’t think it will happen.

“They’ll say to us on the 19th ‘Give us another couple of weeks and we’ll have 90% of the people done’,” he muses.

Willie Ahern finds himself “mentally jaded” with the on/offendess of it all.

Ronan Lynch in the Swan Bar in Dublin’s Aungier Street has found outside reopening ‘a different model’.

There’s been a great deal of adapting to the new business model by both staff and customers at the Swan where Ronan observes, “It’s a lot different because customers’ expectations have changed”.

The focus on customer detail has increased, he says and customer expectations are higher.

Over in Coachford Pat O’Riordan has had to “up our game” by investing heavily in an outdoor beer garden even ‘though he admits that, “Ireland is not very suitable for outdoor dining and drinking”.

Being outdoors has made Denis Murray aware of how weatherdependent his trade is at this time.

“On Saturday night it downpoured to eight o’clock so six tables were taken out of contention for the night,” he recalls, “We’re not taking bookings because of that, so we’re just doing walk-ins. But the regulars are delighted to be able to show up and have a chat”.

More staff required?

Staff remains a problem for the licensed trade.

“I’m doing a lot of hours myself over the last three weeks,” Willie Ahern says, “I’ve been here most days and the lads have battened down as well. We’re doing extra shifts, so it’s more labour-intensive without a doubt. We’re carrying an extra man all the time now.”

Ronan Lynch has lost five senior staff, has taken on four and looks to fill more positions.

“As I said, the model has changed so we’re doing a lot more legwork and tending to open up later as we realise there’s no business there until early afternoon.”

This is perhaps the understandable fallout of there being no office staff around, no students and no tourists either, so there’s much less traffic for The Swan to deal with.

On the other hand, Pat O Riordan has been lucky in that all his original Irish staff have returned.

“All my family have come in and helped out too,” he adds.

Pat O’Riordan has had to “up our game” by investing heavily in an outdoor beer garden even ‘though he admits that, “Ireland is not very suitable for outdoor dining and drinking”.

Being outdoors has made Denis Murray aware of how weather-dependent his trade is at this time, seen here with his eldest daughter Kate and wife Tina.

“We’ve been through so much between opening and closing and dates being pushed out...But I can see what’s coming down the road.

“The Hospitality industry has been told what’s going on only on a ‘need-toknow basis’ and then disregarded,” he feels, “How does the government think that big pubs with 30 or more staff can turn around operations when they only get two days’ notice of opening? The Government are not thinking of the hospitality industry at all.”

Pat O Riordan too remains very sceptical of a 19th of July reopening.

“I think pubs have been a scapegoat and headline-maker over all this time,” he says, “I spent a fortune on PPE with perspex screens at the bar and separate areas etc.”

He’s made it so that there’s no need to handle the front door which remains open as does the door to the bathroom and the back door.

Fresh air comes in through the pub’s open doors better than any mechanical ventilation, he says but just the same, he wonders about what the Winter will bring when the doors can remain open no longer.... n

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July/August 2021

I ND U S T RY RE PORT

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DRINKS INDUSTRY IRELAND

Poitín - a step into history, an order out of the ordinary?

Poitín, an ancient farmbased spirit first made by monks in the 6th Century, has experienced something of a revival of late with a number of new entrants to the Poitín arena. Might it be something just that bit different for your spirits-drinking customers?

P

oitín’s resurgence as an ideal white spirit for use as a cocktail base behind and in front of the bar has seen its popularity grow on both sides of the counter. The spirit now seems to be getting a global embrace from various cocktail bars.

London’s Sun Tavern could be described as the flagship for Poitín in the UK’s capital. And for a long time Poitín was bigger in London than it was in Ireland where it was a regular constituent of cocktails in the Savoy Hotel there. Ireland may have been a bit slower to catch onto the trend but Poitín has also made inroads in the US, with tastings having taken place in San Francisco and New York where they love the ‘Irishness’ of it, the story of it and its history.

First off, let’s kill the myth: Potín was not originally distilled from potatoes.

That was the ‘modern’ way. Potatoes were only used in the last couple of hundred years. Originally - and today - PoitIn was made from grain.

