Drinks Industry Ireland Magazine - November/December 21 Issue

Spirits - a predictably poor 2020 -- Drinks Ireland\Spirits’ report

Christmas Drinks Soft Christmas sales

Higher sales of NoLos

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OPINION

November/December 2021 | DRINKS INDUSTRY IRELAND

Moderate language AT THE LAST meeting between the Department of the Taoiseach and representatives of the hospitality sector government officials asked that the hospitality trade associations assist with efforts to promote a message to the wider public that adherence to public health best practice remains of paramount importance.

This request came on the back of reports that the Economic and Social Research Institute had earlier found that the number of outlets not asking customers for Covid-19 certification had almost doubled in just one month to 37%, judged by the number of indoor pub diners who said they’d not been asked for certification compared with 21% the previous month.

So, at often overlooked considerable expense and effort, the majority (63%) were seen to be complying with the Covid precautions being asked of them.

Throughout this Covid saga, the hospitality trade has been only too willing to co-operate with Government indeed frequently seeking meetings with same to establish complete clarity, but seldom getting satisfaction in this respect.

While government rightly decided the presssing issues of the Covid day in hospitalitiy, it was actually the industry itself who’d to deal with the fallout from its deliberations and decisions.

And being informed in a timely manner of these decisions would have been of enormous help to hospitality in making adequate preparations to more efficiently usher in any such new restrictions. This never happened.

So, it was a wee bit unfair of the Taoiseach to slap down the industry, telling it to “moderate its language” after LVA Chair Noel Anderson claimed that the industry had been treated like “dirt” by the government over the past two years.

Clearly the hospitality industry feels aggrieved that it has had to discover and make plans to execute incoming government restrictions at very very short notice by the only means open to it - media reports or through hearsay from ‘insiders’ - instead of being given the straightforward dignity of being on the receiving end of a direct line of communication as a body from the transmitting end - the government.

Throughout the pandemic, those restrictions seemed to be so airily introduced by a Government that had never taken on board the need to communicate in a timely manner with the industry itself. Any wonder then, the strength of feeling being displayed by this key sector of the economy?

Throughout the pandemic, those restrictions seemed to be so airily introduced by a Government that had never taken on board the need to communicate in a timely manner with the industry itself Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

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NEWS

Seven day pub licence renewals by county: Jan 2020 v September 2021

8 Loss of 349 pubs reveals Covid’s dramatic impact on sector

Nearly 350 pubs fail to renew so far Some 349 pubs have closed since the beginning of the pandemic which vintners’ representatives say signals the extent of the distress faced by pubs as restrictions continue to impact the sector.

The revelation of an overall 5% drop in pub licence renewals has dramatically escalated the crisis faced by pubs and came just before Government decided not to remove all remaining Covid restrictions operated by the trade before the 22nd of October.

According to the Vintners’ Federation of Ireland and Licenced Vintners’ Association the figures, taken from an analysis of licence renewals published by the Revenue Commissioners, show that pubs have closed across the country, with Cork losing 37 pubs while Dublin and Donegal lost 33. Kerry has seen 22 pubs not renew their licences.

Given that 90% of over-18s are now vaccinated the trade organisations said that retaining the vaccine pass system

allowed Government to reopen late night hospitality; it should also have ended mandatory table service “These new figures reveal Covid’s dramatic impact on the trade over the past 19 months,” said VFI Chief Executive Padraig Cribben, “To lose 5% of pubs in such a short timeframe is unprecedented and underlines how the pub trade bore the brunt of pandemic restrictions.”

LVA Chief Executive Donall O’Keeffe added, “Losing 349 pubs across the country indicates the magnitude of what’s happened to the pub trade since March 2020. These pubs closed even with the Government supports in place.

“If access is limited to those who’ve been vaccinated there’s no justification for not proceeding with the easing of the rest of the restrictions. With more than 90% of the adult population vaccinated and vaccine passes likely to remain in place, if we can’t allow hospitality to trade relatively normally now then when will we ever be able to?

Jan - 20

Sep - 21

Carlow

97

95

Cavan

194

183

Clare

291

281

Cork

910

873

Donegal

367

334

Dublin County & City

785

752

Galway

472

456

Kerry

448

426

Kildare

171

165

Kilkenny

195

185

Laois

122

109

Leitrim

108

103

Limerick

358

339

Longford

91

84

Louth

188

181

Mayo

372

350

Meath

204

207

Monaghan

99

97

Offaly

128

115

Roscommon

198

182

Sligo

140

136

Tipperary

401

387

Waterford

216

199

Westmeath

167

161

Wexford

261

246

Wicklow

154

142

Total No of Pub 7 Day Licences

7,137

6,788

“The Government needs to recognise delays will push more businesses over the edge where they will join the 349 pubs that have already been lost during the course of the pandemic,” he concluded.

8 Good food a big part of Olde Glen’s appeal in recent years

Olde Glen – Georgina Campbell’s Pub of Year The Olde Glen in Carrigart, County Donegal, was declared the Georgina Campbell Pub of the Year this year.

“A favourite of the Guide’s for many years (and our Pub of the Year in 2008), The Olde Glen changed ownership in 2014” states Georgina Campbell’s citation in the 2021 Georgina Campbell Irish Food & Hospitality Awards, “but the new owners, Aengus Haughey and Cormac Walsh, kept this much-loved old world destination just as it should be and everything about it has continued to delight - including the recently-added accommodation, ‘Clara’s Cots’ and the ‘Olde Glen Bar Bia Box’, a shipping container which serves up interesting sandwiches to enjoy in the bar or garden, or to take away.

“Aengus manages the bar and the Bia Box while Cormac (chef turned frontof-house) looks after the rooms and The Restaurant - where there was a big change in 2021 when Ciarán Sweeney, a Donegal native and former head chef at Dublin’s Forest & Marcy, joined the team.

“The food has always been good at The Olde Glen and a big part of its appeal in recent years, but the lovely rooms and Ciarán Sweeney’s arrival have upped the ante, with short locallyfocused menus and a very appealing new dinner, bed and breakfast package offering what may well be the best value food experience in Ireland. A triumph in challenging times and a true Donegal gem.”

From Ireland’s best hotels, fine dining and seafood to garden stays and the most pet-friendly destination, winners of Georgina Campbell Irish Food & Hospitality Awards 2021 include: • Chapter One by Mickael Viljanen Restaurant of the Year • Chef of the Year awarded to Damien Grey of Liath, Dublin • Alex & Carina Conyngham of Slane Castle receive Ireland’s ‘Movers & Shakers’ Award • The Twelve, Galway, is Ireland’s Pet Friendly Destination of the Year • Family Friendly Hotel of the Year is Fitzgerald’s Woodland House & Spa, Limerick

The Olde Glen in Carrigart, County Donegal – “A triumph in challenging times and a true Donegal gem”.

• Newcomer of the Year title goes to Camus Farm Kitchen, Cork.

Celebrating 23 years in their current incarnation, the Georgina Campbell Awards recognise and honour Ireland’s standard-bearers in food and hospitality in Ireland with particular emphasis this year on the industry heroes who’ve maintained quality and put out the welcome mat with a smile whenever permitted during the pandemic.

Georgina Campbell’s rigorous programme of anonymous assessment visits is a year-round process and winners are nominated solely by an independent assessment team.

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November/Decemberr 2021 | DRINKS INDUSTRY IRELAND

8 40,000 fewer jobs resulting from pandemic impact

40K fewer hospitality jobs in ‘22 The drinks and hospitality industry is set to employ 140,000 people in 2022 - 40,000 fewer than in Quarter 4 2019, the last pre-pandemic quarter, according to new analysis published by the Drinks Industry Group of Ireland.

The figure of 40,000 fewer jobs is as a result of the impact of the pandemic which is set to continue despite the predicted economic recovery.

The DIGI analysis of a DCU economic report warns of a two-tier recovery in 2022, with hospitality facing major post-Covid challenges.

The DIGI’s estimates are based on an analysis of the latest industry employment report Structure and Performance of National and Regional Employment in the Hospitality Sector of Restaurants, Hotels and Public Houses, researched and authored by DCU economist Anthony Foley.

This shows that the Accommodation and Food Service sector, which includes most drinks and hospitality businesses, employed almost 180,000 people in the last quarter of 2019.

The DIGI’s analysis of the report predicts that weakened tourism demand will impact employment.

In rural areas, women and young people are likely to be disproportionately affected by the industry’s contraction.

Among the 40,000 fewer employed are an estimated 12,700 15 to 24 yearolds and almost 22,000 women. This is despite the broader economy’s ongoing recovery as the country approaches full vaccination.

The DIGI predicts that the likely substitution of some staycation demand with overseas sun holidays, some element of consumer reluctance and the overall weaker national and international demand for travel and tourism - which in Ireland heavily involves drinks and hospitality businesses - means that some pubs, restaurants and hotels will not return to their pre-pandemic employment levels in 2022.

The DIGI therefore called for the Government to reduce Ireland’s excise tax rate on alcohol, the second-highest in Europe, by 7.5%.

