Drinks Industry Ireland Magazine - September Issue

“Too soon to predict the death of the city” -- IWSR’s Humphrey Serjeantson on the dilemma facing city-centre bars

Irish Whiskey – still a star

The Entrepreneurial Spirit of

Pearse Lyons Brewing & Distilling

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COVER STORY 20 Catching the new wave of consumers

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UK market analyst CGA in partnership with Yumpingo & UKHospitality ran a webinar on eating and drinking out habits in this time of Covid. Drinks Industry Ireland sat in on ‘Catching the new wave of consumers’.

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Volume 20 Issue 6 www.drinksindustryireland.ie Editor PAT NOLAN (01)2046230 patnolan@mediateam.ie Head of Business IAN MULVANEY (01)2947766 ianmulvaney@mediateam.ie

NEWS & ANALYSIS 5 News

Account manager MARK MORGAN (01) 2947767 markmorgan@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

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No part of this publication may be copied, reproduced or transmitted in any form without permission of the publisher.

Wine sales up 1.5%; On-trade time limits boost off-sales 13; Wine importing and exporting in UK will completely change post-Brexit 14.

36 Campaign Trail

Printing W&G Baird Subscription details Nine issues a year €80 (including VAT).

Licence & court fees waiver – 60% of Government ‘package’; Government’s €16m Support Package – “crumbs” 6; Irish pubs longest in lockdown in EU 7; Diageo Ireland net sales down 20% 8; Beer sales declining before Covid 9.

When Time Bears Fruit; 2020 international Jägermeister Scholarship goes digital 37.

38 Closing Time

Dave retires after 47 years at Gleesons.

FEATURES & REPORTS

10 “Too soon to predict the death of the city”

Humphrey Serjeantson, IWSR’s Research Director for Western Europe, talks to Pat Nolan of the dilemma facing city-centre bars – and others - in a post-Covid world.

18 Bord Bia’s ambitious strategy for Irish spirits

Bord Bia has set an ambitious target of increasing Irish spirits exports to key established markets by 10% and those to ‘future opportunity markets’ by 25%, all by 2020. That was before Covid.

22 Hard Seltzer becoming a ‘lifestyle choice’

Hard Seltzers have become the fastest-growing category of alcoholic beverage in the US with current sales outselling vodka. Now they’re here in Ireland. Drinks Industry Ireland takes a look at the phenomenon.

27 Irish Whiskey – still a star

Premiumisation has become a key driver of Irish whiskey sales both here at home and in the US, Irish whiskey’s biggest market. Despite Lockdown, Irish whiskey remains a shining star in the international spirits firmament while here at home, as the nights prepare to draw in, we take a look at the growing consumer demand for premium Irish whiskeys.

32 North American whiskeys & bourbons trade on

Before the US-EU trade tariff war bourbon exports to the EU had enjoyed annual growth of nearly 40% so demand is certainly there for North American whiskeys & bourbons.

We review the market

www.drinksindustryireland.ie NEWS • PODCASTS • MARKETING • ON-TRADE • OFF-TRADE • OPINION

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OPINION

September 2020 | DRINKS INDUSTRY IRELAND

“Work on top of work on top of work” WHILE THE announcement of a 21st of September opening date for non-food pubs can only be good news for those who believe that it’s still not too late to make a go of their business, the government’s seeming perplexity at the trade’s negative reaction to SI 326 sits somewhat less easily.

SI 326 requires the publican to make a record of each meal ordered by each member of a party eating in the pub.

The Taoiseach, in referring to the introduction of this legislation, stated that there was no requirement for pubs and restaurants to keep records of what individual diners bought.

“It got misinterpreted and misrepresented completely,” he claimed while acknowledging that the communication of SI 326 could have been better conducted. Nevertheless, he insisted that there had been an over-reaction to the introduction of the Instrument.

But the SI is quite clear that the requirement on a food-serving operation is that a record has to be made of the substantial meal or meals ordered “by each member of a party of persons and each sole person” who’s allowed to enter the premises. That’s fairly specific.

When it’s less than specific, chaos can ensue.

Who can forget the bedlam caused by trying to define what constitutes a smoking shelter?

This was left open to interpretation by every individual EHO with the result that hard-pressed publicans lost fortunes in attempting to comply with the law as understood by one EHO only to be told by his or her replacement that this was not satisfactory and to start over again. EHO interpretation also varied from county to county.

And while the latest temporary SI is undoubtedly another heavy level of bureaucracy on the trade, “filing work on top of work on top of work for businesses” as Junior Minister Anne Rabbitte put it, publicans are entitled to expect nothing less than clarity in being expected to comply with such onerous regulations.

The insouciance of the government’s approach to legislating the licensed trade contrasts strongly with the trade’s own fine-tuned take on the detail of this SI, just as it did when the smoking legislation was introduced with its loosely defined criterion for a smoking shelter. And who introduced that?

“Who can forget the bedlam caused by trying to define what constitutes a smoking shelter?”

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

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8 Licence fee waivers, court fees etc account for 59% of the Government’s €16 million total ‘package’

Licence & court fees waiver 60% of Government ‘package’ In reality only a fraction of the Government’s recently-announced €16 million ‘package’ for pubs will consist of direct grant aid for those pubs still closed.

While the banks provided a sixmonth moratorium to pubs across the country at the beginning of the Covid crisis, that will close at the end of September so that the Government and National Public Health Emergency Team’s decision to further delay the re-opening of pubs will drive thousands into mortgage default, according to the Licensed Vintners Association.

This means that Government policy will directly damage the credit rating of mortgaged pubs that are still closed through no fault of their own.

The LVA has also criticised the ‘package’ announced by the Government, saying the majority of closed pubs will receive no more than €1,600 grant aid.

Small pubs in the lowest licensing bracket comprise most of the pubs still closed and they will have been shut by order of the Government for nearly seven months at the time of going to press. The figures announced mean they’ll only be due an extra payment of €64 per week of forced closure, an average which gets smaller for each additional week they’re unable to open.

The level of grant aid provided to these pubs (who have now have been closed for a minimum of six months) is the same as that announced for businesses in Kildare who were closed for just four weeks recently.

What’s more, according to the LVA,

59% of the Government’s ‘package’, or €9.4 million, goes towards waiving the licence and court fees for pubs, restaurants and hotels and therefore not directly to pubs in grant aid.

59% of the Government’s ‘package’, or €9.4 million, goes towards waiving the licence and court fees for pubs, restaurants and hotels and therefore not directly to pub in grant aid.

While the LVA believes it would have been “grossly unfair” to apply this levy given the restrictions imposed on the hospitality trade, the waiver will apply to all hospitality businesses including those who’ve been open and trading since June.

It is “massively concerned” that the recent decisions made by the Government and NPHET are going to drive thousands of pubs across the country into mortgage default, explained LVA Chief Executive Donall O’Keeffe.

“Firstly the Government and NPHET has once again stopped these pubs from opening their doors so they have no income coming into the business.

On top of that they announced a paltry, token gesture of a package which offers next to no support to these businesses.

“With these pubs being unable to

Supported by the VFI and LVA thousands of pubs across Ireland pushed the Government for ‘Support not Sympathy’ on the day that marked five months of closure for more than 3,500 of the country’s pubs.

Thousands of photos were posted across social media under the #SupportNotSympathy campaign, targeted at national and local politicians. The photos featured publicans along with their family members and/or staff posed outside their pubs. At Christy’s Bar, Kilkenny, were (from left): Publican Anthony Morrison with his two sons Harry (6) and David (8) along with his brother Liam and mother Josie. So many publicans were posting on Saturday 15th August that #SupportNotSympathy hit number one on Twitter’s ‘trending’ topics by 10.30am and remained there for the entire day.

trade, effectively the Government and NPHET are driving them into mortgage default.

“The so-called ‘package’ announced by the Government was nothing more than a hollow gesture,” he continued, “It was spin pure and simple, but it exposed how little they care about protecting the pub sector in this country.

“Most of these are small pubs who are in the lowest licencing band and they will be due a total of an extra €1,600 in grants.”

That will average out at €64 extra per week of closure, he pointed out.

“It does not come near to covering the costs facing these businesses who are closed by order of the Government.

Even with the doors closed they still have overheads, mortgage payments, rent, electricity bills, insurance bills, security and other costs.

“To put the level of aid announced in perspective, businesses in Kildare were provided with the same level of grants when they were closed for four weeks.

It seems Government simply does not care about the future of pubs.

“Basically every action the Government is taking at the moment is driving the pub industry in this country into the ground. They have given the industry next to no support and possibly even worse, they’ve also taken away all hope for the pubs still closed, the 25,000 members of staff they employ and all their families,” he concluded.

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NEWS

September 2020 | DRINKS INDUSTRY IRELAND

8 “Paltry gesture” is “woefully inadequate”

Government’s €16m Support Package – “crumbs”

The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, the Minister for Finance Paschal Donohoe, the Minister for Public Expenditure Michael McGrath and Minister for Justice Helen McEntee’s recent announcement of a “further €16m support package to help pubs, bars and nightclubs, recognising the economic impact of Covid-19 on their businesses and to assist planning and adaptation for their re-opening” has been described as “paltry” and “woefully inadequate” by vintners.

The new measures comprise: • restart Grant Plus 40% Top Up. Those businesses remaining closed and planning their re-opening can now receive a minimum of €5,600 and a maximum of €35,000 under the Restart Grant Plus. The Restart Grant Plus gives grants to businesses to help them adapt, re-open their business and get back to work. It provides a minimum payment of €4,000 and a maximum payment of €25,000 based on the rates bill of the enterprise in 2019. To qualify for the scheme, enterprises must have 250 employees or less and turnover of less than €100,000 per employee as well as turnover reduced by 25% as a result of Covid-19. Applications can be made are through Local Authorities • the waiver of court fees and associated excise and stamp duties relating to the renewal of pub and other liquor licences in 2020.

These measures are in addition to the existing Restart Grant Plus, Tourism Adaptation Fund, the The Wage Subsidy Scheme, commercial rates waiver, liquidity supports and tax measures (such as warehousing of tax debt and reduction in VAT), stated the Government.

“It’s been a really difficult few months for pub owners,” acknowledged the Tánaiste, “Our publicans are making a massive sacrifice to protect their communities and the government is determined to help.

“We want to make sure that our pubs are in a position to re-open as soon as it is safe to do so.”

The Government is acutely aware of

“Government is allowing thousands of pubs wither on the vine and the damage being done to local communities across the country is incalculable.” – Padraig Cribben.

the unique circumstances which pub owners find themselves in as a result of Covid-19, claimed the Minister for Finance Paschal Donohoe.

Minister for Public Expenditure and Reform Michael McGrath said, “Pubs are an important part of the social fabric of our country and the measures announced today are another support to help them come through this very challenging time and be able to re-open when the time is right.”

In response the Licensed Vintners Association and the Vintners Federation of Ireland pointed out that pubs that are still closed will receive the same level of restart grant as provided to businesses in Kildare, some of whom remained open.

“This is a paltry gesture which shows how little regard this Government has for the troubles of the pub industry,” said LVA Chief Executive Donall O’Keeffe, “We asked for ‘Support Not Sympathy’ and the Government has given us crumbs. This is the third time the re-opening of the pubs has been delayed and they’ve had weeks to put a package together. We’d been calling for a plan to support the pub sector since mid-July and this is all the Government managed to put together.

It is disappointing in the extreme.”

Meanwhile VFI Chief Executive Padraig Cribben described the “so-called” support package for publicans who are closed almost six months as “woefully inadequate”, adding, “Our members are facing into an Autumn of uncertainty with no guidance from Government about how

and when they will be allowed re-open. In the circumstances, a weekly grant payment was the absolute minimum publicans expected. Publicans are now in complete despair.

They can’t see any light at the end of the tunnel and these supports will do nothing to ease their fears for the future. The Government is allowing thousands of pubs wither on the vine and the damage being done to local communities across the country is incalculable,” he concluded.

“While some support is better than none, the Government’s new package shows short-term thinking and a failure to grasp the magnitude of the situation that publicans are facing,” commented the Drinks Industry Group of Ireland which described the package as “barely scratching the surface of what is required.

“Pubs in Ireland have been closed for almost six months, significantly longer than any other EU country.

There has still been no explanation from the Government as to why Ireland is a special case,” it added.

“Furthermore, the Government have not provided any certainty or even a rough timeline for pub re-openings. This is little comfort for the thousands of business owners who face the real prospect of permanent closure - and soon.

“Lockdown until 2021 will cause irretrievable losses in jobs, reduce prospects in rural communities, weaken our tourism product and permanently damage the character and culture of the country.

“Despite being one of the most severely impacted industries in the state as a result of the Covid-19 pandemic, the drinks and hospitality sector remains subject to the secondhighest excise tax in Europe. A reduction in excise tax should be among the core considerations for Government as we look towards Budget 2021.”

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8 13 EU member states including Germany and Italy re-opened bars in May & another 9 in June

Irish pubs longest in lockdown in EU The Drinks Industry Group of Ireland joined vintners across the country in calling for a dedicated and immediate hospitality support package and a reduction in excise tax in Budget 2021.

While pubs that serve food were permitted to re-open at the end of June, these comprised just 40% of all pubs in the country, the rest have remained closed for over five months now.

Germany, Italy and Austria permitted their bars to re-open in May with Social Distancing restrictions in place. France, Spain and the Netherlands permitted re-opening in June. Only Portugal re-opened its bars later, in August.

Sweden did not impose any lockdown at all while bars in Latvia have been allowed stay open throughout the pandemic provided they can maintain two metres of distance between patrons. In the UK pubs were allowed to re-open on the 4th of July.

Even if publicans are permitted to re-open their businesses this month they still face immediate cashflow challenges including making back the money invested in Protective Personal Equipment and the overheads of maintaining the business with no money coming in since March.

Social Distancing restrictions will impact revenue take due to reduced

capacity. Events such as family celebrations and club meetings are currently not permitted.

Over the longer term these issues will be further compounded by a global downturn in the tourism sector. Ireland’s 2020 tourism season has been nonexistent and it’s likely to be significantly reduced in 2021 as recession hits earnings and virus fears persist, the DIGI pointed out.

Even if publicans are permitted to re-open their businesses this month they still face immediate cashflow challenges.

