Drinks Industry Ireland Magazine - August Issue by Mediateam

What can we expect from consumer behaviour coming out of lockdown? Rebooting the restaurants & bars – the global experience “The sales model has changed overnight” - LRSI’s Mark Aherne

BUDWEISER TO BULMERS – it’s all change at Bulmers Ireland

COVER STORY 24 What can we expect from consumer behaviour coming out of lockdown?

CON TEN T S

DRINKS INDUSTRY IRELAND | August 2020

NEWS & ANALYSIS Volume 20 Issue 5

Editor PAT NOLAN (01)2046230 patnolan@mediateam.ie Head of Business IAN MULVANEY (01)2947766 ianmulvaney@mediateam.ie

Head of Production LIZ O’ROURKE (01) 2947781 liz.orourke@mediateam.ie Publisher Louisville Publishing Ltd ‘Louisville’ Enniskerry County Wicklow (01) 204 6230 drinksinireland@gmail.com Printing W&G Baird

Covid-19 could cost tourism €3.5 billion; Pubs on track for 50% decline in business 6; Ministers finally meet AIR over insurance 7; July Stimulus “will not deliver” for pubs 8; Rye River domestic performance up 21% 9; Alcohol not expected to rebound until 2024 10; Pandemic significantly impacts Heineken’s H1 business 11.

14 Foodservice

ubs could lose potential P €976m; Eating out topped post-lockdown wishlist 15.

20 Off-trade

STA calls out W Government on wine import costs; Off-sales “steady” in lockdown 21; CSNA seeks deferral of structural separation date 23.

42 Campaign Trail

Subscription details Nine issues a year €80 (including VAT). No part of this publication may be copied, reproduced or transmitted in any form without permission of the publisher.

5 News

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Account manager MARK MORGAN (01) 2947767 markmorgan@mediateam.ie

Intrepid Spirits welcomes Regal Rogue; Kopparberg launchs own range of Hard Seltzers 43; Lough Ree’s World-winning trio 44; Sarah Jessica Parker launches second wine 45.

38 Closing Time

omás Clancy – T wine savvy scribe.

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FEATURES & REPORTS 16 Mark Aherne – “The sales model has changed overnight”

Last year Lucozade Ribena Suntory Ireland was made distributor for the Beam Suntory range of premium spirits in Ireland, thus making LRSI the first company in the world to bring the two businesses – soft drinks & spirits - together under the ‘One Suntory’ banner. LRSI’s General Manager Mark Aherne speaks to Pat Nolan about the company’s plans for the on-trade going forward.

18 Jus de Vine – not so much reinventing the wheel as keeping

questioning it Not for the first time Jus de Vine in Portmarnock, North County Dublin, took the NOffLA crown for National Off-Licence of the Year. Pat Nolan visited the outlet to learn more about its winning ways.

28 “Pivoting is the buzzword of the era..”

In seeking out how other restaurants & bars rebooted themselves after lockdown, insight analysts CGA and the Atlantic Club set out what the new landscape might look like in a global webinar for the hospitality industry which looked at the US, China and Europe’s experiences of re-opening.

30 The more adventurous Mixer market

The wider range of mixers now available can be used as part of the on-trade appeal to people abstaining from drinking, those aiming to moderate their alcohol intake or spirits drinkers seeking a better quality of mixer. We review today’s more adventurous mixer market.

33 Bottled beers & ciders – a ‘stylish’ choice

With the trend towards ‘local’ on the up, bottled beers & ciders are riding a wave of popular demand during these times. Our Industry Report reviews the market.

38 Rum – squaring up to the gin market

Rum is regularly mooted as being the next challenger for gin’s crown - with less road to travel than tequila to get there. With flavoured rum, spiced rum and golden rum assuming increased significance in this category we take a look at the fortunes of the rum market.

OPINION

August 2020 | DRINKS INDUSTRY IRELAND

Precautionary measures must be regarded as temporary BY NOW, nearly everyone has been affected by the soul-destroying sameness of our days in Lockdown. But at the time of going to press, precautionary measures all form partand-parcel of the loss of that ‘socialisation’ that has characterised the Irish pub for countless generations. Such measures have been deemed part of the ‘new reality’ for pubs re-opening post-Covid-19, but realistically we have to consider them temporary. For by its very nature, this new reality is one that cannot be sustained by the country’s pubs indefinitely. Here’s why… The very essence that attracts people in society to the pub in the first place – its very ‘sociability’ – will have been lost. Who’d want to drop into their local if these restrictions staying two metres apart and only allowed filter in a few at a time - remained in place? So perhaps it’s best to look on any such Social Distancing measures as being for the short-term only or pubs – like restaurants – could no longer afford to pay their way in business. What pub could afford the cost of Satellite TV for just a few Socially Distanced customers watching Premier League? What outlet could afford the cost of a Special Exemption Order if it only covered a few late-night revellers? As a sector we have to believe that once this virus has been defeated by the eventual introduction of anti-virals or vaccines, these protective measures can be dismantled and the on-trade can get back to doing what it does best – providing an environment conducive to conversation and socialising, for it’s that very ‘people proximity’ that creates the pub’s unique atmosphere. And believe it or not, there is a silver lining to this Covid-19 cloud. If anything has been learned in this it’s that we’ll need to respond a lot more quickly to the next viral pandemic. For Covid-19 is unlikely to be the last such global affliction and the experience of this one’s economic and social effects should go a long way towards making us much better prepared for when the next one comes along. And there will be a next one. But until that next one comes along it doesn’t mean that any present Covid-19 precautions must remain an unwelcome resident in our pubs indefinitely.

“It doesn’t mean that any present Covid-19 precautions must remain an unwelcome resident in our pubs indefinitely”

Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

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DRINKS INDUSTRY IRELAND | August 2020

8 April to June quarter could fall by €1.286 billion estimates ITIC

Covid-19 could cost tourism €3.5 billion The Irish Tourism Industry Confederation has estimated that Covid-19 will cost Irish tourism as much as €3.52 billion this year. According to the ITIC, “Assuming Q1 has a -60% impact (March wiped out and no Saint Patrick’s Festival), Q2 sees a -85% impact (when little international business of any serious note happens) and then slow recovery occurs in Q3 (-70%) and Q4 (-50%), the overseas earnings element of the tourism economy for 2020 could amount to as little as €1.58 billion, a Covid-19 cost to Irish tourism of €3.52 billion”. This means that the January to March period value could fall to €305 million from €763 million while the April to June period could see just €227 million in value compared

with 2019’s €1.513 billion in 2019. The July to September quarter could be down by just under €1.3 billion to €547 million from €1.824 billion and the October to December quarter could see values fall from just over €1 billion last year to €500 million this year. If the fares paid to Irish air and sea carriers by international visitors are included, then the total cost of Covid-19 amounts to over €5 billion, states ITIC’s estimate. “The domestic market is likely to recover faster than overseas markets but it is the latter that is the main contributor The July to September quarter could be down by just to Ireland’s tourism industry,” under €1.3 billion to €547 million from €1.824 billion concludes the report. and the October to December quarter could see values fall from just over €1 billion last year to €500 million this year.

8 Significant investment planned behind Budweiser

Ireland – global launchpad for Bud’s new brand ID The C&C Group and the Budweiser Brewing Group UK & Ireland have expanded their existing partnership (dating back to 2009) through an exclusive distribution deal for the Budweiser and Bud Light brands on the island of Ireland following the end of the brewing and distribution agreement with Diageo Ireland last June. According to Interbrand’s 2019 Best Global Brands report, Budweiser is the world’s leading alcohol brand. With this addition of Budweiser and Bud Light brands to its portfolio C&C now has responsibility for the sale and distribution of Budweiser Brewing Group’s complete beer brand range across Ireland. C&C and BBG plan to revitalise the Budweiser brand here in Ireland and reconnect with Irish consumers through a combination of marketing investment and in-pub activations. The planned marketing budget for the brand will be a multiple of recent spend.

a new ‘Cadillac’ bottle with twistoff cap. The new brand identity is being rolled-out together with a range of investments in Irish pubs including new glassware and bar taps. In addition to significant brand investment Budweiser will move away from all plastic packaging by the end of 2020. Budweiser, AB InBev’s largest brand in Europe and present in more than 85 countries globally, is the fourth-biggest lager in the country, according to C&C Group Ireland’s Managing Director Tom C&C and BBG plan to revitalise the Budweiser McCusker who added, “We intend brand here in Ireland and reconnect with Irish consumers through a combination of marketing to capitalise on the inherent investment and in-pub activations. strength of the Budweiser brand and its longstanding position The kegging of Budweiser for the as a lager of choice in Ireland Irish market will take place in Clonmel, with a new visual identity and County Tipperary. significant investment in marketing Ireland is also the world’s launch and in-pub activation”. market for Budweiser’s brand new visual identity including new packaging and

n Ireland’s beverage exports were up nearly 20% in 2019 to €1.71 billion from the previous year’s total of €1.44 billion according to the January to December Goods Exports and Imports statistics released by the CSO recently. Imported beverages too saw a rise of nearly 6% from €861 million to €910 million.

NEWS

August 2020 | DRINKS INDUSTRY IRELAND

8 Report predicts lower consumer demand after lockdown due to higher unemployment and reduced earnings

Pubs on track for 50% decline in business

Alcohol sales in pubs will decline by 50% or more for the second half of 2020 according to a new report - and this is “our most optimistic market expectation”. Even if pubs regain half their normal capacity by the end of 2020 - an optimistic scenario - as many as 22,500 jobs could be permanently lost, not to mention countless more in supporting trades like catering, security and entertainment, stated the report’s author DCU Economist Anthony Foley. The report, entitled Reduce VAT on On-Trade Alcohol, was commissioned by the Licensed Vintners Association, the Vintners Federation of Ireland and Drinks Ireland as part of the ‘Protect our Pubs’ campaign. It states that most bars will re-open with only 40% of their customers – “indefinitely”. One-third of Dublin pubs remained closed during the initial pub re-opening phase. Outside Dublin, over 60% of pubs remained closed – small businesses in cities, towns and villages. For those pubs that have re-opened, Government guidelines have meant a significant change in how they operate. The Reduce VAT on On-Trade Alcohol report states that over 50,000 people are employed in the drinks industry through 19,205 businesses in the hospitality sector (pubs, hotels, restaurants). Of these, 96.5% employ less than 50 people, meaning that the sector is dominated by small businesses – businesses that are extremely exposed and at risk of shedding half their employment capacity should supports not be made available.

The solution The LVA, VFI and Drinks Ireland called for a temporary reduction in the hospitality VAT rate, extending this to apply to alcohol sales in the on-trade until the 31st of December 2020 as part of the July Stimulus Package. The measure was being sought to support pubs – 7,000 businesses nationwide – struggling in the shortterm until they can trade viably at increasing levels of capacity in 2021 and beyond. According to detailed analysis contained in the report, the cost of reducing VAT in the second half 2020 to 9% from 23% on on-trade alcohol sales would be €143 million.

Reduce VAT on On-Trade Alcohol states that most bars will re-open with only 40% of their customers – “indefinitely”.

An amended European Commission Directive makes it possible to extend and apply a lower VAT rate to the Irish on-trade. “We anticipate that economywide and hospitality-related levels of consumer demand will be lower after lockdown due to the higher level of unemployment and reduced earnings,” said the report’s author Tony Foley, “It will likely be 2023 before we reach pre-Covid labour market conditions. Without doubt, Ireland’s drinks, hospitality and tourism sectors have been among the worst impacted. Due to restrictions, there’s almost zero tourism and reduced demand in our hospitality sector. This impacts our entire economy and so represents a sector that requires Government intervention.” The greatly worsened post-Covid commercial model – reduced physical capacity, demand and timed customer visits to the pub – puts thousands of jobs and businesses at permanent risk, claimed VFI Chief Executive Padraig Cribben. “Pubs closed for four months are continuing to experience the harsh realities of the pandemic, taking the necessary precautions and adapting accordingly,” he stated, “Government policy needs to adapt too. A reduction in the VAT on alcohol would deliver an immediate support to these

businesses and instantly improve their commerciality, supporting the initial recovery phase and survival of pubs over the next few months as demand is reduced and costs increase. The alternative is many bars will never open again and the pre-Covid employment and economic contributions will not be recovered,” he warned. “About one-third of the alcohol revenues generated by the on-trade sector, including public houses and other licensed premises, is taken by Government and diverted from customers, staff, entrepreneurs and investment,” added LVA Chief Executive Donall O’Keeffe, “This very large tax burden is not justifiable in the exceptional circumstances we’re faced with – a severe national and sectoral economic situation – caused by Covid-19. All businesses must adapt and adjust to the new reality which the drinks and hospitality industry has done. Now Government and the Exchequer must adjust its tax expectations accordingly and support one of our key domestic industries”. And Drinks Ireland Director Patricia Callan pointed out, “The recent government report Economic Considerations for Reinstating Economic Activity concluded that the accommodation and food sector (including pubs and restaurants) had a high vulnerability to permanent damage or output loss. We must act now and provide support to critical industries with ambitious policy decisions. “Traditionally a VAT cut would enable businesses to reduce prices and stimulate demand. In this case, we’re seeking a temporary VAT cut on alcohol to support businesses. “It will deliver immediate and tangible support for an industry that is a substantial economic contributor.” The ‘Protect our Pubs’ campaign seeks to highlight the important social and cultural role that the drinks and hospitality industry play in our communities and to demonstrate the loss that would be felt should some pubs not re-open due to Covid-19. Follow the Protect our Pubs campaign at #NewGovProtectourPubs.

NEWS

DRINKS INDUSTRY IRELAND | August 2020

8 Irish Pub Awards Programme 2020 to launch when trade “gets back on its feet”

Irish Pub Awards 2020 postponed During the current Covid-19 crisis the Irish Pub Awards competition 2020 has been deferred. The Awards were due to be launched this Spring but in a brief statement posted on social media the Awards organiser Sue O’Neill stated, “We understand publicans are dealing with many challenges presently, but we hope that once business re-opens and the trade gets back on its feet we will launch the Irish Pub Awards Programme 2020. “The timeline will be shorter but we hope that you will take part and show your customers that you are very much back in business. “As soon as there is clarity about re-opening pubs we’ll be back in touch with further details about the Irish Pub Awards 2020.”

The Irish Pubs Awards 2020 were due to be launched last April.

8 More reports on issue of insurance reform not needed says AIR

Ministers finally meet AIR over insurance The Alliance for Insurance Reform held a “high level” meeting recently with Senior Government ministers over the insurance crisis among small businesses. AIR told the ministers that the previous government had failed to get a grip on the crisis according to a report in the Irish Independent which stated that the “face-to-face meeting” was attended by Tánaiste and Employment Minister Leo Varadkar, Justice Minister Helen McEntee, Minister for Finance Paschal Donohoe, Public Expenditure and Reform Minister Michael McGrath, Junior Trade Minister Robert Troy and Junior Minister With Responsibility For Insurance Reform Sean Fleming. Those attending the meeting from AIR included Ivan Cooper of the Wheel, the Vintners Federation of Ireland’s Padraig Cribben, Eoin McCambridge of McCambridge’s of Galway, playcentre owner Linda Murray and Alliance Director Peter Boland. According to the newspaper, “The new Government has increased the focus on insurance reform, which was traditionally the responsibility of a junior minister”.

The last government had failed to exert any downward pressure on premia due to “trenchant resistance” to insurance reform from lawyers and insurers themselves, claimed AIR. More reports on the issue of insurance reform are not needed, but there was a need for a reduction in the Quantum of General Damages for minor injuries, stated AIR. “Proper funding” was also required for the Garda response to insurance fraud, stated AIR, adding that insurers must commit to reducing premia once reforms are in place. Alliance members fully supported moves to reform the Personal Injuries Assessment Board which had been undermined by the success of legal challenges, stated AIR, resulting in only one in five injury claims now being settled through the PIAB. The government’s lack of support for companies pursuing Business Interruption claims was also raised at the meeting, with AIR stating that it was not aware of any such BI claims being met by the insurance companies.

According to the newspaper, “Ministers are understood to have mainly listened rather than making points. “They told the Alliance they took on board its views and stressed they would work as a ministerial unit on insurance reform. “A memorandum for Government is to be prepared on the issue. “In the last Government, former Minister of State Michael D’Arcy set up a working group on insurance reform. But his reform efforts were hindered by a lack of senior ministerial engagement in the issue, business sources say.” VFI Chief Executive Padraig Cribben, a Director of AIR, told Drinks Industry Ireland, “To get real reform there needs to be engagement by Government at a serious level and across different departments. This is the first time we’re seeing that co-ordination and commitment. It is now important that the key issues in respect of Quantum of Damages and Duty of Care are delivered on and in a timely fashion”.

