4 September/October 2022 | DRINKS INDUSTRY IRELAND
“These measures alongside a reduced rate of VAT, encouraging consumers to continue to visit pubs during this cost-of-living crisis, will be essential to ensure Irish pubs would echo that sentiment.
It found that one in two businesses will now be loss-making and a massive one in three of those businesses will fail in the next three months.
“The effect of these unprecedented energy price rises on our nation’s pubs has now reached a critical level,” warned BII Chief Executive Steve Alton, “This is not just about business failure and the loss of livelihoods for our members, it’s the loss of jobs in local communities.
As energy price increases continue to sweep across a shell-shocked consumer and business community, many pubs must now be looking at the prospect of closing their doors having seen commodity price rises chase energy prices. This at a time when consumers are cutting back on on-trade spend as they feel the cost-of-living crisis grip their own wallets ever tighter.
more give is there in the price elasticity of the consumer’s pocket?
All this makes the economic damage done to the on-trade by the pandemic pale into relative insignificance.
As VFI Chief Executive Paul Clancy told the Irish Mirror, “There is no doubt pubs across Ireland are facing an extremely challenging Autumn and Winter period”.
“We’re calling on Government to provide a meaningful cap for business energy as well as grant support for our essential safe spaces for all across the UK. We’re also calling for at least a 50% reduction in business rates for 23/24, as well as a significant cut in duty for draught beer and cider of at least 20% on containers of 20 litres or more to allow them to begin to recover their
O P I N I O N
At time of writing Eirtricity has raised its prices by 40%; that’s on top of three previous price rises taken in the last 12 months.
Lights out this Winter?
The undeniable outcome is that we are all - publicans, distributors, wholesalers, importers, exporters, breweries and distilleries - caught up to our necks in the rising vortex of costs which must be passed down the line to the eventual Questionconsumer.is,howmuch
We are all - publicans, distributors, wholesalers, importers, exporters, breweries and distilleries - caught up to our necks in the rising vortex of costs which must be passed down the line to the eventual consumer Pat Twitter:patnolan@mediateam.ieEditorNolan@drinksind_ie
While it’s of little consolation, internationally, we’re all in the same leaky boat.
The British Institute of Innkeeping recently revealed the results of a flash survey of members on the devastating impact of the rise in energy bills.
“This could be a strong and effective bulwark against hospitality inflation and we hope the Government will recognise it as such in the coming Budget.
8 New distillery will create up to 100 highly-skilled jobs for East Cork Irish Distillers announces €250 million Midleton investment
recently-announced additional energy price rises kick-in. Coupled with the widespread inflationary pressures facing the economy there’s likely to be significant cost increases over the rest of this year and into 2023.
5 Irish Distillers will invest €250 million in the construction of a new distillery in Midleton, County andMidletonJameson,produceIrishDistillers’capacityfutureensureincreasingbeingof-the-artpurpose-built,deliveryinvestmentannouncerecentlyMartinTaoiseachCork.MicheálwasinMidletontoofficiallytheplan.The€250millionwillsupportofanew,state-distillery.It’sbuilttomeetdemandandthenecessaryproductionforIrishportfolioofwhiskeysglobally.ThedistillerywillIrishwhiskeysincludingPowers,Redbreast,VeryRare,theSpotfamilytheMethodandMadnessrange.Onceoperational,overtimethe
successful toapplicationoperation.betheDistillers’thearoundexpectednewincorporateddistillationfermentationgrainandrequirements.meetingapplicationplanningandalllicensingItwilldistilpotstillgrainwhiskeywithintake,brewing,andfacilitiesintothe55-acresiteandistogenerate800jobsduringconstructionphase.InlinewithIrishambition,newdistillerywillacarbonneutralAplanningisexpectedbesubmitted
“Reducing excise duty is a straightforward option available to the Government to alleviate some of this pressure. We already have among the highest levels of alcohol excise in Europe so there’s plenty of room for manoeuvre here”.
to Cork County Council towards the end of 2022 and if successful, construction will commence in 2023 with plans for the distillery to be operational in 2025.
8 Grant assistance and price certainty on energy costs
The Licensed Vintners Association has pointed out that the Government has the opportunity to use a “straightforward option” in cutting excise duty as the hospitality sector faces major rising cost pressures.
The new distillery will be situated on a 55-acre site adjacent and connected to the present Midleton Distillery.
“We’ve been actively engaging with the Government on this matter and also on the issue of energy price
rises. It would seem the increases outlined in the DIGI report might only be a drop in the ocean compared to what may be coming. We believe it is essential that measures are adopted that will see grant assistance provided on energy costs as well as price certainty if businesses are to successfully navigate this inflationary period. This is something the Government must act on in the Budget in two weeks’ time,” he concluded. also essential
The LVA made its comment following the publication of the new Estimation of Costs of Doing Business in the Hospitality Sector: 2022 and 2023 report from the Drinks Industry Group of Ireland. That report showed that electricity prices for Irish businesses are 60% higher than the EU average, that business gas users experienced a price increase of just under 24%, while the industry also faces substantial inflationary pressure across food products including meat and dairy.
Cut in excise “straightforward option for government” – LVA
DRINKS INDUSTRY IRELAND | September/October 2022 NEWS
new distillery will create up to 100 highly-skilled jobs for East Cork. To be situated on a 55-acre site adjacent and connected to the present Midleton Distillery, the new distillery will be subject to a
“That’s why reducing excise duty is a straightforward option available to the Government to alleviate some of this pressure. We already have among the highest levels of alcohol excise in Europe so there’s plenty of room for manoeuvre here. A 7.5% cut in excise duty in the coming budget will help to stem the pressure facing pubs and other hospitality premises serving alcohol, creating greater room for absorbing all these other inflationary costs.
“This report showcases the many practical difficulties facing pubs and the rest of the hospitality sector in the battle against inflation,” said LVA Chief Executive Donall O’Keeffe, “The report captures how far prices have already risen and that is before the
The report’s author notes that public houses contribute to the culture and vibrancy of villages, small towns and rural areas in many ways. They contribute to tourism and provide an extensive network of physical facilities and services needed by tourists and locals.Hecites concerns for the impact of the pub decline on rural Ireland when taken in the context of wider challenges facing areas outside Dublin. When one considers decreases in the number of post offices, full bank branches, Garda stations, local retail enterprises and a wide range of other services and facilities, there are concerns about the commercial
“Considering this sharp decline and trend we’re witnessing we need to monitor this industry carefully and ensure all the necessary supports are in place to contribute to stopping this trend.“Our high alcohol excise tax is a cost and slows the growth of these businesses and impacts their dayto-day operations and bottom line. Exasperated currently with inflation and the cost of living, we’re calling on the Government to reduce excise tax to support the industry with meaningful measures that will be felt immediately and reduce costs overnight for tens of thousands of business owners.”
More than one pub in five here has closed its doors since 2005 according to a recent report from the Drinks Industry Group of Ireland.
6 NEWS September/October 2022 | DRINKS INDUSTRY IRELAND
capability of small towns and villages with large levels of commercial building vacancy, he notes.
The stark decline of 1,829 in the number of pubs in Ireland over the past 16 years - and particularly during Covid - has been highlighted in the new DIGI study conducted by Dublin City University Associate Professor Emeritus and Economist Anthony Foley.
Anthony Foley also cites a number of reasons for the pub decline including non-replacement of pub operators on retirement or death, low levels of business volume and economic sustainability as well as regulatory changes such as tighter drink-driving laws and enforcement allied with weak or non-existent public transport, population change and distribution.