So it’s more of a white whiskey where traditional whiskey would continue its ageing journey in wood.

Poitín goes legit

Back in the day the whiskey-distiller was really not the friend of the Poitínmaker. One was considered a “British parliament spirit” while the other was regarded as the “real drink” of the Irish people, distilled as it was in the hills and hidey-holes of the Irish countryside.

A lot of people think Poitín is still illegal but it’s been legal in Ireland since 1997 and exported since 1987.

Poitín sales

Latest IBEC figures on Poitín volumes show that following a rise in volumes in 2016 to 5,500 six-bottle cases, 2017 saw this rise 5.5% further to 5,800.

The following year saw a drop, however, to 3,800 six-bottle cases after which a slight rise of 1.5% took place in 2018 to 3,890 according to estimates from Drinks Ireland|Spirits.

However 2019 saw volumes decrease 3.6% to 3,750 sixbottle cases.

“The drop in size between 2017 and 2018 can be ascribed to a distillery who was producing Poitín stopping doing so,” Vincent McGovern, Head of Drinks Ireland|Spirits, told Drinks Industry Ireland, “And a smaller drop/levelling out can likely be ascribed to another brand owner refocusing his attention away from promoting the category.”

But Drinks Ireland|Spirits has a number of members who’re considering producing Poitín in due course, he added, so that curve is likely to bend upwards again in years to come.

Mixologists - particularly those requiring a white spirit base - might take a closer look at the attractions of Poitín as a base ingredient.

After all, it’s a relatively new and untapped product with a rich history and authenticity.

It’s a spirit that hasn’t been widely utlised outside a small but growing number of cocktail bars around the country, a chance for bartenders to get in ‘at the ground floor’ as it were.

And with the trend towards local, it’s always made by smaller producers so there’s really nothing more local than Poitín. Fortunately, it lends itself really well to cocktail-making.

Unlike gin, a botanical that begins with a natural grain before the botanical flavours are added, or vodka - which by nature is clean and clear, odourless and flavourless - Poitín is all about keeping the flavour in.

Thus it’s been ordered in such >>

EST D

2013

SPIRITS

Mad March Hare is distributed by Intrepid Spirits through Celtic Whiskey Shop, Classic Drinks and MCM Spirits and is available at Irish Drinks Shop, Celtic Whiskey Shop and all leading independent retailers.

PLEASE ENJOY RESPONSIBLY, madmarchharepoitin.com @madmarchharepoitin

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I ND U S T RY RE PORT

July/August 2021

DRINKS INDUSTRY IRELAND

Bar1661 has been developing the world’s first Poitín RTD in collaboration with Mad March Hare and Bán Poitín, due to launch soon.

In celebration of its new bottle design, Mad March Hare Poitín has teamed up with Poachers premium Irish mixers and Off the Cuffe bitters, two Irish brands also committed to local native ingredients, to launch the Ultimate Irish Mule Kit, available exclusively from Irish Drinks Shop this Summer.

formats as a ‘Bán & Black’ (Guinness with a side-shot of Poitín) or a Belfast Coffee, a cold-brewed Irish Coffee using Poitín instead of whiskey.

Although drinking it as a shot is much less common (it being happier as a cocktail ingredient) bartenders have often enjoyed a straight shot of Poitín themselves but it may not yet be out there for the masses, agreed one mixologist.

Mad March Hare’s new bottle design

Mad March Hare, the award-winning Irish Poitín from Intrepid Spirits, has unveiled a new bottle design embracing the resilience and Celtic character of the Irish hare. This iconic but endangered native has inhabited the Irish countryside since the last ice age, adapting and fighting to survive.

Much like Poitín-makers themselves, they’ve been relentlessly pursued but rarely captured.

Triple-distilled in small copper pot stills in West Cork using only the finest, locally-sourced malted

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barley Mad March Hare is bottled at 40%, resulting in a drink that’s full of character and exceptionally smooth.