NEWS

August 2020 | DRINKS INDUSTRY IRELAND

8 “Nominal” VAT reduction for on-trade alcohol does nothing for 3,500 closed pubs

July Stimulus “will not deliver” for pubs The Government’s recently-announced they’re only a start. The temporary of seasonal businesses as well as the July Stimulus package will deliver a reduction in the VAT rate on on-trade extension of the Commercial Rates stimulus for some, said Drinks Ireland, alcohol will assist in the short term but Waiver and expanded Restart Grant the Licensed Vintners Association and it will end.” “after months of tireless lobbying”, the Vintners Federation of Ireland, but While any and all supports are it believes that to ignore immediate all three expressed a deep concern for welcome, there is a need to continue to legislative issues such as insurance the 3,500 pubs that remained closed at assess and review their impact, believes reform and commercial leases until the time of the announcement. Drinks Ireland Director Patricia Callan. October’s Budget would result in the Reacting to the detail of the package “The environment in which the drinks demise of a significant number of the group welcomed the provisions and hospitality industry is operating is businesses and immediate job losses. made but, in the context of the situation abnormal and this is set to continue,” While welcoming the extension of at the time (where a two-tier sector she stated, “We must look to the the TWSS scheme, Adrian Cummins existed with some pubs open and Covid measures implemented in the believed that the absence of “tangible others still closed indefinitely), said that EU and consider their impact while business supports shows lack of the measures “will not deliver”. also reviewing the progress of our own imagination, understanding and However the group welcomed the measures.” disconnect from small businesses in extension of the Temporary Ireland. Wage Subsidy Scheme which will “I am appealing to the Government provide additional certainty to to rethink this decision and to businesses and to employees while support independent tourism and acknowledging that the proposed hospitality businesses around the Stay and Spend scheme would country with a targeted grants deliver for hotels. package,” he stated. With VAT reduced to 21% There are concerns too that from 23% LVA Chief Executive without further supports being Donall O’Keeffe stated that, “The implemented many local businesses reduction in VAT is a start but we will close permanently. need to consider the reality of the “If the government fails to act, this new business model within which lack of support for Irish restaurants pubs are operating - Government could cost the state €2.8 billion over In the context of the current situation (where a two- the next 24-month post-Covid-19 guidelines and Covid measures limit the capacity of pubs to trade tier sector existed in the drinks industry with some period, according to Economist Jim pubs open and others still closed indefinitely), the which means demand is reduced, Power’s Restaurant Recovery Plan measures “will not deliver”. capacity is significantly decreased report presented to all Government This is important ahead of the and consumers’ ability to spend in pubs Departments and TD’s in June,” he said. National Economic Plan in October and is capped. This report also states that there in protecting the longer-term viability “Government support needs to be are 100,000 jobs at risk in the sector of Irish pubs as they continue to alter cognisant of this reality and we remain and that, “Without aggressive and their business model to operate within open and willing to engage with effective official policy supports many the confines and realities of Covid in the government in meaningful consultation of these businesses will be forced into long term, she said. in the period ahead to fully consider bankruptcy”. By not decreasing the Tourism and this employment-intensive, domestic Economist Jim Power warned Hospitality VAT rate in line with our EU sector.” Government as early as last April counterparts and closest neighbour The group had originally sought a that the costs of not supporting the the July Stimulus “has put a nail in reduction in the VAT rate to 9% for Restaurant sector would be significant. the coffin for border Restaurant & on-trade alcohol to support Ireland’s If 100,000 workers were to remain Hospitality businesses competing 7,000 pubs and maintain the 50,000 unemployed for a full year it would with 5% rate in Northern Ireland” jobs in the sector. costs the exchequer around €2 billion in commented the Restaurant Association increased social protection expenditure, Boost vitality rather than of Ireland’s Chief Executive Adrian €500 million in lost payroll taxes and stimulate demand Cummins who questioned the decision €240 million in lost VAT receipts. It not to include a grants package for would also cost local authorities around The measure was intended to boost the Tourism and Hospitality in the July €52 million in lost commercial rates. viability of the businesses rather than Stimulus which he described as “cold By not supporting businesses in the stimulate demand. comfort to thousands of Restaurant July Stimulus Government has passed “Ireland’s publicans are business and Hospitality Businesses across the on significant costs to the Exchequer people, employing over 50,000 country”. that could have been avoided, people in every corner of Ireland, the While the Association was glad to believes the RAI. real economy,” commented VFI Chief see the extension of the Temporary Executive Padraig Cribben, “While the Wage Subsidy Scheme, the inclusion measures announced are welcome,

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DRINKS INDUSTRY IRELAND | August 2020

8 Kildare-based Craft brewer records 2019 operating profit of €154,934

Rye River domestic performance up 21% Ireland’s fastest-growing and most decorated independent craft beer brewery, the Rye River Brewing Company, claims to have witnessed a 21% rise in domestic performance despite “stagnant growth in the Irish craft beer industry” where craft beer is estimated to have grown by around just 1.5%. Topline sales at the Kildare brewery grew 8.3% to €6.4 million in the year to the 31st of December 2019 from a figure of €5.9 million following a strategic focus on the domestic, European and international markets. As a result, the report & financial statements of DP Financial, Rye River Brewing Company’s holding company, recorded a 68% reduction in pre-tax losses from €194,201 to €62,417 after charging interest payable of €333,099. DP Financial entered a sale and leaseback agreement for its Celbridge premises in March 2020, the €3.3m proceeds of which were used to reduce debt. The related mortgage of €1.3m was settled in the same period. The company therefore expects to generate a Net Profit in FY2020 for its four directors Thomas Cronin, Peter O’Donoghue, Michael Merrins and James Phelan. Producing a range of beers under the flagship brand McGargles as well as supplying award-winning exclusive craft beers such as The Crafty Brewing Company, Grafters, Solas and Rye River, the company turned in an Operating Profit of €154,934 for 2019, up 82% on 2018. On current trading projections, the company is on track to double its profit by the end of 2023 in line with its fiveyear strategic growth plan. The brewery currently brews in excess of 30,000 hectolitres annually and future investment plans include the introduction of a canning line this month. During the 2019 financial year the craft brewer saw export volumes

“While Covid-19 has impacted the business since March 2020 our production facilities have remained fully operational and delivered record brewing levels,” says the brewery’s Founder and Managing Director Tom Cronin.

account for over half (51%) of total sales. It also finalised and launched its new export brand under the brewery name, launching this in London and France as well as winning a national listing with Esselunga in Italy. Rye River Brewing now exports to 27 markets. “While Covid-19 has impacted the business since March 2020 our production facilities have remained fully operational and delivered record brewing levels,” said the brewery’s Founder and Managing Director Tom Cronin, speaking about the company’s performance and the recent Covid-19 crisis, “… demonstrating the resilience of our team and our agile production processes. “Notwithstanding the impact and unique challenges associated with Covid-19, we’re extremely positive looking ahead to the rest of the year. Our strong retail domestic performance in the first half of 2020 and our reliable

supply chain performances have meant that our revenues are still on track to reach our 2020 targets, allowing us to provide job security to our 53 employees, which we intend to grow throughout 2020”. Payroll costs for the 37 staff involved in manufacturing (up one from the previous year) and the 15 employed in Admin & Head Office (up from 13) totalled €2,073,141 last year, up 15% on the previous year’s €1,796,825. Last year the company - one of Ireland’s largest craft brewers also received international critical acclaim for its range of beers by winning an unprecedented 21 World Beer Awards, officially making Rye River Brewing the “World’s most decorated independent craft brewery” at the 2019 WBAs.

n Leading tourist pub Johnnie Fox’s in Glencullen, South County Dublin, saw a 77% increase in pre-tax profits from €224,099 to €396,588 with retained profits more than doubling from €292,966 to €641,295 for the year to 31st March 2019 according to an Abridged Financial Statement from Tony & Geraldine McMahon, the pub’s directors. Pre-tax profits were up 26% to €224,099 from €177,251 and there was an increase of one in the average number of employees to 49 during the year while remuneration for the two directors remained unchanged from last year at €160,000.

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August 2020 | DRINKS INDUSTRY IRELAND

8 New IWSR research forecasts Covid-19 to push 2019 volume gains back 5 years

Alcohol not expected to rebound until 2024 Though worldwide beverage alcohol North West Europe, wine volumes Ready-To-Drink poised for volume increased slightly in 2019, thus have slowed, showing CAGR of -1.6% continued growth reversing declines from the previous between 2014 and 2019. In the US For the third consecutive year Readyyear, it’s likely to be five more years sales of wine account for 11% of overall To-Drink products were the fastestbefore the industry rebounds from the alcohol consumption. And last year growing alcohol beverage category ongoing Covid-19 crisis according to consumption declined by nearly 1% for in 2019, up 19.6% in volume and 18.8% comprehensive new research from an the first time in over 25 years. in value. Even though RTDs only IWSR Drinks Market Analysis. One bright spot in the category, represent a small slice of the beverage Total global alcohol consumption, however, is sparkling wine which posted alcohol market they contributed more led by increases in beer and Ready-Togrowth of 1.4% in volume and 3.6% in than double the value growth to the Drink products, grew by 0.1% in volume value in 2019 and is forecast to rebound industry than wine in 2019. Much of the and 3.6% in value in 2019 but losses more strongly than still wine by 2024 interest and growth in this category in the months-long shutdown of bars as consumers increasingly shift to yearis fuelled by the innovation and and restaurants across the world this round consumption of sparklers. convenience of hard seltzers in the US year have not been offset by upticks which last year grew by over in off-sales and e-commerce. 200% in volume. The global IWSR expects this to lead to RTD category is forecast to double-digit declines in 2020 grow by 7.2% in volume CAGR and estimates that this will 2019- 2024. take until 2024 to reach 2019 pre-Covid-19 levels. e-commerce “While we’re still assessing Beverage alcohol e-commerce the full impact of the current posted gains last year which Covid-19 situation, it’s very should be welcome news clear that the pandemic is set to brands battling current to cause a deeper and more challenges brought by Covidlong-lasting after-effect to the 19. Across the 16 key markets global drinks industry than studied by the IWSR, all anything we’ve experienced beverage alcohol categories “In many ways, 2019 was perhaps the last ‘normal’ year for the before,” said Mark Meek, in 2019 grew in value faster drinks industry” – IWSR’s Mark Meek. “Even the downturn following online versus the total market. the 2008 financial crisis was Beer e-commerce value grew 14% (vs less severe than what we’re seeing now. Spirits drop 2.5% in 2019 1% growth for the total market value), “In many ways, 2019 was perhaps Overall, total spirits dropped 2.5% in wine grew 18% (vs total market decline the last ‘normal’ year for the drinks volume last year due in part to steep of 1%) and spirits grew 15% (vs total industry.” volume losses in baijiu (consumed market growth of 6%). almost exclusively in the huge Chinese Based on an IWSR e-commerce Beer expected to rebound market). However, excluding baijiu, study published last year the value of better than wine and spirits global spirits volumes grew 1.0% in 2019. the channel at the time was US$21bn Globally, beer (with the exception of No-alcohol spirits were the fastest(across 10 core markets), almost twice flavoured malt beverages like hard growing segment of the spirits market that of global travel retail, pre-Covid-19. seltzers) grew 0.3% in volume and by volume in 2019, up 25.5%, though “As restrictions ease, long-term 2.2% in value in 2019, led particularly still small in terms of market share. recovery is expected to be slower than by increases in non-alcoholic beer (up Amongst traditional spirits the initial bounce back – driving a ‘Nike 15.2% in volume vs 2018). Though the categories, gin was the fastest Swoosh’ rebound shape,” added Mark beer category has taken a hit in 2020 growing in 2019 (up 6.1%) but that Meek, “Like many other industries, the outlook for continued growth of growth has slowed somewhat with it’s incredible how a few months of no-alcohol beer remains positive, consumers beginning to show signs lockdown will result in several years with a forecast 8.1% Category Annual of “gin fatigue”, especially in some of recovery but beverage alcohol has Growth Rate for 2019-2024. In total, European markets (growth of gin proven to be remarkably resilient in beer is expected to reach 2019 globally was 9.6% in 2018). previous downturns and this should be volumes by 2024, rebounding better Within the whisky category, Irish grew no different. than wine and spirits. by 10.6% in volume, Japanese increased “A strong focus on innovation, volumes by 10.3% and US whiskey premiumisation and new routes to Sparkling wine outshines still posted sales growth of 5.8%. The IWSR market such as e-commerce are all The long-term global decreases in wine forecasts that whisky and gin will likely factors which will help contribute to the consumption continued in 2019, posting rebound fastest to pre-Covid-19 levels. industry’s rebound and future growth.” a 1.1% volume decline (though value, at Vodka volumes, however, are not 0.6%, was slightly up). expected to recover to 2019 levels until In the key consuming region of after 2024.

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DRINKS INDUSTRY IRELAND | August 2020

8 After low point in April volume started to gradually recover into June

Pandemic significantly impacts Heineken’s H1 business Based on preliminary figures, Heineken nv’s beer volumes declined organically by 11.5% in the first half of 2020, resulting in a net revenue decline of 16.4% on an organic basis for the world’s second-largest brewer. This was driven by an organic decline of 13.4% in total consolidated volume and an organic decline of 3.6% in net revenue per hectolitre according to Heineken which recently disclosed preliminary highlights of its 2020 halfyear results. So all figures mentioned here are preliminary, unaudited and subject to adjustments from customary reviews, it stated. Heineken’s markets and businesses were significantly impacted by the Covid-19 pandemic in the first half of 2020. As a result of the unprecedented volatility and uncertainty, on the 8th of April Heineken nv withdrew its guidance for the year. However the Dutch brewer has stated that despite these “short-term” challenges, it “remains confident in its ability to navigate the crisis”. As expected, the impact of the Covid19 crisis deepened in the second quarter of 2020. After a low point in April, volume started to gradually recover into June as lockdowns were lifted around the world and customers restored depleted inventories. In Europe off-trade beer volume grew “in the mid-teens” and market share increased in key markets, claims the brewer. However, given Heineken’s strong position in the on-trade and the structural differences between channels,

The Heineken brand itself performed well in relative terms suffering only a 2.5% overall decline.

operating profit was disproportionally affected as on-trade outlets were closed for a large part of the second Quarter. Operating profits declined organically by 52.5% compared to H1 2019 while net profit declined by 75.8% in H1. Heineken nv’s exceptional items will include around €550 million of impairments on tangible and intangible assets which will lead to a reported net loss of around €300 million. Input costs per hectolitre increased

significantly and from late March onwards Heineken took significant cost mitigation actions leading to an overall decrease in costs for the first half of 2020. The company is committed to further intensify its focus on costs. The Heineken brand itself performed well in relative terms suffering only a 2.5% overall decline. Heineken 0.0 also experienced a double-digit increase in sales with growth across all regions. This was particularly the case in the US and Mexico.

n Pre-tax profits at the Louis Fitzgerald Group were up 148% to €14.1 million in the year to the 30th of June 2019 from €5.8 million the previous year. Turnover at Burtse Ltd, the holding company for Louis Fitzgerald’s business portfolios, saw a 2.1% increase in the year to €71.4 million from €69.9 million. Burtse has a number of prominent pubs in its portfolio (through other holding companies such as Darke Entertainments and Biggerstaff Services) which includes Kehoe’s in Dublin’s South Anne Street, The Stag’s Head in Dame Lane and the Louis Fitzgerald Hotel on the Naas Road as well as the Quays bar in Temple Bar and in Galway and the recently-acquired Tigh Neachtain, also in Galway. Burtse turned in an Operating Profit for the year of €15.6 million, up 88.3%, with staff payroll costs down 18% from €22.3 million to €18.2 million for a monthly average of 892 staff. Staffing is up from the previous year’s 798 figure and comprises 17 staff in Admin (up from 12), 38 in Management (up from 24), eight in Hotel Management (down from nine) and 826 in Bar/Operations (up from 741). Some €430,145 was taken by the three Directors Louis, Helen and newly-appointed Eddie Fitzgerald during the year. Last year, the two directors took nearly €6.9 million in directors’ remuneration. n

F O O D S E R V IC E

August 2020 | DRINKS INDUSTRY IRELAND

8 Pub incomes could fall by as much as €976 million this year

Pubs could lose potential €976 million Pubs and ‘drinking establishments’ are likely to see a decline in business of between 60% and 69% according a White Paper on the foodservice industry from Bord Bia. The Covid-19 Impact on Irish foodservice Industry report charts three possible scenarios as the industry moved to a phased re-opening “in a transformed operating environment”. The White Paper, developed to equip the industry and Irish food and drink suppliers servicing this key market with data and insights as they plan for the second half of 2020, outlines a ‘best’ to ‘worst’ case scenario as well as indicating key trends, recommendations and supports available for businesses across the sector.

Scale of the challenge Taking market values as published by Bord Bia to the end of 2019, the White Paper, co-authored by global foodservice research specialists Technomic, outlines three possible scenarios for the country’s 8,115 pubs which between them saw revenues of €1.415 billion last year from food (indicating a Category Annual Growth Rate of 2.0%). According to the report, pubs and hotels generated virtually no revenue between March the 15th when the government issued its stay-at-home order and the end of Lockdown. In the ‘best’ case scenario the Pubs/ Drinking Establishments sector would witness a drop of 60% in business comprising a 15% drop from January to March, a 97% April to June drop, a 76% drop from July to September and a 49% drop for the last Quarter of 2020. This would reduce the pubs’ share of Foodservice Turnover from 16% to 12%. A ‘middle ground’ scenario sees consumer spend on food in the Pubs/ Drinking Establishments sector fall by 65% comprising a 15% fall in January to March 2020, a 97% fall in Q2, an 82% fall in Q3 and a 63% fall in the last Quarter of the year. Finally, a ‘worst’ case scenario would see a 69% fall-off of consumer spend in this sector comprising a 15% fall from January to March, a 97% drop in Q2, an 87% fall in Q3 and a 76% fall in consumer spend in the October to

December 2020 Quarter. According to the report, “Even as the industry begins to re-open additional challenges remain with Social Distancing capacity constraints that are currently in the guidelines and these rules may prevent many outlets from operating at a level needed to cover fixed costs, much less allow them to generate a profitable existence”.

“Food-led pubs will fare better, many of whom will look to re-license as restaurants,” states the report.

