Drinks Industry Ireland Magazine - Spring 21 Issue

Pubs - biding their time through gritted teeth Dublin’s nightclubs & late bars find a voice - 1&1 with Dave Morrissey Private Equity responsible for half Dublin’s 2020 pub transaction value

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OPINION

Spring 2021 | DRINKS INDUSTRY IRELAND

Long Night’s Journey into Day WE CAN all say, without any shadow of a doubt, that these last 12 months have been the darkest in the history of the licensed trade. Many local institutions will never reopen following the necessary precautionary measures taken to protect our communities from this pandemic.

In many cases much, if not all, the available capital for reinvestment in pubs has been removed or re-routed as vintners eke out dwindling savings to meet their costs while completely closed.

It’s true, too, that the hospitality industry has been badly served by a government that doesn’t seem to have much regard for it, offering little by way of a reopening roadmap.

Time and time again, it abandoned the licensed trade to an ill-informed litany of openings and closings. Over-cautious, it failed to inform us what was going on when it came to offering rays of hope.

For there now seems little doubt that vaccination offers the only solution to get us out of this Lockdown cycle.

The government, over-cautious in its approach to hospitality - the most over-cautious in Europe - is now failing to address the vaccine vacuum by purchasing on the world market.

But that caution was notably lacking when, with spectacularly poor timing, it put TDs’ already obscene salaries over the six-figure bar in stark contrast to those currently investing their life savings in trying to keep their more modest pub business afloat.

“I’m an optimist,” said a beleaguered Winston Churchill once, “It does not seem too much use being anything else.”

And as many of our publicans reveal in our Main Story, they’re nothing if not optimists.

Many believe that the end is in sight. It’s just a question of hanging on in there a bit longer.

For while we might look enviably to our nearest neighbour, an optimist might regard the UK’s reopening, beginning next month, as a useful bellwether as to how we might fare when hospitality eventually reopens somewhat later here. And we just might learn from the mistakes made initially by our neighbouring island which can only speed our long night’s journey into day.

“The hospitality industry has been badly served by a government that doesn’t seem to have much regard for it, offering little by way of a reopening roadmap” Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

DRINKS INDUSTRY IRELAND | Spring 2021

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8 Hospitality sector has been treated “appallingly”

Government must recognise decimation of pub trade In light of the Government decision but how and when will that happen?

Despite shutting hospitality in Dublin to close pubs serving food along with There is zero clarity about what level in September and around the rest of the restaurants last Christmas Eve the of vaccine coverage we require before country at the beginning of October, Vintners’ Federation of Ireland said at restrictions will be lifted. The longer the these measures had proved ineffective the time that this brought closer the crisis continues the less confidence our in preventing a wider lockdown of the probability that pubs would remain shut members have that Government has any economy, stated the LVA. Traditional past the one year anniversary of when sort of plan to get pubs open. Publicans pubs in Dublin have been closed the trade first closed on the 15th of urgently require a timeline because right continuously since March 2020.