“Ireland’s high rate of excise, which represents a significant cost, is forcing drinks and hospitality businesses

to make growth-limiting sacrifices,” claimed Liam Reid, DIGI Chair and Corporate Relations Director at Diageo Ireland, “At such a precarious time for the industry, every €uro matters. Money taken by the Government in excise tax is money that could be spent by pubs, hotels and restaurants on recovery and investment.

“A 7.5% reduction in excise tax would have an immediate impact and mean more money for businesses to weather what’s likely to be a difficult year and potentially maintain current staffing levels, hire new staff, invest in premises and improve product and service offerings to the benefit of domestic and international consumers. Crucially, it will greatly support the industry to maintain the predicted 140,000 jobs.”

West in 2022 compared to Q4 2019.

The situation is similar in other regions with the DIGI predicting 5,830 fewer jobs in the Mid-East in 2022, 3,730 fewer in the West and 3,690 fewer in the South-East, adding that some population groups are more vulnerable to this contraction than others.

In Q4 2019 women, at 54%, comprised the majority of those employed in drinks and hospitality compared to 46% in total employment; in the Midlands region 67% of all drinks and hospitality employees were female.

The sector is also relatively young: in Q4 2019, 31.8% were between 15 and 24 years-of-age compared to 11.2% in total employment.

Two-tier recovery

The DIGI believes that it should be the Government and industry’s “collective goal” to return to the Q4 2019 total of 180,000 drinks and hospitality jobs “as quickly as possible” in 2022.

Employment breakdown According to the DIGI Dublin is likely to have 11,690 fewer drinks and hospitality jobs next year compared to Q4 2019, the largest figure among all Ireland’s regions. However, many rural communities are largely or wholly dependent on tourism, much of it seasonal, for jobs and revenue.

In Q4 2019, the last quarter unaffected by the pandemic, in the South-West region (which includes counties Cork and Kerry), 8.9% of the adult population were employed in drinks and hospitality jobs (10.5% in Kerry alone). However, the DIGI predicts 6,730 fewer jobs in the South-

The DIGI believes that it should be the Government’s and industry’s ‘collective goal’ to return to the Q4 2019 total of 180,000 drinks and hospitality jobs “as quickly as possible” in 2022.

“Only by making it easier for the drinks and hospitality industry to do business can Ireland avoid a two-tier recovery where work-from-home multinationals and professional services companies emerge from the pandemic relatively unscathed, even better-off and the most important domestic industries are left struggling,” said Liam Reid.

“Ireland has the highest excise on wine, the second-highest on beer and the third-highest on spirits despite us producing some of the world’s most famous drinks products and the importance of drinks and hospitality businesses to Irish tourism.

‘In high-income European countries like France, Germany, Spain and Italy, where drinks and hospitality businesses are equally important to international exports and tourism, excise tax is significantly lower.

“Lowering excise tax on drinks products by 7.5% requires no new legislation or EU approval,” he concluded, “The Government can do it quite literally overnight, with overnight benefits for drinks and hospitality business owners and their employees.”

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November/December 2021 | DRINKS INDUSTRY IRELAND

8 UK Budget “the most radical simplification of alcohol duties for over 140 years”

Draught beer & sparkling wine’s UK Budget boost The end the of the “irrational duty premium of 28%” currently paid on Sparkling Wines and a lower rate of duty on draught beers and ciders the biggest cut to cider duty since 1923 and the biggest to beer duty for 50 years - were among the Budget announcements from UK Chancellor of the Exchequer Rishi Sunak recently.

The Chancellor claimed to have taken advantage of leaving the EU to announce “the most radical simplification of alcohol duties for over 140 years” in this year’s Budget.

The UK government has taken five steps to create a “simpler, fairer and healthier system of taxation” on alcohol.

For example, the number of main duty rates for alcohol has been cut from 15 to just six.

“Our new system will be designed around a commonsense principle: the stronger the drink, the higher the rate,’ stated Rishi Sunak, claiming that this measure “will help end the era of cheap, high-strength drinks which can harm public health and enable problem drinking”.

The UK Budget saw the biggest cut to beer duty for 50 years and to cider duty since 1923.

The Chancellor also announced proposals for a new Small Producer Relief to extend the principle of the Small Brewers Relief to include, for the first time ever, small cider-makers and other producers making alcoholic drinks of less than 8.5% ABV.

Sparkling relief Over the last decade, UK consumption of sparkling wines like Prosecco has doubled with English sparkling wine increasing almost tenfold.

“Sparkling wines – wherever they are produced – will now pay the same duty as still wines of equivalent strength,” he said.

Draught relief Even before the pandemic, pubs were struggling, with on-trade consumption down 40% between 2000 and 2019.

Rishi Sunak pointed out that many public health bodies recognise that pubs are often safer drinking environments than being at home.

In response, he announced that a new lower rate of duty will be applied to draught beer and cider served from draught containers of over 40 litres.

“It will particularly benefit community pubs who do 75% of their trade on draught,” he said.

This Draught Relief measure will cut duty by 5%.

In doing so, the Chancellor cancelled the planned duty increases in duty on spirits like Scotch as well as on wine, cider and beer.

These reforms come into effect in February 2023.

The Chancellor has “yet again” recognised the importance of pubs and the communities that they support in this budget, stated the British Institute of Innkeeping.

The BII also “hugely welcomed” the announcement that business rates for 2022/23 are to be reduced by 50% for hospitality businesses.

“We equally welcome the immediate cancellation of the duty increase on alcohol and the 5% reduction in duty on draught products served in our pubs.

BII Chief Executive Steven Alton commented, “We’re encouraged that the Chancellor has yet again

referenced the importance of pubs in their communities and specifically as safe spaces for people to enjoy alcohol responsibly.

“Whilst the measures announced are positive steps, pubs continue to face huge challenges across all areas of their business - in staffing, supply chain, deliveries and debt. Trading for their businesses remains difficult.

“Ongoing support will be needed both in the form of a fundamental reform of business rates to rebalance this unfair burden on our pub businesses with the online economy and a long-term reduced VAT rate to support our members’ recovery over the coming years.”

The Wine and Spirit Trade Association also welcomed the Chancellor’s decision to freeze wine and spirit duty.

This decision could not have come at a better time for the UK wine and spirit industry, stated the WSTA which not only has to deal with the chaos created by Covid-19 but is also navigating driver shortages and severe supply chain issues.

“The Chancellor should be commended for listening to our calls for support and understanding that punishing tax hikes are not the best way to reinvigorate the sector,” commented WSTA Chief Executive Miles Beale, “By offering continued respite to the UK wine and spirit sector his actions will help save jobs and - in time - replenish revenues to the Treasury through growth in our potential-filled sector.

“We welcome the reduction of the sparkling wine super-tax which is long overdue. However, while simpler, the proposals for the overhaul of a new alcohol taxation system does not make the regime fairer, which was a fundamental aim of the review. We’re mystified by a proposal that embeds unfairness between products meaning that beer will be taxed between 8p -19p per unit, wine increases to 26p per unit and spirits remains at 29p per unit.”

N EWS

DRINKS INDUSTRY IRELAND | November/December 2021

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8 “Insurance industry cannot have its cake and eat it” says AIR

AIR asks “Why aren’t insurance premiums falling?”

The Alliance for Insurance Reform has welcomed the recent report from the Personal Injuries Assessment Board which shows that Personal Injuries Award values have fallen sharply following implementation of new Judicial Council Guidelines.

“We welcome this report and the trend in general damages awards reflected in it,” said AIR Director Peter Boland, “But that trend and the effort that went into generating it will be of no value unless they lead to substantial reductions in insurance premiums.

While we’re seeing some downward movement in motor insurance premiums, the experience of SMEs, voluntary & community groups, sports and cultural organisations and charities is that renewals are actually increasing right now. Why aren’t they falling?

“The insurance industry cannot have its cake and eat it,” he continued, “They identified the cost of claims as the key driver of insurance costs and this has been addressed by Government and the Judiciary. So the risk associated with every policy has reduced significantly and this must be reflected in premiums. If the savings in PIAB settlements do not go into reductions in unaffordable premiums, they go directly into insurers’ profits.”

The Alliance has also called for full transparency from the insurance industry.

“PIAB and the courts account for a small proportion of settlements and it’s vital that insurers, who finalise the vast majority of them, provide data this year to confirm whether or not they are holding firm on the new judicial guidelines,” Peter Boland said.

Eoin McCambridge, Managing Director of McCambridge’s of Galway and Director of the Alliance, added, “The data in this report makes it clear that most personal injury claims have no business in the High Court. The judiciary and insurers must call time on the tactic of pursuing small claims in the High Court in order to extort a higher settlement and bigger legal fees from defendants who live in fear of the cost of a protracted High Court

case taken by an impecunious plaintiff, with no chance of recovering costs if they win. This tactic is particularly reprehensible at a time when the High Court is under considerable pressure to process its case load.”

Survey shows spiralling premia, plummeting costs AIR also published the results of an ongoing survey showing that insurance premia continue to rise despite trends in claims costs and recent reforms.

The Alliance has been running this survey since the implementation of new Judicial Guidelines for Personal Injury Awards on the 24th of April 2021. Since then, over 450 businesses and voluntary and community groups have responded, stating that: • their premiums have increased by 15% on average on renewal • homecare businesses are being hit by average increases on renewal of over 122% • nursing homes are seeing average increases on renewal of over 35% • hospitality premiums are up another 9% despite a significant drop in the level of activity in the sector.