This paper’s assumptions were built on a 2020 month-by-month evaluation of the impact of Covid-19 against the baseline 2019 monthly revenue numbers. They’re also built against forecast 2020 revenue figures as developed jointly by Bord Bia and Technomic. Each scenario includes and incorporates the historic impact of seasonality and other historical peaks and troughs of sales for each segment. Based on a ‘best case’ scenario - and taking into account the impact of falling tourism figures, the total out-of-home market in Ireland is predicted to fall in value from €8.5 billion at the beginning of this year to €4.7 billion by the end of 2020. Against a forecast ‘worst’ case scenario the market could fall by almost 60% or by €5 billion in value. In the face of this outlook, Bord Bia’s White Paper outlined recommendations and supports available to business as they forwardplan and adapt their positioning, products and services. “While acknowledging the clear and ongoing damage to the Irish foodservice market, it’s also important to begin thinking about how the industry re-starts and what permanent changes may ultimately ‘stick’ into the future,” said Bord Bia’s Foodservice Specialist Maureen Gahan, “We understand from listening to food and

drink suppliers servicing this market that access to timely data and insights is crucial for them as they look to revise their plans and activities for the second half of 2020. “The out-of-home channel was one of the most severely impacted by Covid-19, not just in Ireland, but worldwide, experiencing a near total collapse due to the temporary shutdown of the hospitality sector. However, we also know that it is a hugely resilient industry,” she stated, having already seen a number of outlets transitioning their businesses to Take-Away and Home Delivery during Lockdown. Similarly, she’d seen examples from food and beverage producers that are pivoting their businesses to meet the new needs of their foodservice customers. “Food-led pubs will fare better, many of whom will look to re-license as restaurants,” states the report, “Wet-led pubs will continue to be impacted by Social Distancing for much of 2020.” Those without on-site kitchens will find it hard to pivot to food. Takeaway and delivery may become more of an emphasis for food-led pubs. “Foodservice will certainly see contractions in 2020, erasing years of growth and share gain from the retail sector,” said the White Paper’s co-author David Henkes of Technomic, “However, we remain bullish on the longer-term viability and resurgence of the industry as the economy recovers and as consumers grow more confident living in the age of Covid-19.” Bord Bia’s Maureen Gahan concluded, “We encourage food and drink businesses to avail of the range of supports and services available to companies via our Navigating Change programme. Bord Bia will continue to monitor developments and will present a more in-depth analysis at the end of the year as the situation evolves”. Businesses can access information on the range of business supports available through the Government and State Agencies on https://www.gov. ie/en/publication/c6cbed-agencysupports-to-help-our-businesscommunity-through-the-covid-19-/.

FOOD SERVI CE

DRINKS INDUSTRY IRELAND | August 2020

8 Nearly half of respondents chose indoor entertainment such as pubs & cinemas

Eating out topped post-lockdown wishlist

57% of 35-44 year olds stated that they’re keenly anticipating the pub experience again. ‘Eating out’ was the activity most eagerly anticipated by Dubliners when the Covid-19 restrictions were eventually lifted and when shops and hospitality outlets could be accessed again. Research conducted by the location marketing agency PML Group as part of its Now, Near, Next thought leadership series found that during Lockdown 72% of the 300 Dublin respondents to the survey cited ‘Eating Out’ as the most looked forward to activity, with travel abroad at 57% the next most soughtafter pursuit. Outdoor entertainment such as festivals and markets were something that 49% of the respondents looked forward to, a percentage that was matched by the 49% choosing indoor entertainment such as pubs and cinemas. 57% of 35-44 year olds stated that they were keenly anticipating the pub experience again while a return to the cinema was also up there. Travel in Ireland was chosen by 46% while high street shopping got a 44%. Single people also index highly for eating out and other forms of entertainment. Females (75% versus 69% for males) and those in the 25-34 age group (81%) found the restaurant experience to be the more popular choice according to the study conducted by IpsosMRBI on behalf of the agency.

8 70% of Irish diners want to see beer menus when they go out for meals

7 in 10 want beer menus when eating out Irish consumers are becoming increasingly knowledgeable about the different tastes and varieties of beer, according to research commissioned by the Brusselsbased Brewers of Europe. This comes as Ireland’s hospitality sector re-opened recently and Irish people once again had an opportunity to go to restaurants and pubs to pair meals with an ever-increasing range of products from Ireland’s beer sector. Research and insights company The Reputations Institute conducted a Beer Image Tracker which found that 70% of Irish diners want to see beer menus when they go out for meals, an increase of 7% from 2017. The Beer Image Tracker measures insights and perceptions of beer using a 900-respondent sample. Other data show that Irish customers want to increase their knowledge of different varieties of beer, with 58% saying they want to learn more about appropriate pairing of beer with certain foods,

70% of Irish

compared to 45% diners want to see beer menus in 2017. when they go 48% of Irish out for meals. consumers are likely to change the beers they buy depending on the season or time of the year, an increase of 8% in two years. “Irish consumers are becoming more savvy about what they’re buying and this report highlights the long-term market trend to increased sophistication in purchasing habits,” says Jonathan McDade, Head of Drinks Ireland|Beer, “Beer is Ireland’s favourite alcohol beverage but it’s clear that quality and taste is being prioritised over quantity; this is exemplified in the fact that 55% of people pair food and beer when eating out compared to 37% when eating at home.” Consumer appetites will continue to drive the increased diversification of beer, he added. The tracker was carried out by the RepTrak Company through an online study.

8 Covid-19 challenges facing the foodservice industry “immense”

Handy foodservice guide to re-opening services

any foodservice Over 30 Irish businesses business”. are included in the Irish These re-opening Foodservice Supplier solutions vary Alliance’s new ‘flipfrom air-purifiers book’ which aims to to biodegradable help the foodservice single-use Industry respond to “Every solution in this book containers, states Covid-19 going forward. is specific to the challenges now facing us as we adjust the IFSA adding, The IFSA has to trading in Phase 3 of the “every solution recognised that not Re-Opening of our country,” in this book is only are the Covid-19 says the IFSA. specific to the challenges facing the challenges now facing us as we foodservice industry in response adjust to trading in Phase 3 of the to the expected demand immense, Re-Opening of our country.” but the solutions to overcome The flip-book, Reopening them can seem daunting at best. Solutions, can also be found on the As a result it has compiled a CATEX 2021 website. n handy guide of Irish companies “providing real, tangible solutions to the re-opening of

ONE & ONE

August 2020 | DRINKS INDUSTRY IRELAND

Mark Aherne – “Now that we’ve a full range of both alcohol and nonalcohol drinks to offer, we’ve even more reason to be a key partner in both trading arenas”.

“The sales model has changed overnight” - Lucozade Ribena Suntory Ireland’s Mark Aherne Last year Lucozade Ribena Suntory Ireland was made distributor for the Beam Suntory range of premium spirits in Ireland, thus making LRSI the first company in the world to bring the two businesses – soft drinks & spirits together under the ‘One Suntory’ banner. LRSI’s General Manager Mark Aherne speaks to Pat Nolan about the company’s plans for the on-trade going forward.

ith seemingly little or no fanfare, Japanese multinational Suntory Beverage & Food became one of the largest makers of distilled beverages in the world when it acquired Beam Inc in 2014. The Beam acquisition also made the Beam Suntory portfolio unique in having spirits distilleries hailing from three different continents through its Irish, Scotch, Bourbon & Japanese whiskies. The Tokyo-based company was established in Osaka in 1899 and has

become one of the oldest companies in the distribution of alcoholic drinks in Japan. Today its 300 companies around the globe employ over 40,000 people. Last year it made €19 billion or ¥2.295bn. It also makes Japanese whisky. Lucozade Ribena Suntory Ireland was formed as part of Suntory Beverage & Food Europe, the European business unit of Suntory Holdings, in 2014 and in 2019 became the official distributor (through Beam Suntory Ireland) of Beam Suntory’s spirits portfolio.

The company also owns the Lucozade brand through Lucozade Ribena Suntory Ireland and so this made LRSI the first company in the world to bring the two businesses – soft drinks & spirits - together under the ‘One Suntory’ banner. LRSI is now responsible for Beam Suntory’s premium spirits collection which includes brands such as Jim Beam, Maker’s Mark, Courvoisier, Kilbeggan, Teacher’s, Roku Japanese Gin and Sipsmith. This had formerly been distributed by Barry & Fitzwilliam, still a huge and valued customer of LRSI, with a massive distribution network across the country, points out Mark Aherne, Lucozade Ribena Suntory Ireland’s General Manager here. Mark has worked with LRSI for over six years now having started as Sales Director with the company. Previously, he worked as Head of Sales for GlaxoSmithKline, Lucozade’s previous parent. A key part of Mark’s role is to ensure that

DRINKS INDUSTRY IRELAND | August 2020

at the forefront of all LRSI’s employees’ actions is the Suntory group’s ‘Growing for Good’ vision which is about being a company that always benefits its community. “Given the current Covid-19 pandemic” he explains, “I’m particularly conscious of our employees’ and our supplier partnerships’ health & wellbeing while they work so hard to continue to supply our drinks to our consumers.”

Lucozade – part of LRSI’s heart Together, Lucozade Sport, Lucozade Energy and Ribena beat the heart of LRSI’s business. Lucozade Energy and Lucozade Sport continue to drive sales success and have added €4m to the market over the past year, says Mark. Due to the current Covid situation LRSI has had to be flexible and adapt its plans but it continues to invest in insightdriven product launches and innovative marketing campaigns. LRSI operates in both the grocery trade and the on-trade across the island of Ireland. As both sectors ‘return to normal’ post-Covid-19, “Our diverse portfolio enables us to tailor our offerings to adapt to the changing consumer habits we’ve seen develop in recent months,” says Mark, “Our Lucozade Energy pub bottle is a particular favourite in the on-trade channel with the increase in consumers looking for a refreshing non-alcoholic drink to be enjoyed even in the daytime or whilst watching sporting events. Now that we’ve a full range of both alcohol and non-alcohol drinks to offer, we’ve even more reason to be a key partner in both trading arenas.”

Pub bottle – approaching 50 years old With an on-trade distribution history dating back some 40 to 50 years and nearly total distribution across the on-trade, 2019 saw the Lucozade Pub Size product experience 6% growth in value, claims Mark, “As consumer demands change, Lucozade has benefited from this growing demand for Low Alcohol/No Alcohol drinks in pubs and bars across Ireland.”

Future growth With or without the effects of Covid-19 where does Mark see future growth for the company coming from today? “For our Beam Suntory team and within the alcohol sector whiskey and gin are growing year-on-year,” he says, “The growth is currently coming from premium Irish whiskeys, premium Bourbons and premium gins.” Mark goes on to explain that LRSI’s total RoI soft drinks market is in growth with its own Drink Now share up 6.8% in value set against the general Drink Now market

ON E & ONE which shows value growth of just 0.4%. “The Energy sector is the fastest-growing, up 13.6% in value, so our Lucozade Energy & Zero brands remain key,” he says, “Lucozade Energy will be on TV throughout the year supported by ‘Paid To Promote’ advertising, Digital and in-store activation.” LRSI has some “very exciting” developments and marketing announcements coming down the line and looks forward to revealing all to its trade partners in the coming months. For example, Limited Editions are linedup in Irish and Scotch whiskeys as well as Japanese gins and vodkas to enhance LRSI’s offering to gin and whiskey bars. But there remain challenges.

Barman’s recommendation “no more”

He makes an interesting point for suppliers going to the on-trade in this time of Covid: “The nominated Brand Ambassador used to be the barman but this has now become the floor staff as one doesn’t necessarily have access to the barman any more – you just can’t get access to the bar! “Especially for food-led pubs at the moment, that interaction piece up at the bar has changed. “We’re trying to re-think this in light of the present situation because I think the sales model has changed overnight. “Customers cannot prevail upon the maitre d’ or equivalent to be given product advice so there’s a need for an intermediary to train floor staff in being “We tapped ambassadors for brands within that into new digital outlet.” experiences and ways to experience our spirits” - Mark Aherne.

Recycling the challenge In 2019 Suntory set out its vision and made a clear commitment to a sustainable future. It aims to become the first global drinks company to offer 100% sustainable plastic bottles, using fully recycled or plant-based materials across its entire portfolio by 2030. Sustainability and recycling will continue to play a vital role at LRSI. “Our ambitious plan for the future of our bottles is critical for our business,” believes Mark, “We firmly believe that plastic isn’t the issue, but plastic waste is. When managed properly, plastic is more durable and less carbon-intensive than glass and aluminium. What we need to do is to remind people of its value, encourage recycling efforts, improve infrastructure and - with an increased amount of rPET in our fully sustainable bottles - reduce greenhouse gas emissions.”

Coronavirus challenge As the on-trade starts to open up again, Mark wants to ensure that LRSI has the necessary range to offer. “We want to ensure that we understand our listing and that we do some work around driving promotions and advertising to ensure that we’re front of mind in the on-trade,” he explains.

Growing Beam Suntory’s on-trade relationship

Beam Suntory’s on-trade relationships are vital for growing its premium spirits portfolio in particular. “To connect with both our consumers and customers amidst the on-trade being closed due to Covid-19, we tapped into new digital experiences and ways to experience our spirits such as online whiskey tastings and cocktail masterclasses.” Throughout the pandemic LRSI has been working to scope out potential outcomes with its colleagues in the UK as well as internationally. “We’ll take all necessary steps to minimise any potential impacts on Irish consumers across 2020 and 2021,” promises Mark, “What’s clear is that this will take collaboration throughout the supply chain and it will be hard work for all of us but we’re resilient and this will be a reminder of what an important role FMCG companies - from manufacturers through to retailers and their employees – play in people’s lives.” Unlike some exclusively on-trade suppliers, LRSI appears to have got off lightly in the pandemic. “Our LRSI portfolio is quite heavily focused on retail, which means we haven’t seen the effects some other suppliers may have experienced during this period” says Mark, “so we were less exposed to the licensed trade because of our diverse portfolio which saw an upsurge in grocery and a closing down of sales to the licensed trade. If we’d been purely licensed trade we’d have been down about 90% but as it was, we saw a 50% decline and a slight change in mix.” Still lots of room for growth then. n

I ND U S T R Y RE PORT

August 2020 | DRINKS INDUSTRY IRELAND

Not for the first time Jus de Vine in Portmarnock, North County Dublin, took the NOffLA crown for National Off-Licence of the Year. Pat Nolan visited the outlet to learn more about its winning ways.

Jus de Vine

– not so much re-inventing the wheel as keeping questioning it

us de Vine, the National OffLicence Association’s Off-Licence of the Year, is no stranger to the winners’ enclosure. This 2,000 sq ft outlet in the heart of the North County Dublin’s Portmarnock village has won the overall title no less than four times now: 1999, 2000, 2018 and 2020. Just why this is the case becomes clear on talking to Tommy Cullen, one of the three co-owners (along with daughter Julie and Paul McKenna).

Tutored tastings The outlet conducts regular tutored tastings by taking out some of the display furniture and replacing it with 35 chairs. “We never make any money out of it but it’s an education for our customers,” explains Tommy, “However one of the advantages of having it here rather than in a hotel is that you get a few quid spent before your customers leave.”

Always trying to improve the offering Tommy believes that the shop’s latest win was because they “try and invest a little bit every year to make the place a little bit better. “We’re always trying to improve because if we’re not improving, we’re not going forward,” he explains. Having opened in 1998 the shop can rightly claim to be “Dublin’s leading independent wine merchant” having won NOffLA’s Wine Shop of the Year Award no less than 11 times. “We were also the Business Post’s Bordeaux Specialist of the Year in 2019 and 2020,” adds Tommy modestly. There are just five people out on the floor making all this happen. “Every Friday we’ve meetings to discuss new wines and agree tasting notes and share the knowledge we’ve all learned,” explains Julie.

And each to their own. Richard Brown has been with Jus for five years, for example, while Paul McGrath – described as “part of the furniture” by Tommy - has been there for eight. “Richard loves his whiskey and opened a new Saki last night for us all to try,” says Julie, “The two Pauls are beer men and keep us up-to-date with what’s happening there while Dad has a passion for wine.”

Volume over value The shop’s Fine Wines room continues to attract premium customers to the temperature- and humidity-controlled space. Said customers go on to become regulars. But Tommy prefers ‘volume’ over ‘value’ when it comes to customers any day. “If we lose value customers we really feel it” he explains, “but if we lose a couple of volume customers we don’t feel it as much.”

I N DUSTRY REPOR T

DRINKS INDUSTRY IRELAND | August 2020

“If it ain’t broke….”

the new Prosecco”. High-end whiskeys are also Since the last time they won, Julie growing, says Julie, “We’re selling a confirms that apart from keeping lot of (nearby) Lambay whiskey”. up standards, nothing much has However gin sales appear to have changed in the shop - in keeping fallen away somewhat, she admits. with the adage, ‘If it ain’t broke why “People still buy Dingle and fix it?’. Gordons, ‘though now it’s ‘back to “We don’t so much re-invent the basics’ like Bombay Sapphire. wheel as keep questioning it,” she “At the height of the boom if one explains. was launching a gin at less than €40 However trends have changed in it was going to be dead in the water,” the intervening two years. she says, adding that it’s interesting Customers come in now how young adults like whiskey. specifically looking for No-Alcohol/ Product breakdown Richard, Jus de Vine’s main man for Low Alcohols, for example, “… By value, the outlet’s product whiskey, elaborates. and you can see this with the next breakdown would be: 65% wine, 20% “All the bloggers come in. I’d know generation”. beer and 15% spirits. them and talk to them for half an But Tommy points out that the Canned beers are very much onhour,” he says, “They’d come in one outlet still hasn’t gone for natural trend at the shop. week and buy whiskey in Cognac wines to any great degree “… as you “You can’t sell a bottle of beer cask and next week come in and sell what you believe in yourself. these days!” remarks Tommy, “All of ask what else you have and in which Every shop reflects the people who the new craft beers are sold in cans. kind of cask. It’s a talking point. For own it and their passion, giving it Richard Brown explains that a lot of people my age it’s more of a their own individual stamp”. canning beer keeps it more fresh and hobby where they’ll spend the extra stops light pollution from affecting few €uro on a good bottle of whiskey Display of thought the taste. that they can talk about with their A cursory wander around the friends rather than neck a shop indicates the great deal bottle of vodka. of thought that’s gone into “It’s for sipping and the many product displays. they’ve a lot more sense The outlet has had to these days – and a bit increase its fine wine range more class too,” he adds. since the last win as people “They not only like continue to seek quality over different cask finishes but quantity. whiskeys from different “We’d have built up a regions.” name for specialist wines” Some don’t like the explains Julie adding that, peaty taste of Scotch but “very few places still stock would prefer a Japanese them. You’d have to think whiskey alternative which twice where you could pick has a slight peaty taste. up wine for €50 to €100.” “A big seller for us, for Maybe Devaney’s in example, would be the Dundrum, Redmonds in Nikka Super which also Ranelagh or 64 in Glasthule, has a bit of a sales spiel suggests Tommy. to it.” “Declan Martin in Fairview A cursory wander around the shop indicates the great deal of As for wine, now, too has built up a nice thought that’s gone into the many product displays. instead of people coming collection down there.” in and buying that bottle Indeed Tom Devaney Three of Richard’s customers buy of wine for €7.99 they buy a New would be one of those whom Tommy six or seven small cans of craft beer Zealand or Loire Valley and spend would admire in the independent “one after the other” and go off to the extra few quid as they’re getting trade. sit down and talk about them instead quality so they’re sitting down to “When I started in the wine of “‘sculling’ them back” - and Hard enjoy it. business first, Tom was one of Seltzer, so popular in the US, may be Where Tommy looks for a wine the people who’d been there for about to take off here, believes Paul that’s easy to drink at a good price many years and was very helpful. I McKenna. point there’s a growing interest in perceived him to be one of the most In wines, those from Spain and Italy vegan and organic wines along with knowledgeable people in the trade. prove the most popular at the outlet. natural wines, says Julie. Still do,” he admits, “Then there’s For the same price point, they’re “Rioja Vega, a vegan wine, is good Jimmy Redmond - the type of person proving better quality than anywhere value at €10 at the moment,” she who’s always continuing to improve else in the world, advises Tommy. says. the shop.” Another trend saw them selling But they both agree that there’s a Rosés all through the Winter. huge hunger for information among Location, location…. The previous Summer’s sales of consumers. Rosé in 2018 were good; people just When Jus last picked up the overall And this year’s Off-Licence of the sensed that and sales continued on, winner’s trophy, Lidl was just getting Year is just the outlet to feed that says Tommy, adding too that “Cava is going down the road. Has it been hunger. n good or bad for business? “Good” affirms Julie, “It has cleaned up that part of Portmarnock from being an empty space for 20-plus years with no footfall in the village, to making it a drive-through so there’s no doubt that Lidl has been good for us. “It has brought more footfall around the area and even helped the smaller outlets around the village plus you don’t have to pay for your parking!”