Launched in 2014, Mad March Hare, was the last winner of Best Irish Poitín at the Irish Whiskey Awards in 2019, as well as Gold Medal winner at the SIP Awards 2018 and Double Gold at the San Francisco World Spirits Competition in 2016. It’s now the #one Poitín brand in the US.

Ultimate Irish Mule Recipe • 1 part Mad March Hare Poitín • 3 parts Poachers Ginger Beer with Irish chili • 2 dashes of Off the Cuffe Aromatic Hedgerow bitters • Squeeze of fresh lime • A mug of ice Mad March Hare is distributed by Intrepid Spirits through Celtic Whiskey Shop, Classic Drinks and MCM Spirits. For more information, visit madmarchharepoitin.com or follow @madmarchharepoitin on Instagram.

Mad March Hare - Q&As with John Ralph, Chief Executive of Intrepid Spirits

1. How are sales of Mad March Hare standing up to Lockdown?

Surprisingly, sales of Mad March Hare have increased significantly through the Lockdown. A lot of this is down to the shift to e-commerce where we’ve been able to speak directly to the consumer, harness the awareness of Poitín as a category and tell our brand story more effectively. We’re an on-premise first company and will always be, but this has really shown us the power of online for telling our story and engaging consumers. This will really benefit the on-premise once it opens fully as we can then send our customers to bars that are serving great Mad March Hare drinks.

2. How do you market Poitín to the consumer?

This varies by market; in Ireland and to some extent in the US, there’s a

latent awareness of Poitín. There was always some member of the family that used to have a bottle stashed in the drinks cabinet but it was always considered “dangerous”. Whilst this awareness is useful in starting the conversation with a consumer, we try to move the discussion to how Poitín is the original craft spirit, older than any other spirit category out there and was always made with a certain skill and flair. Consumers are hungry for brands and categories with real heritage and craft credentials, from there we let the liquid do the talking.

3. What’s the best thing about Mad March Hare in a cocktail?

Mad March Hare has a very unique flavour profile that holds together really well in a cocktail whether that’s in a Mad March Mule or even citrusbased cocktails like a Margarita.

However, if you really want to appreciate the flavour of Mad March Hare, it tastes great neat or even as a chilled shot!

4. To what extent has the slowdown in sales dented the revival of Poitín?

Honestly, I believe that this has been a blessing in disguise for Poitín.

We’ve spent five years in the US building Mad March Hare bar by bar, bartender by bartender, the

classic way to build brands and new categories. The Lockdowns forced us to rethink our approach and we pivoted to a dedicated brand e-commerce store supported with investment into social media advertising. The results exceeded any of our expectations. We sold more in 90 days than we had sold in the previous five years! We understand now, after engaging in conversations with our fans, that a lot of people were aware of Poitín but didn’t quite understand the category and more importantly couldn’t find a retailer to purchase from. This is a great lesson for any craft spirits brand in leveraging the long tail of e-commerce.

5. What are your plans to further promote exports of Mad March Hare?

Intrepid is a truly global business with operations in Dublin, Los Angeles, Tokyo, Shanghai, La Paz and Sydney. Whilst the infrastructure was initially built to support the expansion of Cocalero we’re now wellpositioned to leverage this infrastructure to take Mad March Hare and the rest of our portfolio to the world.

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What is cider?

In our annual review of the cider market we take a closer look at cider, its flavours and consumer trends as well as a wee bit of its history thanks to Drinks Ireland|Cider’s new publication.

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o mark World Cider Day last June the 3rd, Drinks Ireland|Cider produced a booklet detailing the diverse range of Irish ciders available to consumers.

Cider is the third-most-popular alcohol beverage in Ireland and the country’s blessed in having an array of cider variants in our retail and hospitality outlets. The booklet guides the consumer on flavour descriptions as well as suggesting food pairing options for each cider type.

Cider history & variety

During the 18th Century Irish cider was highly regarded for both its quality and its economic importance, so much so that in 1737 quality Irish cider was being described as the equivalent to quality wine.

Praise indeed for the humble Apple but there’s more.

Today, unlike wine, cider-makers can feast their eyes on 60,000 different varieties of apple from which to choose for their cider where vintners must content themselves in working with a mere 10,000 grape varieties.