Katyhryn D’Arcy added, “The Irish pub has been in a steady decline for years and these stark figures once again highlight the need to secure the sustainable future of our pubs. Central to this is introducing policy measures
In commenting on his report Anthony Foley stressed, “Pubs serve as a vital social outlet for many people, particularly in rural Ireland. With people living there faced by the spectre of rural decline, preserving the cultural heritage of the Irish pub in Ireland is arguably a progressive course of action.“Economic and business sustainability is one of the several determining factors of closures of small public houses. Addressing high excise would have a positive effect on the commercial sustainability of small public houses and would be a strong element in the wider policy strategy to support rural areas. It is a measure which is completely within the scope of Government,” he concluded.
All 26 counties experienced declines in pub numbers through the 16-year period, with the largest decrease being seen in Laois which now has 30.6% less pubs than in 2005. This was the only county with a decrease of over 30%. The lowest decrease of 1.4% was in Meath followed by Dublin which experienced a pub population decrease of 4.3%.
Economic and social analysis
The Irish Pub: Stopping the Decline report is based on analysis of Revenue license data and includes an economic and social analysis by the report’s author.Thereport elaborates on the 21.2% decline - from 8,617 to 6,788 - in the number of pubs in Ireland from 2005 to“Overall,2021. the rate of decline was highest in the first half of the period and decreased thereafter up to 2019,” states the report, “However, closures resumed at a high rate during Covid-19.”
“The pace of decline increased as a result of the Covid-19 pandemic which saw the drinks and hospitality industry suffer the worst of all, with one of the longest lockdowns recorded globally.
8 1,829 less pubs in Ireland over 16-year period
which can make both an immediate difference and a long-term impact in terms of delivering sustainable policy to support these businesses.”
In her forward to the report she states, “Reducing excise tax is a policy that can be introduced overnight with the immediate, tangible impact of reducing the costs of doing business for tens of thousands of business owners in the drinks and hospitality sector in Ireland”.
And according to the recentlyappointed Chair of the DIGI, Communications and Corporate Affairs Director at Irish Distillers Kathryn D’Arcy, in the report, there’s likely to be a negative social impact arising from the trend and extent of closures, especially in rural and remote areas in Ireland.Describing the report as “alarming”, Vintners Federation of Ireland Chief Executive Paul Clancy said, “1,829 rural pub closures represent businesses that provide jobs, a hub in the local community for socialising and community integration and a cultural centre which has long been documented as among the main attractions for tourists visiting Ireland.
Some 349 pubs - or 4.9% of the total population - were lost during the pandemic period (from 2019 to 2021) alone.
Over 1 in 5 pubs gone since ‘05
All the remaining 23 counties had decreases greater than 10%.
“Addressing high excise would have a positive effect on the commercial sustainability of small public houses and would be a strong element in the wider policy strategy to support rural areas.”
scale, Leinster saw the biggest decline vs 2019 in spirits, down by 3.8pp. Again, the LAD market remained more stable, with the biggest win in Connaught and Ulster, up by 1.2pp vs three years ago, compared to the biggest decline in Cork, (down 0.8pp).
Consumers choosing serves they couldn’t recreate at home
Stout a top performer
LAD serves drive on-trade recovery
Its On-Premise Measurement data for Ireland in the six months to June 2022 vs three years ago reveals that more consumers are opting for serves they can’t recreate at home and city centres are showing promising signs of recovery, claims the researcher.
Other than a few lingering restrictions in January, 2022 has been Ireland’s first year free from Covid-19 constraints and as the market attempted to normalise there was a real sense of a ‘new normal’ through the first half of 2022.
On-trade showing signs of Premiumisation
Consumers continued to revisit the segments that were most heavily impacted by operating restrictions. As a result, wet-led venues continued to push ahead, with spirits leading the way. These revitalised segments grew in share by 2.1 percentage points vs 2019, accounting for 78% of the Irish spirits market. LADs enjoyed a more stable market vs three years ago but, as with spirits, pubs saw the biggest growth, where LADs were up 0.6 percentage points.
Some 93% of on-trade outlets returned to being fully operational although 7% were lost as a result of the lasting impacts of Covid-19.
8 CGA by NielsenIQ highlights some key trends in H1
CGA by NielsenIQ’s latest research into the market here highlights some of the key trends emerging in the Irish on-trade this year including signs of consumers’ trading-up, the popularity of drinks that can’t be recreated at home and cocktails driving the growth of vodka.
Cocktails drive vodka growth
Vodka continued to lead in spirits. Driven by the return of on-trade drinking and the popularity of cocktails, it accounted for 27.9% of the spirits category, up by 1.8pp versus three years ago. In addition, ‘liqueurs and specialities’, the second-largest growth category, was up by 1.4pp vs 2019 as consumers increasingly opted for cocktails. Demographically, the slower return of older consumers may have caused whiskey to be the most significant loser in spirits, declining by 1.9pp.
“It felt like the sector was just starting to find its feet again after Covid-19 when the cost-of-living crisis started to loom large,” said Sian Brennan, Client Director for Ireland at CGA by NielsenIQ, “Despite more market turbulence, wet-led sales held their own for the first part of 2022, with an appetite for higher value products presenting an opportunity for sales growth in premium categories. And the fact that stout and draft were big winners is encouraging - it’s acknowledgement from the consumer that there’s no substitute for a real pint pulled in a pub.”
The research highlights some of the key trends during this period.
DRINKS INDUSTRY IRELAND | September/October 2022 7NEWS
Gin also lost 0.6pp share.
Long Alcoholic Drinks in outlets failed to return to 2019 levels with volumes only returning to 84% of 2019’s levels. But sales values were higher, reaching 89% of 2019’s levels as the market showed signs of Premiumisation with prices increasing by 6.2%. Spirits were slower to return to 2019 volumes, settling at 72% ‘though a higher value of 75% of 2019’s levels reflected signs of Premiumisation.
City centres recovered well – but for spirits rather than LAD
Regionally, Cork and Dublin gained a greater share of the spirits sales mix (up 1.3pp and & 3.8pp respectively), with consumers returning to city centre areas, reports CGA by NielsenIQ.Attheopposite end of the
With consumers craving those serves that couldn’t be replicated at home during Lockdowns Stout continued to dominate within LAD, growing share by 3.9pp vs 2019. The appetite for an authentic on-trade serve was further evidenced, with draught continuing to gain over the packaged format. As a result, draught LAD share was up 3.1pp whilst packaged lager was down 2.1pp, with packaged ale down 1.5pp.
LAD sales values reached 89% of 2019’s levels as the market showed signs of Premiumisation with prices increasing by 6.2%.
The growth of Ready To Drink and NoLo products has emerged as a key trend.IWSR identified RTDs as one of the stand-out categories during the pandemic, increasing in volume by 14% in 2021 on top of 26% growth in 2020 notes the report.
this trend, the NoLo spirits category has started to emerge with sales up by 314% last year albeit from a low “Lastbase.year was another challenging one for Ireland’s spirits sector, which again demonstrated strong resilience in the face of the Covid-19 pandemic,” said Drinks Ireland|Spirits Chair Bryan Fallon, Managing Director of Heaven Hill Ireland, brand owner of Carolan’s Irish Cream liqueur and Irish Mist Honey liqueur, “It was positive to see a rebound in domestic sales and exports in the second half of the year as hospitality venues reopened.“Inorder to enable us to fully rebound in a timely manner and further support the economy, we would call for an excise cut in the upcoming Budget. With the third-highest excise on spirits in the EU, Ireland levies a disproportionate percentage of the tax burden on distilleries who are promoting Ireland on the globalAlmoststage.”allthe various spirit categories saw an increase in sales last year, reported Vincent McGovern, Director of Drinks Ireland|Spirits and author of the report, who pointed out that Irish Whiskey, Gin, Irish Cream, Rum and US whiskeys all moved past their 2019 sales figures. The notable exception to this was Vodka which, while improving on its 2020 sales, still fell short of its 2019“Asfigure.astrong export-led industry, free and open trade remains vital,” he stated, “As such a number of challenges remain for the sector, including the continued fallout from Brexit.”