O F F - T R ADE DE V E LOPM E NTS

August 2020 | DRINKS INDUSTRY IRELAND

8 UK Government accused of failing to count the true cost of wine import certificates

WSTA calls out Government The Wine and Spirit Trade Association has hit out at the UK Government for “misleading the public” over claims that EU wine importation costs would be “nil or negligible”. If Britain leaves the EU without a deal an estimated 600,000 new import certificates (known as VI-1 forms), all accompanied by a costly lab analysis, will be required to keep wine flowing in from Europe. Prompted by a question from Tim Loughton MP, the UK’s Department for Environment and Rural Affairs was asked to assess the cost of the VI-1 import forms which will be necessary on EU wines which would follow a No Deal Brexit. In reply the Department’s Under Secretary of State Victoria Prentis said, “As inspections for imported wine are undertaken on a risk-based percentage, regardless of origin or import certification, no specific assessment has been made regarding additional costs of controls although it is expected to be nil or negligible.” The WSTA has challenged this reply and it has accused her of misleading Parliament by ignoring the £70 million bill anticipated by British businesses from the extra red tape. According to the WSTA, the Government’s “astonishing claim” comes months after discussions with the Association had originally led to an agreement to suspend the costly paperwork. Wine leaving the UK for the EU will also have to complete a VI-1 form - meaning an estimated additional 150,000 forms which will put a strain on wine exports, the UK’s sixth most valuable food and drink export according to the WSTA. Each form comes at a price – estimated at around £20 per two-page document – as it’s filled-out by hand and the WSTA reckons that laboratory tests will cost £300/£400 a time for a county with a wine industry worth £19 billion supporting more than 300,000 jobs. Despite the initial recognition of the burden it would place on UK wine businesses, the Government then proceeded to U-turn on this promise at a later date - but the WSTA argues it is inconceivable that it is not aware of

the sizeable cost to business. Last year the WSTA warned that the new inspections for imported EU wine in a No Deal Brexit would generate over 600,000 customs forms, anticipated to treble the inspection board’s workload overnight for the UK’s sixth-biggest food and drinks export worth around £650 million. Under the current system, the EU’s Excise Movement Control System allows all alcohol categories to and from the EU to be moved on with no extra checks on costs. However, a No Deal Brexit would see the UK losing EMCS and the new paper-based regime will mean European wine producers will have to pay to fill out a form and cough up for extra laboratory tests for every consignment of wine sent to the UK on top of that, no matter how big or small. EU wine producers will inevitably pass some - or all - of these costs on to UK importers and customers, believes the WSTA. As well as putting a huge burden on the UK wine industry the WSTA warns that this will lead to higher wine prices - adding an estimated 10p on a bottle of wine - and a reduced choice for consumers. “The Minister has been highly selective in focussing on the costs falling on UK enforcement bodies of requiring import certificates for EU wine and has chosen to completely overlook the significant costs falling to exporters” said WSTA Chief Executive Miles Beale, “costs which will have to be met by UK importers and ultimately UK consumers if we leave without a deal. “It is extremely disappointing that despite four years of discussing this issue with Defra the facts have fallen on deaf ears and the Minister has confirmed that the government has not even bothered to make any assessment. “Far from taking back control, simply rolling over and having to bend to existing EU law which disadvantages wine imports makes absolutely no sense for a nation of wine lovers that imports 99% of the wine we enjoy. This government needs to wake up, listen to business and start taking action that

If Britain leaves the EU without a deal an estimated 600,000 new import certificates (known as VI-1 forms), all accompanied by a costly lab analysis, will be required to keep wine flowing in from Europe.

supports economic activity and job creators. And it doesn’t have long to do it. But the extra form-filling won’t just leave the wine industry with a headache, UK wine inspectors will find themselves drowning in processing paperwork. Every hand-written VI-1 form will have to be scrutinised and stamped before wine from Europe is allowed into the UK. It’s estimated that it would take 12 full-time wine inspectors a whole year to process the half a million new VI-1 forms expected to mount up following a No Deal Brexit. This does not take into account the other work carried out by Wine Standards who currently consist of a team of six regional inspectors. 55% of wine consumed in the UK is imported from the EU. The WSTA again wrote to the Chancellor of the Duchy of Lancaster Michael Gove MP, re-iterating its calls to suspend the damaging additional documentation and tariffs on wine and offered, post lockdown, to facilitate a visit to a wine business to see at first hand the potential impact that VI-1 implementation would have. However the House of Lords has now added an amendment to the Agriculture Bill for debate which aims to reduce the burden of wine import documentation needed post-transition period. This shows the growing support and recognition of the industry’s efforts to highlight the damage the introduction of VI-1 forms would cause for the wine industry if they were to be introduced on the 1st of January 2021, states the WSTA.

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DRINKS INDUSTRY IRELAND | August 2020

8 Off-trade experienced steady sales “but no records broken”

Off-sales “steady” in lockdown As the crisis continued to bite down on the licensed trade with the closure of pubs nationwide and the cancellation of the St Patrick’s Day Festival, the off-trade saw a sizeable pick-up in trade around St Patrick’s Day. The majority of independent offlicences have stayed open to try and ensure supplies of beer, wine & spirits for their customers. However, in the week to 8th March, Nielsen found that at just 2.7%, alcohol appeared to be growing more slowly than the rest of the market eg fruit and vegetable produce (up 6.9%), bakery (up 4.7%), frozen (up 4.9%), chilled (up 7.3%) and confectionery (up 5.7%). At the time Karen Mooney, Ireland Market Leader at Nielsen, commented, “It’s likely that we will start to see stronger growth in these categories in the coming weeks as people will have a plentiful supply of pantry necessities and may resume purchasing some luxury items”. At Blackrock Cellar, Joel Durand told Drinks Industry Ireland that there had been “a degree of panic buying” at that time which had levelled out following St Patrick’s Day itself although when the schools closed there was an upsurge. “I’d say we’re back to normal saleswise,” he stated, adding that he’d set up Deliveroo for home deliveries while customers could also come and pick up from the shop.

Pat Kelleher has two Carry Out off-licences which were busy for St Patrick’s Weekend with takings up 10-20%, but as the coronavirus began to make itself felt there was a spike in sales.

In Cork, National Off-Licence Association of Ireland Chairman Gary O’Donovan owns the O’Donovan group of off-licences. He described business while the pubs were closed as being “brisk, but no records were being broken”. Purchasing, he said, had been “steady and spread out during the day with people tending to do their shopping during daylight hours”. And the purchases may have been larger than normal. The average purchase value had risen, he reported, adding that with

the closure of the pubs supplies had arrived more quickly than would normally be the case. “It would normally be three to four working days but due to the absence of the on-trade, delivery was the following day,” he said, adding that, “People were coming to the small independent off-licence as they regarded it as less dodgy than a busy supermarket in these times.” In Dublin’s Rathgar area Evelyn Jones had seen a return to shopping locally. “Because they’re not going out at all, any alcohol they’re consuming is coming from an off-licence,” she pointed out as lockdown set in. In Roscrea and Nenagh Pat Kelleher has two Carry Out off-licences. Again, his outlets were busy for St Patrick’s Weekend with takings up 10-20% but as the coronavirus began to make itself felt there was a spike in sales. “Now, however, the initial rush is over” he said at the time, “and everybody has calmed down because this is going to go on for a while and people need to watch their shillings.” He described the present atmosphere in Roscrea as “eerie”, with the general public “very jumpy – but the good thing about the independent off-licence is that we’re not dealing with huge numbers at once, they’re dribbling in in ones and twos”.

8 Growth aided and abetted by super premium demand

Irish whiskey’s star still shines in US In all the Covid-19 gloom it shouldn’t be forgotten that Irish whiskey remains a shining star in the US, lockdown or no lockdown. Still one of the country’s fastestgrowing segments, over the past five years Irish whiskey volumes in the US have increased at a Compound Annual Growth Rate of 13.4% according to IWSR figures where domestic whiskeys grew at just 5.5% and Scotch just 0.2% over this time. What’s more, the drinks market analyst forecasts that the Irish whiskey category will

continue to grow. Though Irish whiskey represents just 2% of the total spirits volume in the US (that’s 7% of the market for whiskies there), it remains one of the fastest-growing spirits categories. According to preliminary 2019 IWSR figures, Irish whiskey volumes grew there 8.6% last year. This growth has been aided and abetted to a great extent by the demand for super premium Irish whiskeys, those costing over $30 a bottle.

Indeed premiumisation is a key driver for sustained interest and innovation in the category. In 2019 alone, IWSR tracked almost 30 new Irish whiskey brand lines entering the US market at a premium-or-above price point. In the US Irish whiskey is seen as a bargain relative to its counterparts in Scotland and Japan, making it a sensible highend alternative for stocking at home, reported Newsweek.

O F F - T R ADE DE V E LOPM E NTS

August 2020 | DRINKS INDUSTRY IRELAND

8 Report suggests high wine prices lead to more thought given to product before purchase

Irish wine consumers among most well-informed globally

Ireland Wine Landscapes 2020 exposed several wine consumer shifts in the Irish wine market, revealing an evolving wine consumer who’s increasingly involved in and confident about the category along with having more established wine preferences.

Though we’ve a relatively small adult population burdened with high excise taxes on wine and we’ve traditionally consumed beer and whisky anyway, Ireland has been a good place to sell wine in recent years, particularly if you’re a brand owner from the New World. A report from Wine Intelligence entitled Ireland Wine Landscapes 2020 posed the question, “Why is it that Ireland boasts some of the most well-informed wine consumers in the world?”. The report took an in-depth look at the Irish wine market and the consumers within it, delving into beverage repertoire, varietal consumption and wine purchase behaviours alongside the hot topics of Prosecco and Rosé. Logistically, Ireland works well, stated Wine Intelligence. Prior to Covid-19 the economy had been on a positive trajectory since 2014, according to the country’s Central Statistical Office. More than half of Irish adults drink wine on a monthly basis, with Irish regular wine drinkers earning significantly more than they did. Perhaps this accounted for why regular wine drinkers here displayed a willingness to spend more on a bottle of wine in the off-trade.

And the local independent wine merchant’s share of the wine market grew last year to 24% of those buying wine in the past six months compared to 21% back in 2012. Supermarkets at 88% and convenience stores at 39% seemed to take the lion’s share of sales however. The report pointed out that for the first time in seven years red wine matched white for usage incidence here becoming the top alcoholic beverage for consumption amongst regular wine drinkers. It also pointed out that the population of regular wine drinkers is ageing, with a quarter now aged over 65 compared to 9% in 2012. Also, younger, urbanised and educated workers have tapped into the wine culture since the turn of the century and while most of Europe has witnessed significant falls in wine volumes in the past five years Ireland’s wine market has grown by about 5% during the same period. “Set against this, Ireland has taxed alcohol more severely than most other European countries. It currently has the second-highest excise duty levied on alcohol generally and the highest on wine within the EU. As Irish campaigners for lower taxes on wine like to point

out, Ireland’s rates of duty on wine are 80 times those of France. “However there seems to be something of a silver lining to this aggressive tax policy – or at least that’s one possible reason why Ireland’s wine consumers are among the most knowledgeable of any market that Wine Intelligence tracks. “The theory is this: the relatively high taxes – duty on a 75cl bottle of wine is €3.18 plus consumers pay 23% VAT at the point of purchase – make the consumption of wine a more thoughtful affair from the start. “Spending €10 or more on a bottle makes you more likely to think about what you’re buying; knowledge about brands and value for money also matters more. “Such theories are ripe for criticism” admitted the report, “and clearly there are plenty of other confounding variables such as underlying education levels and the level of sophistication of the supply chain (especially the on-premise). There is also a question of how one measures ‘knowledge’.”

WI’s knowledge index Wine Intelligence’s knowledge index measures awareness of different wine-producing countries, regions, varietals and brands. The more of these facts one knows, the better the score. In the case of Ireland, the knowledge index stands at an average of 47.4 (zero - you know nothing, 100 - you know everything). “Compare this with other Englishspeaking markets: 35 for Canada, 41 for the UK and 29 for the USA.” Wine Intelligence wondered why Ireland was so far ahead.

Brand awareness “Looking at the data, country and regional awareness are reasonably comparable between markets (although most of the time Ireland comes top). “The big difference seems to be in Irish consumers’ relationship with brand. In Ireland, every one of the top 10 brands have awareness

DRINKS INDUSTRY IRELAND | August 2020

levels of over 60%. In Canada, just four brands exceed 60% awareness; in the US, three; in Germany, only one. Brand, it seems, is a more familiar concept in the wine category in Ireland than anywhere else.” Of 10 well-known brands, eight are New World in origin, reflecting the strong performance of brand owners from Chile, Australia and California over the past decade. However it feels like the tide may be turning more in favour of Old World producers in 2020. “Our data is showing growing usage of red wine, wine from Spain and wine from Rioja in particular, a finding supported by some of the interviews we did for the Ireland Landscapes report.” Along with Spain, France and Italy were performing quite well with significantly higher proportions of people now consuming wines from these origins since 2012 – in Italy’s case undoubtedly boosted by Prosecco which has doubled its volume sales in Ireland since 2014 and currently dominates the sparkling wine category. However trade experts here suggested that its popularity is beginning to tail-off as consumers may be getting bored with it, attributing its popularity to the lack of valuable alternatives. “The low price of Prosecco makes it unbeatable in the sparkling category” states the report, “in fact, Prosecco is the only sparkling wine that is considered frizzante rather than spumante; this distinction allows it to be taxed as a still wine, keeping the price substantially lower than other sparkling wines.” Nevertheless, 57% of all Irish regular wine drinkers claimed to have drunk Prosecco in the past 12 months. “By contrast, Australia is suffering in Ireland, seen by declining sales volumes and decreasing proportions of consumers drinking wine from that country.” Trade experts suggest that New World wines are suffering because consumers perceive them as ‘supermarket wines’, therefore cheap, believed Wine Intelligence. Trade experts also suggest that Rosé consumption was on the increase with almost two-fifths of the population having consumed it ‘in the past 12 months’. France tops the country of origin table at 42% compared to second-placed Spain on 26%. But Spain is doing extremely well in Ireland, with more than half the population having drunk Spanish wine ‘in the past six months’ according to the report. Ireland Wine Landscapes 2020 exposed several wine consumer shifts in the Irish wine market, revealing an evolving wine consumer who’s increasingly involved in and confident about the category along with having more established wine preferences. Wine Intelligence also pointed out that almost half of the regular wine drinking population now considered alcohol content to be ‘important’ or ‘very important’ when choosing which wine to buy, “a percentage that has significantly increased since 2012. Trade experts also confirm that they’re seeing increased interest in the lower and no alcohol wine category, indicating opportunity for this niche sector. “When it comes to retail, Irish regular wine drinkers are no longer buying wine from top retailers such as Tesco or Dunnes and are alternatively choosing to buy wine from discount stores Aldi, Lidl and SuperValu.” The full £2,500 report is available by e-mailing Courtney Abernathy at Wine Intelligence: courtney@ wineintelligence.com.

OFF-TRADE DEVEL OPMEN T S

8 CSNA Chief advises members not to proceed with structural alteration of outlets during crisis

CSNA seeks deferral of structural separation date The Convenience Stores and Newsagents Association has written to the Department of Health and to its Minister Simon Harris asking that the original November date set for the commencement of structural separation in line with Section 22 of the Public Health (Alcohol) Act be deferred to a later date. The primary difficulty seems to be that the CSNA cannot envisage a scenario where shopfitters could possibly carry out the significant changes involved in compliance whilst at the same time observing physical distancing. “It makes practical sense from a timeline point-ofview,” CSNA Chief Executive Vincent Jennings told Drinks Industry Ireland, “If you have to get shopfitters to carry out structural separation in 3,000 outlets around the country then by the time that we all have the freedom of having people walk into our store before the end of September and to comply with this legislation, it would be an absolutely horrendous situation.” A meeting had been scheduled between the CSNA, the Depart of Health and officials from the Environmental Health Services to discuss implementation of the structural separation requirements but these plans were interrupted by the onset of the Coronavirus crisis. Vincent Jennings sought clear indications from government about this. “All other matters relating to the Public Health Alcohol Bill are not reliant on structural separation and we have to be sensible about this,” he said, adding that, “A lot of other government departments have had to ameliorate things as a result of this outbreak. Different government departments have had to change the way they expect their ‘customer base’ to change.” The CSNA is very aware that there are “very real additional risks to customers, staff and suppliers if retail stores carry out works that would be in contravention of the fire, health and safety and building regulations”. The Association has received an acknowledgement from the Minister’s office and hopes to share its concerns with the Department once it gets a rescheduled date. “It’s our job to bring these things to the attention of the minister,” Vincent Jennings told Drinks Industry Ireland, “It’s going to be really really difficult if these social distancing requirements are still in place and it’s not in anyone’s interest to be in contravention of the law.” In the meantime the Association has advised members that it cannot recommend they proceed with modifications to their store. n

M A I N S T O RY

August 2020 | DRINKS INDUSTRY IRELAND

What can we expect from consumer behaviour coming out of lockdown?