With the emphasis on health, being fermented exclusively from apples or pears, ciders and perries are by their nature free from gluten and nearly all of them can be classed ‘veganfriendly’.

Premium cider an underdeveloped market

Although some in the EU would consider cider to be beer’s poorer cousin, cider producers in the UK and Ireland consider the cider

sector to be a relatively underdeveloped category and the premium cider sector a relatively unpopulated market, one ripe for development.

And here in Ireland, while some might consider ciderdrinking to be a relatively well-developed and popular concept, nearly half of all households in the UK bought cider at some point in 2020 so there’s plenty of room for growth here.

Irish cider market

In its Irish Cider Market Report 2020, Drinks Ireland|Cider stated that volume consumption of cider fell 11.3% in 2020 compared to the previous year, giving cider a 6.9% share of the overall alcohol market, down from 7.4%.

But last year was a poor year for many beverage products so it shouldn’t be taken out of Lockdown context.

Indeed, Revenue figures for the first Quarter of 2021 show a continuing decline in volumes of 16%.

But against this cider values seem to be increasing.

Figures from NielsenIQ would tend to reflect growth in the off-trade cider market of 27% to €147 million in the year to May the 23rd 2021 while from January 2021 to May the 23rd sales were up 6% to €51.4 million.

Bulmers launches new campaign

As pubs open their doors and welcome back visitors once again, it’s as-good-a-time as any to reflect on the virtue of patience and the art of biding your time, something Bulmers’ new ATL campaign ‘When Time Bears Fruit’ champions, believes the ciderproducer.

Launched to coincide with the reopening of pubs Bulmers’ new campaign includes digital, TV and OOH, constituting a five-fold increase in spend.

It’s also being supported in the on-trade, forming part of a major programme of support for the pub and hospitality industry by Bulmers Ireland.

Filmed and produced in Bulmers’ own orchards in Clonmel, the campaign celebrates the moment when time bears fruit, the 18-month production process in creating Bulmers Irish Cider, much mirrored by the challenging 18 months the ontrade community has faced.

In addition to the new marketing campaign, Bulmers has also refreshed its iconic pint glass. The updated glass has begun rollout across pubs throughout Ireland. The updated design is more stylised with a sleeker aesthetic, features the symbolic Bulmers vats in the grip and also embraces QR functionality.

“We’ve all had a reality check over the last while and perspective on what >>

As pubs open their doors and welcome back visitors once again, it’s as-good-a-time as any to reflect on the virtue of patience and the art of biding your time....

HERE’S TO THE MOMENT

WHEN TIME BEARS FRUIT

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and a medium dry sweetness offering a crisp fruity finish, Cooneys Irish Cider ticks all the boxes for a balanced Irish Cider.

Devils Bit

Filmed and produced in Bulmers’ own orchards in Clonmel, Bulmers’ campaign celebrates the moment when time bears fruit, the 18-month production process in creating Bulmers Irish Cider.

really matters has undoubtedly been gained,” says Karl Donnelly, Marketing Director at Bulmers Ireland, “However people’s livelihoods and businesses matter too and it’s great to see reopening progressing.”

Bulmers plans to host a glamping experience for consumers and trade in the Bulmers Orchard and also plans to support Ireland’s bee population during the Summer, “without whom we couldn’t possibly do what we do”.

Falling Apple

Falling Apple Irish Craft Cider, produced in Bagenalstown, County Carlow, has released a new range of 330ml cans to add to its range of 500ml bottles. The new additions, Apple Crush and Blushing Berry, come in stylish four-packs.

Apple Crush is a medium-sweet cider with a refreshing balance of sweet, dry and bitter flavours, while Blushing Berry is a fruity and refreshing cider with flavours of

Raspberry and Elderflower.

Both ciders are blended with 100% Irish apples and use techniques from cider-making experts and specialists on the team.

Craigies

Craigies Irish Craft Cider only uses Irish apples sourced from dedicated growers in counties Waterford, Tipperary, Cork and Kilkenny. The Craigies team holds the belief that Irish cider achieves its greatest complexity and expression as a blend and that each Apple should reflect its regional origins as well as its specific fruit characteristics.