The growing popularity of NoLo products here in Ireland is another of the emerging trends.
Ireland’s spirits sector showed resilience last year in the face of the Covid-19 pandemic, with exports up by roughly 25% to €1.24 billion, according to the sixth Drinks Ireland|Spirits’ annual report released recently.
8 Domestic sales up 8% following hospitality sector reopening
RTDs & NoLos
Global Irish Whiskey
Vodka (30% of the spirits market), Irish Whiskey (25%) and Gin (14.4%) were the most popular spirits in Ireland.Butoverall, alcohol consumption continues to decline here, down by 4.7% last year.
September/October 2022 | DRINKS INDUSTRY IRELAND8 NEWS
“These increases reverse the falls in sales in 2020 and move both domestic sales and exports ahead of their 2019 figures,” states the report.
Spirits sector shows marked recovery in 2021
Irish Whiskey’s spectacular global growth was notable once again, with sales reaching 14 million cases in 2021. Last year also saw Russia become the second-biggest customer for Irish whiskey after the US, overtaking the UK in the process. However this is unlikely to be the case this year.
The spirits sales rebounded last year, up by 8% to 2.55 million 9-litre cases.
Irish Cream Liqueurs
The Spirits Market Report 2021 showed that domestic spirits sales rebounded last year, up by 8% to 2.55 million 9-litre cases as hospitality venues reopened in the second half of the year.
Ireland spirits
Meanwhile, Irish Cream’s global sales followed a similarly strong trajectory and are expected to top 10 million cases for the first time this year. Ireland’s domestic market saw it consume an estimated 141,380 cases.
The US, the UK and Canada were the top three markets for Irish GI spirits exports.
“RTD sales in Ireland mirrored this trend with cocktails and long drinks (plus 60%), hard seltzers (plus 46%) and flavoured alcoholic beverages (plus 27%) all seeing market share increases in 2021.”
And the global reopening in the second half of last year saw overall Irish whiskey sales volumes up 23% to 14 million nine-litre cases for 2021, Irish Creams up 18% to 9.8 million cases and Poitín up 94% to an estimated 4,827 six-litre cases.The reopening of international travel resulted in a modest recovery of spirits sales in the Global Travel Retail market last year, but a full recovery is anticipated to be in line with travel returning to pre-pandemic levels, states the report.
While beer and cider brands lead
DRINKS INDUSTRY IRELAND | September/October 2022 NEWS 9
In its preliminary year-end results Diageo reported a 71% growth in organic net sales of Guinness in Ireland, driven by a surge in Guinness sales as the on-trade reopened in the second half of 2021. This contributed significantly to Guinness’s 32% rise in sales globally. Overall, organic volumes at Diageo Ireland were up 35%.
8 Guinness volumes up 32% globally following end of Lockdowns
Operating Profits of £4.4 million, up 26.3% organically.
The recovery of the on-trade following the pandemic Lockdowns was responsible for a significant amount of growth at Diageo in the year to the 30th of June 2022.
“We benefitted from the on-trade recovery, continued global premiumisation trends, with our superpremium-plus brands up 31% and from
Diageo reported global net sales of £15.5 billion, up 21.4% on the previous year’s £12.7 billion figure, with
Guinness enjoyed a 32% rise in global sales.
price increases across our regions.”
n Charlie Chawke’s Goat Grill suffered another loss in the year to the 31st of March 2021, this time just under €127,000 according to its Unaudited Abridged Financial Statement for the year. The previous year, the Goat Grill’s holding company Charjon reported a loss of €61,000 in the 12 months to the 31st of March 2020. With accumulated profits of under €2.2 million, down 5.5% on 2020’s €2.3 million, staff numbers (including the two directors Charlie & Bernice Chawke) totalled just 30, well down on the previous year’s total of 76. Directors’ remuneration was up 4% to €224,269 from €216,184 the previous year.
Guinness sales up 71% here
In Europe Diageo’s net sales were up 26%.
“I am very pleased with our fiscal 22 results,” said Diageo Chief Executive Ivan Menezes, “We delivered doubledigit organic net sales growth across all regions and we gained or held off-trade market share in over 85% of our total net sales value in measured markets.”Inayear of significant global supply chain disruption, Diageo enjoyed double-digit volume growth.
that stout ranks second. However, CGA’s On Premise Measurement service reveals that its Rate of Serve in the three months to May was more than twice as high in Dublin (48HL) than in Belfast (22HL).
Dublin’s consumers have grown steadily more confident about drinking out since the end of Covid19 restrictions. Here, CGA’s Reach research indicates that 87% of them now feel confident about visiting the on-trade — ahead of the 80% in Belfast.
Corona beer is reckoned to be the most valuable beer brand in the world at $7 billion according to the Brand Finance Alcoholic Drinks 2022 report, published recently.
In both cities there’s a desire to go out as much as possible this year to make up for occasions lost to Covid19 ‘though the number planning to do so is much higher in Dublin at 54% than in Belfast at 41%.
5 Beer
The brand value of Corona has risen by over 20% to $7 billion in 2021 according to the report.
September/October 2022 | DRINKS INDUSTRY IRELAND12 NEWS
8 CGA by NielsenIQ reveals some crucial differences in consumer on-trade habits
Moët & Chandon remains the most valuable and strongest wine and champagne brand in theLindeman’sworld. is the fastestgrowing brand in wine, achieving brand value growth of 81% to $664 million and rising two places to sixth in the Most Valuable Brands in this year’s Top Ten ranking. & champagne brand
At 60.2% lager has the biggest share of Long Alcoholic Drink sales in Belfast. In Dublin lager has a 42.7% share.
Corona - world’s most valuable beer brand
Pubs, bars and restaurants are at the heart of life in both cities but CGA’s Opus data show slightly more consumers drink in pubs, bars and restaurants at least weekly in Belfast at 35% than in Dublin at 31%.
Baileys drops one place in the Brand Finance spirits table to 19 while Jameson retains its 20th position.
Spirits
Vodka takes roughly a third of spirits sales in Belfast (35%) and Dublin (32%). Ireland’s reputation for whiskey gives it a 21% share of sales in Dublin — six percentage points more than in Belfast (15%).
4 Outlets
Guinness moves up one place to 12th in the 2022 Brand Finance table.
Chinese brand Moutai is regarded as being the world’s most valuable spirits brand.
1 Engagement
With a larger tourist sector Dublin has a much higher density of licensed premises than Belfast. CGA’s latest distribution data show the Republic’s capital has just over 2,000 outlets — one for every 627 residents.InBelfast the on-trade is spread more thinly with one site for every 1,098 people.
Well over half (56%) of Belfast’s consumers are likely to trade up to Premium serves — notably more than in Dublin (48%). While there’s significant room for more Premiumisation in both cities, with consumer costs rising fast, value will also be a priority over the rest of 2022.
At 60.2% lager has the biggest share of Long Alcoholic Drink sales in Belfast. In Dublin lager has a 42.7% share and it’s no surprise
Dublin and Belfast remain key markets for on-trade suppliers — but CGA by NielsenIQ’s research has revealed some crucial differences in consumer habits and preferences between the two cities:
6 Spirits
This means that the brand value of Corona has risen by over 20% from $5.82 billion in 2021 according to the report which ranks the world’s most valuable and strongest alcohol brands across categories such as wines, beers and“Overspirits.the course of the pandemic” states the report, “the Corona brand faced some challenges, particularly in the United States, as some consumers were initially hesitant to purchase its products due to its similarity in name to coronavirus. Despite the association between the beer brand’s name and a pandemic which has killed tens of millions of people,
Wines
At $42.9 billion (down 5%)
8 Moët & Chandon most valuable wine
3 Premiumisation
2 Confidence
Corona has achieved 21% growth in brand value and continues to be the world’s most valuable beer brand.”Valued at a mere $100 million below Corona lies Heineken, in second place with a valuation of $6.9 billion, up 23%.