Respondents reported an average reduction in private motor insurance renewals of under 10%, consistent with CSO data for the same period.

“The total number of liability-related personal injury claims has reduced by 47% over the 11 years between 2009 and 2019 and a further 16% last year,” pointed out Eoin McCambridge, “PIAB has just announced a 40% reduction in average Personal Injury Awards. The Perjury Act has been commenced. The Garda Insurance Fraud Coordination Office has been opened. Economic and social activity has been slashed for the last 19 months. And to further reduce future risk, insurers are excluding Covid-19 from many policies on renewal.

“The risk associated with each and every insurance premium has plummeted in the last year-and-a-half.”

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November/December 2021 | DRINKS INDUSTRY IRELAND

8 Industry warns high excise rates will impact on ability of sector to recover and attract tourists back to Ireland

Hospitality sector warns high alcohol excise rate will affect recovery The Drinks Industry Group of Ireland has said that the industry is deeply concerned about the recovery of the drinks and hospitality sector as a recent report shows that Ireland has the second-highest excise tax rates in the EU and the UK. The new report, Tax on Ireland’s Drinks and Hospitality Sector in 2021, authored and researched by DCU Economist Anthony Foley, shows Ireland has the second-highest overall excise tax on drinks products in Europe after Finland.

Ireland has the highest excise tax on wine, the second-highest on beer and the third-highest on spirits among the EU27 and the UK “even ‘though tourism, inextricably linked to the Irish pub, restaurant and hotel and drinks production are key to our domestic economy”.

The high tax rates levied on the industry are unsustainable and uncompetitive. The DIGI was unsuccessful in its call for a reduction in excise tax in Budget 2022 to boost post-Covid tourism and secure sustainable long-term growth for Ireland’s drinks and hospitality businesses in 2022 and beyond.

Ireland among ‘outlier’ countries Ireland is among a group of ‘outlier’ countries — Finland, Sweden and the UK — that charge high levels of excise tax on drinks products relative to the rest of Europe.

In the report, DIGI Chair Liam Reid explained, “The French and German governments, as well as many others in

small exporting breweries and distilleries - to make growth-limiting sacrifices.

“The Irish government takes approximately a third of the price of every drink purchased by a customer in a hospitality environment, money that could otherwise be invested by the business in new staff, new premises, new technology and new products and services,” said Liam Reid, “This kind of growth is exactly what we need to kickstart tourism, drinks exports and domestic spending.”

International comparisons Ireland is among a group of ‘outlier’ countries — Finland, Sweden and the UK — that charge high levels of excise tax on drinks products relative to the rest of Europe.

Western Europe such as Italy and Spain, recognise that their drinks industries are major employers, generate huge amounts of revenue for the economy through export and tourism and are central to local communities and national heritage and culture”.

The DIGI claims that the effects of an excise reduction would be felt ‘immediately’ by thousands of hospitality businesses across Ireland, hundreds of thousands of directly and indirectly employed industry workers as well as domestic and overseas consumers including tourists.

It says that Ireland’s high excise tax on drinks products combined with VAT, high commercial rents and insurance rates forces Ireland’s drinks and hospitality businesses - particularly

In other Western European countries where drinks products and hospitality are of similar, if not greater, importance to economic activity such as wine in France and beer in Germany, excise tax is far lower.

For example the French charge just one cent on a glass of wine compared to our 80 cent, while the Germans charge five cent on a pint of beer compared to our 55 cent.

Fifteen European countries in total, including renowned wine producers Italy and Spain, charge no excise on wine.

And Ireland’s high excise tax on spirits means it’s cheaper to buy a bottle of Irish whiskey in an Italian offlicence - where the excise charge is €2.90 per bottle - than it is here, where excise is €11.92 per bottle.

Wine sees an Irish excise levy on a glass of wine of 80 cent where France levies excise of just one cent.

8 Rise in household spend reflects drop in Hotels & Restaurants spend

’20-’21 household alcohol spend up 23% Household spending on alcoholic beverages purchased for consumption at home increased from €2.2 billion in 2019 to nearly €2.7 billion in 2020, up almost 25% according to the Central Statistics Office’s Statistical Yearbook of Ireland for 2021, published recently.

This perhaps reflects the changing

levels of societal restrictions, according to the CSO, where household expenditure on Hotels & Restaurants decreased from €16.2 billion in 2019 to €9.8 billion in 2020.

The CSO also points out that the average price for a pint of stout in a bar has increased by just over 21% from €3.96 in 2010 to €4.80 in 2020.

The average price for a pint of stout in a bar has increased by just over 21% from €3.96 in 2010 to €4.80 in 2020.

DRINKS INDUSTRY IRELAND | November/December 2021

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8 Alcohol consumption at lowest level in 30 years

Alcohol consumption down 11% in the first half of 2021 Alcohol consumption fell by nearly 11% in the first half of 2021 compared with the same period last year according to the latest Revenue Clearance figures.

The fall is a result of the closure of the hospitality industry, but is also in line with the long-term trend of consumption decline in Ireland, according to Drinks Ireland.

The figures show that beer consumption was down by nearly 15% with cider consumption down by 13%.

Typically, around 60% of beer sales and 45% of cider sales are in pubs, restaurants and hotels.

The Revenue Commissioners recorded a 17.3% drop in the tax take on beer – from €174.2 million in H1 2020 to €144.0m in H1 2021. February was the lowest month for tax take on beer and cider in the first half of this year at €9.2 million and €1.8 million respectively.

2021’s H1 figures show that beer consumption was down by nearly 15% with cider consumption down by 13%.

Consumption was down across all categories, with wine consumption down by 11.5% and spirits down by 0.3%.

The figures confirm that alcohol consumption declined dramatically as a result of Covid-19. The figures from the first half of 2021 are down by 14.1% compared with the same period

in 2019 before the pandemic hit.

“While the decline in alcohol consumption was accelerated by Covid-19, it should be noted that it is in line with the trend of consumption falling generally in Ireland over the past 30 years,” commented Drinks Ireland Director Patricia Callan, “Average alcohol consumption in 2020 was 29.8% lower than the peak of 2001. Overall, alcohol consumption declined last year by 6.6% to its lowest level in 30 years.”

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November/December 2021 | DRINKS INDUSTRY IRELAND

8 Budget 2022 generally positive for hospitality sector

Budget ‘22 - hospitality reacts The Vintners’ Federation of Ireland time to rebuild their businesses. hospitality VAT rate next Autumn will welcomed the Budget announcement “The decision to increase the 9% be a problem the LVA believes. that the Employment Wage Subsidy hospitality VAT to 13.5% next September A 50% increase in the rate imposed Scheme is to be extended until April is short-sighted given that tourism will will have a significant inflationary next year. be significantly impacted for years to impact on costs across the hospitality This will give VFI members the come. The crisis in hospitality is such sector. The LVA anticipates that opportunity to retain staff during a that the lower VAT rate needs to be in further engagement with the period when significant consumer place until at least 2025.

Government on this issue will be uncertainty remains and tourist “Overall, the extensions to EWSS necessary. numbers will be depressed, the VFI said. and the commercial rates waiver are “Overall this has been a generally As part of the winding-down of the meaningful supports for the trade as positive Budget for the hospitality EWSS, two rates are to be introduced it begins to navigate the post-Covid sector,” confirmed LVA Chief Executive next year and it will be closed to new world,” he concluded.

Donall O’Keeffe. entrants.

Dublin counterpart the Licensed However the Restaurants Association Some €60 million is also to be Vintners Association said that Budget of Ireland described the Budget as allocated towards extending “disastrous” for hospitality & the commercial rates waiver. tourism, a Budget with “no This rates waiver until the ambition” to stimulate and end of 2021 is also an important revitalise the tourism industry development, providing time as the 9% VAT rate is set to to recoup losses sustained end in August 2022. RAI Chief through almost 18 months of Executive Adrian Cummins pandemic closure. warned that the hospitality The minimum wage is also to industry faces a challenging increase by 30 Cent to €10.50 five years to restore levels of per hour as recommended by business to pre-Covid levels. the Low Pay Commission.

“Whilst wage supports However, the VFI described remain in place for the the Government’s decision not still restricted restaurant, While excise duty on alcohol was not increased in the Budget, to extend the 9% hospitality the VFI has described the government’s decision not to reduce hospitality and tourism sector, VAT rate past August 2022 the tax, the second-highest in Europe, as a missed opportunity they’ll taper off in the new

by Ministers Paschal Donohoe & Michael McGrath. as disappointing given the year,” he pointed out. challenges the hospitality “This budget is a disaster trade will face over the coming year.

2022 was generally positive for the for our members, restaurants, cafes The fact that most European countries hospitality sector but warned the VAT and gastropubs, a vital element of utilise the 9% rate places Ireland at a increase coming next September will our Tourism offering,” he stated, “The disadvantage when seeking to attract be a serious problem.

VAT rate ending and wage supports inbound trade.