Craigies’ leading brands Ballyhook Flyer and Rosé are the fruits of that philosophy.

Ballyhook Flyer is dry and elegant, possessing both fruit and savoury flavours which are prolonged on the palate by its natural freshness, while the Rosé sparkling Cider perfectly combines traditional Apple flavours with delicate fruit notes.

Craigies is often the cider of choice for chefs at high-profile restaurants around the country.

Cooneys

Using its own spring water and Irish honey bees the team at Cooneys Irish Cider ensures that from blossom to bottle consumers get the finest and most refreshing Irish Apple Cider.

A medium dry cider, crafted With Dabinet, Michelin, Ashton Bitter, Yarlington Mill & Gilly Bittersweet Cider Apples, no artificial sweeteners, colours or flavourings are used in this naturally vegan and gluten-free cider.

With a light, golden colour, a distinctive bittersweet Apple aroma

Devils Bit Mountain Cider is familyowned and Irish-made. Legend has it that in chasing Fionn Mac Cumhaill, the Devil took a bite out of a certain Tipperary mountain leading to what is now known as Devils Bit Mountain. Having its orchards at the foot of this mystical mountain adds a certain something to Devils Bit. Crafted with apples from its own orchards and pressed in the Devils Bit Cidery in Tipperary the Master Cider Makers combine the age-old techniques of cider-making with the traditional cider Apple to create this beverage.

Kopparberg wants consumers to ‘Kopp On’

Ireland’s #1 fruit cider brand Kopparberg has driven value to the Cider category, up 26% MAT vs Total Category up 6%. The independent fruit cider giant now plays across multiple categories within alcohol including Cider, Spirits & RTDs. This Summer Kopparberg embraces its Swedish heritage, introducing ‘Swedish Tastes That Translate’, an eye-catching campaign that’s sure to leave consumers tonguetied.

Encouraging people to enjoy a refreshing fruit cider, Kopparberg’s new campaign has cheekily taken some Irish-isms and added a dash of Scandi-flavour, with the brand going as far as to launch its very own dictionary featuring a selection of Swedish-Irish fused phrases to have some fun with including: • ‘Kopp On’ – knowing there’s only one cider to order • ‘Eye-Scandi’ – very attractivelooking glass of cider • ‘Scandilous’ – buying anything other than a Kopparberg Kopparberg’s array of fruit flavours ranges from the classic Strawberry & Lime to Mixed Fruits and the tropical flavours of Passionfruit.

Kopparberg is distributed by Richmond Marketing.

For more information, visit @KopparbergIreland. n

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Mind the draught Ask any pub punters what they missed most during Lockdown and “a pint of draught beer” is what they’ll all cry in unison by way of a parched reply.

So all eyes are on this beer category as the on-trade reopens and the countermounts start pumping once more.

B

eer has been the most exposed category of alcohol during Lockdown, dropping volumes by 7.1% globally last year according to IWSR figures. Of course the pandemic will have hit the draught beer sub-sector even harder as hospitality venues across the globe pulled the shutters down on the pumps.

However, beer volumes are forecast to grow by 2.5% this year, with IWSR predicting a 1.2% Category Annual Growth Rate from 2021 to 2025 - except for the US, where RTD competition has considerably impacted beer sales.

The US apart, all of the Top-10 global beer markets (by volume) are projected to show growth into 2025.

The same can undoubtedly be claimed for draught beer sales around the world.

Mind the draught

With draught beer comprising nearly half of all beer sales here, one of the leading attractions in the reopening of pubs has been the return of demand for draught product.

Traditional pubs in particular look to their countermounts to supply something that’s been sorely missed during Lockdown by a myriad of appreciative returning customers.

Demand is high for draught Heineken and Guinness in The Palace bar in Dublin’s city centre, for example.

And draught contributes over 80% of turnover at Murray’s Bar in Macroom, County Cork, according to Denis Murray there, “... and if anything that’s increased a bit since we reopened in early June,” he says, “People are so delighted to get a real pint instead of drinking from a plastic glass at home.”