6 key differences in on-trade drinking between Dublin & Belfast
Heineken’s brand value has been very closely correlated with the recovery of on-trade sales at bars, pubs, events and other social spaces.
8 BrewDog Cork opens its doors
The opening of the Cork outlet brings to over 100 the number of bars Brewdog now has across the globe, exporting to 60 countries and with breweries in Columbus Ohio, Berlin and Brisbane.
working with Government to make clear the harm this is causing to our ambitions for growth, investing in high streets and creating skilled roles. It’s imperative that Government takes action to help us tackle the inflationary headwinds we face, unlock growth by removing regulatory barriers and creating a tax and investment framework for the future.”
the sector and half the usual period forAsanalysis.aresult, the responses this year reflect the continuing evolution of both the UK consumer and investor landscapes, states the report.
The 13th edition of the UKHospitality Christie & Co Benchmarking Reportpublished recently - reveals the results of a survey of operators covering over 5,000 hospitality businesses andfor the first time - includes a separate hotels segment.
The opening represents the seventh venue operated by Westside Leisure who’ve been running bars across the city for 40 years.
The venue has two floors, with a bar on each floor, plus a EachMezzanine.barhas30 taps of BrewDog craft beers plus curated local guest breweries, with a takeaway service available.
Operating costs now over half of turnover in UK hospitality
period covered the six months to December 2021 which is representative of a turbulent time for
have emerged over the last few years and with consumer demand returning there’s still reason to tounder,operatorspressurehighlightsout,UKHospitality,Chief&RestaurantsDirectorOwens,commentscautiouslyremainoptimistic,”StephenManaging–Pubs&atChristieCo.KateNicholls,Executiveofpoints“Thisyear’ssurveytheextremethathospitalityarelabouringwithcostssoaringanewrecordhigh.“Wehavebeen
September/October 2022 | DRINKS INDUSTRY IRELAND14 NEWS
Operating costs for UK hospitality providers have increased to challenging levels, reaching 55.2% of turnover before rent – the highest since 2007according to UKHospitality and specialist business property adviser Christie & Co.This has been driven by the soaring utility, premise and operational costs facing operators in the industry as they attempt to rebuild following the pandemic there.
Independent Scottish craft brewer BrewDog opened its second bar in Ireland, recently in the centre of CorkBrewDogcity. Cork is located at 1-2 Courthouse Street, just off Washington Street, in the heart of the city’s thriving craft beer scene.
8 UK operating costs now highest since 2007
Whilst the report notes a contraction in like-for-like sales of 2.3% in comparison to the second half of 2019 across the entire survey, certain segments of the market saw topline
BrewDog Cork represents the seventh venue operated by Westside Leisure who’ve been running bars across the Cork city for 40 years.
The report shows that, as is the case here, the hospitality sector in the UK has faced relentless economic and operational challenges forcing operators to adapt and look to alternative revenue streams to drive business.
“Despitegrowth.thesignificant challenges
that lie ahead in 2022, new opportunities and ways of operating
Brewdog opens 2nd Irish venue
The report shows that, as is the case here, the hospitality sector in the UK has faced relentless economic and operational challenges forcing operators to adapt and look to alternative revenue streams to drive business.Thesurvey
Among those EU Member States with data available, Germany again emerged the top producer in 2021 at 7.5 billion litres (23% of total EU production).
www.drinksindustryireland.ie
While EU production of alcoholic beer rose 3% in 2021 to 4.8 billion litres compared to the previous year, EU production of No Alcohol Low Alcohol beers was up 20% according to figures released by Eurostat.
Germany: top beer producer
Germany was followed by Poland
and Spain, both producing around 3.7 billion litres or 11% of the EU total. The Netherlands produced 2.5 billion litres or 7% of total EU production. Together, these four countries produce 52% of the EU’s total beer production.
of the total ex-EU beer exports, followed by Russia (391 million litres or 9%), China (340 million litres or 8%) and South Korea (168 million litres or 4%).
Among those EU Member States with data available, Germany again emerged the top producer in 2021 at 7.5 billion litres (23% of total EU production). This means that about one in every four beers containing alcohol produced in the EU originated in Germany.
At 800 million litres France continued to be the largest EU Member importer of beer containing alcohol in 2021, representing 16% of total (intra- and ex-) EU imports. Italy and Germany imported almost 700 million litres (13%) followed by the Netherlands (600 million litres or 12%) and Spain (500 million litres or 10%).
Trade data show that the Netherlands continued to lead as the top exporter of beer containing alcohol in 2021, exporting a total (intra- and extra-EU) of 1.9 bn litres of beer and accounting for 21% of total EU beer exports.
Belgium followed the Netherlands, exporting 1.7 bn litres or 19% of the EU’s total beer exports, followed by Germany (1.6 bn litres or 17%), France and The Czech Republic (both 0.5 bn litres or 6%).
The UK topped a list of the main non-EU country destinations for these beer exports, importing 902 million litres (or 22% of total extra-EU beer exports) and the US imported 765 million litres or 19%
Alcoholic beer imports from outside the EU are marginal compared to intra-EU imports. When importing from non-EU countries, Member States favoured British beer (248 million litres or 47% of all ex-EU imports of beer) in 2021 followed by Mexican beer (122 million litres or 23%). Serbia (on at 46 million litres or 9%), Belarus (26 million litres or 5%) and Ukraine (17 million litres or 3%) followed the top importing countries but with much smaller values. n
In 2021, EU Member States produced 33.1 billion litres of beer containing alcohol and almost 1.7 billion litres of beer containing less than 0.5% alcohol or which had no alcohol content at all.
Top exporter: Netherlands
Compared to 2020 there was a boost in the EU’s production of beer overall to the equivalent of nearly 78 litres per inhabitant.
DRINKS INDUSTRY IRELAND | September/October 2022 NEWS 15 8 No Alcohol Low Alcohol Beer production up 20%
EU Beer production up in 2021
ast year was another good one for Irish whiskey in the US where sales grew by over 829,000 cases or by nearly 17% to 5.8 million according to the recentlypublished Drinks Ireland|Spirits annualInterestingly,report. figures from the Distilled Spirits Council of the US show that 851,000 cases (over 10 million bottles) of SuperPremium Irish whiskey were sold in the US in 2021, representing 14% of all Irish whiskey sold there. Super-Premium sales have leapt 191% since 2015 when a trifling 292,000 cases found their way out of bars and off-licences around the US.
“The emergence of e-commerce shows the interest in getting spirits products online for consumers when, how and where they want. So it’s a building block in presenting a unique opportunity for the distilled spirits industry.
As President & Chief Executive of the Distilled Spirits Council of the US, Chris Swonger was in Dublin recently to attend the spiritsEUROPE Congress 2022, hosted by Drinks Ireland. Pat Nolan spoke to him about the success of Irish whiskey in the US & the continuing fortunes of the spirits industry in general there.
Early in the pandemic, when everyone was quarantined at home but had extra money, a trend of whiskey consumers trading up to Super- and Ultra-Premium developed which continues today.
on-premises flatlined due to closure - or patrons just didn’t feel as comfortable going to them,” he says, “But with the transition back to on-premise post-pandemic we see a little bit of a reduction in off-sales as consumers gravitate back to on-premise consumption.
Chris Swongerbullish against the headwinds
He tells me that with the opening up once again of the US on-premise, this ‘trading up’ trend has “very much” continued into 2022.