The LVA also warmly welcomed the tapering off will be the death nail in While excise duty was not increased decision that Government charges the coffin [sic] of many hospitality in the Budget, the VFI described the imposed on late night venues such businesses this Winter. government’s decision not to reduce as late bars and nightclubs will be “Although the supports offered in the tax, the second-highest in Europe, waived until the end of 2021. This is an the budget were welcomed, there as a “missed opportunity”. issue the LVA raised extensively with were still some long hard months “Budget 2022 recognises that the Government in the run-up to the ahead, he continued. significant challenges remain for the Budget.

“Since Lockdown measures and pub sector,” said VFI Chief Executive Late bars and nightclubs reopened restrictions have been put in place, Padraig Cribben, speaking after Budget on the 22nd of October following our industry has complied with the 2022 was unveiled, “By maintaining 585 consecutive days of closure. rules. Public safety and the safety of the EWSS until next April and keeping Had these charges not been waived workers have always been at the top the commercial rates waiver in place the LVA estimate that over 300 late of our agenda. But this has meant until the end of year the Government bars and nightclubs would have been serious financial difficulties for many. is giving publicans a chance to trade forced to make advance payments We needed the Government to help us out of the most difficult 18 months of €2.2 million to Government before fight for survival.” imaginable. they could reopen. The LVA argued The Budget announcements fall “Our members remain hugely that this would have been an unfair short of that and the industry will need concerned about consumer confidence imposition on operators which had ongoing support to trade out of this, and the impact of the forced closure zero business in more than 18 months. he concluded. n of venues since March 2020. With While most of the measures struck these Budget measures Government is a positive tone for the sector, the effectively giving our members more Government’s decision to increase the

16 “There’s new ground to be broken in cider” ONE & ONE

Seamus O’Hara, Chair of Drinks Ireland|Cider, talks to Pat Nolan about cider, the Budget and the future.

P

erhaps better-known for his craft beers, Seamus O’Hara, the Chairman of Drinks Ireland|Cider, is no slouch when it comes to crafting Irish ciders either.

But compared to brewing beer, cider can be a lot more labour-intensive and demanding.

“As a craft brewery we found ourselves dealing with customers interested not just in our beer options but our cider options too,” he explains, “Plus we’d noticed a bit of demand for cider in the export markets.

“A lot of the reasons why we’re in craft beer can be applied to cider - the lack of diversity in the market and the potential for innovation. It’s a great opportunity, the craft of making cider from local apple orchards. What had been on the market was even more narrow than beer.

“Our cider is made from apples from our own orchard and supplemented with apples from other local farmers. Cider offers so much potential and opportunity for diversification and innovation. When you look at France or Spain there are so many interesting things being done with cider. We decided to get going on it following consumer pull - and our own interest in it!”

For small producers cider-making is a passion. It doesn’t make money at the end of the day, he believes.

50% excise relief Alas 2020 wasn’t a good year for cider consumption with an 11.3% fall in cider’s market value to just under €520 million, reducing its share of the overall alcohol market to just 6.9% last year from 7.4% in 2019.

So this year’s Budget introduction of an excise relief programme of up to 50% for

independent small producers of cider must have been quite a fillip for his members.

He readily agrees.

“This excise relief will allow more investment in resources for cidermaking in a smilar way to how craft brewing benefitted and developed, so it’s a shot in the arm for small cidermakers as they will have time and space to focus on it,” he says, “It allows more resources to be put into developing ciders with benefits to the end-consumer and to the on-trade - it’s another string to their bow in terms of what they can sell in their outlet.”

But Daniel Emerson of Cider Ireland took a less sanguine view of the government’s cider excise largesse, criticising the delay in implementation of the relief by Government and pointing out that the Budget announcement still means cider producers must needlessly wait yet another year for the excise duty reduction to take effect.

Seamus wouldn’t disagree with this sentiment but nevertheless points out, “We welcome the announcement as we’ve been waiting a long time for it.

“Craft brewers got this in 2003 but it needed some changes at EU level which have now been made. It’s frustrating to have to wait for another year but when you step back from it it’s a really welcome development and gives us certainty as to what’s coming down the tracks.”

He shares Daniel Emerson’s frustration, of course, but he also recognises that there’s work to be done by the Department to implement this because it also extends to other fermented beverages and it’s probably legislation that hasn’t been looked at in a long time.

“The excise break will allow capital investment and product devolopment and

“If you go to your typical off-licence right now you can access a range of ciders with different tastes and appeals and we need to get to the stage where that’s also available in bars.”

innovation” he says, “building up teams and marketing ability and getting our story out there because the story of Irish cider hasn’t been fully told yet.”

Clearly, cider’s a smaller sector than brewing.

There are around 11 cider producers in Ireland at present and Seamus can see expansion for the more ambitious producers in the short-term as a result of the Budget announcement.

And he also sees some potential for export too as a result of the excise break, “So that’s likely to attract new people to the sector in the longer term which brings different expectations and approaches to the cider market.”

Restoring cider’s dynamic Domestically, per capita consumption of cider has fallen by 23% since 2011 and it fell by a further 11.4% to just 0.7 Litres last year compared to beer’s hearty 63.7 Litres.

Just how much help does cider now require?

“In the short-term, there has been Covid, but we’ve also seen year-onyear a gradual reduction in alcohol consumption across the board and cider is part of that,” he explains, “Moving forward, the cider industry might be in decline but this is about bringing new dynamic to cider through new ideas such as different varieties of cider, fruited ciders or barrel-aged ciders, for example, which allow cider to mature over time and also develop flavours from the wood. This all brings new energy to the market.”

DRINKS INDUSTRY IRELAND | November/December 2021

Return to the on-trade Off-trade cider sales increased 27% to €147 million in the year to May the 23rd 2021 according to NielsenIQ. In the Winter months to come it will be imperative to win back and/or win over more of the on-trade, currently at just 16% of total cider consumption from its usual 45%.

“The off-trade has grown due to the pandemic,” he agrees, but points out, “When bars fully reopen more cider consumption will come back to the on-trade. If you go to your typical offlicence right now you can access a range of ciders with different tastes and appeals and we need to get to the stage where that’s also available in bars.

“Initially, the choice may be between bottled and canned for the on-trade if cider-producers are unable to acquire a draft line but we expect that to change over time.”

Seamus would like to see the day when every pub has a cider menu “... and that’s a mind-shift from where we are today where there’s just one cider tap and limited range in bottle. If you have a wine list you should have a cider list!” he believes.

Lockdown returns For now, he’s fairly stoic about the constantly changing goalposts and lastminute announcements from Government that required suppliers to become a ‘pushme pull-you’ to the trade when it came to supplying and taking back kegs of product.

“It was just one of those things we had to do as part of our service to on-trade,” he remembers, “The main challenge was planning supply at short notice and of course it was frustrating to deliver and have to go back and pick up kegs that weren’t needed due to Lockdown.”

While cider suppliers got no government supports specifically for the keg uplifts from pubs, there were some general supports put in place for businesses affected by Lockdown.

The 50% excise reduction in the recent Budget only impacts domestic sales.

Nevertheless, it helps boost resources that can now be laid aside to export, he points out.

One wonders where Irish cider can go from here in terms of market opportunities.

“As a small producer it’s all about Irish apples and fresh apple juice right now, harvesting them, pressing them and fermenting the juice for 2022, so it’s quite seasonal in terms of production. It’s about storing and blending for packaging as demand comes in over the course of the next year.

“Most craft producers will use 100% freshly-pressed apple juice ‘though some will use concentrate to back-sweeten their ciders.

“Obviously in a market full of ciders there

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Seamus O’Hara on...

8 …. why you got into the more labour-intensive cider making “As a craft brewery we found ourselves dealing with customers interested not just in our beer options but our cider options too. Plus we’d noticed a bit of demand for cider in the export markets.”

“A lot of the reasons why we’re in craft beer can be applied to cider - the lack of diversity in the market and the potential for innovation.”

“Cider offers so much potential and opportunity for diversification and innovation.”

8 …. the 50% excise relief for small independent cider & other fermented beverage producers “It allows more resources to be put into developing ciders with benefits to the end-consumer and to the on-trade - it’s another string to their bow in terms of what they can sell in their outlet.”

“The excise break will allow capital investment and product development and innovation, building up teams and marketing ability and getting our story out there because the story of Irish cider hasn’t been fully told yet.”

8 …. restoring cider’s dynamic “In the short-term, there has been Covid, but we’ve also seen year-onyear a gradual reduction in alcohol consumption across the board and cider is part of that. Moving forward, the cider industry might be in decline but this is about bringing new dynamic to cider through new ideas such as different varieties of cider, fruited ciders or barrel-aged ciders, for example, which allow cider to mature over time and also develop flavours from the wood. This all brings new energy to the market.” will be cheaper and more expensive options which will reflect quality and provenence and the consumer will ultimately decide where the market rests.

“There’s a lot of disruption in the market right now in both the on- and off-trades, so when you’re working in a market that’s been quite static for a long time this can lead to new opportunities. The timing of the excise break is really quite important in terms of the extra financial support whether it’s for capital spend or beefing up your business generally.”

He rejects the assertion that the Irish cider

8 …. how to win back on-trade consumers to the cider market “The off-trade has grown due to the pandemic but when bars fully reopen more cider consumption will come back to the on-trade. If you go to your typical off-licence right now you can access a range of ciders with different tastes and appeals and we need to get to the stage where that’s also available in bars.