“Pubs should be identifying their ‘early adopters’, their risk-takers and the people who’re going to be first through the door, giving them a great experience and encouraging them to go forth and talk about that experience to everybody else. “Nobody really knows what it’s going to be like… and we’re a bit unsure of what the experience looks like, how we’re supposed to behave and that sense of uncertainty makes us hold back.” So the more good experiences are reported back, the sooner others will feel confident to come out.

t may sound trite to say that, with Covid-19, the eating and drinking landscape has completely changed but consumer behaviour was charting a change in direction, setting a new course in pubs and bars long before Coronavirus struck. The pandemic merely accelerated the blurring of boundaries between what bars, restaurants and off-licences offer. So how can businesses adapt and re-invent themselves? How are they to recreate that “pub experience” in this ‘New Normal’ where we’re all feeling our way? Drinks Industry Ireland’s podcast on the subject hears from Behaviour & Attitude’s Maggie Matthews, who ran the weekly qualitative Lockdown Diaries at B&A and who’s been reviewing how consumers feel about returning to a number of different areas. She’s joined by MCCP’s Senior Strategist Michael Rekab who made a presentation at an MCCP trends event recently.

Consumer confidence There’s a need to address consumer confidence in the ‘new normal’, believes Michael. “We found that on the subject of pubs re-opening consumers said, ‘We need somewhere safe to socialise but we really miss our friends and the pub’.” Everyone wanting to get out has to contrast this against their safety in doing so. “Due to the virus we’ve been trained to look at other people as potential spreaders,” he says, “So are they asking to return to the pub? Yes! But they want to do so in safety”. The majority of those MCCP questioned had no wish to visit the pub in the first week of opening but that majority also said ‘yes’ to visiting a pub in the first month following re-opening. “This played off in every demographic,” he adds. Tensions were more prominent on safety concerns in the older cohorts while the younger cohorts appeared less concerned about safety to themselves directly, but lots did worry about spreading the virus to others. Nevertheless, they were more positive and eager to get out to the pubs.

Importance of clarity in communications

In a recent Drinks Industry Ireland podcast Behaviour & Attitude’s Maggie Matthews and MCCP’s Michael Rekab discuss what we might expect from consumer behaviour coming out of lockdown and how publicans might deal with it. Restoring confidence But the rural pub customer presents a different demographic altogether which Maggie reckons to be a huge challenge. “A lot has to be done in terms of making people feel safe and secure,” she says, “A lot of this comes down to appearances, optics – the kind of theatre around making people feel safe. There’s a need for very visual markers such as hand-sanitisers and screens etc which can be useful in clearly signalling to customers that their safety is being prioritised. “Word-of-mouth will be a really huge factor in making people feel safe and confident about returning.

Clarity is really important with all the new behaviours and rules being asked of us. They’re very different to what we experienced before and that’s no different in the pub setting where customers need to be very clear about what’s expected of them in entering the pub in this ‘new world’. But it’s also about being very clear about what the publican and the pubs themselves are doing to ensure that their own safety and that of the customer is paramount. Demonstrating actions taken in this direction can be some of the building blocks for a successful atmosphere because people come to the pub to relax and let go of the pressures of life for a couple of hours so knowing how to behave is fundamental to that. But equally the pub is “hospitality, not hospitals” as Michael heard someone say – and that’s really important too, “….. so, yes, signalling around hand-sanitisers and hygiene in general is crucial but it’s also important to be welcoming and understanding that the new behaviours are difficult for people to adopt - and to understand that people are there for a good time and so to not come down heavy on people but create a dialogue between customers and publicans around how they need to behave in order for everyone to have a good time. “That’s about having the right signals but not being too restrictive, not having screens between every single seat but doing just what needs to be done, which is to create a distance around things and to communicate with people clearly.”

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Consumer discomfort Michael believes from speaking to customers that there’s a lot of mistrust of other people, particularly amongst older groups who don’t trust the behaviour of younger groups and this will impinge on their pub experience and hold them back from going to the pub, he says. They want reassurance that they’ll not be in danger of getting the virus. Older people seem to want a quieter, more spaced-out experience. They’re mistrusting of others not respecting that. Publicans and suppliers need to find a way to service the needs of both older and younger customers.

“Social Distancing makes hanging out at the bar and chatting with strangers impossible” - Maggie Matthews.

Younger customer needs Younger customers are most concerned that the pub “atmosphere” will be changed now that the possibility of spontaneously interacting with strangers outside one’s group of friends seems less likely. “In the short term that will be a difficult area to crack for publicans” says Michael, “but as demographics get older there are opportunities there to create more low-key safe atmospheres as we go forward. “The younger cohorts could also maybe ‘reframe’ the pub as somewhere that they could come in for a couple of drinks with their close friends earlier in the evening and then move on to be in line with those restrictions around time and Social Distancing etc”.

Reimagining the post-Covid bar experience So if ‘hanging out’ at the bar and meeting strangers has gone, how can pubs refocus their customers’ attention? The famous Irish pub experience as we know it is not possible in its entirety today. “Social Distancing makes hanging out at the bar and chatting with strangers impossible,” agrees Maggie. Some of the reports she’s getting from consumers indicate that if they go in and try to recreate the experience that they know, they’re going to be disappointed. Therefore the post-Covid bar experience has to be re-imagined. “Some of the key experiences that would have defined the Irish pub experience – hanging out at the bar with the craic and banter with the barman - and at the end of night, meeting up with friends and strangers on the dancefloor – that’s just not possible to have in the current time.” So re-imagining the bar experience to be the best it can be now involves putting focus on different aspects of the bar experience and how best to communicate that. It’s about how the experience can evolve in the current situation. “Now it’s less about the intimacy with strangers and acquaintances but the current experience can be about intimacy, fun, craic, banter with friends at the table.” The focus and energy has therefore spread out from the central bar area to re-focus around tables. A lot of this will be down to bar & waiting staff being able to build atmosphere and fun at the table. Indeed, the table has now become the theatre and space for brands to ‘play’ in – one of the key aspects of the new experience. Rather than looking up to the bar, customers will be looking horizontally at what’s going on at other tables in terms of brand affinity, she explains. B&A’s consumers have been saying that the role of the bar staff will be very important going forward. Their ability to manage that is going to be really significant. “It will fall to them to help build the atmosphere, to encourage the banter and craic but at the same time to manage it when it gets ‘out of hand’,” she says, “Finding that sweet spot between relaxed enough to have fun but not too relaxed that we forget ourselves altogether – the bar staff will have a huge role in maintaining and managing that and making sure that people have a really good evening.”

Publicans and suppliers need to find a way to service the needs of both older and younger custoers, says Michael.

Pre- & post-pub drinking Unsurprisingly perhaps, Maggie had found that a two-hour time slot was “not most people’s idea of a great night out”. Consumers therefore had a desire to lengthen the night. We’re already familiar with predrinking but we’re going to see a lot more of it now, she predicts. That 50% of those questioned by B&A planned to pre-drink was, perhaps, not surprising but Maggie also explains that a new occasion has emerged: the post-pub drinking occasion. “That’s going to become a much more important occasion for people, with 53% planning post-pub drinking.”

Balancing atmosphere with safety In addition to adhering to the official guidelines, Michael suggests remembering to try to apply them in the best way possible in one’s own bar, balancing atmosphere with safety. The bars that get that tradeoff right will be the bars that do the best in this coming world as long as it lasts. Michael advocates listening to customers too. It’s difficult to get it completely right the first time round but a dialogue between the customer and bartender will allow publicans and pubs to refine their measures and make sure that they’re working and retaining that relaxing atmosphere while still putting safety at the forefront of everyone’s mind. n

A D VE R T O RIAL

-- Q&As with Commercial Director David Whelan

Bulmers Ireland –

becoming a more customer-centric supplier

The C&C Group is renaming its operation in Ireland from C&C Gleeson to Bulmers Ireland. Drinks Industry Ireland speaks with Bulmers Ireland’s Commercial Director David Whelan.

1. What’s behind the change of name from C&C Gleeson to Bulmers Ireland?

2. How did you come to acquire Budweiser into your expanding drinks portfolio?

Our objective is to better align our businesses’ operations to meet our customers’ requirements. We feel it’s appropriate to bring our businesses under one common umbrella to reflect the strength and standing of Bulmers, one of Ireland’s most iconic brands. We hope that the rebranding reflects a modernisation and simplification of our business model.

Bulmers Ireland and the Budweiser Brewing Group, a subsidiary of the world’s largest brewer AB Inbev, have agreed a very significant expansion of the existing multi-year distribution partnership. Since 1st July 2020, we’ve assumed full responsibility for the distribution of Budweiser Brewing Group’s entire beer brand portfolio across the Island

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DRINKS INDUSTRY IRELAND | August 2020

of Ireland. In effect this means that we’ll add the iconic Budweiser brand to the existing portfolio which includes brands such as Stella Artois, Beck’s, Corona, Leffe and Hoegaarden. The agreement also includes the kegging of Budweiser in Clonmel. C&C Group has been working with Budweiser Brewing Group since 2009 and has been responsible for brewing and distributing a selection of the brewer’s brands in Scotland, Northern Ireland and the Republic of Ireland. The new deal will see Bulmers Ireland take on Budweiser Brewing Group’s full beer portfolio. Both of our businesses are committed to creating an enhanced focus and increased investment on the Budweiser brand throughout Ireland. It’s an incredibly exciting opportunity to work with the world’s largest alcohol brand and we believe it will step change our business in Ireland. In addition to increased brand investment we’ve recently employed a team of sales and marketing people to work exclusively on the brand. The association of the brand with the returning English Premier League and Superbowl are perfectly aligned to customer occasions in Irish pubs. Our team have been incredibly encouraged to hear our customers talking positively about the Budweiser brand and recounting its former days of glory in the Irish on-trade; we recognise that we’ve a big challenge to rebuild confidence in the brand, but we believe that with a renewed passion and energy driving the brand we will deliver an exciting future for Budweiser in the on-trade in Ireland.

3. How are you responding in terms of innovation by way of benefitting your customers? Over the past number of months, we’ve listened to our customers and we’re attempting to understand their evolving requirements. We’ve focused our efforts on two areas: enabling our customers to re-open their pubs with a sense of safety and - as our customers demonstrated an increasing need to embrace the latest technological developments – we’re investing €1million directly to the trade as a part of our Hygiene Project. C&C Hygiene is an initiative that has supported our customers in preparation for the re-opening of pubs. C&C Hygiene offers publicans support

through three key phases. During the Pre-re-opening Phase, C&C Hygiene supplied physical materials to help publicans ensure they’re providing a safe environment for customers in line with HSE guidelines including divider screens, hand sanitiser dispensers and foot handles for doors. As part of the Re-opening and Ongoing Phases, C&C Hygiene has launched www.hygieneaware.ie, to provide quality hygiene products, advice for business owners and helpful information for managers and staff working in the hospitality industry. The second key initiative under C&C’s 360-degree solution for the new pub environment is the new C&C Hygiene product range of high-quality hand sanitation and pub hygiene supplies which publicans can purchase at bestin-market prices, simply and efficiently, through one order, one invoice and one delivery.

Another initiative is a new online ordering platform and a new consumer app known as ‘LOCAL’ which allows consumers to make advance bookings, order drinks from their table and make payments. The LOCAL app connects customers with local food and drinks businesses by facilitating home deliveries, click-and-collect and onpremise table service. LOCAL aims to support pubs looking to offer delivery or collection services but currently have no technology solution. Transaction fees of 2% per order will be re-invested into LOCAL, with any excess made during 2020 being donated to healthcare charities across the island of Ireland.

4. Looking to the future We look forward to building on the foundations built last year with the resurgence of Bulmers’ performance. Despite increased competition Bulmers still accounts for over three in four pints

of cider consumed in the on-trade. Our innovation team introduced Bulmers Rosé and Bulmers Zero to meet changing consumer requirements. Five Lamps had an outstanding year building on the success of our new Visitor Centre at The Camden in Dublin City Centre, delivering year-on-year growth of over 40%.

5. As the country’s Number One distributor, it’s third-largest beverage company and the One Stop Shop for the licensed trade, what can the On-Trade look forward to as it emerges from lockdown? There can be no doubt that the Irish OnTrade is facing an incredibly challenging period but most will be encouraged by the support they’re receiving from fellow publicans, customers and the trade. We recognise that the Irish On-Trade is experiencing the worst year in the history of the pub trade; it will also require further clarity and support from Government on re-opening timelines and requirements. We fully endorse the industry demand for VAT reductions, continuing the Wage Subsidy Scheme and Support Grants. The Irish pub is uniquely loved and important to the economy in Ireland. We recognise that the current uncertainty is demoralising for pub owners, their families and staff. Bulmers Ireland intends to continue it’s support programme to help the trade on its journey to recovery. Over recent months we’ve fully supported publicans to agree payment plans that reflect the day-to-day challenges of their business. We’ve agreed to fully credit all stock for any of our brands that publicans were unable to sell during the Covid crisis. We’re investing in our Hygiene project to support creating a safer and more consumerfriendly pub environment. We will make our online ordering platform available to all of our customers as they continue to expect high quality online ordering capabilities from their suppliers. The one thing that we know is that Irish publicans are resolute; it’s what makes their pubs what they are. While this crisis is a big challenge for the trade, it is one that we will overcome. n

I N D U S T R Y RE PORT

August 2020 | DRINKS INDUSTRY IRELAND

‘A fifth of UK consumers feel ready to return to hospitality as soon as they are able while others have varying degrees of hesitancy.’

“Pivoting is the buzzword of the era…” -- Rebooting the restaurants & bars – the global experience

On the day that restaurants, pubs and bars in England were given the green light to re-open from the 4th of July, market insight analysts CGA and the Atlantic Club set out what the new landscape might look like in an industry global webinar. Chaired by CGA Vice President and Atlantic Club Founder Peter Martin, industry leaders looked at the US, China and Europe’s experiences of re-opening. These are 10 of the top messages to emerge from the webinar: 1. A cautious return Nielsen CGA’s research indicates that 41% of US consumers went out to eat or drink at least once in the first two weeks of June - and three quarters of them (75%) were satisfied with the health and safety precautions they found. Even with extra measures, 74% were also satisfied with the experience and 73% with the atmosphere. While that’s a positive sign, it does leave a majority (59%) who’re not going out, usually because they don’t feel safe enough to be in close proximity to others or simply because they need more time to feel comfortable. While US sales were picking up, they were still some way off pre-lockdown levels. It’s a similarly mixed picture on this side of the Atlantic where a fifth (18%) of UK consumers were ready to return to hospitality as soon as they were able while others had varying

degrees of hesitancy. “It’s clear that consumer appetite is there to return… but it’s going to be key to understand what will give them that confidence to get back out there,” said Nielsen CGA’s US Retail Services Director Alexandra Martin. 2. Localised eating and drinking Having stayed very close to home during lockdown, many consumers may well continue to eat and drink locally when restrictions ease. That’s confirmed by CGA’s research in China where a quarter (25%) of consumers said they were visiting nearby bars and restaurants more frequently than they did before the pandemic. “Local venues have a real opportunity to capture consumers… but city centre venues may find themselves struggling with capacity restrictions, higher overhead costs and consumer caution,” warned Alexandra Martin.

3. A laser focus on hygiene It’s clear that ultra-high standards of care and hygiene will be needed to convince wary consumers that it’s safe to venture out after lockdown. New research from UKHospitality and CGA reveals that table spacing, ample hand sanitiser and contactless payment are their top priorities but there’s much more to consider besides. It will take a comprehensive and clearly-communicated package of precautions to address concerns. But the good news is that consumers are willing to be convinced about safety, with two thirds (64%) agreeing that they’ll visit venues more if they make them feel safe during the first visit. It’s a reminder that initial impressions are going to be hugely important in reassuring consumers - and prompting them to tell others that it’s safe to go out too. Visual clues to measures being taken – like staff with stickers showing they’d been health-

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checked that day - and signposting around sites are going to be vital, the webinar heard. 4. Consumer goodwill If there was any doubt whether consumers’ affection for restaurants and bars would survive lockdown, it was settled by The Great American Takeout campaign in the US. Co-creator Sarah Grover told the webinar that the grassroots campaign to support the industry by buying takeout instead of eat-in had reminded people of the value of restaurants in everyday life. With 100,000-plus social media mentions, 174,000 website visits and 36% national awareness of the campaign in just a week - not to mention $310,000 raised for industry charities - it sustained thousands of group and independent restaurants over April and May. “People literally ate it up,” said campaign adopter Stacey Kane. The success of a follow-up promo, Plant-based Party for the Planet, has generated huge exposure too, showing the power of cross-industry collaboration. 5. Flexible space As operators work out how to re-open sites, the watchword will be flexibility, believed Philip Harrison, Founder of international design specialist Harrison. Restaurants, pubs and bars will first have to adapt their spaces to meet Social Distancing guidelines - and if government requirements change, as they may well do, then more adjustments will be needed. “Flexibility and being able to increase or decrease capacity and introduce and take out measures without hurting the ambience of your space… is going to be very important.” 6. Operational ‘pivoting’ The pandemic has led many US operators to make significant changes to their operations, said top US menu trends expert Nancy Kruse. From The Cheesecake Factory trimming 40 menu items to Chickfil-A moving into meal-kits, big brands have been changing direction to shore up sales while others have been trying digital activity like online cooking or mixology classes. Yavuz Pehlivanlar, Chief Operating Officer of the Miami-based 50Eggs group, said face-to-face interaction

had to move online. “I think digital is the way to go… we need to reinvent the consumer experience.” Nancy Kruse added, “Pivoting is the buzzword of the era… we’ve seen an extraordinary upturn in creativity.” More of it will be needed in the months ahead. 7. A need to reassure teams Like most people, teams across hospitality have been unsettled by the pandemic and they’d need careful management when venues re-open, said Luke Fryer, New York restaurant owner and Founder of the Harri platform for hospitality workforces. “There’s a great degree of anxiety and a sense of displacement and uncertainty… A lot of people are

“Our premise has been ‘don’t do marketing, do good’ and I think that will stand us in good stead as we open.” 9. A desire for escapism Many of the consumers returning to restaurants, pubs and bars seek an escape from the concerns of the pandemic and a change of scene after being at home for so long. For operators the challenge is to deliver that without compromising the health of guests and staff, said David McDowall. “Escapism is more important than ever,” he said, “It’s going to be a balance of making sure that people feel safe… and giving them that moment of escapism and magic that they’re craving.”