L
“It’s an affordable luxury,” says Chris who points out that one of the benefits of the on-premise market is the consumers’ ability to meet and socialise, so he’s very positive about the ongoing potential of US spirits sales in the US itself.
“The Irish whiskey industry plays a very important role in the US consumer market.” - Chris Swonger.
“The Irish whiskey industry plays a very important role in the US consumer market,” agrees Chris Swonger, DISCUS’s Chairman and Chief Executive, “It’s the third-fastest-growing distilled spirits category behind Tequila and spirts-based RTDs.”Chris, a native Texan, heads up the national trade association representing leading producers and marketers of distilled spirits products in the United States and he’s over in Dublin to attend the spiritsEUROPE Congress 2022, this year hosted by Drinks Ireland.
16 ONE & ONE
Having Premium, Super- and UltraPremium categories works in distilled spirits’ favour, he says.
And contrary to expectations postCovid, home purchasing has not ‘flatlined’ Stateside in the aftermath of the pandemic.
Bullish against the headwinds
“The shakeout from the pandemic hasn’t fully crystalised yet but we’re bullish about ‘22 sales,” he adds.
What’s more, Irish Whiskey now ranks among the Top Five Fastest-Growing Spirits by both revenue (up by 16.3% or $185 million to $1.3 billion last year) and volume in the Distilled Spirits Council of the US database.“TheIrish whiskey category has benefited from drinkers’ desire to ‘trade up’ from Premium to High-End and Super-Premium products” observes the DISCUS report.
“This came to light in a big way during the pandemic and we continue to see those trends going forward in direct-to-consumer shipments.”Whereas47 US states allow direct-toconsumer shipments for wine, only 11 do so for spirits, “... so that’s one of the challenges and opportunities for the US spirits industry going forward”.
The US, as with so many countries, faces many adverse headwinds such as high inflation and supply-chain challenges but the DISCUS Chairman emphasises that consumers are drinking “better”, not “more”.2021was another good year for domestic sales of US spirits. Since the year 2000 DISCUS has been measuring its share of
September/October 2022 | DRINKS INDUSTRY IRELAND
“But there’s no making light of the challenges we all struggled with personally in the pandemic, however in the US it also gave us a chance to modernise and innovate - for example, cocktails-to-go - and to modernise the beverage alcohol marketplace.
“In the early part of 2020 and 2021 offpremise sales would have skyrocketed as
US consumers trading up
Tariffs impacted distilled spirits on both sides but the US was hit hardest as tariffs were first imposed on it by the UK which resulted in a 52% decline in US spirits sales there and subsequently a 37% decline in the EU market until tariffs were dropped by the EU in October last year.
the alcohol market overall. It had a 28.7% market share back then.
Chris Swonger on...
One phenomenon of the pandemic’s early days was the ‘cocktails-to-go’ boom in the on-trade. By trying to change local legislation to permit cocktails-to-go in the US DISCUS demonstrated its ‘on-point’ support for enabling bars to utilise this revenue stream.
8 ... supply-chain disruption: “It’s definitely something our industry has to grapple with in getting access to glass and corks etc. So supplychain challenges are something we’ll be struggling with over the next year-plus at least. But we’re no different in this than for any other manufactured good.”
8 ... resolving the tariff war: “DISCUS, spiritsEUROPE, the Irish Whiskey and the Irish Spirits Associations as well as the Scotch Association all worked in close collaboration with the Bureau National Interprofessionnel du Cognac to resolve those tariffs.”
In fact, DISCUS is currently involved in setting up a quasi-US/EU/UK Government Working Group for the distilled spirits sector to tackle issues of mutual interest in the hope of inoculating distilled spirits from further embroilment in any trade disputes not related to their industry.
For DISCUS, levelling the pitch for the emergent line of spirits-based RTDs is proving challenging.
17ONE & ONEDRINKS INDUSTRY IRELAND | September/October 2022
Beyond the US the lie of the land has now changed for the better too.
Last year the spirits category increased its share of the overall US beverage alcohol market to claim a 41.3% overall share. This represents the twelfth straight year of spirits’ gaining share overall. Chris sees this continuing.“Lastyear we gained 1.7 percentage points more, so with all due respect to beer and wine, we’re seeing these sectors now investing in distilled spirits because consumers are gravitating towards spirits such as Tequila, the Number Two spiritsseller after spirits-based RTDs.”
“With all due respect to beer and wine, we’re seeing these sectors now investing in distilled spirits because consumers are towardsgravitatingspirits.”
8 .... spirits’ growing share of TAB market: “With all due respect to beer and wine, we’re seeing these sectors now investing in distilled spirits because consumers are gravitating towards spirits such as Tequila..’
RTDs
8 ... the imprtance of Irish whiskey in the US: “The Irish whiskey industry plays a very important role in the US consumer market. It’s the third-fastestgrowing distilled spirits category behind Tequila and spirts-based RTDs.”
“Let’s look back” he suggests, “Thank goodness tariffs have now gone. The trade war was horrific and I’m pleased that the UK has also now dropped tariffs on US whiskey from last June.”
DISCUS enjoyed a big win in Vermont recently when the local governor signed a bill expanding market access for spiritsbased RTDs from 81 outlets to over 1,000.
“That alone is a big deal on both sides,” he says, “DISCUS, spiritsEUROPE, the Irish Whiskey and the Irish Spirits Associations as well as the Scotch Association all worked in close collaboration with the Bureau National Interprofessionnel du Cognac to resolve those tariffs.”
Domestic taxing affairs
8 ... e-commerce for spirits: “The emergence of e-commerce shows the interest in getting spirits products online for consumers when, how and where they want.”
For example in Arizona a 5% ABV can of spirits-based RTD cocktail has an excise tax of 28.5 cents per can where a malt-based RTD would be taxed at only 1.5 cents.
The emergence of Ready To Drink cocktails has created an opportunity to bring sprits-based cocktails to new occasions.“It’savery exciting time for the spirits industry in the US and DISCUS has a role to advocate and support marketplace modifications and advancements,” he explains.
He’s currently working with hospitality to get such c-t-g permissions made permanent - or at least extended further in the latter states.
Supply-chain disruption has also been a global problem across the board in all companies large and small.
As a result of the Council’s efforts, 17 states made legislation permitting cocktailsto-go a permanent feature while 16 more extended their ‘permission’ to do this for an extra“Thisperiod.hasserved as an economic lifeline for bars and outlets that are not yet at full capacity,” Chris explains.
“In navigating this and grappling with it, we’ve seen some products slow to get in through typical channels,” he says, “It’s definitely something our industry has to grapple with in getting access to glass and corks etc. So supply-chain challenges are something we’ll be struggling with over the next year-plus at least. But we’re no different in this than for any other manufactured good.”
All in all then, he’s pleased to be able to report that despite some of the economic woes which the US has experienced of late (slower economy, 8.6% inflation etc) the distilled spirits industry in the US remains not only resilient in overcoming the broad economic pressures, but bullish for the future against whatever headwinds there might be to come...n
Tariff travails
Some 18 years ago there were about 60 distilleries in the US. Now 2,300 contribute to tourism and economic vitality all around the country. DISCUS recently launched ‘Destination Distillery’, a distillery platform website which locates every distillery in the US.
“That sets a great precedent,” he believes, “In states such as Texas, Vermont and North Carolina, where tax rates are very discriminatory or unfair, it offers us a big opportunity to improve access in those states and to reduce tax rates on spiritsbased RTDs to make it more fair and balanced.”
“In many states the tax rate on 5% ABV spirits-based RTDs is much higher where a malt-based RTD enjoys a much lower tax rate,” he explains.
Supply-chain disruption
“While its market share remained static in 2021, it has grown from 3% in 2016 to 7% in 2021.“Elsewhere, the market share of sparkling wine was marginally down from 2.3% in 2020 to 2.0% in 2021.”