March last year. now they’re completely in the dark, “This is yet another example of The VFI stated that its members and which is having a massive impact on horrendous treatment of the hospitality their staff would require a comprehensive people’s mental health. sector by the Government,” said LVA new package of supports if the trade “The overwhelming message we get Chief Executive Donall O’Keeffe, who was to survive until restrictions are lifted. from our members is ‘just tell us the plan pointed out that the Government had “The original plan had been to for getting open’. They want information laid-off half the staff in the industry “the lockdown the country for six weeks about the way forward. Right now, there day before Christmas”, providing them until early December so, in the words of is a total absence of clarity.” with a very uncertain future having Taoiseach Micheál Martin, previously forsaken the the country could have a other half of the industry ‘meaningful’ Christmas, now working in traditional lies in tatters,” stated the VFI pubs. at the time, “The hospitality “Their whole strategy sector was prevented basically consists of from even making it to St one tool, lockdown,” he Stephen’s Day.” continued, “No alterations According to VFI Chief in their approach, no Executive Padraig Cribben considering thinking. the hospitality sector had Instead, their kneejerk been treated in appalling reaction is to throw fashion again with little notice hospitality under the bus about the Christmas closure once more. They seem being given which resulted hell-bent on pursuing this in a repeat of the huge costs “Government must understand its decisions are decimating our trade course of action despite for members who’d to dump so the supports on offer have to recognise that fact”. a complete absence of expensive stock. any statistical evidence There was also the equally important He pointed out too that, whilst it might showing that hospitality is the cause issue of staff now facing another seem hard to believe, Ireland’s pub sector of the rise of infections in this country. extended period on the Pandemic had ended 2020 in a worse position than They also continually fail to account Unemployment Payment. Many only it had been in back in March when the for the extensive safety requirements returned to work because they were virus first appeared. implemented by the hospitality sector promised that pubs serving food would In effect, the Government had laid-off in this country. remain open into January.

25,000 people working in pubs across “They need to take into account the “Our members who were allowed the country on Christmas Eve, generating ongoing uncertainty this is causing, the reopen for under three weeks must enormous levels of stress amongst enormous stress this is putting people now reapply for the Covid Restrictions publicans and their staff according to the working in the industry under and the Support Scheme” he stated at the time, Licensed Vintners Association. damage these repeated closures is “but at this stage, with little prospect of The Association also highlighted the doing to these businesses. They also a full reopening in the short-term, we’re ineffectiveness of the Government’s need to provide better supports to calling for the CRSS to be increased for approach to hospitality and its lack of those working in the hospitality sector all pubs to 30% of 2019 turnover. consideration of the significant safety if they still want to have a viable “Government must understand its requirements introduced to pubs in the hospitality sector in this country when decisions are decimating our trade so the interim which had to close yet again. the pandemic ends. Staff are already supports on offer have to recognise that With the hospitality sector closed on seeking out new career paths.” fact.

Christmas Eve for the third time this The LVA also called again on the “We need clear communications from year, the LVA said that a new approach Tánaiste Leo Varadkar TD to honour Government about how our members was now required before the stop/start his commitment to meet with the will be allowed resume trading. The good mechanism devours the industry in 2021 Association to plan for the sustained news is vaccines will end the pandemic too. reopening of the entire pub sector.

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NEWS

Spring 2021 | DRINKS INDUSTRY IRELAND

8 Covid-19 pub closures saw January-September draught sales decline 57%

Draught beer sales down 57% Ireland’s beer sector was “significantly impacted” by Covid-19 as a result of the extended closure of the hospitality sector last year.

Revenue Commissioners’ figures show sales of beer down 17% last year compared with 2019.

However draught beer sales, which take place in the on-trade, were particularly hard-hit, falling by 57% during this (Q1-Q3) period when compared to Q1-Q3 2019 according to Drinks Ireland|Beer. according to Drinks Ireland|Beer.

The Ibec trade association, which represents beer producers in Ireland, also looked at figures from April to June (Q2) indicating that draught beer sales fell by 93% in that quarter.

2020’s Q1 showed only a tiny amount of draught beer sales compared to 2019 based on data that main members would have sent back to Ibec. Those figures do not include returns to brewery.

Ireland’s beer sector has been hit harder than its EU counterparts.

“Ireland’s beer sector has been hit particularly hard by Covid-19 because of the large proportion of beer usually consumed in the on-trade in Ireland.”

According to Drinks Ireland|Beer, around 63% of beer is usually sold via the on-trade here. This compares to a European average of 30%.