“Initially the choice may be between bottled and canned for the on-trade if cider-producers are unable to acquire a a draft line but we expect that to change over time.”

“I’d like to see the day when every pub has a cider menu... and that’s a mindshift from where we are today where there’s just one cider tap and limited range in bottle. If you have a wine list you should have a cider list!”

8 …. where one can go from here in terms of cider opportunities “There’s a lot of disruption in the market right now in both the on- and off-trades, so when you’re working in a market that’s been quite static for a long time this can lead to new opportunities. The timing of the excise break is really quite important in terms of the extra financial support whether it’s for capital spend or beefing up your business generally.”

“I believe there’s room for more variants on the Irish market, but exporting is really important too. Again another benefit of the excise support is making us stronger financially and therefore more able to go into export markets with a strong domestic foundation. Yes, it’s a relatively small market domestically, but there’s new ground to be broken.” market is relatively small for any significant expansion of the cider offering.

“I believe there’s room for more variants on the Irish market, but exporting is really important too. Again another benefit of the excise support is making us stronger financially and therefore more able to go into export markets with a strong domestic foundation. Yes, it’s a relatively small market domestically, but there’s new ground to be broken,” he insists.

Hopefully, breaking that new ground won’t encroach onto that of craft beer for his Carlow Brewing Company. n

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experience helped progress on-trade sales but the pandemic obliged him to switch channels to off-trade at the 17,000 square foot unit so currently 75% of its product is in canned format.

With 24 staff, during the course of an eight-hour day the brewery can manufacture some 1,000 cases of canned beer but due to demand a new machine has been ordered which can complete 15 pallets a day and fill about 500 30/50 litre kegs.

Wicklow Wolf brews up one 3,500 litre batch two or three times a day at the 35 hectolitre brewhouse and just launched its 13.5% ABV seasonal Barley Wine.

It produces two unfiltered unpasteurised editions a month, part of the brewery’s ‘Endangered Species’ line comprising “a series of small batch, limited-edition crafted beers so rare that only a lucky few will get to experience them in the wild before they become extinct”.

Alongside this sits the Locavore Project with the simple objective of creating a beer from the hops grown on WW’s 10-acre hop farm in nearby Roundwood - the first Irish commercial hop farm in over 20 years. This grows 12 different hop varieties.

Released once a year after the farm’s hop harvest, Wicklow Wolf Locavore has seen four different interpretations by Head Brewer Peter Reynier.

From Irish blonde and farmhouse ales to dry Irish stouts, the brewery champions Wicklow’s terroir through the ingredients used in its brews. It also caters for coeliacs via its Arcadia brand, a glute-free lager hybrid of Helles and Vienna hops.

Export market While 90% of Wicklow Wolf’s product sells to the domestic market, the brewery also exports to Italy and France (it’s biggest export markets), the Netherlands and Switzerland. At present it’s finalising plans to export to the United Arab Emirates.

Although cans - a more ecofriendly container for beer - are a growing trend worldwide, France has yet to accept canned beers so the French export still consists of bottled product. The brewery retains a small bottling line for this purpose.

Quincey reveals too that plans are afoot to make the Newstownmountkennedy brewery the first solar-powered brewery in the country. And despite Covid19, business has been such that Quincey is already contemplating the bittersweet prospect of running out of space in the not-too-distant future.

Powerscourt Distillery Last stop of the day in the Garden County, Powerscourt Distillery - home of Fercullen Irish Whiskey. Formerly the hub of all farming activity on the Powerscourt Estate in Enniskerry, the distillery is faithfully restoring and extending the Old Mill House there.

Three custom-designed copper pot stills form the new distillery’s centepiece. Powerscourt ferments some 12,000 litres of wort for three to five days to produce a 8-9% alcohol ‘wash’. This produces 1,200 litres of spirits - enough to fill six casks per day.

Known in native Gaelic tongue as “FeraCulann” or Fercullen, Powerscourt’s oldest Fercullen whiskeys were made by its current Master Distiller Noel Sweeney many years ago when he worked for Cooley as its Master Distiller.

As it now stands the distillery is ‘scaleable’ with the potential to produce one million litres a year as global demand for Irish whiskey contines to increase.

Again, local provenance plays an important part in the distilling operation with most of its malt barley coming from Quinns of Baltinglass down the road while 20% of it is grown just 200 metres away on the Powerscourt Estate itself.

Powerscourt remains one of only four Irish distilleries with an on-site warehouse.

Here can be seen the casks that form part of Powerscourt’s Cask Programme, open to investors,

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comprising a small exclusive selection of personalised casks - 397 of them - containing the fist whiskey to be distilled at Powerscourt by Noel.

For example Powerscourt’s ‘88 Club’ comprises casks owned by a group of Chinese investors who came to hear of the distillery via Fercullen’s Chinese importers and distributors and knew a canny investment when they saw one.

The tour of the distillery culminates in a tasting of whiskies paired with mostly local Wicklow Foods.

In the sumptuous surroundings of the Waterfall Room a 10 YearOld Single Grain, one of the very few Single Grain whiskeys ever released, is paired with Wickow Bán Cheese from Wicklow Farmhouse Cheese and covered in Powerscourt Blossom Honey from Olly’s Honey.

An Eight Year-Old Fercullen blended whiskey is paired with Fennel Salami from The Wooded Pig near Tara in County Meath while the 46% ABV 16 YearOld Fercullen Bourbon barrel matured Single Malt is paired with Barbequed Trout, Paté and Caviar from Goatsbridge Trout in County Kilkenny.

An 18 Year-Old Fercullen, with an ABV of 40%, is paired with the Mount Leinster Cheddar from Coolattin Cheddar aged for 18 months.

Finally, the limited-edition ‘Five Elements’ Series comprises a 20 YearOld Single Malt, some 1,500 bottles of which are already out in the trade, paired with Whiskey Truffles from The Chocolate Garden of Ireland.

Recently launched, the Estate Series comprises a selection of different years - nine, 10 and 11 Year-Old Single Grains - all of which have been sitting in Amarone casks of which the first in the Limited Edition trilogy is the ‘Mill House’.

By now the sun has long gone, but the spirit of the Waterfall Room leaves us with the prospect of a delightful stroll back to Enniskerry village through the Powerscourt Estate with its panoramic views of the rolling Wicklow hills.

And after such a day on the Wicklow Beverage Tour, we might be forgiven if we do a bit of rolling ourselves along the way....n

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November/December 2021 | DRINKS INDUSTRY IRELAND

Christmas market likely to be strong With all the restraint shown over Lockdown consumers have amassed a mighty cash pile which some, no doubt, aim to spend in hospitality, either ‘Out, Out’ or ‘At Home’, over the Christmas period. We look at what’s available from suppliers this Christmas.

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raditionally the best time of the year for alcohol sales, last Christmas was expected to be no different - although being in the depths of Covid meant that the offtrade happily supplied much of the nation’s Christmas drinks demand.

In fact alcohol accounted for 30% of the total incremental Christmas shopping growth recorded in the eightweek period to the 27th of December 2020 according to Nielesn’s Total Store Read Scantrack+Discounters figures.

This translated into a 26% increase in alcohol sales worth an extra €111 million.

It was the biggest contributor to market value growth since the previous Christmas.

Last Christmas nine of the 20 top-selling products were alcohol or alcohol-related where the Christmas before the pandemic, no alcohol at all featured in the Top 20.

During this eight-week period consumers prepared for their Christmas dinner by purchasing 49 million litres of beer and 13 million litres of wine.

Not surprisingly for the time of year No alcohol/Lo alcohol sales were up 32% in the eight-week period and by 42% MAT according to NielsenIQ’s Total Store Read Scantrack+Discounters data to the 6th of December.

“From 1st Dec 2020 we were all under Level 3 restrictions which

meant there was partial opening of the hospitality industry limited to venues that served food,” Ruth LloydEvans, Senior Account Manager for Retailer Services at NielsenIQ tells Drinks Indsustry Ireland, “As of 24th December through to 12th Jan 2021 we went to Level 5 restrictions so that meant closure of hospitality and also restrictions on family gatherings.

“For most families the Christmas event was a much more subdued affair. However, despite or even in spite of the imposed restrictions Beer, Wine and Spirits sales in the off-trade experienced over 30% value growth and over 20% unit growth in alcohol sales in the eight weeks to the 27th of December 2020 versus a year >>

DRINKS INDUSTRY IRELAND | November/December 2021

Writers’ Tears Copper Pot

In the last 12 months Writers’ Tears has found its way into the hands of renowned Canadian author Margaret Atwood (creator of The Handmaid’s Tale), the chart-topping and multi-platinum-selling

>>

Bevella - adventures in beverage

“Bevella is a strong, confident offspring of Ireland’s largest distributor Primeline Sales & Marketing,” states the company, “We’ve a vision to be Ireland’s best independent brand-led distributor to the on- and off-trade in terms of range, service, revenue growth and future focus.

“Bevella is a business which focuses on key business areas such as industry knowledge and understanding of customers, trade and trends, partnering and planning with brand owners - and nurturing reliable, supportive, revenue-driving interdependent relationships with publicans, wholesalers and retailers.