However, there was considerable movement in the retail channel pattern as the on-trade came back into the equation strongly following re-opening from Lockdown. The report details how wine sales increased from 9 million cases to 10.1 million during the 2020 Lockdowns despite overall alcohol decliningconsumptionduringthis time.
Excise receipts for wine also showed a decline in 2021, falling from €425 million to €385 million in tandem with a growth in receipts for spirits from €374m to €389m. Thus, wine’s contribution to the overall Revenue take for 2021 fell from 35.3% in 2020 to 32.7% in 2021 as overall excise revenue on alcohol fell from just over €1.2 billion to under €1.18Butbillion.despite there being no recent Budget changes on wine, Ireland continues to top the European and UK excise bill at €3.19 per 75cl bottle and a “double tax” of €6.37 per bottle of sparkling wine before VAT.
With 54% of a standard bottle of wine going to tax, Drinks Ireland|Wine has called for excise to be cut.
At just under 8.8 million cases wine sales here dropped by 13% last year to their lowest level since 2015 according to the 2021 Irish Wine Market Report from Drinks Ireland|Wine.
France, in fourth place, saw its market share improve by 0.7 percentage points to 12.7% of the wine market from 12.0% in 2020 although the actual case number fell from 1.2 million to 1.1 million.
Excise
Overall, Europe was responsible for nearly 3.8 million cases of wine sold here giving it a 43.3% share of the wine market while ‘the rest of the world’ was responsible for the majority of wine imports in 2021 at just under five million cases.
As a result, wine’s share of the overall alcohol category fell by 2.9 percentage points from 32.2% in 2020 to 29.3% in 2021. Spirits was the only category to grow share, gaining 2.4 percentage points to secure 24.7% of the total beverage alcohol market, up from 22.3%. The report shows that wine is the nation’s second most popular drink after beer.
But the reopening of the ontrade sector later last year saw off-sales of wine fall.
At just under 8.8 million cases wine sales here dropped by 13% last year to their lowest level since 20215 according to the 2021 Irish Wine Market Report from Drinks Ireland|Wine, published recently.
September/October 2022 | DRINKS INDUSTRY IRELAND18 OFF-TRADE DEVELOPMENTS
On-trade wine sales grew share of the wine market from 5% in 2020 to 15% in 2021 to the detriment of the off-trade.
Chile still tops Chile remained the top country of origin for wine here although at 2.13 million cases its share of the overall wine market dropped 1.5 percentage points to 24.3% in Remaining2021. in a distant second place, Spain’s wine market share of 15.3% also saw a slight decline to 1.34 million cases. Australia remained in third place with under 1.2 million cases, down 0.5 percentage points to a 13.3% share.
points to 411,605 cases (still down from 2020’s 433,692 caseItaly’sfigure).market share remained unchanged at 10% although case numbers fell from a million case figure to 875,755 cases.
“This disproportionate high level of tax must urgently be addressed at this challenging time.”
Wine sales down 13% last year
There was no change in the consumption breakdown between white (47%), red (45%) and rose (7%) last year but per adult wine consumption fell 14% from 3.26 litres to 2.8 litres. Rosé has become increasingly popular in Ireland in recent years particularly during Summer months, notes the report.
8 Wine now under 30% of overall alcohol category mix
“This was primarily due to French wine being easier to export to Ireland compared to the logistical challenges that face wine in other markets,” states theThereport.only other country to grow its market share was Argentina which increased its share by 0.4 percentage
“We’re calling for a 15% decrease on excise on wine over the next two budgets. As the cost-of-living crisis worsens, Irish consumers face the highest excise on wine in the EU.
“Today’s report illustrates some interesting trends among Irish wine consumers last year as the country emerged from Covid restrictions,” commented Jonathan McDade, Director of Wine at Drinks Ireland on its publication, “While sales held steady for the first quarter of the year, there were significant falls in sales for the rest of 2021.
Contact David O’Keeffe, Carry Out National Sales Manager on 086-7740885 for more details www.carryout.ie JOIN IRELAND’S LEADING INDEPENDENT OFF LICENCE FRANCHISE TODAY! Extensive Own Label Range Wide Range of Products & Services DedicatedManagerRegionalFullSupportMarketing
Reactions to MUP
22 OFF-TRADE
A NielsenIQ consumer study conducted in April 2022 found that 88% of people had noticed a difference in the price of alcohol products since the introduction of MUP, with 60% stating that they’d reduce their expenditure on alcohol as a result.
Six months into Minimum Unit Pricing legislation and off-trade alcohol sales remained higher than pre-pandemic levels although they are down on last year.The return of the on-trade is likely to be significant in this off-trade decline.Thelatest
With the introduction of MUP in RoI the price discrepancy in relation to Northern Ireland has risen to 48% from 27% according to an early review of MUP from Movendi International, a global alcohol prevention group. This has led to a growth in cross-border alcohol purchases with the loss to the Irish Exchequer being estimated at €94 million.Movendi International quotes the Irish Times in reporting that one shop near the border in NI put at 3040% the growth in alcohol sales since MUP was implemented here. Bulk buys of alcohol in shops there can be anything between €200 to €3,000 or €4,000.Butone
The Irish Convenience Store and Newsagents Association reports that cross-border issues are seen about 40km from the border mainly and then have a ripple effect, states the earlyOff-licencesreview. supported the introduction of MUP as supermarket alcohol sales had threatened their business by selling alcohol at a loss.
Convenience stores also report no change in alcohol sales. However, there are no spikes in sales on bank holidays any more since they cannot run large discount bargains for alcohol products.
Craft brewers also report a minimal effect or even a positive effect on their sales. They believe that MUP has levelled the playing field for them since they cannot compete with large multinationals. So as people shift to more expensive alcohol products they’re trying out more of the craft brands.
As such, it’s still too early to take any meaningful reading of the effects of MUP on alcohol consumption here – especially with there being so many unconnected variables at play in A2022.NielsenIQ consumer study conducted in April 2022 found that 88% of people had noticed a difference in the price of alcohol products since the introduction of MUP, with 60% stating that they’d reduce their expenditure on alcohol as a Theresult.number of economy-priced spirits brands has reduced in Ireland since most were delisted due to a lower price differential, pointed out NielsenIQ’s Senior Business Insights Manager Ruth Lloyd-Evans in the Irish Times
people are just willing to pay more for the same products now, reports the Irish Times
8 2022 off-trade sales still 11% higher than 2019
However NielsenIQ goes on to state that year-to-June off-trade figures indicate a fall of €84 million or 22 million litres compared to that sold over the same period last year, with beer sales accounting for 52% of the decrease in value, spirits 16%, and wine 32%.
“MUPIreland.isdesigned to help reduce sales and use across the whole of the drinking population particularly those who have a pattern of drinking use consistent with hazardous and harmful use,” she told the Irish Times n
MUP sees higher off-trade
NielsenIQ Scantrack data for off-sales notes, however, that this drop in off-trade sales volumes this year was sharper than that in the UK where – with the exception of Scotland – MUP policy has not been implemented.MUPwasintroduced here on January the 4th last, setting a minimum price of €1 per unit/10g of alcohol.Despite the fall on last year’s figures, off-trade sales in the first 16 weeks of 2022, at 60.4 million litres, are still 11% higher than 2019’s 54.4 million litre levels for the same period according to NielsenIQ.
bottles accounted for 61% of sales prior to MUP and have fallen to 55% since MUP, she explained, although wine products have been less affected with sales in the €9 to €10 price bracket increasing from 26% to 41%.