DIGI, which represents over 14,000 drinks and hospitality businesses, also called for a 15% reduction in excise tax on alcohol in Budget 2021.

A reduction in excise tax, together with the package’s other measures, would allow drinks and hospitality businesses to recover from a six-month closure, recoup some money invested in PPE and

cover the losses of operating at reduced capacity for the foreseeable future.

An excise tax reduction would also help other drinks businesses, especially brewery and distillery start-ups, which have contributed to a boom in Irish manufacturing over the last decade, stated the DIGI. “Ninety per cent of pubs are located outside of Dublin where they provide a place for their local communities to come together and socialise,” said DIGI Chair and Director of Communications and Corporate Affairs at Irish Distillers Rosemary Garth, “They’re key parts of our tourism product and our national culture.

“The Government has so far failed to provide them with any kind of reassurance, certainty, or long-term support.

“Government support next year will be too late; the damage will have been done,” she continued, “The drinks and hospitality sector needs financial support now and in addition, this Budget should also provide an alcohol excise tax reduction.”

Otherwise the industry risks permanently losing hundreds of businesses and thousands of jobs, she concluded.

8 Intrepid Spirits welcomes Fubá Cachaça to international brand portfolio

Intrepid Spirits to distribute Fubá Cachaça Intrepid Spirits, the independentlyowned Irish beverage company with offices in Dublin, Shanghai, Chicago and San Francisco, added Brazilian Cachaça brand Fubá to its portfolio in time for Brazilian Independence Day on the 7th of September.

A brand with sustainability at its heart, Fubá is also working with Intrepid Spirits to donate proceeds from sales of its cachaça to União Amazonia Viva, a Non-Governmental Organisation, helping protect endangered native tribes in the Amazon.

Fubá Cachaça was created by brothers Rafael and Cassiano Agapito using traditional methods coupled with modern, sustainable techniques and working with communities and

co-operatives in their native Brazil.

Raf Agapito will continue to be involved in the development of the brand, working closely with the whole team at Intrepid to expand the distribution and presence of Fubá globally.

Known as the official Brazilian spirit, there are over 2,000 words used to refer to cachaça in Brazil from ‘Tiger’s Breath’ to ‘Wisdom Water’. Cachaça is a geographicallyprotected name too: to be an authentic cachaça, the spirit must be distilled exclusively in Brazil using fermented fresh sugarcane juice, with an ABV of between 37% and 53%.

The modern-day cachaça market is one of the biggest in terms of volume with over 1.5 billion litres being

Intrepid Spirits has added the Brazilian Cachaça brand Fubá to its portfolio in time for Brazilian Independence Day on the 7th of September.

consumed each year. In Brazil alone, there are 5,000 registered brands of Cachaça and an estimated 35,000 distilleries throughout the country.

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September 2020 | DRINKS INDUSTRY IRELAND

8 Consistent first half performance significantly impacted by Covid-19 in second half

Diageo Ireland net sales down 20% Net sales at Diageo Ireland declined 20% while beer sales slumped by 22% here in the year to the 30th June according to Diageo plc’s preliminary results statement.

“A soft first half performance was further exacerbated by on-trade closures,” stated the multinational which pointed out that Rockshore here continued to show “double-digit” growth through Rockshore Cider.

High single-digit growth was reported in Rockshore Lager despite Covid-19 lockdown restrictions.

“This was offset by declines in

Net sales at Diageo Ireland declined 20% while beer sales slumped by 22% here in the year to the 30th June according to Diageo plc’s preliminary results statement.

Guinness, driven by closure of the on-trade and further impacted by a keg return scheme to support customers and maintain product quality,” stated the company.

Total spirits declined 10% as off-trade sales increases were not sufficient to offset Covid-19-related closures in the on-trade, stated Diageo.

Globally, beer sales, which account for 15% of nett sales at Diageo, declined by around 15% with Guinness sales

declining by 16%.

Organic net sales at Diageo plc were down 8.4% while organic volume sales were down 11.2%, with reported net sales down 8.7% to £11.8 billion “driven by organic declines”.

Organic operating profit at the multinational was down 14.4%, with reported operating profit down 47.1% to £2.1 billion “driven mainly by exceptional operating items and organic net sales”.

Fiscal 20 was a year of two halves said Diageo Chief Executive Ivan Menezes, “After good, consistent performance in the first half of fiscal 20, the outbreak of Covid-19 presented significant challenges for our business, impacting the full year performance”.

8 Grants available for tourism businesses to contribute to costs of adapting premises/operations & implementing Fáilte Ireland’s Guidelines for Re-opening

Open pubs eligible for €26 million Covid-19 Fund Pubs currently open serving food will be able to benefit from the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht Catherine Martin TD’s launching of the €26 million Covid-19 Adaptation Fund to help tourism and hospitality businesses offset some of the costs incurred in adapting their premises or operations for re-opening.

Costs, including those for barriers and protective screens, the development of outdoor areas, Personal Protective Equipment and sanitiser will be covered.

The Fund is being administered by Fáilte Ireland and applications are now open until October 8th.

The Fund has been designed to help support tourism businesses through grants of between €500 and €15,000 to make either the structural adaptations required for fixed, visitor-facing premises or to cover the cost of Covid-19-related consumables (such as sanitiser or PPE) for those businesses which provide a visitor experience but do not have significant visitor-facing premises.

The National Tourism Development Authority estimates that there are approximately 12,000 businesses that will be eligible to apply for funding making it the largest fund in terms of the number of businesses ever administered by Fáilte Ireland.

The Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht Catherine Martin TD with Crebhan Hughes at the Doolin Inn, Co Clare, in light of the announcement.

Fáilte Ireland developed the Covid19 Safety Charter as a Governmentbacked initiative to reassure consumers that the tourism and hospitality businesses that they visit have committed to adhere to the correct safety measures and hygiene protocols set out in Fáilte Ireland’s Guidelines for Re-opening.

The Covid-19 Adaptation Fund is the third step in Fáilte Ireland’s approach to re-opening.

Businesses must be open at the time of application in order to be eligible for this Fund in line with the Government’s Roadmap for Re-opening Society and Business.

An exception will be made where a Government-mandated closure has been ordered for businesses that were already open. These businesses will be eligible to apply for re-opening costs incurred before the mandated closure.

“Businesses with Capital Costs for fixed premises used by visitors” are among those eligible to apply.

“The tourism industry is at the core of our economy, supporting regional development and job creation in communities across the country,” said Fáilte Ireland’s Chief Executive Paul Kelly, “Following an independent assessment of the potential costs of implementing Fáilte Ireland’s Guidelines for Re-opening, a sliding scale was developed to ensure a proportionate grant amount was allocated to different types of businesses.

“We estimate that 12,000 businesses will be eligible to apply making it the largest-ever fund that we’ve administered to date. Our focus is on sustaining and supporting the tourism sector through this crisis.”

For more information www. failteireland.ie/covid-19-adaptation-fund.

Twitter @Failte_Ireland and LinkedIn

NEWS

DRINKS INDUSTRY IRELAND | September 2020

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8 New report shows beer sales and production declining in 2019, prior to Covid-19 outbreak

Beer sales declining before Covid Total beer consumption fell by 2% in 2019, with per capita beer consumption down by 2.9% in line with an overall trend for decreasing alcohol consumption in Ireland according to Drinks Ireland|Beer’s annual report.

Last year 62.7% of all beer sales were in the on-trade, down marginally from 63.5% the year before. Furthermore 81% of stout sales, 78% of ale sales and 53% of lager sales were through the on-trade channel To mark International Beer Day, Drinks Ireland|Beer released its annual Beer Market Report which updates the performance of the sector in 2019, just prior to the Covid crisis.

The report confirms that beer is Ireland’s favourite drink with a 44.6% share of the overall alcohol beverage market in 2019. Lager is Ireland’s most popular beer (63.5%), followed by stout (29.3%), ale (6.2%) and non-alcoholic beer now taking 1.0% of the overall beer market, up from 0.6%.

Significantly, 34% of Non Alcoholic Beer sales were via the country’s pubs, bars, nightclubs, restaurants and hotels, up one percentage point on 2018’s figure.

The report finds that beer exports increased in 2019 by 8.5%, reaching €305 million. The top five export markets for Irish beer last year were the UK, France, the US, Germany and Canada.

Direct employment among Drinks

To mark International Beer Day Drinks Ireland|Beer has released its annual Beer Market Report which updates on the performance of the sector in 2019, just prior to the Covid crisis.

Ireland|Beer brewing members was up by 4% from 1,103 people to 1,147 but total production was down 1% between 2018 and 2019 and Drinks Ireland|Beer states that in 2020 production will be down much more significantly across the sector as a result of Covid-19.

The trade body also reckoned that with 62.7% of beer being sold in the on-trade sector, the Covid-19 crisis

has significantly impacted the brewing sector’s contribution to the economy.

Provisional Revenue clearance data show that beer sales fell by 17.4% in April, May and June 2020 compared to the same period last year.

The sector is also under pressure as a result of beer excise which is the second-highest in Europe after Finland. Last year, the sector’s excise contribution to the Government was €421 million, down from €430 million the year before. Drinks Ireland|Beer has called for alcohol excise to be decreased in this year’s Budget to help support the sector, particularly at this challenging time.

“Prior to the Covid crisis, 2019 was a challenging year for the sector with a decline in total beer sales and production,” said Jonathan McDade, Drinks Ireland |Beer Director in the report, “As a result of the Covid-19 crisis and subsequent lockdown measures the brewing sector faces an uncertain future due to its reliance on a vibrant and active hospitality sector.

“Despite these challenging times, Ireland continues to love beer and it remains the nation’s favourite drink. In recent years and prior to Covid-19 we saw significant innovation in the sector, resulting in more choice than ever for Irish consumers and an increase in the popularity of non-alcoholic beer.”

8 Drinkers can enjoy typical frappé foam created as can opens

Tia Maria launches cold brew nitro cocktail Tia Maria has launched a Ready-To-Drink cocktail providing its unmistakable and unique recipe in an Iced Coffee Frappé.

The cocktail has been made with 100% Arabica coffee, milk cream and the unique taste of Tia Maria - offering an indulgent yet refreshing cocktail.

Using clever nitro technology including exclusive cold brew extraction drinkers can enjoy the typical frappé foam created as the can is first opened, offering cocktaillovers a silky texture to enjoy. Best enjoyed chilled in the can or served over ice.

The new product has a lower ABV of 4% and comes in bold packaging created in collaboration with street artist Karski from the Netherlands.

“This ready-to-drink can has a unique appearance with its abstract design and ‘one of a kind’ colours,” comments Karski, “I’m extremely happy that Tia Maria identifies its branding with my vibrant works of art.”

Tia Maria Iced Coffee Frappé is available from Carry Out stores nationwide. n

Tia Maria Iced Coffee Frappé comes in bold packaging created in collaboration with street artist Karski from the Netherlands.

www.drinksindustryireland.ie

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ONE & ONE

September 2020 | DRINKS INDUSTRY IRELAND

“Too soon to predict the death of the city” -- IWSR’s Humphrey Serjeantson on the dilemma facing city-centre bars Humphrey Serjeantson, IWSR’s Research Director for Western Europe, recently commented on the fate of city-centre bars in a post-Covid-19 situation.

“Undoubtedly, increased working from home will lead to a change in the on-trade in Western Europe,” he stated. Here, he elaborates to Pat Nolan on his view of how citycentre bars and others might fare in the shadow of Covid-19.

“People must be prepared for ‘one step forward two steps back’”.

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ity-centre bars in capital cities such as London and Dublin tend to play more of a part in the after-work drinks culture than in most other European cities. Such bars have long played a central role in facilitating this social routine, frequently the setting for weekday business lunches and meetings too.

Such venues generate a significant portion of their sales from a city-based workforce – a

workforce now greatly diminished in many city-centre markets in the wake of Covid-19.

“The fundamental change in terms of the city bars is that fewer people are going to be going there as more people work from home,” says Humphrey Serjeantson, IWSR’s Research Director for Western Europe, “It’s inevitable due to the combination of fewer people going for lunch and drinks after work.”

“Large numbers of shoppers new to online are going to continue online, so that’s one critical factor we’re seeing in alcohol sales.”

Recently he commented that increased working from home will undoubtedly lead to a change in the on-trade throughout Western Europe.

“Factor in the downturns in travel and tourism and city-centre bars are facing a tough time,” he believes, “That’s on top of already having had to close for some considerable period.”

He feels it unlikely that such outlets will recover that business in any kind of short time. “‘Never’ is a very big word” he emphasises, “and I wouldn’t say there will ‘never’ be a return to previous levels of trade - I’d be

DRINKS INDUSTRY IRELAND | September 2020

very sad if that were to be the case - but any recovery is likely to be slow.”

Consumers are aware of how this virus is passed on; they’re aware of the government guidance on this and they’re staying away from bars and restaurants, he says.

“Government guidelines make the traditional visit to the bar or pub much more of a challenge than it once would have been and so people are staying away.

“But there’s one positive in that outdoor spaces are less likely to transmit the virus, so pubs with these should be making the most of them.

“The UK government, for example, is making it easier for bars and restaurants to serve people outside. Where this is possible it’s a clear advantage to have.”

Outdoors – make the most of it Dublin city-centre bars have reported that footfall is “practically non-existent” where it was once a flowing torrent of humanity, locals and tourists alike. One wonders what these bars could do to better their chances now.

“They should be focussing on outdoor areas where they have them as it makes it easier for people who can be much more relaxed without being worried to such a degree about Covid transmission,” he

The other point he makes about ‘locals’ is that, given the difference in real estate values, it’s quite possible that suburban pubs are likely to have more outside space than those in the city centres.

“So they’d be more of a relaxing experience for customers in terms of eating and drinking out but how long that lasts is dependent on how long large numbers of people go on working from home.

“There has been a huge step-change in how many work from home - there may be a long-term benefit for pubs and bars here but it’s too early to say about that.”

e-commerce & alcohol IWSR is producing several specific reports on the current situation such as Covid19’s effect on key markets and its third e-commerce report.

“In terms of off-premise, people buying more at home has driven huge growth in e-commerce,” he says, “Clearly distributors and particularly brand owners are aware of the relevance of e-commerce of alcohol and we’re seeing a huge spike in e-commerce in the context of the pandemic.