“Ireland’s beer sector has been hit particularly hard by Covid-19 because of the large proportion of beer usually consumed in the on-trade in Ireland,”

said Jonathan McDade, Head of Drinks Ireland|Beer, “This data demonstrates the knock-on impact that closures have had, not only on hospitality venues, but also on their many suppliers and the wider business ecosystem in which they operate, including beer producers.”

n Accumulated profits were up by €143,064 to €2.34 million from €2.19 million at Charjon Investments, the holding company for publican Charlie Chawke’s Goat Grill in Dublin’s Goatstown area. While staff numbers remained largely unchanged Charjon’s Directors Charlie & Bernice Chawke took remuneration of just under €235, 079, up from €199,925 the previous year.

8 IWSR analyses the outlook for global beer category

Opportunities for beer in 2021 & beyond The global beer market suffered quite heavily during 2020 thanks primarily to its reliance on the on-trade.

Beer markets in Italy and the UK were amongst those particularly hard hit due to Lockdown restrictions reports IWSR in its Opportunities for beer in 2021 & beyond report.

Traditional inbound tourism hubs continued to hurt while some brewers also faced legislative issues such full bans on the sale of alcohol in South Africa and India and a ban on domestic brewing in Mexico.

Changes in off-trade consumer purchasing behaviour such as a tendency to purchase multi-packs and less time spent browsing meant that some players had to adapt to new packaging offerings and/or new distribution channels.

IWSR reports that overall, the industry >>

IWSR reports that overall, the industry is likely to see a decline in beer consumption of around 9% across 19 key markets over 2019-2020.

NEWS

DRINKS INDUSTRY IRELAND | Spring 2021

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8 Value down 37% organically

Diageo’s H1 Irish volumes down 23% Diageo has reported Diageo “delivered volumes in Ireland strong sequential down 23% in the first improvement compared half of its 2021 Financial to the second half of Year to the 31st of fiscal 20. This reflects December 2020 (or improved market 17% on an organic share performance basis) according to through excellent its recently-published execution in the offinterim results. trade channel and the Similarly, Diageo partial re-opening of reported a value decline the on-trade channel in of 40% or a net 37% in certain markets”. organic terms.

Commenting on the Net sales of beer results, Diageo Chief were down 44%, driven Executive Ivan Menezes by on-trade restrictions said, “We delivered a and closures which strong performance in particularly impacted a challenging operating Net sales of beer were down 44%, driven by on-trade restrictions and closures the sale of Guinness environment”. which particularly impacted the sale of Guinness kegs. kegs.

He concluded, “We “Total spirits grew expect ongoing volatility “despite a significant impact from Travel 4%, driven by Baileys, Gordon’s and and disruption in the second half of the Retail and on-trade restrictions”.

Captain Morgan,” reports Diageo which year, particularly in the on-trade channel, Reported Operating Profits were (unsurprisingly) adds that, “Both spirits which will make performance more down 8.3% to £2.2 billion from 2019’s and beer gained market share in the offchallenging. The medium and long-term H1 figure of £2.4 billion, driven by trade”. growth drivers and opportunities for our unfavourable exchange and a decline in At £6.9 billion, Diageo’s reported business remain intact and I’m confident organic operating profit. global net sales were down 4.5% “as in our strategy, the resilience of our Global sales of Guinness were down organic growth of 1.0% was more than business and Diageo’s ability to emerge 18% in value due to the impact of Covidoffset by unfavourable exchange” stronger”.

19 on the on-trade, particularly in Ireland according to the company which and Great Britain. pointed out that this growth was

is likely to see a decline in beer consumption of around 9% across 19 key markets over 2019-2020.

But amidst these challenges there are bright spots.

Market recovery IWSR’s research shows that some beer markets will emerge from 2020 relatively unscathed: beer proved remarkably resilient in Japan, for example, especially in the face of a strongly-advancing Ready-To-Drink category. Although beer in China will see a loss in volume of around 7% in 2020, the decline has not been as bad as many feared it could be, primarily as restrictions had largely been lifted by the key Summer months.

Looking forward, developing markets will continue to provide growth opportunities for brewers.