CGA’s research in China found that a quarter of consumers were visiting nearby bars and restaurants more frequently than they did before the pandemic.

wondering where they fit in the hospitality industry… [and we need to] keep everyone assured, especially the career-minded people who want to know that there’s a long-term future here.” 8. Credit for pandemic support Brands that have helped their local communities and good causes during the pandemic could well be repaid in customer loyalty when they re-open. Washington DC-based Knead Hospitality has supported charities and turned a restaurant into a grocery store during lockdown. “I really believe that’s going to pay off for us—we wanted to stay top of mind and part of the community,” said its Chief Executive Jason Berry. David McDowall, Group Chief Operating Officer at international brewer and bar operator BrewDog, said it had been an opportunity to spotlight the culture and ethos of his brand.

10. Optimism The webinar ended on a positive note, emphasising consumers’ desire to eat and drink out again. “People are ready to come back to restaurants… they’re going to adapt to the new norm quickly,” said Terry Varner, President of US-based construction business Herman/ Stewart. Jason Berry agreed there was “a pent-up demand” and David McDowall pointed out that, “What’s been consistent across the board is that hospitality is important to people.” Nancy Kruse added, “The big question will be safety… but ultimately I’m very optimistic because I believe in the creativity and relevance of the sector.” The Rebooting Restaurants and Bars: The Global Experience webinar was hosted by CGA and Peter Martin’s Atlantic Club. It was partnered by Harrison, Harri and Herman/Stewart. n

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August 2020 | DRINKS INDUSTRY IRELAND

The more adventurous Mixer market M

ixers take the cake for being the fastest-growing carbonated drinks category with the rise of premium accompanying that of health awareness (not to mention the rise of ‘craft’ and dark spirits preferences), all leading to healthy demand for a variety of quality mixers in the on-trade. This new wider range of mixers can also be used as part of the on-trade appeal to people abstaining from drinking or those aiming to moderate their alcohol intake.

of avoiding higher alcohol beverages) as well as in darker spirits where the mixers have been specifically designed to complement these darker spirits. And suppliers of mixers for darker spirits believe that publicans can take advantage of this through customising mocktails to the outlet in question or by putting a unique twist on some classic favourites. A good mixer is one that enhances and complements the flavour of a spirit rather than overpowering it.

Changing mixers market

Quality mixers

Mixers, just like those drinking them, are changing. What had been a conventionally narrow category has blossomed into a multi-faceted one that has a mixer type for nearly every occasion depending on the curiosity of the consumer. This has become increasingly manifest in the world of mocktails. Other emerging (and emerged) trends in the mixers market include the arrival of low-sugar options where the days of sugar-laden mixers find themselves on the back foot. Today’s mixers can be found in long NoLo drinks (which themselves reflect a growing openness to the concept

The mixer market is no different from the spirits market or any other beverage market in that today’s consumer seeks a quality product and is prepared to pay for it. This is evident in that the classic combination of gin & “tonic” isn’t cutting it any more. Many customers now look for something different and specific. People today tend to know their tonic waters and want to experiment with different taste differentials within the tonic water category. Now they can. And they’re far more adventurous about doing that, not at all afraid to brand call where appropriate.

Soft drinks innovations

Market analyst CGA in the UK has found that soft drinks innovations offer something new and exciting to consumers, especially considering that nearly nine in 10 consumers like to try different new drinks when out. CGA’s BrandTrack from July 2019 found that - when asked - 45% of consumers said they’d tried something new or different over the last six months. Soft drinks can be significantly affected by non-category influences such as the growth in spirits consumption, particularly gin – we’re already seeing suppliers look ahead to try and tap in to the next spirits category boom. CGA’s Drink Tank Soft Drinks report last November identified a number of soft drinks trends such as: With food – In the UK, the sector is ranked as the top choice for consumers for food-led occasions. And while it’s behind Lager in drinkled, it’s still the number two sector here as well. Health - Last year 66% of adult consumers in the UK agreed in a

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Brand Track survey (in April 2019) that they ‘proactively try to lead a healthy lifestyle’. This was up seven percentage points on the April 2017 figure. Some 59% of UK soft drinks consumers agreed that they’d ‘like to see more healthy soft drinks on offer’. Premium - Premium mixers are now stocked in over half of the UK’s ontrade universe; two-thirds of this distribution now sits in mainstream venues – a clear sign that premium spirits and particularly the gin trend has had a huge effect on mixers. NoLos – No alcohol/Lo alcohol drinks are one of the key trends across the trade and one which will have an impact on soft drinks, offering a genuine threat to the sector with onethird of UK consumers having drunk a NoLo alternative in the last six months.

Mixer competition

CGA’s BrandTrack July 2019 finds that NoLo beers, spirits, wines and cocktails don’t just appeal to teetotallers. Only 26% of teetotallers report drinking a NoLo in the last six months, lower than the 32% average reported.

As NoLos form a category aimed at the masses, it’s a huge competitor to the soft drinks market, especially considering that consumers also believe that soft drinks ranges are currently too narrow and therefore desire a wider product range offering. “It will take strong support from suppliers to promote their premium or adult-targeted products to ensure consumers stay in the traditional softs category and are not lost to the noisy NoLo sector,” states the report. NoLos offer a genuine threat to the sector, but premium offerings and wellexecuted New Product Development can defend against this, believes CGA.

Poachers

The inspiration for the Poachers range of premium natural mixers was found in the ingredients grown on a centuries-old family farm located in County Wexford. The company, founded and owned by Irishman

Brendan Colbert in 2017, now exports to over eight countries and counts some of the best high-end bars and restaurants as customers. “Our vision at Poachers was to create something uniquely Irish in its appeal and in doing so we use high quality natural and indigenous ingredients across our entire range,” he says, “Our focus has always been on lower sugar, natural finishes that

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don’t compromise on flavour. We see the significant effort that a lot of producers put into making great spirits and we want to add to that and enhance it.” As the growth of Gin and Tonic continues globally, Poachers has also expanded its Great Taste awardwinning range to cater for other premium long drinks in launching its premium Ginger Beer this September, made with Irish apples. “We see a great enthusiasm in the Irish consumer not only for more premium spirits but also a willingness to experiment with flavour and fun,” says Brendan, “As an Irish long drinks company we want to be part of that journey in a very high quality way.”

The premiumisation of the mixer and soft drinks category

Mixers, the fastest-growing carbonated drinks category in Ireland, follow rising numbers of consumers drinking less but better quality, with particular growth in the premium soft drinks market. Combined with the long-term trend of lighter, lower calorie, lower sugar drinks, this means that brands have had to broaden their product offering to include ‘healthier choices’ that strengthen consumers’ overall drinking experience in terms of taste, serve and enjoyment. At the forefront of this is The London Essence Company, a premium drinks brand producing elegantly distilled mixers designed to accentuate the finest spirits. At under 20kcal per 100ml, each expression is low in sugar at under 4g per 100ml and crafted without artificial sweeteners thanks to its unique use of distilled essences. “Following the long-term trend towards sugar reduction across the world and being consumers of premium drinks ourselves, we found that many ‘premium’ options focused

August 2020 | DRINKS INDUSTRY IRELAND

on natural credentials but were also very high in sugar,” said Britvic Ireland’s Brand Manager Brian Greer, “It’s important to deliver light, natural options that also have great taste to ensure overall enjoyment.” Through its relationship with the ontrade and conversations with worldleading bartenders London Essence recognised that high sugar mixers often overpowered the characteristics of the spirit partner instead of enhancing them. The brand therefore took inspiration from its heritage in creating distilled essences capturing the flavour of the finest ingredients to deliver aromatic signature notes and great taste with only a dusting of sugar. A huge shift change has seen people reducing their alcohol intake leading to an increase in the NoLo drinks category here too. Capitalising on opportunities existing in other drink categories (namely wine and vodka) and helping deliver significant growth in its adult portfolio, London Essence has launched a range of flavoured soda waters. The range can be mixed to create unique twists to white wine or Prosecco spritzers and elevating the Vodka Soda serve to new heights. “A sign of a sophisticated mixer is when they can be enjoyed in any form – with or without a spirit – to satisfy all drinking occasions and preferences,” adds Brian. The London Essence Company welcomed a new Original Indian Tonic Water to its collection last September, light and low in calories, with naturallysourced sweetness and no artificial ingredients. It features a precise balance of Lemon and Lime combined with aromatic Calamansi extracts to deliver a unique tropical note, layered with a hint of Chinotto and Juniper for a bitter tonic finish. The London Essence Company

collection includes: Original Indian Tonic, Classic London Tonic, Grapefruit & Rosemary Tonic, Bitter Orange & Elderflower Tonic, Pomelo & Pink Pepper Tonic, Delicate Ginger Ale, Perfectly Spiced Ginger Beer, Soda Water, Rhubarb & Cardamom Crafted Soda and White Peach & Jasmine Crafted Soda.

Club Mixers: lifting Irish sprits since 1852

Even since unveiling a complete relaunch of its iconic range back in 2017, changes continue to evolve for the better at the number one Irish mixer brand Club. The brand recently underwent liquid reformulation, reducing the sugar content to below the sugar tax threshold in both Club Mixers Tonic Water and the Club Mixer Ginger, joining the rest of the mixer portfolio. The two quickly received quality taste awards with the new Tonic Water successfully regaining a Superior Taste Award (3-Star) from the International Taste and Quality Institute and Ginger Ale gained its first ITQI accolade with a Superior Taste Award (2-Star). The Tonic Water was first awarded this accolade back in 2017 when it relaunched with a new look highlighting its heritage and its improved and award-winning taste. Club Mixers are rolling-out a significant marketing campaign including experiential and sampling, consumer PR, trade press, Point of Purchase communications and digital support as the brand looks not only to retain its relevance with its loyal consumers but also recruit new drinkers. “It was very important for us to keep such an iconic Irish brand contemporary and relevant to the modern consumer,” said Britvic Ireland Brand Manager Brian Greer, “Our focus has always been to deliver a unique and superior taste experience which is why being internationally recognised as delivering an exceptional taste was such a proud moment for the brands’ key varieties in Tonic water and Ginger Ale and reaffirms the strength of our offering in such a competitive space. We’re delighted with our two new liquids, ensuring we kept to our key objective of not compromising on taste when reducing the sugar content in each.” Club Mixers are the perfect accompaniment to spirits, expertly designed to blend deliciously with gins, vodkas and whiskeys, he added. n

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August 2020

Bottled beers & ciders – a ‘stylish’ choice With the trend towards ‘local’ on the up, bottled beers & ciders are riding a wave of popular demand during these times. Our Industry Report reviews the market for bottled beers & ciders.

n keeping with a developing trend, consumers are seeking so-called ‘craft’ products, especially if tied to a particular locality and nearly all such products are delivered to the consumer in bottled format so bottled beer and bottled cider are again beginning to gain momentum. As bottled beers and ciders have always been a popular on-trade consumer choice, is it now time for the publican to acknowledge the wide range of different bottled beers & ciders on offer with a printed menu? This would allow the beer and cider afficionado to be better informed about the many different premium styles now available in bottled format in your own outlet. Indeed as we come out of

lockdown the vintner should be considering offering a drinks menu or a blackboard that highlights the different draught and bottled beers and ciders on offer, even featuring them under a range of subheadings. In its last report, Drinks Ireland|Beer estimated that packaged beer grew its volume share of the total beer market in 2018 to 49.8%, thus overtaking draught product’s 48.6% share.

Bulmers Rosé

Bulmers Rosé made a timely reemergence onto shelves nationwide in July, adding some much-needed colour to 2020 with a new improved recipe. Initially trialled across a limited period in Summer 2019, Bulmers Rosé is returning for 2020 with a sweeter, more distinctive Summer flavour making it >>

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appeal to those who enjoy other ‘pink’ drinks like gin and wine. Produced in Clonmel, County Tipperary, Bulmers Rosé is made with the same 17 varieties of apples and the same dedication to the craft as the Original to be ready just in time for the perfect Summer’s day. With an ABV of 4%, Bulmers Rosé comes in a 330ml bottle and is best served over ice, just like the Original, making it the perfect cooling Summer drink for enjoying with friends at a picnic or just for treating oneself at home.

OJ Fruit Flavoured Beer hits shelves across Ireland

August 2020

DRINKS INDUSTRY IRELAND

OJ Beer was born and brewed in Belgium and is a new taste experience inspired by one of the world’s strongest men, Belgian-born Odo Joost. “With over 20 years of experience in the beverage industry, we’re listening to market needs and are very excited to meet this demand,” states Liquor Zaar, “Our development won’t stop here. We also have plans to broaden our current range with some really cool flavours in the making.” For more information, contact: info@liquorzaar.com www.liquorzaar.com.

Having recently launched with The Barry Group, OJ Fruit Flavoured Beer is now available in all Carry Out Off Licence stores nationwide. Distributed by Liquor Zaar, it has an ABV of 4% and contains 140 calories per 330ml serving; natural fruit includes wild berries, tropical Peach and sweet Apple. Springboarding from the success of its fruit beers across 26 countries worldwide, the range includes OJ Pink, OJ Pomme and OJ Fuzz. Liquor Zaar launched this range following two years of extensive research and development and believes that it has found the perfect balance between a fruit kick and a malt finish. ADVERTORIAL

THE BREWERS AT ST. JAMES’S GATE RECENTLY UNVEILED ROCKSHORE LIGHT BEER The Brewers at St. James’s Gate recently unveiled Rockshore Light, a new beer packing all the refreshingtaste you would expect from Rockshore lager into 73 calories per 330ml bottle, 37% less calories than any other light beer on the market*. The light beer segment in Ireland has been growing rapidly, driven by people actively seeking lower calorie options to suit a more balanced lifestyle yet expecting the same great taste. Rockshore Light is the latest addition to the Rockshore portfolio joining Rockshore Lager and Rockshore Apple Cider, inspired by the bracing refreshment of the Atlantic coast. New Rockshore Light is available in draught, 330ml bottle across IOI plus 500ml can (ROI) and 440ml can (NI). * Based on 22 kcals per 100ml for Rockshore Light Irish Lager. Comparison calculated on Top 10 selling beers in both ROI and NI, average of 35 kcals per 100ml. Source for Top Selling Beers - ©2017 Nielsen data, Volume (Litres) Top 10 Beer Brands MAT November 2019 ROI and NI On and Off Trade Drink Rockshore Light responsibly. Visit drinkaware.ie

Mac Ivors launches new alcohol-free and low calorie cider

Mac Ivors Cider comes from orchards that were first planted by the family in 1855. County Armagh, Ireland’s Orchard County, claims the besttasting apples in the world and at Mac Ivors they know how to make the very best cider. Crisp, fruity and always refreshing, it’s cider that tastes of real apples. >>

FRUIT FLAVOURED BEER ITâ&#x20AC;&#x2122;LL BLOW YOUR MIND

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And there’s no better time for cider time than the Summer time. For those who want the great taste of Mac Ivors cider without the alcohol Mac Ivors has blended its most mature ciders with the finest dessert apples to produce a low alcohol, low calorie option that delivers real cider flavour.

Krombacher pils mini-keg

Krombacher is the No1 Premium beer brand in Germany. Soft mountainous spring water, carefullyselected ingredients and a well-guarded brewing recipe make Krombacher a unique experience in taste and with an extradry finish, Krombacher is an example of Pilsner at its best. Perfect for Summertime barbecues and now available in a five Litre mini-keg.

Crabbies alcoholic ginger ale

In the 1800s the Scottish pioneer John Crabbie became known for his adventurous spirit and for creating unusual drinks that challenged and delighted the senses with a mix of exotic spices and ginger he sourced from far away. Crabbie’s Alcoholic Ginger Beer can today be enjoyed in delightful fruit flavours of Raspberry and Rhubarb. The luscious sweet tones of the fruit cut through the fiery bite of ginger bringing the flavours together in a perfect

accompaniment to a hot Summer’s day. Noreast is proud to continue John Crabbie’s unconventional approach to the business of drinks-making with its range of hand-crafted Alcoholic Ginger beer blends which now includes Crabbies Rhubarb.