“There were a lot of news reports in the UK early in the pandemic saying that alcohol consumption had risen

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within Amazon to promote features and content which brings their brands to life for consumers – an attractive proposition for them.

“One other thing I’d say about e-commerce: there’s initial evidence present that the brands initially benefiting were those well-known ones whereas spirits have seen a move towards craft etc and so Irish distilleries, at 30-plus, are getting a presence.”

Experimentation is not dead then – and the on-trade might pay this more heed.

“People are going to want to treat themselves when they go out so, as well as online, bars and pubs should keep a wide range of products available so that they can meet the curiosity of customers looking for something a bit different.”

To quote IWSR on how Covid-19 is prompting city-centre bars to evolve, “Virtual socialising and online business meetings have dented on-trade sales temporarily – particularly for bars in urban locations – but IWSR analysts believe that online interaction is a forced by-product of the current environment and is not a replacement for face-to-face meetings.”

So does he imagine city centre bars will eventually recover?

“Another key point for all premises is to be prepared to change as it’s a very fluid situation and things can change with local flare-ups. As those flare-ups are contained, then recovery will return but people must be prepared for ‘one step forward two steps back’ and to be in it for the long haul.” suggests, alongside the obvious measures to give customer confidence: limiting customer numbers, protective screens, hand sanitiser and one-way systems where possible, as well as reducing the number of toilets in use.

“Another key point for all premises is to be prepared to change as it’s a very fluid situation and things can change with local flare-ups. As those flare-ups are contained, then recovery will return but people must be prepared for ‘one step forward two steps back’ and to be in it for the long haul.”

Suburban pubs The situation seems somewhat more sanguine for suburban pubs.

“These face some of the same challenges as city-centre pubs but there are some positives for the more suburban venues where higher numbers of people work from home. These may see an increase in business with people going out to their local for lunch or a drink at the end of the day.

“Some people appreciate not having to commute to work but would want a change of scene at the end of the working day and that could easily be in a local bar or pub, so in a sense local venues could benefit from increased working from home.”

dramatically, based on the growth of online sales. But these failed to take into account two key points: firstly that a lot of the purchasing was stockpiling (for fear of future shortages) and secondly that the on-premise was completely closed. The likelihood is – and this is backed by surveys – that overall consumption was actually down. “e-commerce is the one thing that people cannot ignore as the huge number of people going online for shopping generally is as a result of being stuck at home for the pandemic. A lot of those people are going to stay with that and not go back to their old ways, so won’t be going back to the supermarket. Large numbers of shoppers new to online are going to continue online, so that’s one critical factor we’re seeing in alcohol sales.

“Online has lots of other advantages to it, for example the range online is vastly more than in the supermarket so it’s another way for big brands to reach consumers.

“We can see Amazon taking big steps in the sale of alcohol; it’s got a high level of consumer trust so - after books and CDs - you can now buy alcohol there and brands themselves have access to pages

“I think city centre bars are closely tied to cities as a whole and one has to hope that at some point there will be a vaccine for Covid – but again there’s no certainty about that. However human beings are social people and cities are a testament to that as people like to live together and work together.

“It’s too soon to predict the death of the city though and people are likely to continue needing to work and live together. Eventually, when this occurs, city-centre bars are likely to go back to something approaching the previous situation. But it may take a long time.

People want to go out for a drink together and that’s not going to change.”

In the IWSR report he has stated, “My expectation is that drinking in city-centre bars will recover gradually. There is no doubt that bars will change. Many may not be able to re-open following their Covid-19 closure but, in the medium term, others are likely to take their place, especially if measures are in place to boost the local economy and help it weather a more serious economic downturn.”

A more serious economic downturn?

God forbid. n

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September 2020 | DRINKS INDUSTRY IRELAND

8 Spain takes second country of origin place from Australia

Wine sales up 1.5% Wine sales here grew by 1.42% last year to reach just over nine million cases which helped grow wine’s category share of the overall alcohol consumption market slightly from 27% to 27.2% according to the Irish Wine Market Report 2019 from Drinks Ireland|Wine just published.

Last year’s increase in sales returned wine to the growth path it had been on for the two years prior to 2018, at which time sales dipped from 9.1 million cases to 8.9 million, reducing wine’s category share of the overall alcohol consumption market from 27.7% to just 27.0%.

Nevertheless, wine remained the nation’s second-favourite alcohol tipple after beer but per capita consumption of wine continued falling in 2019, by 1.4%, in line with an overall downward trend in alcohol consumption generally.

Last year saw a further reduction of 0.2% in terms of adult consumption in litres of pure alcohol. Since 2001, average per adult alcohol consumption has fallen by 23.2% in Ireland according to CSO and Revenue Data.

By channel, some 83% of wine was sold through the off-trade last year, up one percentage point on 2018’s share, highlighting the on-trade’s continuing loss of share.

Although still the favourite, white wine continued to lose share of the overall wine consumption market to the growing demand for rosé. At 48% white wine was down one percentage point while rosé grew share by the same to reach 6% with red remaining unchanged at 46%.

The report’s author Jonathan McDade, Head of Drinks Ireland|Wine, points out that rosé’s 2019 share “was almost double the share since 2016”.

Spain rises to second place For the sixth year in succession, Chile comfortably retains its place at the top of the table for country of origin, increasing its share from 27.2% to 27.5% on sales of 2.48 million cases in 2019, 2.5% up on 2018’s 2.42 million case figure. But a long way behind Chile Spain has taken over second place from Australia with an increased share of 14.0% from 2018’s 13.0%. Spain witnessed its case sales increase 9.2% from 1.15 million to 1.26 million.

Spain’s gain was Australia’s loss as

Spain has taken over second place from Australia for country of origin with an increased share of 14.0% from 2018’s 13.0%.

its share of the wine market here fell to 12.8% from 15.6% on sales of 1.15 million cases (down 16.8% from 2018’s 1.39 million case sales).

With 12.6% of the wine market, up from 2018’s 11.9% share, comes France in fourth place with case sales of 1.13 million, up 7.4% from 1.06 million in 2018.

Behind this, Italy takes fifth place with case sales of 882,513, up 5.7% from 2018’s 834,640 figure, thus increasing Italy’s share of the wine market here from 9.4% to 9.8%.

New Zealand and Argentina also grew case sales here in 2019.

Wine excise takings up again However the excise levy on wine continues to exercise Drinks Ireland|Wine as the Exchequer’s duty receipts for wine grew to €378 million from €376 million in 2018.

“Irish consumers pay €3.19 in excise per standard bottle (13% ABV)” points out the author, “which is the highest rate in the EU. Of the 28 EU Member States (in 2019) 15 of them charge no duty on wine.”

Including VAT, the consumer now pays €4.87 in tax on a €9 bottle of wine which, when packing and distribution costs of €3.60 are filtered out, leaves just 53 cent for the producer.

Sparkling wine gets an additional excise “hit” which translates to a total excise levy of €6.37 on a standard bottle of bubbly. Again, of the 28 EU Member States (in 2019), nine of them

did not charge any excise on sparkling wine, points out the report.

Indeed Finland, with the highest aggregate taxes on alcohol in the EU, only pays €2.98 excise on still and sparkling wines.

In 2017 the UK paid excise of €2.50 on still and €3.21 on sparkling.

Drinks Ireland|Wine has therefore called on the government to consider reducing the excise rate on wine in light of the catastrophic effects of the Covid19 pandemic.

“Prior to the Covid-19 crisis” states Jonathan McDade, “the wine sector employed over 1,100 people directly while supporting thousands of other jobs in Ireland’s 13,000 restaurants, independent off-licences, supermarkets and hotels that sell wine. To offset the losses endured by the drinks and hospitality sector because of Covid19, Drinks Ireland|Wine calls on the Government to seriously consider an excise reduction on wine for Budget 2021.”

Despite the high excise levy, Ireland’s wine consumers continue to become more sophisticated in their tastes, he states, supported by the huge amount of choice that that has come to the market over the past 20 years.

“In 2000, 4.8 million cases of wine were sold here and by 2019 over nine million cases were sold,” he concluded, “This comes at a time when overall alcohol consumption is falling in Ireland so we can really see how Ireland’s love affair with wine has grown.”

DRINKS INDUSTRY IRELAND | September 2020

OFF-TRADE DEVEL OPMEN T S

13

8 As people continue spending more time at home supermarket alcohol sales grow

On-trade time limits boost off-sales Growth in grocery sales has slowed as consumers start to spend more on eating and drinking out, cautiously returning to preCovid habits according to Kantar Worldpanel.

Grocery sales were down 17.8% over the four-week period to the 12th of July but as people continued to spend more time at home sales of alcohol in supermarkets grew by 76% over

8 Take-home alcohol highestgrowing FMCG category in four weeks to 2nd August

Alcohol July’s highest-growing FMCG category

This August Bank Holiday found people drinking more at home.

Take-home alcohol was the highest-growing Fast Moving Consumer Goods category in the four week period to the 2nd of August, up 32% compared to the same period in 2019 according to the latest Nielsen FMCG Data.

Despite enjoying 64% less sunshine, cider sales were up for the four-week period by 13%, wine sales were up 21% with Champagne sales up 22%; spirits sales were up 23% and Long Alcoholic Drinks were up 41%.

Although alcohol continues to be the highest-growing FMCG category this growth has slowed since out-of-home eating options resumed for the consumer, reports Nielsen.

Despite enjoying 64% less sunshine, cider sales were up for the four-week period by 13%, wine sales were up 21% with Champagne sales up 22%; spirits sales were up 23% and Long Alcoholic Drinks were up 41%.

the 12 week period to July the 12th.

“Although people are free to visit pubs and restaurants with the easing of restrictions in recent weeks” pointed out Kantar’s Retail Analyst Emer Healy, “limitations on group size and time allowed at the table are potentially contributing to the continued boost in takehome alcohol sales.”

“Limitations on group size and time allowed at the table are potentially contributing to the continued boost in takehome alcohol sales.”

>>

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September 2020 | DRINKS INDUSTRY IRELAND

8 Wine drinking occasions rose during lockdown among Irish wine drinkers

How wine fared in Covid-19 – Wine Intelligence report The frequency of wine consumption here increased during the pandemic, mostly driven by Generation X consumers (aged 40-54) and those highly involved with wine, finds UK research company Wine Intelligence in its Ireland: Covid-19 Impact Data Table for July 2020.

However spend per bottle was down.

Built using data collected during March and April 2020, this Data Table includes WI’s latest insights on pre-, during and predicted post-lockdown behaviour in Ireland.

The wine researcher looked at how Irish consumers’ social, shopping, drinking and wine lives have – and will – change.

Wine Intelligence looked at the average number of wine-drinking occasions per month among Irish wine drinkers. This turned out to be a figure of 8.1 occasions in October 2019 falling to 8.0 in March/April 2020 ‘previrus behaviour’, rising to 8.4 during ‘lockdown’ in March/April.

“Whilst consumers are buying less often from independent wine

Wine Intelligence looked at the average number of wine-drinking occasions per month among Irish wine drinkers.

merchants, there was an increase in frequency of purchasing wine online,” it found, “Spend per bottle decreased for all occasions during lockdown, but especially with an informal meal at home.”

8 IWSR looks at what impact Brexit will have on the UK’s wine trade

Wine importing and exporting in UK will completely change post-Brexit Relations between the UK and consumption in the UK is due to the EU are about to undergo a people drinking less overall and fundamental shift in the event of a shift towards other categories a no-deal Brexit for this would including spirits, craft beer and mean that frictionless trade hard seltzers, says Humphrey ceases. The UK has yet to reach Serjeantson, Research Director a free trade deal with the EU for Western Europe at IWSR. whereby tariffs are reduced or “How this trend continues eliminated and quotas removed. will depend on what trade With IWSR data showing arrangements are in place,” he that 44% of all wine currently says, “Key factors will be tariffs, consumed in the UK is of exchange rates and ease of European origin a deal needs to importing – what levels of red If no deal is struck by next January the UK will lose trade be reached by October or else tape exist. But I would expect deals struck by the EU and will have to renegotiate with from January onwards the UK will major markets such as Australia. the trend to continue and most have to trade with the EU under likely accelerate.” entering the UK will have to be basic rules set by the World Trade 3. Higher wine prices? labelled with the importer’s address.

Organisation.

Higher prices for EU wines could also For now, the controversial VI-1 wine What stands to change for the wine drive down consumption and there import certification, which requires all trade? IWSR recently took a look at are several reasons why prices could wines coming to and from the UK to some of the outstanding issues. rise. A weak pound against the €uro undergo laboratory analysis at £330 1. Bureaucracy is already making EU wines more per form, has been suspended by the From January 2021 all UK and EU expensive and this could get worse, UK Government – a big step towards businesses will need to make their own easing the burden on trade – but this explains Richard Corbett, Senior IWSR Customs declarations and the UK will Analyst. could yet change. lose access to the EU-wide duty and Should Sterling strengthen against 2. Decline in European wine tax Excise Movement Control System. the €uro this would work in favour Both sides will need to go to their own consumption of EU wines. With no EU trade deal Consumption of EU wine in the UK has tariffs could be implemented as the Customs offices and complete one declined by 11.6% since 2010 according UK must then trade under WTO Export Declaration per shipment. to IWSR data, with still wine having VAT and Customs checks will conditions. With a wine duty increase dropped by 25% although sparkling need to be processed before freight frozen in 2020, it might be expected has risen by 106%. This decline in wine arrives in the UK or EU and wines that they could rise again in 2021,

OF F - TRADE DE VEL OPMEN TS

15

It found that regular wine drinkers buying wine as a gift for somebody spent 2.1% less on it while those buying it as a relaxing drink at home at the end of the day spent 14.3% less and those having it with an informal meal at home spent 16.8% less.

“Irish wine drinkers will continue to go to restaurants, pubs and bars postpandemic” stated WI, “however they remain cautious about other social activities.”

It found that 30% of regular wine drinkers are more likely to go out to a pub or bar when the danger of Coronavirus has passed and normal activities are permitted but 31% are less likely to do this.

It found too that 33% would be more likely to go out to a restaurant but 29% would be less likely to do this.