Expanding beyond beer As consumers moved to the at-home occasion, the trend for convenience has helped shape purchasing behaviours.

In markets such as the US, the RTD category, which includes hard seltzers, has been taking share from beer.

RTDs provide a growing opportunity for brewers to diversify their product portfolios.

Changes in purchasing behaviour propel e-commerce As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel.

Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This

is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel.

Online beer sales hold the greatest market share in countries such as Japan, the UK and the US.

The entrepreneurial spirit of small-batch players Craft breweries, which tend to be more dependent on the on-trade, have driven interest in the global beer category and revitalised its fortunes in many markets.

IWSR believes that the entrepreneurial spirit of the sector means that craft brewery regeneration will be quick.

In the US, for example, IWSR has seen the pandemic lead to a ‘buy local’ approach amongst some consumers which will benefit small-batch players.

€14 MILLION INVESTED IN TRADE SUPPORT OVER TWO YEARS

THOUSANDS OF PUBS REGISTERED ACROSS THE ISLAND OF IRELAND

HUNDREDS OF PUBS BENEFITED FROM SAFE OUTDOOR EQUIPMENT

In June 2020, Guinness established a €14 million fund, called “Raising the Bar”, to support the recovery of pubs across the Island of Ireland. This is part of a Diageo global programme to support pubs and bars to welcome customers back safely and recover following the COVID-19 pandemic.

Guinness Raising the Bar is a two year programme that provides pubs with practical equipment for social distancing measures, digital skills training, contactless technology, emotional support, financial advice and more.

TENS OF THOUSANDS OF IRISH BAR STAFF AND PUBLICANS HAVE COMPLETED COVID COMPLIANCE TRAINING

THOUSANDS OF ESSENTIALS KITS DISTRIBUTED INCLUDING UNIFORMS, HAND SANITISER AND TAKE AWAY PINT GLASSES

GUINNESS RAISING THE BAR IS STILL OPEN FOR REGISTRATIONS. SIGN UP NOW FOR SUPPORT AT WWW.MYDIAGEO.COM

GUINNESS RAISING THE BAR HELPLINE NOW LIVE Guinness Raising The Bar helpline, provides independent counselling and financial information free of charge to the Irish pub trade.

The Guinness Raising the Bar Helpline is a dedicated freephone support phoneline for pub owners, their staff and their immediate families affected by the COVID-19 crisis.

The helpline is staffed by a team of counsellors, as well as financial experts, Monday to Friday, from 9 am to 5 pm. There are counsellors available to take calls 24 hours a day, 7 days a week, ensuring that contact can be made at any time and any relevant follow up scheduled.

CALL NOW FREEPHONE: 1 800 303 589 LANDLINE: 01 2612734 TEXT: 0044 790 934 1229 EMAIL: SUPPORT@RESOURCESFORYOURLIFE.COM Please include ‘Guinness Raising the Bar’ in the email subject line or text message with your name, a number to call you back on and a convenient time to call.

Thank you to all of Ireland’s pubs that turned their lights on as part of the Guinness Raising the Bar #KeepTheLightsOn campaign, highlighting the pubs readiness for a safe reopening once regulations allow.

We look forward to continually working with you to ensure the safe and sustainable return of the pub, the social fabric of our communities.

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NE W S

Spring 2021 | DRINKS INDUSTRY IRELAND

8 “It should never have come to this” says Noel Anderson

FBD loses High Court case The Licensed Vintners Association welcomed the High Court’s recent decision in favour of the publicans in their business interruption cover case against FBD. The decision concerned three of its members (Noel Anderson, the Chris Kelly Group and the Loyola Group) as well as Sean’s Bar, Athlone, in their test-case against FBD for Covid-19 business interruption cover.

“These publicans deserve enormous credit as their action will prove critical to pubs with similar policies right around Ireland,” said LVA Chief Executive Donall O’Keeffe.

“It was grossly unfair that these family businesses had to go to the High Court against the might of a publicly-quoted insurer to have their claims validated.”