“Our partners to date include The Muff Liquor Company – Gin, Vodka and Whiskey, Blood Monkey

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Gin, Connacht Whiskey Company – Straw Boys Vodka and Poitín, Conncullin Gin, Ballyhoo Whiskey, Single Malt Whiskey Batch 1, Two Stacks Whiskey, Killowen Whiskey, Rum and Craft Gins and Maharani Gin. These brands offer a unique array of quality flavours and as the Bevella team analyse the emerging market trends there will be even more impressive and exhilarating brands coming onboard to meet everyone’s expectations, promises the company.

“Bevella exudes Primeline’s 30 years of experience as well as an enhanced determination to bring diversity and new experiences to the Irish alcohol industry. Our experience, capability, imagination and resources are at your disposal whether you have a brand to distribute, a bar to fill, or an offlicence shelf to stock.”

For further details please call Ronan Brennan, Business Representative Manager, on +353 87 332 6783 or email the team at beverage.adventures@bevella.ie.

DRINKS INDUSTRY IRELAND | November/December 2021

LIQUEURS Bols

Lucas Bols announced the global relaunch of its Bols Liqueurs, the world’s number one liqueur range, with natural botanicals. All its recipes are now crafted with natural botanicals to enrich their flavour and high quality.

Research confirms that 70% of consumers prefer cocktails made with the new Bols Liqueurs over competitive brands. To boost the relaunch, new trend-setting drink concepts have been introduced via a revolutionary cocktail gallery that’s

scannable on the bottle via a QR Code. These encourage bartenders and consumers to use Bols Liqueurs as the main base for cocktails, creating drinks with less alcohol and less calories. This fits perfectly with today’s consumer preference to drink less but better. Bols Liqueurs with natural botanicals are available in newly-designed bottles distributed by Barry & Fitzwilliam.

Bols, the world’s first cocktail brand established in 1575 and with a footprint in over 110 countries today, plays a leading role in the development of the global cocktail

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market. The Bols Liqueurs range, comprising more than 40 flavours, has always been known for its real fruit, herbal and spice flavours. This has put Bols in the top 10 most trending and best-sold liqueur brands in the world.

“As the world’s first cocktail brand, we want to inspire bartenders and consumers to create great cocktails,” says Sandie van Doorne, Creative & Communications Director at Lucas Bols, “Consumers around the world are increasingly conscious of their alcohol consumption and health.

With our new Bols Liqueurs crafted with natural botanicals, we offer them a great base for high quality & tasteful cocktails which contain less alcohol and less calories.”

Revolutionary Cocktail Inspiration

The drink concepts Bols has launched use Bols Liqueurs as the base for cocktails, creating low alcohol & calorie drinks. Instead of using a high alcoholic cocktail base such as vodka, a Bols natural botanical liqueur lowers alcohol & calories significantly.

The online portal via the QR Code contains cocktail tutorials which vary >>

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DRINKS INDUSTRY IRELAND

Soft Christmas sales Always a boom time for the soft drinks industry, this time of year usually benefits both the off-trade and the on-trade through an ever-increasing variety of soft drinks and mixers. We take a look at how this is being taken into account by the soft drinks suppliers.

D

espite what many might think, soft drinks decreased their value share of the total beverage market in the off-trade here last Christmas, from 29% to 24% when sales are compared to those for the same period in 2019 according to NielsenIQ. “This is not surprising given the huge increases seen in the alcohol sector throughout last year during the pandemic,” points out Katie Varian, Senior Retail Account Manager with NielsenIQ. Within the Soft Drinks sector Energy drinks were the star performer adding over €4 million to the category for Christmas 2020 vs 2019 and this overtook mineral waters to hold

the highest spot in the soft drinks category with a 20% share.

“Takehome soft drinks drove 100% of incremental growth for the category which is also not surprising given the restrictions that were in place around the Christmas period in 2020, increasing share of total soft drinks to 48%,” she added.

But things are changing as we move through 2021.

Market analyst CGA’s on-trade research in this area shows that over the three months to the end of August soft drinks were running at 60% of 2019’s August to June levels.

“Soft drinks have recovered well

lately, growing sales by 75% between June and August as drinking patterns settle back to normal,” according to CGA.

On-trade Mixer growth

In the most recent on-trade data from CGA, mixers have seen the biggest value share gains within the soft drinks category as a whole in the latest Quarter, growing their share by 1.8 percentage points compared to their share two years ago (before Covid).

“Mixers now account for 24.1% of total soft drinks value and hold the second-highest value in the category, closely following Cola at 26.3%,” it >> states.

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November/December 2021

Kilbroney Water

Premiumisation of mixer & soft drinks category

Mixers have become the fastestgrowing carbonated drinks category in Ireland and following a rise in the popularity of consumers drinking less but better quality, there’s been particular growth in the Premium soft drinks market.

This, combined with the longterm trend of lighter, lower calorie and lower sugar drinks, means that there’s been a need for brands to broaden their product offering to include ‘healthier choices’ that strengthen consumers’ overall drinking experience.

At the forefront of this evolving

DRINKS INDUSTRY IRELAND

enjoyable on their own or mixed to provide low alcohol serves.

“Thanks to the growing mixer market and continual product innovation, curious consumers now have plenty of options in terms of flavour and pairing,” Brian adds, “However, it’s important to offer quality, taste and versatility first and foremost. 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.”

The London Essence mixer varieties include Original Indian Tonic Water, Grapefruit & Rosemary Tonic, Blood Orange & Elderflower Tonic, Pomelo and Pink Peppercorn Tonic Water as well as a delicate Ginger Ale and a White Peach and Jasmine Soda.

Schweppes also provides mixability gift boxes for key on-trade customers for giveaways on their own social media channels.

With additional takeovers by the brand at flagship venues in Dublin, Cork, Galway and Belfast, visibility of Schweppes is at an all-time high this Christmas.

For more information, visit ie.CocaColaHellenic.com.

Kilbroney pure water is drawn from a natural source deep within the beautiful Glens of Antrim.

A healthy level of rainfall and the ever-present ground water in the Glens, trickle down the volcanic bedrock and natural limestone filtration to reach an ancient aquafer which traverses beneath this historic and mineral-rich landscape.

At the well-head in Magheramorne, water is drawn from 180 feet beneath the surface and this depth allows the water to maintain a constant yearround temperature and composition creating the perfect conditions for Kilbroney’s pure and natural water.

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movement is The London Essence Company, a Premium drinks brand producing elegantly-distilled mixers designed to accentuate the finest spirits.

Each expression is delicately light at under 20kcal per 100ml, low in sugar at under 4g per 100ml and crafted without the use of 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 on natural credentials but were also very high in sugar,” said Britvic Ireland’s Marketing 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 also recognised that high sugar mixers often overpowered the characteristics of the spirit partner instead of enhancing them.

With that in mind, the brand took inspiration from its heritage in creating distilled essences which capture the flavour of the finest ingredients to deliver aromatic signature notes and great taste, with only a dusting of sugar.

There has also been a huge shift change in the number of people reducing their alcohol intake following an increase in the NoLo category - a trend not gone unnoticed by The London Essence Company. Its use of contemporary flavours makes the whole range as

Club Mixers: Launching new Elderflower Tonic Water

Ever 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. September saw the launch of the new Elderflower Tonic Water, the first flavoured tonic water in the portfolio. Designed to pair perfectly with London Dry Gin, complementing the well-rounded blend of sweetness and quinine bitterness, this Elderflower tonic adds a wonderful twist on a G&T. Clean, crisp and full of definition with aromatic tones of floral Elderflower infused with subtle citrus undertones signature to the popular Club Tonic Water “It was very important for us to keep such an iconic Irish brand contemporary and relevant to the modern consumer,” said Brian Greer, Marketing Manager at Britvic Ireland, “Our focus has always been to deliver a unique and superior taste experience and the introduction of our Elderflower Tonic Water is a proud moment for us on our journey; we look forward to bringing more exciting new flavours to the range.”

Club Elderflower Tonic is now available in 125ml nonreturnable glass bottles for the on-trade. Club ensures relevance across many drinking opportunities and its portfolio offers a wide range of flavours, best enjoyed chilled over ice with a garnish of choice. Club Mixers are the perfect accompaniment to spirits, expertly designed to blend deliciously with gins, vodkas and whiskeys. n

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Higher sales of NoLos An increasing force on the drinks market, we take a look at the progress of No Alcohol Low Alcohol products.

H

ave sales of NoLo beers reached the point where most publicans might consider putting one on tap?

At present this seems unlikely with a minority of pubs utlising countermounts for NoLo beers.

But the on-trade neverthteless appears to have made the decision to introduce more NoLo products into

the hospitality sector.

And a growing number of major brewers are developing beers for this expanding category in response.

By contrast, the number of new mainstream beer brands entering the category has declined steadily in recent years.

Many licensed premises, restaurants

and hotels now offer their customers creative and appealing NoLo alternatives to alcohol for those wishing to avoid or reduce alcohol intake.