34% would be less likely to host a party or social event at home while 21% would be more likely to do this and 31% would be less likely to go to a party or social event while 27% would be more likely to do this. Only 14% would be more likely to host a party or celebration themselves in a restaurant, bar or hotel while 36% would be less likely to do so.

WI’s data table also indicates that Irish wine drinkers plan on saving more in the future whilst travelling less for business. Some plan to “treat myself to better quality wine”.

The data was collected in March and April 2020.

The complete Ireland Covid-19 Data Table is available from Wine Intelligence.

especially as the UK’s Chancellor looks to balance the books in a postCovid world, pressurising prices further – the duty on a bottle of still wine is currently €2.48 (£2.23) or €3.17 (£2.86) on sparkling. There are also the bureaucratic costs that merchants will need to absorb to maintain their prices. If reintroduced, VI-1 forms could push prices up by 10p a bottle. Any rise in operating costs will ultimately be passed to the consumer.

“Prosecco has done very well in the UK over the last five years,” says Richard Corbett, “Competitive pricing has made it the everyday Champagne. Any price rise could put that segment into decline.”

find export markets.

The market for English wine will remain small but an opportunity to hammer out new trade deals could see a “surge” in exports states the report.

“The benefits for English wine may become apparent if we can agree FTAs with other nations like Australia and the USA,” says Mark Driver, owner of the Rathfinny wine estate in England.

4. Risk to the UK as a wine importing hub As of 2016 the UK was the secondlargest trader of wine by volume (behind Germany) and by value (behind the US), show IWSR’s data.

Only a small percentage of wine exported is actually made in the UK but if it becomes harder and more expensive to import wines into the UK, its position as a global wine trading hub could be undermined.

5. English wine boom?

If the price of EU and imported wines increases, the trend towards English wines could gather pace as it becomes more competitive, believes IWSR. The bumper 2018 UK harvest will mean that producers will need to accelerate demand or

6. Competition from non-EU countries If no deal is struck by next January the UK will lose trade deals struck by the EU and will have to renegotiate with major markets such as Australia.

As of mid-July 2020, 19 trade deals have been rolled over from the EU to the UK, the most significant for wine being Chile, while an Australian trade deal looks promising. Chilean, Argentinian, New Zealand and Moldovan wines have captured share in recent years. This is likely to accelerate, says Richard Corbett, adding that, “Many importers will be hedging their bets by developing their non-EU portfolios”. Brexit presents Australian, South African and US wines with an opportunity to bounce back, he says, grabbing share from EU wines.

“Because of limited wine production in the UK” he concludes, “wine could be used as a lever in any trade talks with these markets and that will be a concern for EU producers.” n

The Entrepreneurial Spirit of

Pearse Lyons Brewing P

earse Lyons Brewing & Distilling has captured the heart of the nation in a relatively short space of time but some may not know that its story has been brewing since the 1950s. Founded by Pearse Lyons, born and raised in Dundalk, County Louth, Pearse descended from five generations of highly skilled coopers who supplied barrels to distilleries all over Ireland.

Pearse started his own journey at the Harp Lager brewery, where his curiosity in science led him to its quality control lab. Pearse also played an instrumental part in designing what was referred to as the “New Midleton Distillery” in 1975, a highlight of his early career.

Lauded by his peers, Barry Crockett, Master Distiller Emeritus of Irish Distillers, said of Lyons, “Pearse was a breath of fresh air when he joined the company. He was part of the team tasked with reviving the Irish whiskey category”. These early experiences led Pearse to become the first Irishman to receive a Masters in Brewing and Distilling at the British School of Malting and Brewing.

Pearse went back to his love of brewing in 1999 when he purchased Lexington Brewing & Distillery Co in the US. Upon seeing the boom of the craft beer industry in the United States and with the foresight for bringing success to Ireland, he purchased Cumberland Brewery in 2015 and launched the hugely popular Foxes Rock brand. Due to popularity the Foxes Rock range expanded its portfolio to

include IPA, Session IPA, Gluten free Lager, Red Ale and more recently, including the introduction of a non-alcoholic IPA, a must for today’s consumers.

Spurred on by this success, the Lyons family including Pearse’s wife, Deirdre and son, Mark, commissioned a new brewery, one of the largest in Ireland, in Pearse’s hometown of Dundalk, demonstrating the families unwavering commitment to Ireland. With a state-ofthe a-rt brewing system, the Pearse Lyons Brewery is now running at full steam producing Irish-made craft beer for the local and European market. The new Pearse Lyons Brewery in Dundalk is a 100hl Krones brewhouse.

With innovation very much front-of-mind, it also has a 10hl pilot brew kit where it will produce experimental beers, setting the scene on becoming the center of excellence in the craft beer industry.

Always willing to push boundaries, in 2012 it brought a unique set of Kentucky Vendome pot stills from the US over to Ireland. It was at that stage the sixth distillery to start distilling in Ireland. The Kentucky Vendome stills were so unique to Irish distilling that they have their own inclusion in Irish Whiskey legislation.

In 2017 the Pearse Lyons Distillery opened its doors to the public. Set in the historic location of St James Church in the heart of The Liberties the wonderfully unique, small batch distillery has become a roaring success, already taking home ‘Best Dublin Visitor Experience 2019’ and ‘Trip Advisor Traveller’s Choice Award 2020’.

Dating back to the 12th Century the church was closed for worship in 1963 and underwent various transformations until being purchased by the Lyons family. After five years of restorations led by Pearse’s wife Deirdre, Pearse brought his family heritage of brewing and distilling back to the Liberties in Dublin. There’s lots of exciting plans in the pipeline too, with a gin school set to open on the premises this year followed by a whiskey school, catering to the growing interest in distilling.

Innovation and brand building are at the heart of everything done at Pearse Lyons Brewing & Distilling. Sighting the market trends, it was one of the first to recognise the growing convenience sector, launching two new brands to cater to this market.

FEAT U R E

& Distilling In 2019 it launched the Míl Spritz brand to unprecedented success, followed by the launch of Ireland’s first Hard Seltzer, Flying Flamingo in 2020. Both brands have managed to capture a wider audience, hungry for convenience, while not compromising on taste or style. Míl Spritz went on to become the drink of the season and also took home with it ‘World’s Best Brand Design 2020’. Flying Flamingo tropical Hard Seltzer became one of the top-selling Hard Seltzers in Ireland this year, hitting all trends; low calorie, glutenfree and vegan friendly. The branding of both has been a real point of note for the business, setting them apart from other contenders in the market.

As you may have gathered, Pearse Lyons Brewing & Distilling likes to do things differently. Some of its distinctions include bringing the first Single Malt whiskey to market in the US since prohibition, the Pearse Lyons Reserve. Uniquely, the Irish whiskey produced at the Pearse Lyons Distillery uses its own proprietary yeast cultivated in-house and it ages its whiskey in top-quality barrels sourced from its sister distillery Town Branch in Lexington, Kentucky. This combination has brought it many awards including ‘World’s Best blended whiskey under 12 years 2020’ for its Pearse 7 Year Old Irish Whiskey ‘Distillers Choice’. In the US, Kentucky Bourbon Barrell Ale is now the second-bestselling four-pack and the number one best-selling craft beer brand in Kentucky.

With its Irish roots firmly planted, the Lyons’ dedication to the craft beverage business and their focus on innovation truly sets them apart. They have become a driving force within the brewing and distilling world while maintaining the family values and ideals on which their breweries and distilleries were founded. Today, Mark Lyons is guiding the beverage business with energy and purpose. Like Pearse, Mark also holds a Masters Degree in Brewing and Distilling but just as importantly, he shares his father’s passion and boundless enthusiasm for the future of craft brewing and distilling.

“I am honoured to carry forward my father’s legacy and entrepreneurial spirit,” said Mark, “He was a visionary who saw the great potential for craft beverages.

His dream now belongs to all of us and

together with our Irish and US teams, I remain committed to growing our beverage business and ensuring that we remain at the forefront of innovation.”

This year Mark Lyons was also delighted to announce the appointment of Conor Farrell as Chief Commercial Officer to look after the global beverage business. “Conor has been instrumental to the growth and innovation at Pearse Lyons Brewing & Distilling and is perfectly poised to lead the company direction in the coming years”.

With over 20 years’ experience Conor has led the innovation and development of many globally-recognised brands in the brewing and distilling industry.

Speaking of his new role, Conor says, “I am honoured to lead the business on behalf of the Lyons family. We have such a great portfolio of brands and visitor centres across Ireland and the US. I am very much looking forward to continuing to build the legacy and success that Pearse Lyons Brewing & Distilling has had to date.”

The unwavering devotion of Pearse Lyons Brewing & Distilling has brought an exciting dynamic to the to the drinks industry in Ireland. It is constantly pushing the boundaries, experimenting and creating new products. In a relatively short space of time Pearse Lyons Brewing & Distilling has managed to expand its beverage business to be able to compete on a global scale. True to its ethos, its entrepreneurial approach to business has set it up to be disruptive, different and curious. With this approach in mind, we look forward to seeing where the next five years takes it. n

For more information or if of interest to learn more, please contact info@PearseLyonsDistillery.com or tel: +353 (0) 1 6916000.

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September 2020 | DRINKS INDUSTRY IRELAND

The report emphasises that Irish whiskey producers are world leaders in adding value through grain blending and maturation with different woods.

Bord Bia’s ambitious strategy for Irish spirits Bord Bia has set an ambitious target of increasing Irish spirts exports to key established markets by 10% and those to ‘future opportunity markets’ by 25%, all by 2022. That was before Covid.

B

ord Bia’s ambitious aim of increasing Irish spirits exports to key established markets by 10% and those to ‘future opportunity markets’ by 25%, all by 2022, forms part of its Spirits Marketing Review and Strategy Development 2020-2022.

The spirits sector has experienced unprecedented growth over the last five years with exports more than doubling in value to over €1 billion in 2018.

That growth has largely been driven by Irish whiskey which enjoyed exports of €727 million in 2019.

Last year Bord Bia undertook a prioritisation analysis to identify key current and future priority markets for the spirits sector at category specific level. This analysis fed into the range of services and resources Bord Bia has now committed to the sector through its Spirits Marketing Strategy 2020-2022.

Irish spirits – the major markets The US remains Irish whiskey’s most important export market, followed by the UK, Canada, Germany and France.

Apart from whiskey, Irish cream liqueur exports have grown by 19% in value over the past four years to €342 million in 2018 while we exported more than €5 million-worth of Irish gin in 2018, with double-digit growth recorded in the UK.

Trends and opportunities in the global spirits industry Global commercial intelligence provider MarketLine predicts that the global value of spirits will increase by some 20% to $808.4 billion between 2017 and 2022.

Bord Bia intends to focus on some of the key trends in this market which include stay-at-home mixology, a newly-emerging ‘sub-trend’ where North America currently leads the way.

Ethical consumption too has come to the fore with NoLo cocktails set to become more prevalent as will vegan, low calorie or low carb options.

Sustainability has a part to play in all this with a recent consumer poll by Diageo finding nearly half of customers willing to pay a 10% premium for socially-responsible and environmentally-friendly goods. Herein lies an “opportunity for the Irish spirits

industry to position itself in a powerful leadership role as sustainability grows in importance in the industry”.

The rise of social media has led to online media becoming the principle domain for alcohol advertising and promotion internationally.

“Consumers are more inclined to distribute consumer experience content online when the relevant product is a premium brand as this is seen to confer status and prestige on the consumer,” states the report.

The opportunity for Irish producers therefore lies in progressive marketing and innovation.

There’s been a significant decline in global stocks of aged inventory, points out the report, adding, “The development of new styles of whiskey, where age statements are less important, has come partly in response to this”.

The report also emphasises that Irish whiskey producers are world leaders in adding value through grain blending and maturation with different woods.

Other trends of note include the move to ‘Less is better’ and toward healthier drinking.

EXPERT VI EW

DRINKS INDUSTRY IRELAND | September 2020

The value proposition and market opportunities Sales of premium and super premium Irish whiskeys have grown far more rapidly than for the category as a whole. But Bord Bia warns that, “Beyond Europe and North America awareness of Ireland and the Irish whiskey category is generally low. Building awareness of the rich heritage and tradition of the Irish whiskey category in emerging markets such as East Asia and Latin America will be key to unlocking future growth opportunities. Irish cream liqueur is also taking advantage of the global premiumisation trend”.

Tourism Tourism too has a part to play in all this such that by the end of last year over 20 whiskey distillery Visitor Centres were anticipated in Ireland.

“These collectively represent the fastest-growing tourist attraction in Ireland with visitor numbers expected to surpass one million for the first time in 2019.”

Prioritising markets RoI’s Irish whiskey exports have grown from €130 million in 2007 to €654m in 2018.

The share of spirits exports accounted for by the whiskey category has grown from just 18.5% in 2007 to 64.8% in 2018.

“Together, Irish whiskey and Irish cream liqueur account for over 98% of all Irish spirits exports,” notes the report which predicts that the lion’s share of future growth is still likely to be achieved in established markets and - particularly in the case of whiskey - in the US. The report provides a brief on the key markets for Irish spirits exports.

Key markets US Imports of Irish whiskey to the US grew from €37 million in 2007 to €384m in 2018.

“The US imports approximately 40% of all spirits consumed domestically,” states Bord Bia, “The super-premium and high-end premium spirits segments have significantly outpaced the premium and value segments of the market in recent years.

“Irish brands command a 6% share

of the total US whiskey market, with Ireland exporting €168.5m-worth of cream liqueur to the US in 2018, up from €139m five years ago.”

Canada Ireland exported €16.9 millionworth of whiskey to Canada in 2018 which accounts for 5.9% of all spirits exports from Ireland by value. Canada is also the third most important international market for Irish cream liqueur representing 8.6% of all Irish cream liqueur consumed internationally or €42m-worth in Canada’s case.

The Canadian market is dominated by offtrade consumption.

South Africa South Africa is the sixth most important market for Irish whiskey and Irish whiskey’s share there has risen from 5.6% in 2013 to 8.6% in 2017.

South Africa is the sixth-largest gin market in the world by volume and the 10th-largest market globally by value.

France According to the report, “France is the largest single market in the world for Scotch, which holds 87.7% of the market in volume terms. Ireland is the third-largest supplier of whiskey, with 2.5% of the market.”