The LVA called on insurers to quickly review their business interruption policies in light of the decision and promptly pay all valid claims.

The decision that the four pub owners are entitled to business interruption compensation from their insurer due to the Covid-19 pandemic was also welcomed by the Vintners Federation of Ireland, the 1,100 publicans who are FBD customers and the wider pub sector.

“This High Court decision is the first good news the 1,100 publicans who’re FBD customers have received since the crisis began last March,” said VFI Chief Executive Padraig Cribben, “Publicans took out business interruption cover with FBD in good faith and the decision

by the insurance company to challenge that cover caused huge distress for our members at a time when they were at their most vulnerable.

“It now follows that other insurance companies should review their business interruption claims and begin a process of working with publicans to ensure adequate compensation is provided for

“It should never have come to this.” Noel Anderson.

the interruption of their businesses.”

The High Court decision vindicated 10 months of strain and uncertainty for publicans such as the new LVA Chairman and Managing Director of Dublin’s Lemon & Duke and The Bridge 1859 Noel Anderson, one of the plaintiffs in the case.

“The High Court’s decision represents vindication for Lemon & Duke and the other businesses dependent on the outcome of this action,” he said, “We could not have achieved this outcome without the tremendous faith and understanding shown by our staff during these very testing times where they were understandably concerned about the implications for their livelihoods.

“It should never have come to this,” he continued, “I specifically had taken out a business interruption policy to protect us against Covid-19 and its potential impact on our business. As the court heard during the trial, this was acknowledged in writing by FBD. “Yet in order to have our claim settled we were forced to go through 10 months of deep financial uncertainty, significant additional risk in taking this action as well as extensive stress and strain to arrive at an outcome which should have been clear from the outset.”

VFI Chief Executive Padraig Cribben is also a Director of the Alliance for Insurance Reform which welcomed the outcome too.

“To string any further clearly valid claims out by dragging cases into litigation or to the ombudsman would be unconscionable at this stage and must be subject to aggravated damages when resolved,” he concluded.

8 This year’s Catex set for September 21-23

Catex sets sights on September Catex 2021, the trade show for the hospitality industry, is set to take place this year from the 21st of September to the 23rd of September at Dublin’s RDS. “The rationale behind choosing this date was a combination of trying to keep Catex 2021 in the 2021 year while giving ourselves some additional time to assess how the Covid-19 pandemic and indeed the country will react to the rollout of vaccinations,” stated Irish Foodservice Suppliers Alliance Chairman Patrick Clement.

He explained that the company’s event partners, Eventhaus, had been in communication with both

the Department of Enterprise and Employment and the Department of Health over recent months drafting a set of robust protocols and guidelines for the safe return of trade fairs and exhibitions.

“This work has led the Government to include provision for the return of trade fairs and exhibitions once the Country and County are in either Level 1 or Level 2 as outlined in the Resilience and Recovery 2020 – 2021: Plan for living with Covid document,” he stated, “As you’re aware, many of our industry partners such as Chef Network, The Panel Of Chefs, The Bartenders Association and

The Speciality Coffee Association all depend on Catex as a showcase for their annual activities and to recruit new members. It’s vital that Catex continues to provide this support platform this year, particularly when our Industry is experiencing such pain and loss right now.”

To IFSA members grappling with the challenges that the pandemic presents, the IFSA has provided information such as the Foodservice Industry Re-opening Solutions and the IFSA & Chef Network Catering Business Covid-19 Operating Guidelines & Procedures.

DRINKS INDUSTRY IRELAND | Spring 2021

N EWS

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8 Strategic Review completed

Britvic to close Counterpoint

Proposals were put to Counterpoint’s 44 staff recently that saw the licensed wholesaler closing its operation here in Ireland.

Following the completion of Britvic’s Strategic Review of its Irish Counterpoint operation, Britvic Ireland is to exit the licensed wholesale channel it operated through Counterpoint.