Hope Beer

Hope Beer has been producing an extensive range of award-winning premium craft beers since 2016. Its core range of five distinct beer styles is available all year round as well as two seasonals and a wide range of limited-edition beers. All Hope beers are brewed, bottled, canned and kegged at Howth Junction on Dublin’s Northside and are crafted to be the perfect accompaniment to food. Each beer has its own distinct name, story and taste experience. Its flagship IPA, Handsome Jack, is a balanced, smooth, intense and citrusy dryhopped IPA in the American West Coast style. It’s well balanced between the high level of bitterness (thanks to an unusual combination of American and Japanese hops) and the sweetness (provided by Irish Pale malt). It pairs well with burgers and roast meat, pizza, Indian dishes and strong, salty cheese. Its latest - and always popular - Summer Seasonal is an American Pale Ale brewed in the tradition of the classic American hoppy ales using the freshest hops from the Pacific NorthWest namely Chinook, Centennial and Citra. This combination of classic hops means that it’s full of big aromas and big flavours. Great with BBQs, sunshine and Zoom! n

Q& As

DRINKS INDUSTRY IRELAND | August 2020

Q&A with Zoran Peric, Brand Ambassador for Suntory

Just prior to lockdown, we spoke to Zoran Peric, Suntory’s Brand Ambassador who was over in Dublin giving an on-trade masterclass.

t wouldn’t surprise me if International House of Suntory Ambassador Zoran Peric is known as ‘The Iceman’ – he’s big into the use of ice in spirits. Zoran began bartending in his native Belgrade before moving to London in 1996 and tending bar at the five-star Landmark Hotel. He developed his passion for cocktails there and began experimenting with unusual combinations. Zoran joined the UK Bartenders Guild in 1999, becoming Chairman for London and the South East before joining bar, restaurant & hotel group D&D London in 2007. There he oversaw several of the group’s bars with a main focus on the Skylon Restaurant, Bar and Grill. Soon afterwards, he became Brand Ambassador at Suntory, drawing inspiration from Japanese whiskymakers and from the importance of ice carving in Japan – but more of that anon. What’s your role as International House of Suntory Ambassador? I specialise in Japanese spirits such as Haku vodka, Roku gin and Toki blended whisky, launched a few years back. I’m also a specialist in all Suntory whiskies: Yamazaki, Hakushu Single Malt and Hibiki blended whisky. My role is to educate and focus on the on-trade - most of my masterclasses would be in this area. Today, for example, I’ll do an on-trade masterclass for bartenders and this evening I’ll present a food & spirits pairing for consumers; I’ll make a few cocktails and generally promote our brands. Can you describe present trends and developments in the gin category internationally and how Roku Gin fits into this? I noticed the booming gin trend about four or five years ago so when Roku came out it was such a good time to be there. Internationally it’s now booming in countries that never really had a gin presence - for

example Russia where we launched Roku last year in Moscow. In the West it’s doing well in the UK, France, Germany and Spain of course. What’s different about Roku? The final production of a handcrafted Japanese gin, the journey and the choice of botanicals. We hear a lot about “craft” gins but Roku has a very selective production style. Making Roku is like making a whisky: we blend a number of different distillates using copper stills and mixing batches. Six Japanese and traditional botanicals are distilled separately with grain spirits before being blended together. Roku’s a complex gin but it’s also smooth, one of the smoothest spirits around. What are your thoughts on Roku and the relatively small Irish gin market? It’s fairly new to Ireland but we’re hoping it’s Point Of Difference is going to be that as a Japanese premium gin it’s of good quality so I think people will be tempted to try something new and see for themselves. We believe that Roku will open quite a few doors to Suntory products in general in bars around Ireland. Tell me about Japanese whisky and particularly about ice carving I started ice carving outside Japan about eight years ago. At that time

Suntory only had whiskeys in its portfolio. I’d been to Japan a few times by then and thought it might be worth sharing the Japanese way of serving whiskeys in a bar. This happened at a time when London was beginning to seek out information about Japanese bartending. It’s different from Western bartending. To become a Japanese bartender takes way longer than a bartender here – five to six years where they learn additional techniques such as precision and complete product knowledge. A Japanese bartender making a drink behind the bar uses a completely different style where presenting the drink is truly theatrical. It’s very different to a Western bartender. However in the last five or six years Western bartenders have been feeding from Japanese techniques such as stirring or shaking Japanese-style. Eight years ago I’d seen things in Japan that I really loved – ice carving among them, so I started using big blocks of ice for carving for spirits. Part of Japan’s cocktail culture involves glassware (Art Deco or Old Crystal once) or garnishes and now people use premium spirits with premium mixers in cocktails. Then came ice that permitted good dilution and temperature control. The Japanese focus quite heavily on this as it’s important to use clear ice when serving premium spirits because it keeps the drink fresh longer as this form of ice melts more slowly than standard ice cubes. It has also been oxidised so tends to be clear rather than the cloudy milky appearance of standard ice. Second thing is the image. Something served with an ice-ball or a massive cube looks better and adds to the theatre where different large shapes such as balls, diamonds, cubes or even brandstamped ice can be used. n

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Rum –

squaring up to the gin market Rum is regularly mooted as being the next challenger for gin’s crown - with less road to travel than tequila to get there. With flavoured rum, spiced rum and golden rum assuming increased significance in Rum - £250 a shot this category we take a Two Sheffield bar owners went to extraordinary lengths to ensure look at the fortunes of that their customers were some of the first in the world to sample the rum market here.

s with gin, rum looks set to edge more into the premium and flavoured types. These enable mixologists to widen their scope for making rum cocktails beyond the traditional favourites as consumer confidence rises to explore new flavour profiles and categories in the rum sector. More than two-thirds of on-trade rums are ordered with a mixer, so bars can upsell in this category by broadening their rum range on drinks menus (as well as their mixers range) and educating consumers further on pairing and flavour profiles. The end result should be a trading-up of rum cocktail calls which is perhaps why, in the UK, rum is involved in four of the top 10 cocktail calls.

one of the rarest and most expensive rums ever produced.

Rum premiumisation

Premiumisation of the spirits category has been one of the overriding ontrade trends, making it a market driver in developed economies. Thanks to the

Adrian Bagnoli and Brad Charlesworth, owners of the city’s renowned Cubana, did a 9,000 mile round trip to Havana to become the first bar outside Cuba to purchase two bottles of a blend so old and rare that its original designers have now passed.

From left: Brad & Adrian toasting the arrival of the exclusive rum (open box in background) that’s now on sale at their Sheffield bar at £250 a shot.

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rise in middle class consumers in other countries, demand for premium has been accompanied by a demand for exclusivity by way of luxury product from growing numbers of consumers. According to Drinks Ireland|Spirits rum had a 7% share of the spirits market here in 2018.

Off-trade rum sales

Nielsen’s Scantrack of the multiples, symbol groups, discounters, forecourts and specialist off-licences suggests that the total off-trade market for rum stands at €33.5 million in the year to the 14th of June last, up 21% on the previous year to date. However 48% of these sales took place in multiples, with 27% taking place in symbol groups and forecourts, 15% in discounters and just 10% in specialist off-licences although the latter category are witnessing the strongest growth, seeing value sales soar by 37.5% in the last year (and by 121% in the 12 weeks ending the 14th of June compared to the same 12 week period in 2019). In terms of volume, 123,000 cases of rum were sold over the 52 weeks, up 17% on the previous year.

Overall rum sales

Rum has become increasingly popular in the UK too where almost three million cases of it were sold there last year worth a little more than £1 billion, according to the Wine and Spirit Trade Association. The Havana Club 1519, whose ageing process started in the early 1940s, was launched in honour of the 500-year-old history of Havana and has gone on sale at the Sheffield bar. Only 500 bottles exist with only 250 of these available for sale. Collectors from around the globe queue up to buy them at nearly £3,000 a bottle. But at £250 a shot it definitely won’t suit everyone’s palate or pocket. Cubana’s extensive rum menu was voted the UK’s very best by the industry in 2016 and its menu offers 260 different rum varieties. The bar’s collection has been sourced from right around the globe and there are around 70 new additions to it. The fourth edition of its latest rum collection also includes a fivetimes distilled rum from Puerto Rico, six new Haitian rums and a doubling of the Jamaican varieties.

The WSTA states that although the rum market grew by just 1% in the past 12 months, there are signs that the category is evolving. One third of the UK’s rum sales take place in the on-trade and when looking at the flavoured, spiced and golden categories, things look more positive. The Times recently pointed out that rum “now ranks alongside gin and whisky among the nation’s favourite spirits” where a significant growth in sales of ‘golden’ and ‘dark’ rum has characterised the on-trade sector. Premium rum represents 15% of the total UK rum market now and the segment continues to grow with dark rum the category that’s ‘premiumising’ the most.

Black Tears

Black Tears is the world’s first & only spiced rum from Cuba. Completely unique within the rum category it sets itself apart, boasting a low sugar content (only 9g per litre) & a bittersweet flavour. The Masterblender has curated that unique flavour with a blend of spices, all sourced locally in Cuba - coffee, cacao & ‘aji dulce’ (a variety of small sweet peppers). Black Tears separates itself from the rest of the worlds ‘sweet’ rums and embraces the full range of Cuban flavour and complexity that comes with it. Its name comes from a famous

Cuban song “Lágrimas Negras” which tells the a story of love and loss. According to local myth the jilted lover wept black tears which fell into her rum, magically creating a unique bittersweet taste. The brand has earned the Vigia seal of high-quality rum, acknowledging the excellence and passion in the production process. Golden brown in appearance, it mixes beautifully in long drinks and cocktails, adding more depth & drama to traditional rum drinks. Its signature serve, ‘Tears & Tonic’, served in a highball over ice, is garnished with an Orange slice.

Diplomático Rum

Diplomático Rum, the super-premium rum from Venezuela, is one of the most-awarded rums on the planet. In 2018 it was awarded Wine Enthusiast’s

Spirit Brand of the Year, the firstever rum to win in this category and it consistently ranks in the Top Five trending rum brands globally. Renowned for its superior taste, quality & mixability, Diplomático has been producing high-quality spirits since 1959. Distilled from the finest sugar cane honey, Masterblender Tito Cordero (previously named the world’s best Master Blender in 2014) combines traditional and modern methods. The Diplomático Reserva Exclusiva rum blends 80% pot still and 20% light rums aged for up to 12 years in ex-Bourbon white oak casks. The result is a bouquet full of rich notes that range from toffee and caramel to ginger and cinnamon, providing a seductive and long-lasting finish. An exceptional sipping rum that boasts more than 20 awards to its name, Diplomático isn’t just renowned for its exceptional quality, it’s well-known for its sustainability programmes too. The family-owned business has been committed to its ‘zero waste rum’ programme for over 10 years and provides sustainable jobs to over 700 workers in the area. >>

I ND U S T RY RE PORT

August 2020

DRINKS INDUSTRY IRELAND

Pusser’s Rum

Intrepid Spirits has added the multiaward-winning Pusser’s Rum to its portfolio here. Pusser’s won the World’s Best Pot and Colum Still Rum 2019 with its Gunpowder edition. During the recent Lockdown Intrepid Spirits and Pusser’s launched a bartender cocktail competition with a difference, in partnership with tikiguru Georgi Radev of Laki Kane Tiki Rum Bar in London. ‘Cocktails from the Fridge’ attracted over 30 Irish Bartenders who were tasked with creating a drink using only five ingredients from their homes. Darren Geraghty of Candlelight Bar in Dundrum was crowned the overall winner. His creation ‘The Skuttle Butt’ was made up of 50ml Pusser’s Gunpowder Rum, 30ml Orange marmalade, 30ml Coconut yogurt, 30ml egg white and 50ml Pineapple cordial. “This campaign was a great example of the resilience of the hospitality industry in Ireland and something we were extremely proud to be a part of,” said Ian Doody of Intrepid Spirits.

Bacardí

In 1862 Don Facundo Bacardí Massó set out to create a rum like no other, spending the next decade perfecting blends that he was proud to serve to the people of Cuba. He never settled, always looking for ways to improve his product. His spirit lives on today in the Maestros de Ron Bacardí. They ensure that every batch of Bacardí rum lives up to Don Facundo’s unwavering pursuit of perfection; to create rum that, after more than a century-and-a-half, is still worthy of bearing the Bacardí name. Bacardí, the world’s most-awarded rum, has recently unveiled a new Coconut-flavour. Bacardí Coconut is a white rum infused with Coconut flavours which has an intense yet clean flavour of fresh Coconut with a rich tropical aroma. This is the latest addition to the Bacardí flavoured range now comprising Bacardí Spiced, Bacardí Ginger and Bacardí Raspberry as well as Bacardí Coconut. These have been crafted by the Maestros de Ron who shape and craft all the products in the portfolio using their sense of sight, taste and smell to ensure the quality of the spirit meets Bacardí standards. See more at www. bacardi.com or @ Bacardiireland on Facebook, Instagram or Twitter.

Award-winning Spike Island Spiced Rum Spike Island Spiced Rum from Waterford-based Anchor Spirits was the first spiced rum produced in Ireland in recent times. It has won several awards for taste and quality including a Gold Medal from the Global Rum & Cachaca Masters held in London. Spike Island has a dark bold complex taste. Cinnamon, Clove, Star Anise and Orange peel pop on the nose as hints of Vanilla warm the palate. Smooth, yet strong, this rum is a seamless blend of spice and rum. It takes its name from the famous prison island in Cork Harbour. Before the island was purchased by the British Government in 1779, the dark ruggedness of the Spike Island shoreline was a favourite hiding place for smugglers. Like the original smuggled rum of the 18th Century, the base rum for Spike Island is made in one of the world’s finest distilleries on the island of Barbados. It’s imported to Ireland where a special spice blend, developed by Anchor Spirits, is added and carefully blended over a number of months to achieve the perfect marriage of rum and spice. Spike Island holds two other international awards, most notably an international Outstanding Silver Medal from the 2017 IWSC awards. Anchor Spirits Ireland also owns the multi-award-winning brands Thin Gin and Muldoon Irish Whiskey Liqueur. n

DRI N KS I N DUST RY PEOPLE

DRI NKS I N D U S T R Y IR E LA N D | A u g u s t 2 0 2 0

Kevin O’Gorman - Midleton’s new Master Distiller.

David Forde – C&C Group’s new Group Chief Executive.

Kevin O’Gorman - Midleton’s new Master Distiller.

n The Managing Director of Heineken UK for the past seven years Corkman David Forde has been recruited to the C&C Group as its new Group Chief Executive. The former Chairman of the British Beer & Pubs Association joins C&C “at the latest” in early 2021 following the completion of a customary notice period after 32 years with Heineken (including a period as Managing Director of Heineken Ireland). C&C has also appointed Patrick McMahon, its current Group Strategy Director, as Group Chief Financial Officer, to succeed Jonathan Solesbury who’s retiring on the 1st of September. In the meantime, the C&C Board has requested Stewart Gilliland to continue in his role as Interim Executive Chairman until David joins C&C, at which time Stewart will revert to the role of Non-Executive Chairman. In addition, the Board has extended Stewart’s role as NonExecutive Chairman by an additional 12 months until the AGM in 2022. This will provide continuity of leadership for C&C following the appointment of the new Group Chief Executive and Group Chief Financial Officer….Irish Distillers has appointed Kevin O’Gorman as the new Master Distiller at Midleton Distillery. Kevin has taken on one of the most coveted positions in world whiskey and he takes over the role from Brian Nation who’d served as Master Distiller there since 2013. Brian has taken on the role of Master Distiller at a US startup distillery. As Master Distiller, Kevin has an evolved role which sees him lead both distillation and maturation at Irish Distillers. As part of his new role he’ll be responsible for ensuring the quality of all new pot and grain distillates produced at Midleton while supporting future innovation. A Cork native, Kevin is a Technology graduate from The University of Limerick and holds a Diploma in Distilling from the Institute of Brewing and Distilling. He’s a Master Craftsman, having started his career in Midleton in 1998 working as a distiller under the tutelage of Master Distiller Emeritus Barry Crockett. From there he moved to Maturation where he honed his skills under the then Master of Maturation Brendan Monks before assuming the role of Master of Maturation on Brendan’s retirement in 2007. Kevin successfully continued the ongoing innovation in maturation while working with the team in facilitating spirit options for new brands like Method and Madness and a number of brand extensions. In his previous role, Kevin spent much of his time travelling the globe sourcing casks from world-renowned cooperages while overseeing the full maturation process across the portfolio. Irish Distillers has also appointed Katherine Condon as Distiller at Midleton Distillery. Katherine reports to Kevin, with responsibility for the production process from brewing to distillation. Tasting all distillates daily, Katherine oversees the quality of all Midleton’s new pot and grain distillates to ensure that the correct balance of flavours are present before being matured and bottled. Chemical Engineer Katherine joined Irish Distillers in 2014 as part of the Graduate Distiller Programme. On its successful completion Katherine was appointed Distiller at the Micro Distillery in Midleton, Irish Distillers’ hub for innovation and experimentation with new distillate styles. From there she moved to the main distillery as a Process Technologist and most recently Production Supervisor. During her time with Irish Distillers Katherine has played a vital role in the production of many new innovations including the Method and Madness range. Katherine also holds a Diploma in Distilling from the Institute of Brewing and Distilling and won ‘The Worshipful Company of Distillers Award’ in 2018 and 2019 for ‘outstanding achievement’ by the Institute of Brewing and Distilling. n

DRINKS INDUSTRY PEOPLE

C A M P A I GN TRAIL

August 2020 | DRINKS INDUSTRY IRELAND

8 Irish independent global spirits company acquires majority stake in organic Australian vermouth

Intrepid Spirits welcomes Regal Rogue Irish-based company Intrepid Spirits has acquired a majority share in the Australian vermouth company Regal Rogue. Following several months of discussions between the two companies, Intrepid - an independently owned Irish spirits company with offices in Dublin, Shanghai, Chicago and San Francisco - has officially welcomed the Ozzie brand into its portfolio of global spirits brands. Established in 2011 Regal Rogue, Australia’s first native vermouth, was founded by Mark Ward who continues to be heavily involved in the development of the brand, working closely with the marketing team at Intrepid to expand the distribution and presence of Regal Rogue worldwide. “Mark has created a world-class brand and we look forward to bringing the infrastructure and resources required to take Regal Rogue to the next level,” remarked Intrepid Spirits Chief Executive John Ralph. “While it’s certainly an unusual time to announce Intrepid Spirits’ first major strategic brand investment, we were determined to take an optimistic approach to these tumultuous times. It’s something that Mark and I have been discussing for months, long

Regal Rogue, now available in Ireland via distributors Intrepid Spirits.

before the pandemic and we felt the long-term strategic value for both parties was just the reason to continue to move forward.” All four varietals - Lively White, Daring Dry, Bold Red and Wild Rosé - are a hand-crafted celebration of 100% Organic Australian wine, blended with more than 17 aromatic herbs and native Australian spices sourced from Aboriginal farmers and it represents a fresh alternative to wine and spirits, claims the company. “Regal Rogue’s innovative approach is enjoyed for its distinctive flavour profiles, low alcohol content and

reduced sugar content over traditional vermouth styles,” states Intrepid, “It’s best enjoyed over ice or neat, long with a mixer for a wine aperitif or low ABV spritz or in vermouth-forward cocktails.” The product has seen tremendous success in Australia, the UK and the US, according to John Ralph. Regal Rogue joins Egan’s Irish Whiskey, Cocalero and Mad March Hare Irish Poitín at Intrepid. In addition to its own brands, Intrepid also manages the distribution of Michter’s Whiskey, Pusser’s Rum, Merlet Cognac, Los Javis Mezcal and Kyrö Gin in Ireland. “It’s not about stealing share from the old traditional vermouth category but rather taking a whole new approach to the segment via a proposition that ticks all the right boxes - innovatively-crafted, low ABV, made with natural ingredients,” continued John Ralph. Regal Rogue has secured some premium accounts already in Ireland, featuring in signature drinks such The Shelbourne Hotel’s Summer spritz menu and Bar 1661’s ‘Brother Hubbard’. For further inquiries contact info@ intrepid-spirits.com.