Russia

19

Japan With estimated annual sales of over €12 billion, the Japanese spirits market is one of the most valuable in the world according to the report which warns that, “Local producers hold over 80% of Japan’s €10.1 billion whiskey trade and Japan is the third largest whisky market in the world.”

Brazil

Irish cream liqueur exports

The report states that Brazil is one of the most important spirits markets in the world, one where Scotch holds 78% of the market by volume and the share currently held

by Irish whiskey seems inordinately small at 0.4%.

have grown by 19% in value Russia is the world’s over the past four years to second-largest overall €342 million in 2018. spirits market and by Poland far the world’s largest Two retailers together market for vodka. account for as much as 40% of total A gradual switch from vodka to whiskey volumes in Poland. brown spirits has become a notable trend in the Russian market, points Raising profile in out the report, adding that there’s established and emerging an enormous black market in markets spirits which may account for In order to raise the profile of Irish up to 50% of the total Russian spirits in established and emerging market. markets Bord Bia has devised “Irish whisky exporters currently a three-year communications hold a 9.4% share of the Russian campaign to communicate the Irish whiskey market,” states the report. spirits value proposition which will emphasise the characteristics of UK craftsmanship, distinction, quality Although Scotch holds 70.5% of and tradition. the whisky market there, it has Going forward, Bord Bia intends to been in steady decline for several invest in consumer insight research years, states Bord Bia, “The share that supports growth in future of the UK market held by Irish opportunity markets. whiskey has been on a steady rise “We will target consumer insight and now stands at 4.5%.” on the usage occasions and attitudes to spirits and Irish spirits in one Australia future market per year over the three Irish whiskey accounts for 4.6% of years of the strategy,” it promises. n the Australian whisk(e)y market.

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September 2020 | DRINKS INDUSTRY IRELAND

Catching the new wave of consumers – the latest consumer habits in the eating and drinking out market

UK market analyst CGA in partnership with yumpingo & UKHospitality ran a webinar entitled ‘Catching the new wave of consumers’ recently.

Drinks Industry Ireland sat in on it.

The survey emphasised that Covid-19 precautions aren’t necessarily a deterrent. 82% of visitors agreed that their overall experience reassured them enough to visit venues again.

H

ow well has the hospitality sector performed since re-opening and what more can be done to bring people back?

With the UK market somewhat more open to customers than the Irish one market analyst CGA ran a Covid-19 Pulse survey of some 2,000 UK consumers and presented the results, alongside work that came in via its We Hear You survey, at a webinar, ‘Catching the new wave of consumers’, for the licensed trade there.

CGA’s consumer attitude findings make interesting reading and may well have equal significance for the hospitality trade here.

Across the total market the majority of UK pubs (88% of sites) have been able to re-open, with bars and restaurants lagging behind them (at 68%).

The We Hear You survey from CGA, Yumpingo and UKHospitality, showed that most businesses are doing “an excellent job” on precautions.

Eat Out to Help Out scheme In what must be good news for the Irish Government’s Stay and Spend incentive due to start next month, the positive effect of the UK Government’s current Eat Out to Help Out scheme continued, with restaurants and pub restaurants both experiencing a positive week to the 14th of August, with like-for-like sales increased versus last year.

Over a quarter of the total GB population (27%) told CGA’s Pulse survey that they’d already used the EOtHO scheme by the 11th of August, just five days after it had been introduced.

This scheme had also been successful in tempting back out consumers who’d previously not visited the market.

39% of consumers who took advantage of the scheme were first-time visitors to on-premises since re-opening while 26% of all consumers yet to eat or drink out said they’d be likely to make use of the scheme before it ends.

However CGA’s Drinks Recovery Tracker found that the EOtHO scheme has also had a positive impact on all drinks sectors, with soft drinks seeing the biggest benefit.

And for many, the scheme wasn’t cannibalising weekend visits to the trade, with three in four consumers just as likely, or more likely, to make weekend trips.

When consumers were asked how likely they were to visit a pub, bar, restaurant or other similar venue at the weekend if they’d already been out at the start of the week using the EOtHO scheme, 20% said they’d be ‘more likely’ to visit than they’d usually be, 55% said they’d be ‘as likely’ to visit and 25% said they’d be ‘less likely’ than usual to visit.

Along with driving footfall, the scheme also served to build

confidence levels among those firsttime visitors with 60% of consumers who ate out for the first time since restrictions were lifted using the EOtHO scheme saying the experience made them feel more confident about going out; 30% expressed the same level of confidence and 2% were less confident.

It certainly seemed to have encouraged many customers to visit new restaurants they wouldn’t normally choose to visit with CGA’s We Hear You survey finding 70% of consumers who visited venues from Mondays to Wednesdays in August stating that they visited because of the EOtHO scheme. 84% stated that the scheme would encourage them to visit a new restaurant.

Nervousness declining Nervousness ahead of visits out was declining, CGA found, with more customers now ‘relaxed’ than ‘uneasy’ before eating and drinking out.

Those ‘very relaxed’ before visiting rose from 32% in the first two weeks to 48% in the third two weeks of re-opening.

“Perhaps as a result of a more confident consumer we’re starting to see more customers visit venues that are new to them,” stated the We Hear You report, pointing out that the proportion of visitors visiting the venue “for the first time” rose from 15% in weeks one & two to 52% in weeks five and six.

DRINKS INDUSTRY IRELAND | September 2020

The survey emphasised that Covid19 precautions weren’t necessarily a deterrent. 82% of visitors agreed that their overall experience reassured them enough to visit venues again.

The GB on-trade was at a point where over half of its customers had now returned (55% of GB consumers who typically ate out once every six months pre-Covid-19). This figure had increased by 10 percentage points since its last survey two weeks previously.

The number of consumers returning to the out-of-home market in England was gradually increasing, but a large latent population still hadn’t returned. This was manifest in the proportion of consumers who’ve been out since the 4th of July:- 1st weekend: 12%, first 10 days: 35%, third week: 45%, fourth week: 48%, fifth week: 53% and sixth week: 55%.

Return of the demographic Over half of 35-54 year-olds had now returned to the market at least once, a position that younger consumers were in after just 10 days of re-opening. Where 31% of 35-54 year-olds had been out in the first 10 days since the 4th of July, 51% of 18-34 year-olds had been out in contrast to just 23% of those over 55.

In the first six weeks of opening 51% of 35-54 year-olds, 67% of 18-34 year-olds and 48% of those over 55 had been out.

Consumer confidence overall remained fragile though for those who’d visited the market and those yet to do so.

Balancing safety & experience CGA’s Pulse Survey showed that the top three drivers to a venue had remained constant over the six weeks to the 14th of August and with hygiene featuring as the most important, venues can’t become complacent.

41% put Hygiene/cleanliness levels at the top of their consideration list when choosing which venue to visit post-lockdown while 38% put the quality of food available and 34% how convenient the venue was to visit.

Consumer satisfaction with cleanliness and hygiene procedures remains high, with staff perceived to be complying with hygiene protocol.

Indeed 97% of consumers were satisfied with the level of hygiene/ cleanliness of the venue with 83%

considering themselves ‘highly satisfied’. 90% of consumers were also satisfied with how well the team followed hygiene practices (69% declared themselves ‘highly satisfied’).

However as the weeks went by, consumer satisfaction with measures went on a slight decline although still generally positive, so outlets need to avoid becoming complacent in safety measures.

While one in four consumers wanted a “normal” environment not obtruded into by precautionary measures, the majority nevertheless prioritised safety in hospitality venues over a normal experience.

Three in four wanted to feel safe in a hospitality venue no matter what Covid-19 procedures had to be put in place to achieve this.

And while overall experiences were being somewhat compromised by safety measures only 6% felt that their enjoyment was being compromised by the measures put in place; The necessity of Covid precautions was therefore recognised and accepted.

Rising demand for atmosphere While the top drivers have remained constant since re-opening, consumers were now beginning to re-prioritise ‘atmosphere’ where others such as ‘trust’ have dropped in importance.

And as visits became more frequent, those who’d visited the market multiple times were now far more likely to re-prioritise ‘atmosphere’ when deciding where to go, with 30% of consumers who’d been out five or more times since re-opening now considering atmosphere as a factor in venue choice. The 30% figure for atmosphere compared with a figure of 14% for atmosphere among those who’d been out only once since the re-opening.

Consistently, consumer expectations were being met or exceeded when visiting the on-trade.

Some 42% found their trip(s) ‘better than expected’, 51% found them ‘as expected’ and 7% ‘worse than expected’.

However it’s difficult to balance the experiential elements of visits given the need for safety. 57% felt that the interaction with staff was the same as before, 29% felt it was better and 14% felt it was worse.

EXPERT VI EW

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Next phase of recovery UK consumers’ eating and drinking out habits have remained flat over the past few years but they dipped for the first time since 2017 last February.

Visits have “a long way to go” to reach pre-lockdown levels with an average of only three trips having been made by those who’d been out since the on-trade re-opened on the 4th of July.

Almost one in four ‘frequent’ visitors to the market had experienced employment hardship as a result of Covid-19 with 23% of consumers who previously ate out at least weekly either furloughed or on reduced pay/hours or even made redundant. No doubt this will impact disposable income going forward.

The nature of the working environment has taken a shift with many now having to work from home at least some of the time.

For these premises a significant amount of visits per week were being lost – especially in city- and town-centres.

Among consumers now working from home 80% of those who work in a city-centre said they used to eat/drink out near where they worked at least once a week – and 54% over three times a week.

82% of those who worked in a town-centre would eat/drink out near their work and 60% would do this more than three times a week.

62% of those who worked in suburban/rural locations eat or drank out near where they work at least once a week with 43% doing so over three times per week.

However working from home could encourage many at-home workers to visit food and drink venues local to where they live more frequently than prior to the pandemic and this would be heightened amongst city-centre dwellers.

One-third of those now working from home said that they’re visiting food and drink venues local to where they live more frequently than they did prelockdown. Of those working from home but living in city-centre locations this figure is 45%.

“Understanding the varying needs of consumers residing in the local vicinity will be integral to driving footfall and spend per visit,” stated CGA. n

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September 2020 | DRINKS INDUSTRY IRELAND

Hard Seltzers have become the fastest-growing category of alcoholic beverage in the US with current sales outselling vodka.

Now they’re here in Ireland.

Drinks Industry Ireland takes a look at the phenomenon.

H

Hard Seltzer becoming a ‘lifestyle choice’

ard Seltzers have become the fastest-growing category of alcoholic beverage in the US with current sales hitting 85 million nine-litre cases there – more volume sales than vodka.

So what are hard seltzers? Best defined as hard sparkling waters or sparkling water that contains alcohol, they appear to have a number of advantages over traditional alcoholic beverages.

For a start they’re equally popular with both men and women and their appeal seems to cross all age groups and demographics, something that doesn’t happen often in the alcoholic beverage arena.

Their popularity has been a tremendous engine for growth in the Ready To Drink market in the US, with Millennials continuing to gravitate toward the category. Their meteoric rise has made this ‘new’ category one to watch over the last year.

The hard seltzer category is currently valued at over $2.5 billion, with total US sales of hard seltzer up by over 240% last year and now accounting for nearly half of all mixed drinks consumption in the US. As for on-trade consumption, Hard Seltzer is now popular enough to be served on draught in US bars and pubs, states a comprehensive new Hard Seltzer Report from IWSR Drinks Market Analysis. IWSR, the leading source of data and intelligence on the global alcoholic beverage market,

forecasts that consumer interest in this category will only continue to grow.

“Led by the brands White Claw and Truly, Hard Seltzer volume in the US is currently about 82.5 million nine-liter cases,” states IWSR which forecasts that by 2023, the category will more than triple to reach over 281 million cases.

And according to IWSR, by 2022 Hard Seltzers will outsell both vodka and whisky volumes combined in the US. At the beginning of 2018 just 10 brands of Hard Seltzer could be found slugging it out on the US market. This jumped to 26 only a year later. Today, 65 brands do battle in this extremely lucrative market about half of which sell under the moniker of being a brand extension to an already extant beer brand.

For the third consecutive year Ready To Drink products were the fastestgrowing beverage alcohol category in 2019, up 19.6% in volume and 18.8% in value. Even though RTDs only represent a small slice of the beverage alcohol market they contributed more than double the value growth to the industry than wine did in 2019.

The Ready-To-Drink market is therefore poised for continued growth with Hard Seltzers.

Nielsen forecasts the global RTD category to grow by 7.2% in volume Category Annual Growth Rate between 2019 and 2024. Much of the interest and growth in this category is fuelled by the innovation and convenience of Hard Seltzers.

Hard Seltzers are taking share from

all other categories in the US and are forecast by Brandy Rand, IWSR’s Chief Operations Officer in the Americas, to have a much higher volume CAGR of 20.9% from 2019 to 2024.

What’s most interesting about the evolution of the Hard Seltzer category is that it has quickly become a lifestyle movement in the US. “Hard seltzers are far from a fad” she says, “they’re growing at a spectacular rate and increasingly, Hard Seltzer producers are pulling consumers from other beverage alcohol categories, not just beer.

“Combined, Hard Seltzers and other canned Seltzer-like products (vodka soda as an example) will drive the total Ready To Drink category, making it the fastest-growing beverage alcohol category in the US over the next five years.”

IWSR’s consumer opinion and attitude study about Hard Seltzers found that over half (55%) of US alcohol consumers surveyed drink them regularly at least once a week.

Consumers cited ‘refreshment’ as the most appealing Hard Seltzer attribute.

“The rise of Hard Seltzers shows there was a segment of consumers underserved by the current beverage alcohol market who were looking for alternatives that were refreshing and flavourful, but also low-calorie and low-sugar,” adds Brandy Rand, “These products also meet the growing consumer demand for convenience and appeal to people that enjoy >>

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popular cocktails like the vodka soda and wine spritzers. We definitely expect to see more brands taking advantage of this fast-growing trend.”

Consumers there can now choose from traditional Hard Seltzers, cider Seltzers, wine Seltzers, spritzers, spirittype Seltzers and more.

Wine and spirits companies are launching Seltzer-like products to compete in this growing segment too as Hard Seltzers prove to be a yearround category and - prior to Covid-19 - were rapidly moving into on-premise accounts.