Last year Britvic took the opportunity to evolve its business strategy to make it simpler and more focused in Ireland. In recent years licensed wholesaling margins have tightened while the on-trade has contracted. These trends have been exacerbated by Covid-19.

Proposals were therefore put to Counterpoint’s 44 staff recently that

saw the licensed wholesaler closing its operation here in Ireland.

The closure of Britvic’s only licensed wholesale business means that the company will continue to manufacture, market and retail soft drinks - it’s Ireland’s second-largest soft drinks manufacturer by volume - but it will do so via other wholesale partnerships.

Britvic remains firmly committed to Ireland where it has 400 staff and where it has a portfolio of market-leading brands and a long-term bottling agreement with PepsiCo. “We deeply regret any reduction in employment across our business,” said Britvic Ireland’s Managing Director Kevin Donnelly, “We recognise that this will be extremely difficult for our people who have served the company well over the years. We will do all we can to continue to support impacted employees.”

8 January bar sales showed largest volume decrease of all retail sectors

January bar sales – largest volume decrease of all retail sectors Bar sales volumes fell 91% while values fell 90% last January compared to January 2020 according to the Central Statistics Office’s seasonally-adjusted provisional Index of Retail Sales.

January’s bar sales were down 75% in both volume and value compared to the previous month, December 2020. Indeed January saw bar sales experiencing the largest decrease in volumes of any of the retail sectors.

Across the three-month period November 2020 to January 2021 the CSO provisionally estimates that seasonallyadjusted bar sales volumes and values fell by around 80% when compared to the same period in 2019 to 2020.

Bar sales volumes were down 57% from November 2020 to January 2021 when compared to the preceding three months August to October while bar sales values declined 56%.

December figures Final figures published for December show bar sales volumes down 63% on the same month in 2019 while values fell 62%.

Not surprisingly, as Lockdown restrictions eased, December’s bar sales

Bar sales were down 91% last January compared to February 2020, before the pandemic began.

volumes showed growth of 369% over the November 2020 figures while bar sales values jumped 381%.

The volume of retail sales generally decreased by 22% in January when compared to December 2020 on a seasonally-adjusted basis. On an annual basis, retail volumes were 14% lower in January 2021 compared with January 2020.

Retail sales generally in January 2021 were 14% lower than in the previous February 2020, before the crisis started, but bar sales were down 91%.

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NE W S

Spring 2021 | DRINKS INDUSTRY IRELAND

8 Heineken to reduce global workforce by 10%

Heineken revenue down 12% Heineken nv saw a net organic revenue decline of 11.9% to €19.7 billion in 2020 with consolidated beer volumes falling 8.1% organically.

In its Full Year Results to the 31st of December Heineken also expressed its intention to cut its 85,000 global workforce by nearly 10%.

The brewer reported a net loss of €204 million for 2020, compared with a net profit of €2.1 billion a year earlier, while sales fell 17% to €23.7 billion.

Despite the pandemic, Heineken’s premium beer volume outperformed the broader portfolio in the majority of its markets with but a mid-single digit decline overall.

The pandemic’s impact on its business was amplified by its geographic exposure to the on-trade.

In Europe in particular it estimates that at the end of January 2021 less than 30% of on-trade outlets were operating.

But it reports managing to gain share in most of its key markets.

The Dutch brewer saw a 35.6% decline in Operating Profits to €2.4 billion.

Nevertheless its Heineken brand volumes were down only marginally by 0.4% - “significantly outperforming the total market” and the brand actually

grew by double-digits in 25 markets around the world last year.

In Europe, however, with its greater emphasis on hospitality and the on-trade, the brand suffered a 7.1% organic decline in volumes.

In contrast, Heineken 0.0 experienced strong double-digit growth in all regions, reported the world’s second-largest brewer.

Heineken also raised over €10 million to support 50,000 on-trade outlets affected by the pandemic in 21 countries through its Back the Bars initiative.