This has been facilitated by the NoLo brand extensions from the major manufacturers prepared to offer alcohol-free alternatives to their flagship brands. >>

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Trend spotting

Spotting where NoLo trends are taking on-trade consumers is not easy but lighter beer styles with lower alcohol levels which can still deliver on taste is certainly emerging as one of them.

‘Health & wellness’ has become much more important to young adult consumers who now seek out drinks not only lower in alcohol but lower in calories too.

While NoLos account for just 1% of the Irish beer market, that share percentage is rising.

Thankfully, there’s a growing range of NoLo products out there that no longer taste lip-puckeringly unpleasant and the existence of a suitable range of NoLo offerings also makes for a more appealing lunchtime menu for those returning to work in the afternoon or those contemplating the prosepect of being the Designated Driver for the evening.

And high quality NoLos have come to be highly regarded alongside Premium products and craft beers.

While lager dominates this NoLo market, ales are finding their market share growing too.

Off-licences selling NoLo products are also likely to benefit as the margins can be rewarding - few consumers expect to find NoLo products on promotion.

What’s more, NoLo beer consumers remain open to Premium options which means retailers can command higher price points.

While few would deny that NoLos are becoming increasingly popular in the on-trade, there’s still plenty of potential for publicans to get further into the sector in their own premises.

A YouGov study in the UK found that while 57% of adults would consider drinking a low-alcohol beverage in a pub, only 43% of them had seen any for sale there.

Some 58% of alcohol-drinkers had tried at least one NoLo product and one in 10 18 to 24 year-olds reported that they’d switched the majority of their drinking to lower alcohol options.

Increased interest in lighter, less calorific non-alcoholic drinks is a global scale trend believes Mitsue Konishi, Senior Innovation Analyst at GlobalData, who stated, “Trends that tap into health concerns can often be long-lived as consumers feel less guilty about consuming them.”

Give draught NoLos a go

A major aim for brewers of NoLo beers is to see them established in draught format in the on-trade. Then they can feel safe that their NoLo beer baby has

November/December 2021 | DRINKS INDUSTRY IRELAND

indeed ‘arrived’.

Draught also allows customers to try before they buy – and they can choose a NoLo beer that blends in with their ‘drinking’ friends.

Staff knowledgeable about NABLABs & NoLos

How well-trained in serving NoLos are your staff?

Do they make purchasing NoLos an adult experience?

When serving a NoLo it’s important to put as much care and attention into its pour or preparation as would be expected of a more mainstream alcoholic drinks order.

Not so long ago an article by The Financial Times’s drinks editor Alice Lascelles found that bartenders now regard it as a ‘badge of honour’ to be able to create low ABV cocktails and mocktails to the same quality and standard as their more alcoholic counterparts.

As one publican pointed out, why sell a tonic water for €2 or €3 when you could offer a well-presented non-alcoholic G&T for €5.50 and thus increase your margin considerably?

So don’t have FOMO over NoLos…

Erdingrer Alkoholfrei

The Bavarian town of Erding exclusively produces 0.5% ABV Erdinger Alkoholfrei. It has reduced calories (107 kj/25 Kcal per 100ml) and provides longer-lasting energy quickly according to the brewery.

In the late 90s Erdinger Weissbräu revolutionised the beer market with Erdinger Alkoholfrei – the first nonalcoholic beer to be a true sports drink too. With its isotonic properties, Erdinger Alkoholfrei is the ideal regeneration drink after sports, states the distributor here, Noreast Premium Drinks, an independent family business based in Dundalk which points out that despite numerous imitators of its positioning and colour code, Erdinger has never relinquished its market leadership. Since its formation in 1995 Noreast has specialised in sourcing, importing and marketing an exclusive range of NoLo beers to the Irish drinks trade.

Erdinger NoLo Innovation: Grapefruit & Lemon

Isotonic and containing vitamins B9, B12 and C, Erdinger Grapefruit & Lemon are a new taste for a new wheat beer generation.

The fruity variant of Erdinger Alkoholfrei is also particularly popular with the female target group, states Noreast.

Budejovicky Budvar Non-Alcoholic

The combination of traditional Budvar brewing methods and the use of only the highest quality natural ingredients creates a beer with a delicate full flavour but a minimum content of alcohol (ABV 0.5%).

Krombacher Alkoholfrei 0.0% Krombacher Alkoholfrei 0.0% Pils has a wellbalanced malt character and light hop aromas.

Full-flavoured with that famous Krombacher finish, it’s bright and golden in colour. There are plenty of snacks and dishes that work well with this beer. The malty sweetness means it pairs perfectly with garlic and olive-forward pesto and pasta dishes. It’s also harmonious with fish dishes.

Estrella Free Damm

Free Damm from Spain is the non-alcoholic member of the Estrella family.

A clean sparkling transparent amber colour with shades of gold, it has a light head and lively fine bubbles. A beer with just the right amount of bitterness. Available in 330ml cans.

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8 Britvic Ireland has made major breakthroughs in sustainability across all areas

Origin Green Gold Membership for Britvic Ireland The Republic of Ireland’s largest soft drinks manufacturer Britvic Ireland has been awarded Origin Green Gold Membership for 2021, joining a committed group of food and drink companies recognised and celebrated

by Bord Bia’s Origin Green programme for excelling in their sustainability targets and demonstrating best-inclass environmental performance among their peers.

Since first achieving Origin Green accreditation Britvic Ireland has made major breakthroughs in sustainability across all areas of the portfolio including: • reducing sugar: a 43% reduction in Calories per Serve achieved through a combination of sugar reduction, consumer education and the launch of low sugar options such as Club Zero.

• reducing waste: achieving zero waste-to-landfill across its sites

“We’ve set exacting sustainability targets which are transforming every aspect of our business,” said Britvic Ireland’s Managing Director Kevin Donnelly.

• reducing emissions: a move to 100% renewable electricity in manufacturing • reducing water: 25% reduction in water footprint

• supporting Packaging Circularity: achieving 100% recycleable consumer packaging and step-changing the use of recycled materials with Ballygowan in 100% recycled PET bottles.

• supporting local communities: providing meaningful support to a variety of local charities and grassroots sports including raising €2.8 million to date through the Miwadi Trick or Treat for Temple Street campaign.

“We’ve set exacting sustainability targets which are transforming every aspect of our business,” said Britvic Ireland’s Managing Director Kevin Donnelly in paying tribute to the team-effort involved in achiving this award, “Today’s award gives us encouragement that we’re on the right path to achieving our goals.”

8 15,000 bottles produced with 1,000 Cask Strength

Dingle Distillery launches Single Malt Batch 6 Dingle Distillery has launched the sixth and final release of its Single Malt Batch series – Dingle Single Malt Batch 6.

Some 15,000 bottles have been produced with an all-Port maturation - and with an additional 1,000 Cask

Strength bottles available.

The new Single Malt whiskey (46.5% ABV) uses non-chill filtration to produce its whiskey and Dingle Distillery adds no colouring.

“This launch will be of particular interest to those who’ve followed our journey since our first batch release in 2016 but also for those who want to experience the art of the Dingle Whiskey distilling process through the final Single Malt Batch Priced at €70.00 per 70cl bottle with the Cask Strength priced at €150.00 the new Single Malt whiskey (46.5% ABV) uses nonchill filtration and Dingle Distillery adds no colouring.

in the series,” explains Elliot Hughes, Managing Director at Dingle Distillery.

Graham Coull, Master Distiller at Dingle, comments that, “Our Single Malt Batch 6 is fully matured exclusively in Tawny Port Casks; Batch 6 is a great example of the interaction between Single Malt spirit and Fortified wine.

A whiskey with multiple layers of sweetness and a well-balanced depth of flavour. It really is a ‘must-try’, even more so as it’s the last in the series”.

Follow Dingle on social media: Instagram @dingledistillery Twitter @DingleWhiskey Facebook @DingleWhiskey Visit https://dingledistillery.ie/

www.drinksindustryireland.ie

DRINKS INDUSTRY IRELAND | November/December 2021

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8 Fercullen 20-Year-Old Single Malt showcases Master Distiller Noel Sweeney’s blending expertise

Powerscourt Distillery unveils second in ‘Five Elements’ series • two types of Oak maturation - American White Oak and European Oak • four different finishing casks: Oloroso Sherry, Pedro Ximenez, Marsala and Muscatel • five styles: Oloroso Sherry, Pedro Ximenez, Marsala, Muscatel and Bourbon casks “For our 2021 release of the ‘Five Elements’ • the globally-recognised touch I wanted to further develop the inimitable and blending expertise of Master composite expression standards set in our first Distiller Noel Sweeney. release of Five Elements,” said Noel Sweeney.

Launched recently at the Fercullen The new addition to Fercullen’s ‘Five VIP Garden at Taste of Dublin 2021, Elements’ series is a Limited-Edition guests were treated to a sample of 20 Year-Old Single Malt Fercullen from this Special Edition which was received Powerscourt Distillery. with rapturous praise from the writers, Following the glowing reception whiskey influencers and media in and success of the 2020 release of attendance. the first ‘Five Elements’ 18 Year-Old This 20 Year-Old Single Malt whiskey Malt, Master Distiller Noel Sweeney has is a marriage of five different cask unveiled his latest expression of the styles expertly combined by Noel series, limited to just 1,500 bottles.