Similarly Pat O’Riordan in O’Riordan’s bar in Coachford, County Cork, says that his customers are simply delighted to be able to drink a pint of stout again.

“They’re fed up of buying cheap drink in the shops,” he believes, “They’ve had enough of that and are delighted to be able to sit down and have a proper pint and a proper chat with their friends.”

He adds that it’s great to see the older men coming back to the bar again, sitting down and enjoying a draught pint.

Draught sales drop to rise

Some 80% of stouts and ales were sold through hospitality in 2019, however with the closure of the ontrade only 43% of those two variant beer types were sold via the on-trade in 2020. >>

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DRINKS INDUSTRY IRELAND | July/August 2021

CAMPAI GN TRAIL

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8 Over half of pub-goers would miss ordering drinks via an app if it stopped

Consumer-driven shift to Table Ordering As Irish hospitality finally emerges from the pandemic many Irish hospitality businesses have dramatically changed the way they operate in order to reopen. This, coupled with staffing issues, means that businesses require a solution to manage these challenges. app if it stopped.

Digital Table Ordering through “We’re the leading provider QR codes is one such solution. of ordering technology for This acceleration of digital hospitality in Europe,” says transformation in the hospitality flipdish co-founder James industry has many operational and The vast majority of pub-goers that have used digital McCarthy in explaining why the staff benefits. tools to order food and drinks want to keep using flipdish Table Ordering system It’s being gladly welcomed by them in the long term. is a worthwhile investment, consumers. A recent pub-goers “Our focus on effortless user and drinks want to keep using them in survey carried out by flipdish and experience results in increased the long term.

Censuswide found that the vast conversion rates which means more In addition, over half (55%) would majority (80%) of pub-goers that revenue for our customers.” actually miss ordering drinks via an have used digital tools to order food

8 #TogetherAgain campaign offers behind-the-scenes look at how pubs prepared to open doors safely this Summer

Drinks Ireland launches #TogetherAgain Drinks Ireland recently launched a new campaign called #TogetherAgain to highlight all the work that’s gone on behind the scenes to get pubs ready to reopen their doors safely.

As some of the country’s hospitality venues with outdoor space are open and expect to welcome customers back indoors now too, Irish drinks producers have provided significant supports to get these venues ready and that includes investment in outdoor bars, barriers, barrels and a range of other items to make these spaces functional, safe and most of all, ready to host a drink and catch-up between friends and families. They’ve provided many Covid essentials to venues like hand sanitiser and hospitality staff have also been offered additional training.

Through a video series, the #TogetherAgain campaign highlights how the drinks industry has worked closely with pubs to ensure they were ready for a safe and sustainable reopening.

It illustrates that while things will be a bit different for a little while, Irish pubs are ready with the craic and connections we’ve all missed and have put a range of measures in place to keep everyone safe.

The first video went behind the scenes of The Porterhouse Brewery in North Dublin and Porterhouse Central pub just off Grafton Street.

“It’s been a tough year for everyone, and we’ve all missed our favourite pubs,” said Drinks Ireland Director Patricia Callan, “The drinks industry has worked hand-in-glove with our hospitality partners from the outset of the pandemic, when producers undertook the mammoth task of collecting kegs and disposing of unused beer safely.

“The focus now is on facilitating venues as they open up and drinks producers have been busy behind the scenes making beers, ciders and spirits, delivering kegs and cleaning beer lines.”

Licensed Vintners Association Chief Executive Donall O’Keeffe said, “It’s been great to welcome customers back to pubs that have outdoor spaces and we look forward to a greater opening of indoor spaces. A lot of work has gone into making sure we’re all safe as we get #TogetherAgain in pubs which means we can enjoy ourselves without worrying.”

Padraig Cribben, Chief Executive of the Vintners Federation of Ireland, added, “With the vaccine rollout continuing and Lockdown restrictions easing, Irish pubs have worked hard to open their doors again and welcome customers back. While some of the nation’s pubs opened for very short periods of time last year, this time is different as these venues are planning to open for good.” n

www.drinksindustryireland.ie

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