IWSR has also just released a comprehensive bartender study conducted across the US that examines trends, most-mentioned brands and consumer preferences.

The US Bartender Strategic Study research found that consumers are increasingly turning to fizzy drinks such as Hard Seltzers, spritzes and spirit & soda cocktails in bars and restaurants.

AC Nielsen predicts that Hard Seltzer’s share of the total US beer/“Flavoured Malt Beverages”/ cider market could reach 15% before the end of this Summer.

Hard Seltzer demographics

Millennials form a core demographic for Hard Seltzers according to AC Nielsen.

There’s no doubt that Hard Seltzers in the US benefitted from the Lockdown as consumers there purchased more of it every week in quarantine from the week ending March the 21st onwards than was spent during its previous dollar-spend peak ending July the 4th 2019.

RTDs and hard seltzers are likely to have continued performing well through the pandemic thanks to their “on-the-go” format and as restrictions on the market start to ease in countries like the UK and Ireland, IWSR predicts that Hard Seltzers are likely to see the highest growth rate within the UK’s RTD category, forecasting a volume CAGR of 71.7% from 2019 to 2024 albeit from a small base in absolute volume terms.

Hard Seltzers in Ireland

With the increase in the number of Hard Seltzer offerings in the UK and Ireland consumers can take the opportunity to taste-test this market variety, possibly resulting in softer individual brand sales than would have been hoped for initially for the Hard Seltzer category in the coming year, states Nielsen CGA in its ‘10 market-moving trends’ to be aware of this year.

September 2020 | DRINKS INDUSTRY IRELAND

In Ireland, Hard Seltzers have only recently launched into the market and in the 12 weeks to the 12th July the Nielsen Scantrack (including Specialist Off-Licences) recorded off-sales of 18,800 nine-litre cases worth about €1.65 million. To put this in context, Champagne sales for the same period were €1.8 million, so the potential remains huge.

The number of players in the Hard Seltzer space will double in 2020 states Nielsen, with products entering from big brewers/mainstream brands, craft brewers and spirits companies.

Additionally, Nielsen predicts that we’ll see an increase in sub-segments of Hard Seltzers focused on attributes like higher ABV, healthy ingredients, bolder flavours and heightened product development. These options won’t make as-big-a-punch as those leading Seltzers on the market today but they will attract a different type of consumer/drinker.

White Claw Hard Seltzer is made from the finest natural ingredients: a blend of sparkling water, glutenfree triple-distilled spirit and a hint of natural fruit flavour. Each 330ml can contains 95 calories, 4.5% ABV and 2g carbs. For more information, visit www.whiteclaw.com.

White Claw

Flying Flamingo Hard Seltzer

White Claw Hard Seltzer, America’s most successful new alcohol brand in a generation, landed back on Irish Shores in June because White Claw Hard Seltzer was actually developed here, so this launch has an extra special place in the hearts of the team at White Claw’s Dublin-based Head Office.

White Claw pioneered the Hard Seltzer category in the US and is now the No 1 brand in a category worth over $2.5 billion, with over 50% market share. Putting it in perspective, in the US off-premise, White Claw Hard Seltzer is now bigger than both Budweiser and Corona in Dollar sales. It also has a higher household penetration than most of the biggest beer brands in US. The success of the brand has been led by a clear understanding that consumers are demanding products that complement their active and more balanced lifestyles.

The Irish Flying Flamingo Hard Seltzer has landed here in Ireland with the family-run Pearse Lyons Brewery & Distillery launching Ireland’s first Hard Seltzer.

Only 90 calories and 5% ABV, Flying Flamingo Hard Seltzer is “a natural lifestyle brand that comes in two refreshingly crisp flavours:- Pineapple Punch and Peach Fizz”.

According to the distillery/brewery, “With purity, balance & refreshment at its core, Flying Flamingo is naturally gluten-free, vegan-friendly and low calorie with a crisp fresh taste.

“Bursting with rich fruit flavours and having the perfect amount of effervescence makes these a drink option of epic refreshment,” states the company.

For more information contact your local Alltech or Comans >> representative.

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September 2020 | DRINKS INDUSTRY IRELAND

E&J Gallo Barefoot Hard Seltzer Q&As with Mark Stammers, Sales Director, UK & Ireland 1. In the US, Hard Seltzers have become the fastestgrowing segment of the alcohol market – why do you think this is the case?

Hard Seltzers tap into a number of key trends: they’re relatively low in alcohol (4-7% ABV), low in calories (typically less than 100 calories) and packaged in light, sustainable and eye-catchingly packaged cans that can be enjoyed at home or on the go.

Consumers are increasingly looking to moderate their alcohol consumption and are looking for drinks that match their lifestyle without impacting on their fitness goals or missing out on social occasions. Light and refreshing, made with natural ingredients, Hard Seltzers are a healthier alternative to beers, wines and spirits.

2. What do you believe is the potential here for Hard Seltzers?

As in the US, consumers in Europe are looking for refreshing and lighter

comes to driving trial of a new product within the portfolio.

alternatives to traditional alcoholic beverages.

The Hard Seltzer category is currently worth $1.5 billion in the US and could grow to reach $2.5 billion by 2021. Early indicators show that this success will be emulated in the UK. Made with sparkling water, white wine and natural fruit flavours, with 70 calories, 4% ABV and gluten-free, the Barefoot Wine Seltzer is one of the UK’s bestselling brands. Barefoot is instantly recognisable among consumers which is significant when it

Loki & Co (where low is key!) launching in cans and introducing a new Strawberry & Lime flavour

Loki & Co launched in 2017 and as such is Europe’s original Hard Seltzer.

“When we launched it’s fair to say that we were way ahead of the market,’ said Stephen Dillon, Founder of RTM Beverages, the Dublin-based drinks innovation company, “We’re delighted that the category has finally taken off and interest has boomed, not

3. Why should vintners be taking a serious look at their Hard Seltzer offering?

It’s hard to ignore the success of the Hard Seltzer category in the US where it’s currently worth $1.5 billion of which 47% is incremental growth to the Beer, Wine & Spirits category. Vintners need to keep a close eye on emerging trends to attract new customers and maximise their sales.

4. IWSR’s Research Director for Western Europe Humphrey Serjeantson believes that consumption of wine is declining in some countries due to the growth in other categories such as Hard Seltzers.

What do you think of his comment?

The Hard Seltzer category is still small compared to wine and appeals to a relatively young sector of

only in Ireland but also across Europe.

“We’re currently in talks with several export markets and it’s great that we no longer have to explain what Hard Seltzers are! We knew that the RTD market was due a shake-up and that consumers were turning away from overly sugary products and looking for lower calorie options; Hard Seltzers provide a great solution to this consumer demand”.

The range is made with sparkling Irish natural mineral water carefully blended with natural fruit flavours and a wine base to produce a less sweet and more authentic 4% ABV drink at only 85 calories per 275ml bottle or 100 calories per 330ml can.

The drink, low in calories, carbohydrates, sugars and naturally gluten-free, is available in three flavours – Apple &

the market. Global trends suggest that consumers are cutting down on their consumption of alcohol generally but there’s plenty of room for different beverages.

5. What might surprise our on-trade & off-trade retailers about Hard Seltzers?

The Barefoot Wine Seltzer range is the only winebased Seltzer range on the market. The range was developed in response to internal consumer research that showed that consumers preferred the taste of wine-based seltzers.

Elderflower, Orange & Mango and now Strawberry & Lime.

For sales enquiries contact: RTM Beverages Ltd (01 9618922) or e-mail: Hello@Lokidrinks.com or goto www.

RTMBeverages.com. n

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I N DUSTRY REPOR T

September 2020

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Irish Whiskey – still a star

Despite Lockdown, Irish whiskey remains a shining star in the international spirits firmament while here at home, as the nights prepare to draw in, we take a look at the growing consumer demand for premium Irish whiskeys.

I

rish whiskey enjoyed an 11% fillip in exports to €727 million in 2019 compared to just €130 million way back in 2007 according to Bord Bia’s 2019 Export Performance & 2020 Prospects report.

And according to Bord Bia’s Spirits Marketing Strategy 2020-2022, “The share accounted for by the whiskey category has grown from just 18.5% in 2007 to 64.8% in 2018”. It adds that the lion’s share of future growth is still likely to be achieved in established markets and - particularly in the case of Irish whiskey - in the US. Imports of Irish whiskey to the US grew from €37 million in 2007 to €384m in 2018, with Irish brands commanding a 6% share of the total US whiskey market.

Irish whiskey spearheaded the 8% growth in Irish spirits exports last year, up by over €75 million through sales of 11.4 million cases, double the volumes being sold in 2010.

Indeed, the Irish Whiskey category has been a beneficiary of the desire to ‘trade up’ to high-end premium and super-premium products.

While North America has seen a substantial rise in Irish whiskey sales it’s those whiskeys at the higher end

that are making the biggest waves, with the Distilled Spirits Council of the US reporting last year that the higherpriced Irish Whiskey categories are “on fire”. Since 2002 high-end premium and super premium Irish whiskeys grew a staggering 1,106% and 3,385% respectively there.

“This is an exciting time for whiskey hailing from the Emerald Isle,” said Distilled Spirits Council Senior Public Relations Director Maggie Quinn in a statement last year, “The category is on fire. We’re experiencing a global whiskey renaissance.”

She added that Irish Whiskey “has a long and storied heritage as one of the first whiskeys and that’s attractive to Millennials who’re always seeking a backstory in their glass”.

Irish Whiskey’s smooth profile makes it particularly appealing to adult consumers who’re new to the whiskey category.

Innovation & Premium

Global commercial intelligence provider MarketLine points to significant declines in global stocks of aged spirits inventories as being among the reasons for the development of new styles of whiskey

where age statements are less important and Irish whiskey producers are world leaders in adding value through grain blending and maturation with different woods.

Sales of premium and super premium Irish whiskeys have grown far more rapidly than for the category as a whole.

But Bord Bia warns that, “Beyond Europe and North America awareness of Ireland and the Irish whiskey category is generally low.

“Building awareness of the rich heritage and tradition of the Irish whiskey category in emerging markets such as East Asia and Latin America will be key to unlocking future growth opportunities.”

Premiumisation is a key driver for the category’s sustained interest and innovation agrees IWSR Drinks Market Analysis.

It recorded a 9% increase in case sales of premium and super premium Irish whiskey to 4.4 million cases in 2019.

And in 2019 alone IWSR tracked almost 30 new Irish whiskey brand lines entering the US market at a premium-or-above price band. As part of the trend towards premium >>

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offerings, Irish whiskey producers have played to both camps in also releasing products with age statements similar to those of Scotch, reaching up to 21 years in the barrel.

Though Irish represents only 2% of the total spirits volume in the US it’s one of its the fastest-growing spirits categories. Over the past five years Irish whiskey volume has increased at a 13.4% Compound Annual Growth Rate and IWSR forecasts that the category will continue to grow.

“We continue to track high growth numbers for brands like Jameson, Tullamore Dew, Redbreast, Teeling, Proper No Twelve and Slane whiskey in the US,” says Adam Rogers, North American Research Director at IWSR, “Interest in Irish whiskey has been led primarily by Jameson for decades.”

In 2010, just four distilleries produced and sold Irish whiskey. Today more than 30 do. But this influx of new Irish distilleries and brand choices isn’t the only factor fuelling the category’s strong performance in the US, IWSR believes. Consumer excitement and appreciation for all whiskies remains strong.

According to figures in the IWSR’s US Beverage Alcohol Review database, Irish whiskey’s 8.6% volume growth in 2019 outpaces that of US whiskey, Canadian whisky and Scotch in the US.

Targeting domestic tourists

Naturally, here at home, Covid-19 will have taken its toll on tourism and Irish whiskey sales.

Last year over one million people visited Irish whiskey distilleries and brand homes but nearly nine in 10 of these were overseas tourists which has fallen over a cliff this year. So the visitor centres currently re-opening here must look within, to domestic ‘staycationers’ with Drinks Ireland|Irish Whiskey’s Head William Lavelle, stating that, “We will be actively targeting domestic Irish tourists once our visitor centres re-open”.

But the onslaught of Covid takes its toll on domestic Irish whiskey sales too.

“Consumption is down everywhere,” says William Lavelle, “What we’re seeing is the on-trade shut a for long time and re-opening in a limited sense now. However off-trade sales are up but not enough to reverse the decline.

“The off-trade has probably benefitted more established brands

September 2020

since the start of the restrictions possibly due to a level of discount, so some were selling well.

“Any brand launched within the last two or three years looks like it will have to start again in terms of brand story, at least that’s the feedback I’m getting from members to that effect.

“Supporting Irish exporters to reboot their brands and regain market position should be a key priority for Government,” he added, “Funding ‘boots on the ground’ in key markets around the world has long been the key to Irish food and drinks export success and is now more vital than ever.”

Last year some 590,500 cases of Irish whiskey were sold here, up 1.5% on the 2018 figure according to IWSR which expects to see CAGR volume of 0.5% between 2018 and 2024.

But premium and super premium case sales accounted for 49,500 cases, up 5% on 2018’s figure of 47,100 and IWSR expects a 1.6% CAGR between 2018 and 2024. So the future for premium and above Irish whiskey on the domestic market looks more than half-full.

Pearse 7 Year-Old Distillers Choice – ‘World’s Best Blended Irish Whiskey under 12 years old 2020’

The Pearse Lyons Distillery has produced a range of awardwinning Irish whiskeys. One favourite would be the Pearse 7 Year Distillers Choice which was named Category Winner of the ‘World’s Best Blended Irish Whiskey Under 12 Years Old’ by the World Whiskies Awards 2020.

The recognition of this award is confirmation that Pearse Lyons Distillery remains one of Ireland’s leading distilleries. Based in the Liberties, Dublin, an area famed for its brewing & distilling, The Pearse Lyons Distillery is a ‘one-of-a-kind’ visitor attraction located in the restored historic St James’ Church.

It also won Best Dublin Tourism

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DRINKS INDUSTRY IRELAND

Experience Under 100,000 Visitors in the 2019 Irish Tourism Industry Awards.

Pearse 7 Year-Old is a Malt-forward, Malt and grain whiskey blend aged in a combination of former Kentucky Bourbon Barrel Ale Casks and Sherry barrels for seven to nine years.