Sweeney. Noel’s experience has The ‘Five Elements’ comprise: been applied to ensure that different • a single distillery source proportions of each style lend balance

and expression to each of the Five Elements within this 20 Y-O Single Malt Irish Whiskey.

Sixteen year-old Bourbon barrel matured malt whiskey has been finished for four years in a variety of casks before marrying together with 20 Year-Old Bourbon matured Single Malt.

“For our 2021 release of the ‘Five Elements’ I wanted to further develop the inimitable composite expression standards set in our first release of Five Elements,” said Noel, “Selecting rare 16 Year-Old single malt whiskey stocks and carefully decanting into Oloroso Sherry, Pedro Ximenez, Marsala and Muscatel casks - these characteristics were infused over four years. This liquid was then married with 20 years-old Bourbon barrel-matured Single Malt in the perfect proportions to create a genuinely complex, flavoursome and special whiskey.”

8 Regal Rogue undergoes radical move to increased sustainability

Regal Rogue celebrates 10 years with move to organic wine & recycled packaging Award-winning Vermouth brand Regal Rogue celebrates its 10th Anniversary this year, having undergone a radical move to increased sustainability through its move to 100% organic wine and new recycled packaging.

Inspired by the abundance of New World wines and ancient botanicals in sun-soaked Australia, at Regal Rogue’s heart is a commitment to create the best Australian Vermouth that’s an expression of place with minimum impact on the land itself.

Organic Australian grapes are blended with organic botanicals to make an everyday quaffing Vermouth for the ultimate wine aperitif, available in four varietals: Lively White, Daring Dry, Bold Red and Wild Rosé.

The brand’s packaging is now 99.5% recycled and the range has moved to 100% organic Australian wine as well as 80% organic native Aboriginal herbs, farmed under biodynamic practices.

Australia’s first native Vermouth was

established in 2011. The brand’s four varietals are made using grapes sourced from organic winemaker Justin Jarrett of See Saw Wines in Orange, New South Wales. Justin has grown grapes and made cool climate wines for over 25 years, nurturing them using minimal intervention and organic viticulture.

Regal Rogue is made with more than 17 aromatic herbs with three native Australian spices.

“If the first 10 years of Regal Rogue was about establishing the brand and adding some disruption to the Vermouth category” commented Regal Rogue founder Mark Ward, “the next 10 years is about giving back and deepening the links to organic partnerships, sustainable practices and directly supporting impoverished indigenous communities in Australia through programmes that give back and support those communities.”

A fresh alternative to wines and spirits, Regal Rogue is best enjoyed

Regal Rogue Daring Dry.

over ice or neat, long with a mixer for a wine aperitif or low ABV spritz or in Vermouth-forward cocktails.

Visit www.regalrogue.com or follow @regalrogue on Instagram for more information.

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November/December 2021 | DRINKS INDUSTRY IRELAND

8 50% ABV reveals added depth and richness to multi-award-winning Jameson Black Barrel

Jameson Introduces Black Barrel Proof Hot on the heels of its recent ‘Best Irish Whiskey’ trophy at the 2021 International Spirits Challenge, Jameson is launching a 50% ABV limited-edition of its Black Barrel whiskey this Christmas.

Made from pot still and grain whiskey matured in a combination of American Oak, Sherry casks and double-charred ex-Bourbon barrels to give an even deeper flavour experience, uniquely, this expression will be bottled at 50% ABV without chill filtration.

The result? A rich, smooth expression that showcases the benefit that the tradition of barrel-charring can add

to Irish whiskey to create a totally new experience for Irish whiskey enthusiasts.

“Jameson Black Barrel is a tripledistilled blend of our small batch grain and traditional single pot still Irish whiskey,” explains Irish Distillers’ Master Distiller Kevin O’Gorman, “Paying tribute to the cooper’s skill, maturing a portion of our whiskey in double-charred barrels brings out sweet and spicy characteristics in abundance as it penetrates deeper into the charred Oak.” Set to appeal to whiskey fans seeking to explore a more intense flavour

experience this Christmas, the limited-edition release of Jameson Black Barrel Proof will be available from early November.

Best served in a cocktail or over ice. @JamesonWhiskey #BlackBarrelProof Set to appeal to whiskey fans seeking to explore a more intense flavour experience this Christmas, the limited-edition release of Jameson Black Barrel Proof will be available from early November.

8 Newest addition to Clonakilty Distillery spirits family secures Gold medal

Gold Minke

Minke Irish Vodka scooped the Gold Award in the Smooth category at The Spirits Business Vodka Masters 2021.

The vodka debut for the popular Cork distillery was launched some months ago and was commended by the judges for having a smooth taste, “with a nice creaminess and a good balance”. The judging panel also noted its being “soft with a touch of peppery spice notes”.

Clonakilty Distillery utilises its natural surroundings to create the perfect environment for a maritime distillery - prime land, pristine water and salt sea air.

Paul Corbett, Head Distiller and Blender at Clonakilty Distillery, also revealed the secrets of success to creating Minke Vodka’s unique and award-winning taste.

“We slow distil a whey-based spirit in our own pot still through a 10-meter copper coil before it reaches our

Minke, Clonakilty’s vodka debut, scooped the Gold Award in the Smooth category at The Spirits Business Vodka Masters 2021.

condenser,” he said, “This added reflux from the coil creates an incredibly pure and clean spirit while the whey base alcohol delivers a rich and smooth velvety mouthfeel.

“Unlike most Irish vodkas which are distilled using a grain-based alcohol, Clonakilty Distillery’s Minke Vodka uses a whey-base spirit derived from milk which is produced on the ninthgeneration family farm located a short distance from the distillery itself.”

As with the gin, Minke Vodka is inspired by the Minke Whale that swims wild in the Atlantic off the coast of Clonakilty.

To keep up to date with all things Clonakilty Distillery check out Clonakilty Distillery on Twitter @clondistillery, on facebook @ clonakiltydistillery and on Instagram @clonakiltydistillery.

For more information visit https://clonakiltydistillery.ie/

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8 Irish drinks industry to adopt first global standards to ensure responsible marketing of alcohol by social media influencers

Irish industry to adopt alcohol marketing standards by social media influencers

Ireland’s drinks industry has pledged to adopt the first-ever industrywide set of global standards for ‘influencer marketing’ under a new partnership aimed at setting concrete steps towards tackling alcohol misuse and underage drinking.

The global initiative, launched by the International Alliance for Responsible Drinking - whose members Under the pledge, producers and advertisers commit to conducting diligence on influencers used. are the leading global beer, wine and spirits producers in partnership alcohol brands and influencers to with advertising, public relations and follow robust responsible marketing influencer agencies - will help ensure practices when creating content alcohol marketing by social influencers • clear commitments to market is clearly-recognised, responsibly responsibly, including not making advertised and aimed at an audience health claims, promoting illegal that’s over the legal purchasing age. or excessive consumption, or This pledge builds on ongoing positioning abstinence negatively. actions by IARD members to This world-first initiative will offer implement safeguards for alcohol more transparency and give those advertising online including the Digital at the heart of content creation Guiding Principles and partnerships the correct tools to safeguard their with YouTube, facebook and Snapchat content according to Drinks Ireland to improve age-screening, enabling Director Patricia Cullen. users to opt out of alcohol marketing “In Ireland, we have some of and allowing content creators to agethe strictest rules in the world for gate posts. advertising alcohol including around Under the pledge, producers and the use of influencers and this advertisers commit to conducting pledge will help further strengthen diligence on influencers used, to protections online,” she sated. use age-affirmation technology on “There has been strong progress in platforms where available and to Ireland in tackling alcohol misuse and promote better understanding of underage drinking. In 2020 alcohol responsible alcohol consumption for consumption was 29.8% lower than those who choose to drink. the peak of 2001.

As well as the pledge, the move to “Separately, a Health Behaviour in formalise safeguards for influencer School-aged Children survey by the marketing includes: World Health Organisation found that • a set of five specific safeguards Irish 10-17 year-olds who reported that apply to any content involving having ever been drunk declined influencers who work with the by 19% between 1998 and 2018, to leading beer, wine and spirits 18.3% - and we have a very low level producers of underage drinking compared with • tools and videos that support all other countries.”

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8 New Fruit for Mix range launched in eight flavours

Giffard extends current portfolio Giffard has extended its current portfolio of liqueurs, syrups and sauces, adding a range of fruit purees for the drink industry.

The new Fruit for Mix range has been launched in eight flavours: Banana, Strawberry, Raspberry, Passionfruit, Mango, Peach, Blueberry and Coconut.

This range has been developed, continuing Giffard’s tradition of focusing on naturality - products are developed with more than 50% of fruit and only natural flavours and colours to capture the taste of nature, bringing it into the final drink.

This new range completes perfectly the syrups and liqueurs range to create not only cocktails but many types of drinks.

New Fruit for Mix range has been launched in eight flavours including Mango.

Versatility of the Fruit for Mix range enables multiple usages such as: twisting classic cocktails with or with alcohol; increasing texture and fruit content in smoothies, lemonades and icedteas; boosting bartenders’ and baristas’ creativity to personalise their menus and to open fun categories such as slushes or milkshakes.

Irish distributor – drinksGenius n

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