Slabs of beer are now almost non-existent since no one would spend on it, notes Damien O’Reilly, a Senior Lecturer in Retail Management in TU Dublin in the piece. Instead, there are smaller packs, with people buying four or eight packs. The volume in beer cans has also changed. 500 ml cans have been downsized to 440mlMovendi International adds, “While it is far too soon to analyse the results of MUP in Ireland, nearby Scotland implemented the policy in 2018. Scotland’s MUP policy has proven to be effective. A study published in The Lancet found that since MUP household alcohol purchases in Scotland have reduced by 7.7%. According to the study the reductions in purchases were largely from households that “bought the most alcohol”.
Cross border trade
sales than pre-pandemic
But a second study by Public Health Scotland, published this June, found that those who suffered the most from alcohol problems had not changed their habits since MUP was implemented.However,MUP was designed to reduce population-level alcohol use and not tackle alcohol dependence, explained Sheila Gilheany, Chief Executive of Alcohol Action
Many supermarkets are also noting no difference in alcohol sales, saying
supermarket on the border in Donegal reported that while its overall sales had increased, alcohol sales had decreased by 13%.
Largerrecently.unitsizes are also declining in sales; for example 700ml and larger
But the Irish Times reports the National Off-Licence Association as stating that off-licences have not seen a significant effect so far from MUP.
Irish market
“A lot of the growth across all TBA will come from premiumisation,” predicts the report. Irish bar owners and suppliers take note....
WhiskeyIrishREPORTa growing world of Limited Editions
It’s expected that any on-trade loss in Irish whiskey sales incurred during Covid will be speedily re-established globally. Here, Irish whiskey is the second most popular sprits category after vodka, representing over a quarter of all spirits sales. In our Industry Report this month we take a look at the Irish whiskey market, the on-trade and the proliferation of Premium & Limited Editions.
But at 717,000 cases Russia took a surprise second place in overseas sales of the product, knocking the UK - with sales of 644,000 cases - into third position.Inother encouraging signs for Irish whiskey, France, once Irish whiskey’s largest market, recorded growth of 12% in 2021 following many years of being more or less dormant on the market there.
Thanks to the sophistication and complexity of blended Irish whiskeys, Ireland can distil a variety of whiskey styles and mature them in many different barrel types.
The US was responsible for the Lion’s Share of this (41% of all sales of Irish whiskey) at 5.8 million cases, up 15% last year and now 66% the size of the Scotch market there.
In order to provide the market a value-added product with its own USP, many of the country’s distilleries are introducing limited-editions to a receptive consumer who’ll likely be younger than you’dWhilethink.itwent through a period of repose in the 80s, Irish whiskey is now the fastest-growing spirit in the world. As a result, the number of distilleries here has increased from just two to over 40 today.
With such momentum, sales of Irish whiskey in the US are likely to ovetake Scotch sales before 2030.
Here, Irish whiskey sold around 620,000 cases last year and is the second-most-popular sprits category after vodka, representing over a quarter of all spirits sales.Irish whiskey’s recovery has been complete, with sales here in 2021 running to just under 5% over 2020’s domestic sales volume figure and coming in above its 2019 figure of 590,000 cases.
This will prove useful.
The prioritisation of value is likely to remain a dominant trend for beverage alcohol brand owners in the years to come as consumers visiting pubs and off-licences today seek Premium product.
September/October 2022 | DRINKS INDUSTRY IRELAND26 INDUSTRY
s Irish whiskey distilleries find their feet following Lockdown, it’s expected that any on-trade loss in sales incurred during Covid will be speedily re-established globally. According to IWSR figures, global sales of Irish whiskey were up 21.5% in 2021, rising from 11.5 million cases to just over 14 million cases.
US sales of Irish whiskey were 59% of Scotch sales in 2020. They accounted for 44% of them in 2016.
A
The IWSR has pointed out that brand owners will need to sharpen their focus on value in order to generate meaningful growth in the future and IWSR data show that spirits are uniquely well-equipped to drive Premiumisation through higher-priced products.“Theupward trend for premium-plus spirits in North America has been very significant throughout the Covid-19 pandemic,” says Emily Neill, IWSR’s Chief Operating Officer for Research & Operations, “Now it’s a question of how long that will continue, depending on the strength of the US economy. There’s quite a lot of uncertainty at the moment but we’re still seeing plenty of demand for products such as high-end tequila and whisky.”
Grace O’Malley appears to have won quite a few awards - why do you think the product earned them?
Marketing plans here for the rest of 2022?
How did it all begin for Grace O’Malley Irish Whiskey?
Grace O’Malley
Undeterred to go against the grain, Grace’s warrior spirit lives on.
Grace O’Malley Irish Whiskey is a unique blend of triple- and doubledistilled Single Malt and grain whiskeys. Each batch is matured to perfection in specially-selected French Oak, rum and American Bourbon casks which give our whiskeys a unique
The world of single cask releases is something that we have just started to dip our toe into and have some exciting projects in the pipeline.
Q&As with Heather Clancy, Brand Manager
Do you agree that there seems to be a trend towards Premium and above & Special Editions?
This image was painted as a mural on Aungier Street in Dublin and is now available in store as a gift box on our flagship Grace O’Malley Blended Irish Whisky for the run-up to Christmas so that everyone can have a piece of this amazing artwork in their home.
The digital artwork and bottles are all going to be sold as part of an NFT auction with all profits going back to the artists later this year.
undeniably Irish in character bring a new dimension to the category.
What’s the Grace O’Malley Irish Whiskey’s USP?
Separate to Grace O’Malley, he’s actually turning his passion for casks into his own cooperage, buying one in Foxford in County Mayo (where Grace O’Malley is from), assisting the vast network of new brands to assist them with coopering needs.
The initial bottle of Grace O’Malley Blended Irish Whiskey was launched in June of 2019 and despite the Covid-19 pandemic the distribution has now grown to over 20 countries internationally.
Grace O’Malley Whiskey is named after the legendary 16th Century Irish pirate queen, born in County Mayo in 1530.
28 INDUSTRY REPORT
We have also painted 500 black whiskey bottles with the mural image so that each bottle makes up an individual piece of the artwork. Each bottle is filled with a special limited edition 13 Year-Old Single Grain Whiskey with an Amarone finish.
Tasting notes:
I absolutely agree. We’re seeing that here in Ireland and markets across the world. Over the past two-anda-half years people really immersed themselves into the topic of whiskey and are constantly on the hunt for something new that you can’t necessarily get everywhere.
Our founder Stephen Cope, from Ballina in County Mayo, grew up listening to the stories of the phenomenal Irish Pirate Queen Grace O’Malley and carried them with him as he moved away from home. He had the original idea for a Grace O’Malley whiskey brand in 2007 but it wasn’t until 2017 that the company was initially founded.
We collaborated with fantastic artist Kathrina Rupit earlier in the year and she created a modern day interpretation of Grace O’Malley.
>>
Our high Single Malt content results in a whiskey of true quality – a perfect balance of beyondcomplexityfruitiness,andsmoothnessitsyears.
Nose: Caramel, Bourbon Vanilla, malty notes, dry Almond, Orange peel, Honey. Palate: Smooth and wellbalanced with rounded tannins and fruit overtones. Finish: Middle Eastern pastry, sweet spice and toasted notes.
from our Premium but affordable Grace O’Malley Blended Irish Whiskey all the way to an 18 Year-Old Single Malt finished in a Cognac cask that everyone can find their favourite Grace O’Malley whiskey from.
We’re very fortunate to work together with our expert Master Blender Paul Caris. Paul is from Bordeaux and originally started off as a wine-maker before transitioning into the world of spirits.Hehas worked across rum, gin and whiskey and brings a new perspective to the wonderful world of Irish Whiskey. He has used his vast industry experience to create some fantastic blended Irish whiskeys that whilst
We previously released our Grace O’Malley Rum Cask Irish Whiskey and Grace O’Malley Dark Char Cask Irish Whiskey as special Limited Editions but due to the popularity we have now adopted them into our permanent range. We also have released a range of 18-19 Single Malt releases finished in different casks such as Port.