Now available in stylish tubes, Pearse 7 Year-Old is the perfect gift for a loved one.

Please contact your local Alltech or Comans representative.

Roe & Co

lives and breathes creative reinvention.

Since inception Roe & Co has collaborated with bartenders and industry professionals delivering contemporary Irish whiskey that challenges the status quo.

Following the brand’s launch in 2017, Roe & Co continued to innovate, launching two super premium releases, Roe & Co Curator’s Series 0.1 followed by a decadent Roe & Co Cask Strength in 2019.

Continuing its spark for reimagination the Roe & Co Distillery has re-opened its doors to visitors for the first time since March. Located in the buzzing Liberties district, Roe & Co has adapted its offering, creating an interactive experience with fun and flavour at its centre. The Cocktail Workshop Experience, suitable for whiskey buffs and cocktail enthusiasts alike, can accommodate up to six people and is the perfect way to reunite with friends.

Guests can also enjoy one of Roe & Co’s delicious World Class cocktails in the Power House Bar or in the brand new Cocktail Village, all while feasting on tasty bites created by local Irish foodies.

The Roe & Co Cocktail Village will host everything from mini-cocktail masterclasses to whiskey tastings in upcycled shipping container pods.

Priced at €19.50 per person The Cocktail Workshop Experience can be booked on the website. >>

Roe & Co is a brand that sparks reinvention. Have you tried our Roe & Co Curator’s Series 0.1 and Cask Strength 2019? Keep your eyes peeled for our next exciting innovation, launching this October.

ROE & CO

IRISH COFFEE INGREDIENTS

METHOD

• 40ml Roe & Co • 75ml Hot Coffee • 1 tsp Demerara Sugar • Top with whipped double cream • Garnish with the grated nutmeg

Add all ingredients (apart from the cream) to an Irish coffee glass and stir to dissolve sugar. Top with cream.

EQUIPMENT

FEELING FANCY?

• Irish Coffee Glass • Spoon • Grater • Means to whip cream

Whip your cream with 5ml of maple syrup and a drop of vanilla essence.

Garnish with grated nutmeg.S

Recipe by Colin Martin – Roe & Co Distillery Brand Ambassador

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Lambay

I ND U S T RY RE PORT

The Lambay Irish Whiskey team is dedicated to innovating and creating new ideas within the craft whiskey category.

Uncork the unique and embrace something truly innovative with Lambay Whiskey’s Malt Irish Whiskey, the fourth addition to the Lambay

September 2020

Whiskey portfolio.

Consisting of a minimum of three variants of high-quality Irish Single Malt distillates, it’s a delicate blend of both double- and triple-distilled Malt spirit, truly a unique elixir.

Created through a collaboration between Camus, the world’s leading family-owned Cognac producer and

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DRINKS INDUSTRY IRELAND

the Baring Family’s Revelstoke Trust, Lambay is a combination of centuries-old Irish whiskey-making expertise coupled with five generations of French Cognacblending and maturation expertise.

Lambay Malt Whiskey is crafted under the watchful eye of Lambay’s Master of Maturation Yonael Bernard.

All Single Malts within this blend are independently sourced, firstly bourbon barrel-matured and then partially finished in hand-selected French Oak Cognac casks, the signature finish for all Lambay Whiskeys. Included in this blend are Lambay Single Malt casks that have been exposed to the sea air and maritime winds on Lambay.

Bottled at a higher ABV of 43% to the former bottlings within the portfolio (Lambay Small Batch Blend and Lambay Single Malt), Lambay Malt Whiskey is mahogany brown in colour, with gentle notes of floral, Malt and ripe Banana while effusing exotic tones of Cardamom and Fig with a finish of long-lasting Malt and lingering sweetness with a hint of spice.

Before bottling, the island’s own Trinity Well water is added in the final flourish, to deliver this delicious, elegant Irish whiskey.

Non-Chill Filtered.

DRINKS INDUSTRY IRELAND

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September 2020

Grace O’Malley Whiskey

Grace O’Malley is committed to providing the off-trade with all the assets and support it needs to draw in consumers both in-store and online. The last few challenging months have proved how much we can engage with consumers and store staff alike online. We can successfully run staff education sessions, virtual tastings, cocktailmaking classes and giveaway competitions across social media platforms.

Grace O’Malley received a Masters at the The Spirits Business – Irish Whiskey Masters Awards this year for its limited Rum cask-finished release. This is unique as it’s a 46% Malt blend with whiskeys up to 10 years old finished in a Jamaican rum cask and back to a bourbon cask to allow further marrying of the whiskeys.

There’s a shortage of older whiskies coming out of Ireland when compared to our cousins in Scotland.

Grace O’Malley is in the fortunate position of holding a mature cask bank of 10 to 21 year-old Irish whiskeys, providing the opportunity to bring real innovation, not just to younger stocks, but also to the super premium category.

Muldoon Irish Whiskey Liqueur Muldoon Irish Whiskey Liqueur by Waterford-based Anchor Spirits is a well-kept secret in parts of Ireland but much loved in Germany and some far-flung places around the globe.

With a string of international awards for taste and quality, this unique Irish spirit is a hugely versatile weapon in any bartender’s rack. It can be enjoyed on its own, as a shot, as a mixer or as a cocktail ingredient.

Added to that it’s Vegan friendly and gluten- and dairy-free and at 25% ABV it ticks many of the current trend boxes.

It also makes for an indulgent liquid dessert. Made with genuine Irish whiskey and infused with toffee and hazelnut flavours, Muldoon can also be mixed with whiskey to make a longer drink.

We suggest a ratio of one part Muldoon to one part Whiskey.

To find out more go to www. anchorspirits.ie.

Egan’s Legacy Reserve III

Having older whiskeys in our stable allows the Grace O’Malley brand to create premium limited editions that both domestic and international customers are crying out for.

Exclusive limited releases are critical for building the reputation of the brand that has staying power and intends to make a mark in the industry.

For more information goto: www.

Graceomalleywhiskey.com.

Volume three of Egan Irish Whiskey’s Legacy Reserve Series is released this September. The exceptional Single Malt, hand-selected by the Egan family, has been aged in American bourbon casks and finished in French Cadillac AOC casks for 17 years.

Cadillac is a French Appellation d’Origine Contrôlée for a sweet white wine, made from

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Biturica vines on the hillsides of the Entre-DeuxMers sub-region of Bordeux, taking its name from the town of Cadillac (not the car!).

The finish adds a beautiful Vanilla nose with hints of honey, Acacia, Honeysuckle, citrus and Apricot and a buttery mouthfeel, with baked Peaches, Pears and honeyed Apricots giving way to a nectar aftertaste.

Like its predecessors, Legacy Reserve III is limited to just 1,000 bottles worldwide. It’s non chillfiltered and bottled at 46% ABV and will be available at the end of September.

This limited release follows an impressive run from Egan’s Irish Whiskey as Centenary, a blend of meticulously selected Single Malt and Single Grain finished in XO Cognac casks of French Limousin Oak, won Double Gold at the Sip Awards 2020 as well as Gold Best in Class at the Whiskies of the World Awards 2020.

Egan’s Fortitude has also just won Irish Whiskey of the Year at the New York International Spirits Competition, the only Irish whiskey to receive a Double Gold at 96 points. n

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I ND U S T RY RE PORT

September 2020

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North American whiskeys & bourbons trade on Consumer demand for bourbon worldwide can be attested to by the 260% growth in the number of distilleries producing it over the last 10 years, part of an industry worth $8.6 billion. Before the US-EU trade tariff war bourbon exports to the EU had enjoyed annual growth of nearly 40% so demand is certainly there for North American whiskeys & bourbons. We review the market.

T

he US/EU tariff trade war over Boeing & Airbus has hit the European market for North American whiskeys and bourbons but the good news for bourbon producers in Kentucky is that a rapprochement may be in the offing.

The EU’s ‘retaliatory’ tariff on American Whiskeys, now in place for over two years, has caused severe damage to US exports and has negatively impacted jobs in the US, but the recent decision by the United States Trade Representative not to further increase tariffs on EU beverages can be seen as a softening of approach and may merit a return of the compliment by the EU. “It’s not just jobs in Ireland that are threatened by these tariffs,” Drinks Ireland Director Patricia Callan pointed out recently, “Revised figures produced by the consulting firm John Dunham Associates earlier this year suggested that the tariffs on liqueurs and cordials

alone would lead to a total of 14,230 lost jobs and $582.7 million in lost wages. On top of this, the cost to the American economy could be nearly $2,040.6 million in economic activity.

Simply put, these are US tariffs that are costing US citizens their jobs.”

She added, “It’s worth noting that former USTR Robert Zoellick, who filed the initial US complaint against European support for Airbus more than 15 years ago, has said that the US and Boeing’s intent all those years ago was to seek a negotiated solution with the EU. The decision not to add new tariffs can be seen as a decision not to escalate an already difficult situation and we continue to call on the EU Commission and US administration to take advantage of this and to seek a negotiated solution to ongoing trade disputes with a view to ending all recently-imposed tariffs on both sides of the Atlantic”.

And American whiskey and bourbon distillers would call “Amen” to that.

Kentucky Distillers Association

The Kentucky Distillers Association puts the total annual economic impact of the distilling industry there at 20,100 jobs, with annual payroll of $1 billion in producing $8.6 billion-worth of economic output.

In its fifth state-wide study of distilling conducted since 2009, the KDA tallied 68 licensed distilleries operated by 56 companies there as of May 2018, with several more licence applications in the pipeline.

“This is triple the number of distilleries documented in our 2009 study,” it stated.

Kentucky continues to produce 95% of the world’s bourbon and Kentucky distillers shipped over $452 millionworth of product “abroad” – that’s out of state to you and me - in 2017, with whiskey accounting for about 84% of total Kentucky shipments.

But unlike most other distilled spirits there, Kentucky bourbon is aged in >>

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W HICHEV ER YOU CHOOSE, P L E A S E D R I N K R E S P O N S I B LY.

Jack Daniel’s is a registered trademark. ©2020 Jack Daniel’s.

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I ND U S T RY RE PORT

barrels and stored in warehouses for years before being bottled and shipped to customers.

About 1.7 million barrels of new bourbon were produced and added to warehouse inventory last year so that now there are 8.1 million barrels of spirits aging gracefully in Kentucky warehouses, with nearly 7.5 million of those barrels being bourbon.

Globally, the leading importers of Kentucky whiskey last year were Spain, Japan, Australia, the UK, Canada and Germany.

The making of American whiskeys

Generally speaking, American whiskeys are fermented from a mash of cereal grain and distillation depends on which type of cereal has been used (malt, wheat or rye). In the case of bourbon, it’s corn-based whereas Jack Daniels, the top-selling American whiskey in the world, would be a rye whiskey.

In keeping with just about every other premium spirit, flavoured bourbons have now begun to trend across the globe. This has ‘revolutionised’ the bourbon market by opening it up to new demographics and new consumer occasions.

Much like Scotch or Irish whiskeys, traditionally, bourbons tended to be drunk neat or as part of a cocktail, but the desire from consumers to experiment with a range of different whiskey categories – including bourbon - has led to a swathe of flavoured bourbon products now hitting the market.

This expansion of flavour, in turn, has introduced a whole new demographic of consumer – including women - to the appeal of bourbons.

Bourbon & American whiskeys in Ireland

Obtaining figures on the fortunes of American whiskey’s fortunes here in Ireland is difficult.

Figures from the Distilled Spirits Council of the United States places a factory gate value on American whiskeys and Bourbons from the US of €190,000 ($224,424) between January and December last year.

But – no doubt due to the tariff wars and the EU’s 25% tariff on American whiskeys - this figure was well down, by nearly 25%, on the 2018 figure of €248,961 ($293,481).

The Central Statistics Office here puts bourbon’s retail value figure somewhat higher – at €3.8 million.

Drinks Ireland|Spirits put bourbon consumption in Ireland at around

September 2020

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DRINKS INDUSTRY IRELAND

Q&As with Nikki Maguire – Jack Daniel’s Market Development Manager at Edward Dillon & Co 1. What can consumers expect from a North American Whiskey?

There’s so much choice in the North American Whiskey category and this really leans into current consumer trends to explore and try new spirits and to experiment with flavours. Whether someone is drinking a fine bourbon like Woodford Reserve, a premium Tennessee Whiskey such as Jack Daniel’s or a flavoured whiskey like Jack Daniel’s Tennessee Honey, they can expect variety to meet different taste preferences. Consumers also select different drinks for different occasions and whiskey is so great because it provides something for everyone!

2. What’s new with Jack Daniel’s?

We just launched Jack Daniel’s Tennessee Apple in May. Despite launching during a global pandemic, we’ve built strong off-trade distribution and are very happy with the performance to date. It’s a new and approachable way to enjoy Jack Daniel’s Tennessee Whiskey while also introducing new consumers to the Jack Daniel’s family of brands.

This new flavour is great in a long refreshing serve: Jack Apple & Premium Tonic garnished with a wedge of fresh apple is a great alternative to a flavoured gin and tonic. Whilst our Signature Serve is with tonic water, it can

70,000 cases by volume last year but Euromonitor International has estimated that by this year, 2020, bourbons and other US whiskeys should be selling 34,600 cases in the off-trade (up nearly 3% from 33,600 in 2018) and 13,471 nine litre cases in the on-trade (up from 13,100 in 2018).

In terms of value this means that some €14.1 million-worth of it is going across the off-licence counter (1.4% up on the 2019 figure of €13.9 million) while €9 millionworth is going out via the hospitality channel, understandably well down on the 2019 figure of €16.5 million.

In its last published report for 2018, Drinks Ireland|Spirits put American whiskey’s share of the overall Irish spirits market at between 3% and 4%, a share not dissimilar to that of Scotch, so there’s plenty of potential for growth in the Irish on-trade and off-trade.

Jack Daniel’s Tennessee Whiskey Honey & Apple

With the addition of a new flavour variation in 2020, Jack Daniel’s now offers the perfect range to complete any backbar. With three expressions, each lending itself to a different consumer palate and occasion, Jack Daniel’s is the perfect range to add versatility

DRINKS INDUSTRY IRELAND

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September 2020

be enjoyed neat, on the rocks or in a great cocktail.