ADVERTORIAL

8 AVAILABLE NOW TO ALL PUBLICANS ACROSS THE ISLAND OF IRELAND

GUINNESS LAUNCHES €14 MILLION FUND TO SUPPORT THE RECOVERY OF PUBS ACROSS IRELAND sector in Ireland requires Standing with publicans of Ireland, long-term investment and Guinness announced a new €14 support to get back up and million fund, called “Raising the running. Through this €14 Bar”, to support the recovery of million “Raising the Bar” Fund, pubs across the island of Ireland. our ambition is to support This fund is part of Diageo’s global pubs in Ireland in welcoming programme to support pubs and back customers in the safest bars as they welcome customers possible way, when they are back following the COVID-19 ready to do so. It will also be pandemic. “Raising the Bar” is a essential for the authorities on two-year programme available this island to work together from July 2020. with our industry to build In Ireland, the “Raising the Bar” both a safe and a sustainable programme will be focused Hilary Quinn, Marketing Director of Diageo Ireland, hospitality and bar sector”. on the provision of practical pictured at the announcement of the €14M “Raising Bar owners across all of equipment and confidence the Bar” Fund. Ireland can register their interest building measures needed for now for the “Raising the Bar” outlets to reopen and operate on Oliver Loomes, Managing Director programme via www.mydiageo.com. a safe and sustainable basis. of Diageo Ireland said: “The hospitality

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DRINKS INDUSTRY IRELAND | August 2020

8 Range available in 3 flavours

Kopparberg launches own range of Hard Seltzers Independent Swedish brand Kopparberg is launching its Hard Seltzer into Ireland. Having launched in major retailers earlier this month, Kopparberg Hard Seltzer, distributed here by Richmond Marketing, has an ABV of 5%, contains 93 calories and is carb- and gluten-free as well as being veganfriendly. The low-calorie count is the result of Kopparberg’s trademarked KopparSpirit, an alcohol base made from fermented fruit that leaves behind no residual sugar. “The new Hard Seltzers don’t shy away from flavour and there’s zero compromise on taste, with a hit of bold fruit refreshment,” claims the company which is offering three fruit flavours: Mixed Berries, Black Cherry and Passionfruit, “Putting any preconceptions of flat liquid and dull,

Kopparberg’s Hard Seltzer range comes in Mixed Berries, Black Cherry and Passionfruit flavours.

subtle flavours to one side Kopparberg Hard Seltzer delivers a far fuller flavour to anything currently available in the Irish Hard Seltzer market.” Kopparberg’s decision to reinvigorate the Hard Seltzer category in Ireland

comes as more brands start to appear or announce plans to take on the market, with some big names set to make their transatlantic voyage this Summer. Kopparberg Hard Seltzer will go “head-to-head” to redefine a category that has been deemed “subtle, bland and tasteless” and in turn, eliminate any preconceptions consumers may have of the polarising new RTD phenomenon, states the company. “Kopparberg is here to redefine the Hard Seltzer market by putting flavour front and centre,” commented the Head of Alcohol Brands at Richmond Marketing Mary Anne Byrne. For more information, visit www.kopparberg.co.uk, @KopparbergIreland on Instagram or https://www.facebook.com/ KopparbergIreland

8 First canned range from Porterhouse Brew Co

Four beers in the can for Porterhouse Its kettle hops drum-up a Porterhouse Brew Co has fabulous aroma, flaked barley released a new 440ml can delivering big time on texture range, its first canned release. and the darkly-roasted grain The canned range has building a flavour as solid as a different branding to its bottled rock. Not for the faint-hearted. range. Renowned for its stouts in Sundown Session IPA previous years Porterhouse has A thirst-quenching session IPA, also had success with its Yippy low on ABV but not lacking India Pale Ale and its latest in flavour, this simple grist of seasonal Double Imperial IPA of Ale, Wheat, Oats & Crystal is late which led to the brewery backed with a punch of Citra, team going for a core canned Madarina Bavaria and Simcoe range in the IPA/Pale Ale style. Hops for a tropical fruit-bodied, Peter Mosley, Martin Kavanagh Porterhouse Brew Co has released its first canned range slight Pine finish and fermented & team had been tweaking into the craft beer market. on American Ale yeast. recipes for this new range on Unfiltered and heavily dry-hopped with their pilot system for the past Amarillo, Galaxy & Mosaic for notable Rambler Juicy Pale Ale few months to release a canned range flavours of Passion Fruit, Mango and One for the juice-heads. Rambler pours to compete at the very top of the beer Lemon with a touch of Blueberry, this a light Orange colour with a tight white market. New England IPA is fermented on head. Porterhouse has used three hop The four beers released in canned traditional East Coast yeast. additions of El Dorado, Enigma and format are: Eukanot at whirlpool and dry-hop. This Wrasslers XXXX combo contributes flavour & aromas of Renegade New England IPA An old fan favourite now heading into Orange peel, Watermelon, Citrus and This take on a New England IPA can. XXXX refers to the alcohol level white Grape for drinkability of smooth utilises an extended whirlpool at lower and the depth of flavour in this stout. fresh juice with low carbonation. temperature for a smooth soft finish. >>

C A M P A I GN TRAIL

August 2020 | DRINKS INDUSTRY IRELAND

8 Longford distillery wins three medals at World Gin Masters

Lough Ree’s World-winning trio Lough Ree Distillery in Lanesborough, County Longford, is celebrating three major medal wins at the recent World Gin Masters including a Gold for Aiteal, its new gin made with Irish Juniper. The Lough Ree Distillery team look to local and Irish flavours for their inspiration and this approach has been rewarded with recognition at the World Gin Masters with a ninth international award for Sling Shot gin as well as Gold and Silver medals for two new Lough Ree-produced Irish gins. The competition saw 219 entries from 105 different companies from across the globe. Lough Ree’s World Gin Masters awards were for:• Sling Shot Distilled Irish Gin, launched in October 2018, quickly became one of the most highly-regarded Irish gins, says the company. Sling Shot is the only spirit containing a peat distillate, making it uniquely Irish. It won a Gold Medal in the Ultra-Premium class. • Late last year, Lough Ree was approached by the Armada Hotel in County Clare’s Spanish Point to help develop a bespoke gin with Co Clare

botanicals. This was a labour of love as the founder’s late father hailed from West Clare. The new Mist+Moss Irish Gin included Irish Juniper and a selection of botanicals sustainably foraged in Clare. It brought a Silver medal (via Longford) to Co Clare in its first competition outing. All gins must have Juniper but sometimes it takes a back seat while other botanicals shine. Not so with Aiteal Irish Gin. Very few Juniper-only gins exist but the Lough Ree team felt this Irish Juniper had such interesting and complex flavours that it was worthy of making it a gin in its own right without the need for additional botanicals. Distilled with Irish whey spirit Aiteal is the only 100% Irish gin and it launches on the market with the imprimatur of a World Gin Masters Gold Medal.

“As a small, family-owned Irish distillery, we aspire to produce spirits that can compete with the best in the world and these awards are great validation for the quality of the ingredients we get from our Irish suppliers and the work that our team does to turn them into fine Irish spirits,” commented Michael Clancy, Co-Founder of the Lough Ree Distillery. For more information go to www.lrd.ie.

8 IrishWhiskey360° campaign urges domestic tourists to ‘get back into the spirit’ by visiting local distilleries

‘Get Back Into The Spirit’ urges Drinks Ireland|Irish Whiskey Enticing more domestic tourists to visit Irish whiskey distilleries over the coming months will be critical to secure their future viability according to Drinks Ireland|Irish Whiskey which has launched its IrishWhiskey360° ‘Get Back Into The Spirit’ campaign to promote Irish whiskey tourism. The Ibec body is highlighting the importance of domestic tourism with Irish whiskey distilleries being so heavily impacted by the collapse in international tourism due to Covid-19. “Irish whiskey distilleries attracted over one million visitors last year, but 87% of visitors were from overseas” commented the Head of Drinks Ireland|Irish Whiskey William Lavelle, “making Irish whiskey distilleries one of the most exposed sectors impacted by the international travel collapse. “Thankfully, the distilleries that have

re-opened to date are reporting a slow but steadily growing stream of domestic tourists and local visitors.” While increased domestic tourism cannot make-up for the fall in visitor numbers from overseas, getting more Irish people through the doors of distilleries over the coming months will be critical to ensuring their future viability, he said, “So we’re hoping domestic tourists will support the industry and use this Summer as an opportunity to discover the hidden whiskey gems that are on their doorstep.”

New whiskey experiences He said many distilleries and brand homes have introduced new visitor offerings and more intimate tourist experiences in the wake of Covid-19. “Smaller tour sizes, private tastings,

new cocktail and food pairings and collaborations with local businesses are just some of the ways our members are adapting their offerings as they re-open,” he said. “Safety is obviously a key focus for all our visitor centres – they have reduced their tour sizes and introduced all the necessary requirements to ensure social distancing can be adhered to. The Irish whiskey industry had a successful 2019 with nearly 12 million case sales of Irish whiskey globally, a doubling of volumes since 2010, along with a record one million people visiting Irish whiskey distilleries and visitor centres. Further information on the Irish whiskey distilleries and visitor centres now open is available at: www.irishwhiskey360.com.

D R I N K S I N D U S T R Y I R E L A N D | | A uDgeuc s2t 021072/0J a n 2 0 1 8

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8 Sarah Jessica Parker adds new rosé wine to collection

Sarah Jessica Parker launches second wine Award-winning actress, producer, designer and entrepreneur Sarah Jessica Parker is adding a new rosé to her wine collection with New Zealandbased winery Invivo & Co. Invivo X, Sarah Jessica Parker Rosé was made available just in time for Summer sipping. The premium rosé comes from the South of France and has been crafted in partnership with SJP herself, the founders of Invivo & Co and a family winery in Provence. The rosé comes hot on the heels of Invivo X, SJP Sauvignon Blanc, her first wine collaboration which launched worldwide in September 2019 and which received a 90 Points rating from Wine Spectator, a Gold medal at the Concurs Mondial du Sauvignon Blanc Competition 2020 and numerous awards from the world’s largest wine competitions. It was one of 2019’s most successful global wine launches with retailers such as Sainsbury’s in the UK and SuperValu and Dunnes Stores here, which listed the brand within months. Mike Osborne, Founder and

Invivo X, Sarah Jessica Parker Rosé – available in time for Summer sipping.

Executive Vice President of wine. com (the US’s largest wine retailer) describes the wine as one of their most successful launches ever. The final rosé blend was selected by SJP and Invivo over an afternoon of tasting and assessing in New York City. “Invivo X, SJP Rosé is a gorgeous shade of blush pink in your glass, which is what will initially draw you in, but it’s the taste that will bring you back for more,” commented Invivo’s winemaker Rob Cameron, “The aroma profile invokes clear rose petals and bright Summer

berry characters, wrapped in a minerality that makes this wine exceptionally fresh. SJP Rosé is full-bodied with great complexity and elegance.” The grapes come from a vineyard in Provence. The family winery Vins Chevron Villette is located in the famous ‘Golden Triangle’ situated in Saint Tropez, inland between Puget-Ville, Les Arcs and Le Thoronet Abbey (built in the late 12th and early 13th Century). With cutting-edge technology and “a ton of winemaking experience”, the vineyard also strives to be eco-friendly by running the winery almost entirely on solar energy. Hashtag: #InvivoXSJP Official Website: www.InvivoXsjp.com Link to Sauvignon Blanc Blending Video feat. SJP: https://vimeo. com/350635021 (you can download from this link) Instagram: @invivoxsjp @InvivoWines Facebook: Facebook.com/ InvivoAndCo Twitter: @InvivoWines

8 Many pub owners using this time to plan development and renovations

Revive that pub heritage with AM Design In the days before ‘Lockdown’ tourism growth had been substantial. But Angela Murphy of AM Design has been finding that many pub owners have been using this time to plan development and renovations in these challenging times. In the area of traditional pub design Angela and her team have been producing designs for local and international clients and she finds it refreshing to see such a wide variety of “eating and drinking places” and an even wider variety of “sleeping places”. She’s found that adapting and developing new areas behind the old traditional worn front bar is a key element to the continued success of many of the town and country pub projects and she takes a particular interest in the tourism and hospitality sector. “Retaining the best of our old buildings, has huge benefits,” she says,

“Yes, it takes a little thought and with that little extra effort, the benefits are there for today and many years to come including next generations with an attractive and easily functioning building. There are many buildings being knocked unnecessarily” she adds, “often because they don’t fit into a category or a pricing structure or a scheduled timeframe, however then the character is gone. It’s refreshing to see the interest in our older buildings with the recent TV restoration programmes.” Such renovation can look daunting at the beginning, however the finished product is there to last and AM Design thrives on providing just this. Many pubs have stores and yards out the back ideally suited for development with complementary and tourist-related businesses as well as for local business shops or office spaces, she says. The potential is there to re-look at buildings that would otherwise look like they’re ready to be knocked. Angela previously played a key

role in the Guinness Irish Pub design development that brought the Irish pub concept around the world and has extensive experience in design and historical building restoration. Tourismand heritage-related projects have become a key element to the work. AM Design is over 20 years in business and many of its projects have also appeared in films, books and calendars. For more information contact: AM Design 130 Greenpark Road, Bray, Co. Wicklow W: www.amdesign.ie E: info@amdesign.ie T: +353 1 286 4135 M: +353 86 254 5815 n

C LO S I N G TIME

August 2020 | DRINKS INDUSTRY IRELAND

Tomás Clancy – wine savvy scribe Invariably, a chance meeting with wine writer Tomás Clancy would leave you more informed than you’d been before getting into conversation with him. Whether that meeting occurred at a wine or spirits event, I knew I’d always learn something new about the subject after a chat with Tomás. Following his untimely passing at the beginning of June, I know I’ll miss those all-too-infrequent chats with him in which he always managed to raise a smile. A regular contributor to Sean Montcrieff’s Movies & Booze slot on Newstalk, Tomás had a vast granary of knowledge to impart to listeners and readers of his longstanding column in The Business Post on the subject of wine.

Tomás had a vast granary of knowledge to impart to listeners and readers of his longstanding column in The Business Post on the subject of wine.

That store of knowledge did not build itself. Tomás had an unceasing drive to learn more about whatever type of wine or spirit poured into his glass. He absorbed data like a sponge but seldom did he flaunt his wealth of savvy on any subject. Once, at an event in the vaults of Christchurh Cathedral in Dublin to celebrate Santa Rita’s 120 millionth glass of wine sold, I noted him intent on his mobile, seemingly paying little heed to the goingson around him. But where I reported a shadowy summation of the event subsequently, Tomás had missed nothing, having learned to type super-fast on his mobile. The last time I saw him was at a Barry & Fitzwilliam preview of the Villa Maria film Vintage hosted in the Stella cinema in the Devlin Hotel in Ranelagh. Tomás presided as MC. Looking pale but hearty, his unbounded enthusiasm for his subjectmatter spilled over into the audience in a tide of good humour on which floated those informational nuggets of wine wisdom for which he was renowned. Never in my 30 years of writing about the drinks trade did I hear anything but good said of Tomás, a fitting epitaph and one, surely, for which we should all strive…

Outgoing LVA Chairman Ronan Lynch didn’t hang back during lockdown, having this ‘mural’ painted onto the boards of his closed-up pub, The Swan Bar, in Dublin’s York Street. It served to offer a dash of colour and a splash of optimism to the general public on those otherwise dreary days of lockdown.

Licensed wisdom a collection of notable quotes

“The greed of these publicans is an absolute disgrace and believe me, you won’t see these guys behind the bar serving customers and scrubbing the toilets at the end of the night.” – The owners & staff of one of the first pubs to self-close - Peadar Browns on Clanbrassil Street in Dublin - on seeing some packed pubs in Dublin town totally ignoring Social Distancing guidelines later that night. “Of all the shocks coronavirus has delivered so far, Ireland closing all its pubs on the eve of St Patrick’s Day is truly the most unbelievable.” - Australian journalist Stephen Quartermain. “It is like being in a Stephen King novel for the first week” - Irishman Anton Norris who was in lockdown for 53 days in China. “Sir, – It took me years to develop a taste for a pint of Guinness. I hope I don’t have to start all over again when all this is over. – Yours, etc, Stephen Halpin, Skerries, Co Dublin.” – Letter to the Irish Times during lockdown. “The challenge we have is making sure those measures don’t take away the point of a pub, which is socialising.” – Green King Chief Executive Nick Mackenzie on the measures being taken in pubs to fight Covid-19. “Gosh we will all want to go out again when we can and we are all missing social contact… really really missing it… and that may be something to hanker after and it’s why the on-trade is not damaged beyond repair.” – The UK’s Wine & Spirits Trade Association’s Chief Executive Miles Beale talking to the drinksBusiness on the effects of lockdown there. “I don’t think there’s any desire to go to a property and be served by Darth Vader with a big hat and a cape.” - Park Hotel’s John Brennan on why hotels might prove unpopular post-Covid-19 unless the right precautions are taken. The cash flow is zero and there is stock going out of date. But we’re in the best towns in Ireland and we’ll come back. The one thing about Killarney is that businesses are so good at coming together, this will stand to us. - Kate O’Leary of The Laurels in Killarney in The Kerryman newspaper. n

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Covid-19 could cost tourism €3.5 billion

Opinion - Precautionary measures must be regarded as temporary