It’s all in the name. Grace O’Malley is the first Irish Whiskey named after a woman but more than that it is named after a trailblazer. We’re channelling Grace O’Malley herself and to break down the stereotypes typically associated with the whiskey industry. We have a wide portfolio ranging
This whiskey embodies her charismatic nature and timeless character. A natural clan leader and fearless seafarer, Grace O’Malley was not only a daring deal-maker but a ground-breaking provocateur.
He joined forces with the Private Pier Industries brand-building and investment group in Berlin who have not only invested in Grace O’Malley Whiskey but in the drinks Industry as a whole. PPI is now one of the largest independent owners of Irish whiskey stock in the world and has set up a state-of-the art blending, bottling and maturation facility in Dundalk, County Louth, called Good Spirits Bottling.
character that pushes the boundaries of flavour.
PADDY’S SHARE
over 200 leading suppliers from across the sector and learn about the latest trends and innovations in the hospitality industry across three conference stages.
Innovation, Inspiration & Connection for Hospitality Expo
8 Year’s biggest b2b trade event brings representatives from across hospitality industry together for two days
DRINKS INDUSTRY IRELAND | September/October 2022 CAMPAIGN TRAIL 43
options for new kitchen or bar equipment or overhauling your food & beverage offering – now’s the time to consider your course over the coming years.Domestic customer demand is increasing and international tourism is set to boom in 2023, believes Hospitality Expo’s organiser iQuest, creating new opportunities and challenges.Staffing,supply chains, utility costs, environmental impact, shifting customer focus - all are at the heart of every hospitality business in Ireland.Hospitality Expo 2022 is your chance to fully understand a radically evolving marketplace and how you can position your operation for Attendeessuccess. can expect to meet with
8 America’s original craft vodka
Shake hands with Tito’s Handmade Vodka
a plot of land in rural Austin, Texas. He built a small shack, rigged a pot still with spare parts and batch-distilled his corn-based, naturally glutenfreeToday,vodka.Tito’s Handmade Vodka is available in over 140 markets including the Americas, Europe, Asia, Australia and the Middle East. It’s distilled and bottled by Fifth Generation Inc in Austin on the very same land where the whole venture started.Tito’s is also highly committed to community causes, organisationscharitableand disaster relief efforts across the world through the brand’s ‘Love, Tito’s’ initiatives, including pet welfare efforts in particular.
This year’s Hospitality Expo takes place on October the 11th and 12th at the Main Hall Complex at the RDS in ‘Innovation’,Dublin. ‘Inspiration’ and ‘Connection’ are the themes for Hospitality Expo 2022, Ireland’s biggest b2b trade event of the year which brings representatives from across the hospitality industry together for two days of inspirational talks, networking opportunities and interactive demonstrations.Joincolleagues and peers and connect with suppliers offering innovative solutions and producers showcasing new launches as well as investors and advisers looking for the next big opportunity.SinceHospitality Expo 2020 the industry landscape has changed dramatically. Whether you’re opening a new hospitality business, considering a redesign, exploring
“Tito” Beveridge obtained the first legal permit to distil in Texas and created Tito’s Handmade Vodka on
Tito’s Handmade Vodka is available in over 140 markets including the Americas, Europe, Asia, Australia and the Middle East.
Tito’s Handmade Vodka is America’s original craft vodka. In 1995, sixth-generation Texan Bert
Visitor registration is free and tickets can be booked at www.hospitalityexpo.ie Pre-booking is recommended.
Hospitality Expo 2022 - your chance to fully understand a radically-evolving marketplace and how you can position your operation for success.
In Ireland, Tito’s is represented by Comans Beverages.
Ireland’s donationnextconsignmentAugustIndependenceanniversarypartnershiphavingdistributing&distributorindependentleadingdrinksBarryFitzwilliamisObolonannounceditsontheofUkranianDay,the24th.It’sexpectingitsfirstofObolonmonth.B&FwillmakeatoObolon’smission for every bottle sold in Ireland. n
“We hope to highlight the diversity, quality and value of wines produced in Italy.”
According to the 2021 Wine Market Report published by Drinks Ireland|Wine last August, Italy retained its position as the ofmarket10%countryfifth-most-popularoforigin,withoftheIrishwinethroughsales875,755cases.Toregisterpleasecontact:London:AntoniettaKellyTradeAnalystItalianTradeAgency+442072923913
Obolon went down in history when it became the first private company in independent Ukraine to receive a Privatisation Certificate ‘No 1’ from the State Property Fund of Ukraine.
beer, soft drinks and low-alcohol beverages, minerals and drinking water.The Russian invasion of Ukraine forced the company to pivot and find an opportunity to continue its activities and despite the extremely difficult wartime work conditions, Obolon tries to support its employees by providing them jobs and salaries as well as supporting the military defending Ukraine – and ultimately other European countries.
Obolon corporate enterprises have already provided more than three million litres of this water free-ofcharge. Additional funds are needed to be able to continue to provide this assistance and with this aim Obolon has launched a project to allow people around the world to support its mission.
Barry & Fitzwilliam has announced a partnership with Ukraine's largest beverage producer 'Obolon' to import its beer into Ireland.
The plant’s construction aimed to provide the country with high-quality beer to meet world standards. The main criterion was the source of artesian water, the main component that determines beer’s taste. Czech experts, who were world-famous masters of brewing, determined where construction of the new brewery should take place. The main plant was established in Kyiv.
To provide an additional four million litres of water Obolon aims to raise $1 million through just one bottle of beer – the last bottle of Obolon brewed in a peaceful Ukraine.
This year, representatives from 25 Italian wineries arrive in Ireland to take part in the 2022 Borsa Vini Italia on Tuesday 8th November from 12.00-18.00 in the Hyatt Centric, Dean Street in Dublin’s Liberties.
“Our focus will be to connect key
8 Borsa Vini Italia’s Wine Exchange - where owners and winemakers present their wines to the Irish trade
8 Barry & Fitzwilliam has announced a partnership with Ukraine’s largest beverage producer ‘Obolon’ to import its beer into Ireland B&F announces partnership with Ukraine’s largest brewery
e-mail: a.kelly@ice.it Mary Patricia Gallagher, Gallagher & Associates, T: 087 2461393 e-mail: mp@gallagher-assoc.com
25 wineries for 2022 Borsa Vini Italia
45CAMPAIGN TRAIL
“Our focus will be to connect key businesses from Italy and Ireland in a forum that’s specifically aimed at importers, independents and restaurant trade,” said Antonietta Kelly of the Italian Trade Commission.
DRINKS INDUSTRY IRELAND | Dec 2017/Jan 2018DRINKS INDUSTRY | September/October 2022
And so Obolon became the nation’s household beer, synonymous with freedom and independence. Today, the brewery’s one of the largest in Europe and the largest domestic beverage company in Ukraine, producing
These days the sources of artesian water available to Obolon are used for water production for free distribution to the military and people in war-torn regions of Ukraine too.
The event showcases an impressive line-up of wines with producers travelling from Abruzzo, Emilia Romagna, Lazio, Lombardy, Marche, Piemonte, Puglia, Sicily, Toscanana and Veneto - all seeking representation in thisThemarket.concept behind Borsa Vini Italia is that of a Wine Exchange where owners and winemakers present their wines to the Irish trade who’ll be able to meet with winery personnel directly.
Barry Fitzwilliam& importwithannouncedhasapartnershipUkraine’slargestbeverageproducer‘Oblon’toitsbeerintoIreland.
businesses from Italy and Ireland in a forum that’s specifically aimed at importers, independents and restaurant trade,” said Antonietta Kelly of the Italian Trade Commission,