It’s a great drink if you’re looking for an alternative to our famous serves like the classic Jack & Coke or Jack Daniel’s Honey & lemonade. Whatever you choose, make sure to sip slowly and take your time.

3. Why Apple in a Tennessee sipping whiskey?

We know that consumers seek new flavours and offerings with their spirits and that’s especially evident from the growth of flavoured gins over the last number of years. In addition, we’ve seen huge momentum behind Jack Daniel’s Tennessee Honey with it growing year-on-year. So, we know there’s an appetite for flavoured whiskey and Jack Daniel’s offerings in Ireland. Made with real Granny Smith, McIntosh and Red Delicious apples, Jack Daniel’s Tennessee Apple is fresh and approachable in character.

The sweetness of the apple will likely appeal to those new to the whiskey category or the Jack Daniel’s family of brands.

4. What should mixologists here know about Jack Apple?

The great thing about flavoured whiskey is that it’s very versatile and can be used in a range of cocktails. Jack Daniel’s Tennessee Apple delivers on the unique character of Jack Daniel’s Tennessee Whiskey coupled with the taste of real crisp apples so it stands out in a cocktail. Although our Signature Serve is with tonic water Jack Daniel’s Apple can give a unique and simple twist to well-known classic cocktails. Take the very popular Old Fashioned; by replacing with Jack Daniel’s Tennessee Apple we’ve introduced a simple ‘Orchard Old Fashioned’, introducing the consumer to a very different flavour profile, not usually associated with this classic cocktail.

and excitement to a cocktail menu. Each product has a unique production method and distinctive flavour making it unique while still unmistakably Jack!

Tennessee Whiskey Charcoal mellowed drop-by-drop through 10-feet of sugar maple charcoal, then matured in handcrafted barrels of our own making, our Tennessee Whiskey doesn’t follow a calendar. It’s only ready when our tasters say it is. We judge it by the way it looks, its aroma and of course by the way it tastes. It’s how Jack Daniel himself did it over a century ago.

Tennessee Honey A little bit of honey. A whole lot of Jack. A blend of Jack Daniel’s Tennessee Whiskey and a unique honey liqueur of our own making for a taste that’s one-of-a-kind and unmistakably Jack. With hints of honey and a finish that’s naturally smooth, Jack Daniel’s Tennessee Honey offers a taste of the unexpected.

Tennessee Apple Real crisp apples, real Jack Daniel’s, Jack Daniel’s Tennessee Apple has the unique character of Jack Daniel’s Tennessee Whiskey coupled with crisp green apple for a fresh and rewarding taste. It’s bold, refreshing and exceptionally smooth.

I N DUST RY REPOR T

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have’ on any cocktail menu. Serve in an Old Fashioned for a classic American cocktail that’ll exceed your customers’ expectations.

Maker’s Mark

Maker’s Mark Founder Bill Samuels Sr chose the site of his distillery because there was a spring-fed lake right on the grounds – a plentiful source of limestone-purified water. Marker’s Mark bourbon is all about great taste.

The product uses Red Winter Wheat to create a flavour that finishes in the front of the palate where the sweet taste buds are located.

‘It usually takes between six and seven years for the whisky to be ready.’

Woodford Reserve

A spectacle for the senses, this perfectly balanced taste of our Kentucky Straight Bourbon Whiskey is comprised of more than 200 detectable flavour notes, from bold grain and wood to sweet aromatics, spice, fruit & floral notes. With its brilliant honey amber appearance, complex flavours and silky-smooth finish, Woodford Reserve is a ‘must

Every barrel of Maker’s Mark is aged to taste, not time. It’s left to the team’s tasting panel in Kentucky including their master distiller to determine when the bourbon is fully matured.

It usually takes between six and seven years for the whisky to be ready. After the bottles are filled, each is hand-dipped in its signature red wax. The hand-dipped red wax bottle is every bit as recognisable as the Maker’s Mark name. Every bottle of Maker’s Mark is still made the same way as its founders intended over 65 years ago, making each bottle as special as the bourbon inside. n

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C A M P A I G N TRAIL

September 2020 | DRINKS INDUSTRY IRELAND

8 Bulmers launches Above The Line campaign

When Time Bears Fruit Despite Covid-19 2020 has proved to be a big year for Bulmers with the cultural icon celebrating a successful Summer in the Clonmel Orchards whilst welcoming a new brand vision and updated product to the Bulmers family – Bulmers Rose.

Bulmers has also launched an Above The Line campaign,‘The Drum – When Time Bears Fruit’, celebrating Bulmers’ “renowned rich refreshment and nuanced fermentation process” and highlighting Bulmers’ “dedication to craft over time”.

Fermented for up to 18 months,

Bulmers Original Irish Cider proves that there’s no shortcut to greatness, claims the company.

A relentless percussive soundtrack scores an unyielding pursuit of perfection as time ticks by, giving an insight into Bulmers has launched an Above The Line campaign the process by which ‘The Drum – When Time Bears Fruit’.

Bulmers Original Irish country tentatively reawakens from its Cider is made. slumber as socialising at home or with The emotive ad proves that friends and family becomes the norm patience is a virtue, something the once more.

Irish consumer is well aware of as the

8 Hi-Spirits introduce new vodka blended with purified Danish water

8 First premium Japanese craft gin in Beam Suntory’s portfolio

Roku gin bears signature of Introducing new Japanese craftsmanship Frïs vodka!

Frïs Vodka is pronounced “frees”.

The name “Frïs” links the Swedish word for “freezing” and the Danish word for “ice.”

The name refers both to Scandinavia and to its patented process of freeze filtration. Frïs Vodka is four times distilled and utilises a patented Freeze Filtered Process (at -15°C) that removes impurities.

The distilled spirit is blended with purified Danish water (100% from Frïs vodka - four groundwater) times distilled and utilising a patented resulting in a vodka with an Freeze Filtered Process that exceptionally removes impurities. clean, crisp and smooth taste.

For further details see Hi-Spirits. ie or contact Steven Harbott at Stevenh@hi-spirits.ie.

Roku Gin - the first premium Japanese craft gin in Beam Suntory’s portfolio – translates to ‘six’. Roku incorporates six traditional Japanese botanicals which are infused, distilled and blended by the Japanese artisans of Suntory Spirits in Osaka.

This unique liquid was born from a vision to create a truly authentic Japanese product to meet demand for a crafted, premium gin with a distinctive and balanced flavour.

In a process unique to Roku, the six Japanese botanicals are distilled using a selection of different pot stills, each chosen to ensure the best flavour is extracted from each botanical. The result is a complex yet harmonious gin with a smooth and silky texture.

Meticulous attention to detail – the signature of Japanese craftsmanship – also extends to the bottle.

Roku Gin - the first premium Japanese craft gin in Beam Suntory’s portfolio.

8 New look and design for classic Cold Brew Coffee Liqueur bottle

Tia Maria – new look, same recipe Tia Maria has introduced a new look and design for its classic Cold Brew Coffee Liqueur bottle.

A favourite for coffee cocktail lovers the world over, the dark liqueur retains its longstanding recipe.

Tia Maria is made with Madagascar Vanilla, Jamaican rum and 100% Arabica coffee which provides “the distinctive roasted, full-bodied and rich taste”.

The recipe dates back to the mid-17th Century when a Spanish

aristocrat fled Jamaica amid a colonial war.

Her maid, Tia Maria, salvaged one family treasure – a jewellery box that contained the recipe for the drink.

The recipe was rediscovered in the 1940s

by Dr Kenneth Leigh Evans, who began to produce and market it.

Tia Maria has introduced a new look and design for its classic Cold Brew Coffee Liqueur bottle.

DRINKS INDUSTRY IRELAND | September 2020

CAMPAI GN T RAIL

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8 Erdinger Weissbräu unveils new TV commercial with Jürgen Klopp

“Never skim an Erdinger” campaign launched What purpose does the froth on a beer actually serve? Is it important?

Is it a sign of quality or can you get rid of it?

None other than Jürgen Klopp answers these questions in Erdinger Weissbräu’s new TV commercial. With his passionate appeal to “never skim an Erdinger”, he leaves the viewer in no doubt that froth and wheat beer are as inseparable as Jürgen Klopp and football.

The head is the crowning glory of a well-poured wheat beer and reveals a lot about its quality. The fine bubbles of the froth should give it an almost creamy consistency – the thicker, the better.

The advert depicts a packed pub with fans watching a soccer match – there’s a goalscoring opportunity and the crowd draws collective breath. The tension is written all over Klopp’s face and then it’s released as the ball’s in the net. The place erupts and Jürgen?

He shouts “Stop!”.

With his passionate appeal to “never skim an Erdinger”, Jürgen leaves the viewer in no doubt that froth and wheat beer are as inseparable as Jürgen Klopp and football.

Silence, baffled faces. The camera pans to Klopp, who raises his finger and says to the bartender, “Never skim an Erdinger!”.

Relief spreads as the bartender throws down the beer blade and Jürgen enjoys a long swig of his perfectly poured Erdinger Weissbier.

The 30-second ad was filmed in the

legendary pub Dovedale Towers in what is probably Liverpool’s bestknown street: Penny Lane. Paul McCartney and John Lennon played there with the Beatles and Freddie Mercury once lived above the bar.

The commercial can be seen this month and a powerful digital strategy with a unique content hub focusing on Jürgen Klopp will be at the heart of the campaign.

The hub is all about wheat beer enjoyment, including the right way to pour and a perfect head, about football, but also about the private person Jürgen Klopp.

The campaign will be accompanied by high-profile promotional activities for the trade.

“With the ‘Never skim an Erdinger’ campaign and Jürgen Klopp as an outstanding brand ambassador at our side, we aim to create a new impetus which will enable us to position wheat beer as a highly desirable speciality,” explained Erdinger’s Export Director Marcus Korte.

8 Ireland’s Ali Hayes joins five others from Slovakia, Finland and South Africa who made the cut

2020 international Jägermeister Scholarship goes digital After two successful years of the Jägermeister Scholarship x Berlin Edition, 2020 was supposed to see the third group of up-andcoming bartenders spend a three-month stint in the German capital but due to global Covid-19 restrictions, this year’s scholarship has switched to a virtual scheme supporting six budding talents from Ireland, South Africa, Finland and Slovakia.

Ali Hayes from Dublin’s Exchequer Bar, Lukáš Cabaj from Slovakia, Celestino Schienbein from Finland and Sabrina Traubner, Pete Shava and Monde Mkhonza from South Africa stood out from more than 100 applicants as the 2020 Jägermeister Scholarship recipients.

“The changed circumstances mean we can actually support six up-and-coming bartenders this year,” explains Nina Eggeling of Jägermeister Global Experiential

Jägermeister has made a name for itself as a strong supporter of bartenders and the next generation of skilled bar pros, underscored by Jägermeister’s thriving international bartender network, the Hubertus Circle.

Marketing, “That’s a great opportunity for us and the bartenders.”

Jägermeister has made a name for itself as a strong supporter of bartenders and the next generation of skilled bar pros, underscored by Jägermeister’s thriving international bartender network, the Hubertus Circle.

“This year, we need to be even more flexible,” adds Nina, “Nobody knows how the situation might change in the individual markets or on a global scale, so that’s something we need to be prepared for, offering participants a flexible model that easily adjusts to different conditions and requirements.”

They can look forward to a blend of master classes and workshops run by Jägermeister’s Global Brand Ambassador Nils Boese and other mixologists, virtual events and plenty of surprises.

This year’s scholarship has been designed around letting the participants continue to work in their familiar bars. They’ll update on their progress via www.hubertuscircle.com, the Hubertus Circle Instagram account (@hubertus_circle_) and their own social channels. n

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C LO S I N G TIM E

Septemeber 2020 | DRINKS INDUSTRY IRELAND

Dave retires after 47 years at Gleesons OK. Hands up. How many bartenders in Dublin can claim to have had 47 continuous years of service in the one pub?

Well, as far as we can see, only Dave Kearney from Gleesons in Booterstown, South County Dublin, still has his hand up….

Dave retired as Manager of Gleesons last month.

Back in 1973, Frank Gleeson recruited Dave from The Horse Show House in Ballsbridge, D4.

Dave had just finished a threeyear apprenticeship [remember those? – Ed] begun in 1970.

Time, please… Called to the bar (from left): John Gleeson A huge part of the subsequent with Dave Kearney & Ciaran Gleeson.

development at the Booterstown Gleesons, Dave, the ultimate professional, passed on his skills to literally hundreds of staff down through the years.

Not only was he an incredibly popular figure with all Gleeson’s customers, Dave was even more popular with every one of its staff.

John & Ciaran Gleeson and the crew at Gleesons wish Dave a long and happy retirement with Rosaleen and his family, as do we here at Drinks Industry Ireland.

Licensed wisdom a collection of notable quotes

For the love of Christopher…

We liked this clever bit of wordplay in the window of the Camden Exchange bar in Dublin’s Camden Street recently.

“Jesus Mick, I can remember when we could smoke in pubs, now we can’t even drink in them.” – With thanks to Hugh in the Boar’s Head.

“The Irish people respond very well to effective leadership. The way the GAA and the two vintner’s associations have responded shows this very clearly. With a clear goal, we have confidence in the Irish people.” – Public Health expert Prof Ivan Perry.

Aldi takes on the Anti-Establishment Scottish brewer BrewDog might not have been too happy about the livery on Aldi’s take on its Punk IPA when the discounter put it out there recently.

The Aldi product, Anti-Establishment IPA, is a cheeky take-off of BrewDog’s own Punk IPA. Even the can looks similar.

Not to be outdone, BrewDog Co-Founder James Watt broke news of a new brew at BrewDog. “Inspired by Aldi’s take on Punk IPA” he tweeted sweetly, “we are making a new beer. Yaldi IPA is coming soon. Maybe our friends at Aldi will sell it in their stores?”

But far from retreating in embarrassment, Adi went one better. It suggested by return tweet that, “We would have gone with Ald IPA, send us a crate

Perhaps the two ‘craters’ will talk to each other after all?

and we’ll talk?”.

James was soon back.

“Deal @AldiUK,” he responded, “We have changed the name to Ald IPA and we

will send a case your way. Looking forward to making this happen.”

Lookout for Ald IPA then, perhaps even in an Aldi store near you! n

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