While this was going on, its

commercial teams reallocated resources across channels and brands, increasing its focus on off-trade customers. It also accelerated the deployment of its e-commerce platforms, capitalising on digitalisation trends as consumers and customers shopped online.

2021 Outlook The brewer reports, “Overall the Covid-19 pandemic and governments’ measures continue to have a material impact on our markets and business”.

As a result, Heineken also intends to reduce its workforce by nearly 10% globally.

This follows a review of the effectiveness and efficiency of its organisations at its Head Office, regional offices and each of its local operations (including Ireland).

“The restructuring programme will reduce our employee base by around 8,000 people,” it states.

The brewer reported a net loss of €204 million for 2020, compared with a net profit of €2.1 billion a year earlier, while sales fell 17% to €23.7 billion.

8 UK pubs lose up to £331 million in revenue on destroyed beer

UK pubs lose 87 million pints in pandemic Since the start of the pandemic, UK pubs have had to throw away as many as 87 million pints of beer at a cost of some £331 million, according to figures published by the British Beer & Pub Association recently.

The BBPA, the leading trade association representing the UK’s brewers and pubs, points out that at an average cost of £3.81 per pint in the on-trade, pubs have lost up to £331 million in revenue on beer that they’ve been forced to destroy, being unable to sell it subsequently because of three Lockdowns and similar tier restrictions.

The BBPA points out that this revenue would usually pay for hundreds of thousands of jobs in pubs and breweries as well as the maintenance and upkeep of pubs in communities across the UK. From industry feedback the BBPA

has worked out that 70 million pints of beer were thrown away during the first Lockdown. With publicans more alert to the risk of wastage - and amid ongoing restrictions imposed on large parts of the UK - they bought-in less stock on reopening.

This meant that when further Lockdowns occurred around the UK last Autumn, only 10% of beer wasted in the first Lockdown or seven million pints were wasted this time with another 10 million expected to go the same way during the current Lockdown, the BBPA found.

“Our sector is in limbo,” said BBPA Chief Executive Emma McClarkin, “And at several points in the last 12 months pubs and breweries have effectively had to pour their revenues down the drain.”

BBPA figures highlight pub losses of up to £331 million on wasted beer.

She continued, “Even when they can reopen, pubs and brewers are still likely to need Government support.

“Stimulus support is also going to be essential for our sector to kick-start again and lead the economic recovery.”

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ONE & ONE

Spring 2021 | DRINKS INDUSTRY IRELAND

Dublin’s nightclubs & late bars find a voice Dave Morrissey, Chairman of the LVA’s Nightclub & Late Bar Committee, speaks to Pat Nolan about his hopes for the Night-time Economy’s post-Coronavirus future.

W

hatever about the sufferings of the country’s pubs and restaurants thanks to Lockdown restrictions, they pale to a fading stain on the carpet compared to the trials and tribulations of the nightclub industry and its patrons of all ages.

For unlike the hospitality industry generally, the country’s nightclubs effectively closed down for the foreseeable future, locking off the lasers and rolling up the pavements with the onset of the pandemic.

Where other sectors of the hospitality industry find themselves pondering whether or not they’ll see the light of day again before Autumn, the country’s nightclubs cannot spyout any kindred glimmer at the end of what’s become a seemingly endless tunnel.

In the UK, the #SaveNightclubs campaign group found that only 10% of nightclub operators expected their business to survive restrictions longer than four months.

So, with the nightclubs gone dark, now might be as good-a-time as any to try and ensure that when the country’s nightclubs do eventually reopen, a revised legal and economic infrastructure will ensure that they can do so in a more healthy fiscal environment than was the case even before Covid-19.

This seems to be happening.

Legislation on the opening hours for pubs and nightclubs is to be modernised under proposals contained in the Minister for Justice Helen McEntee’s Statement of Strategy 2021-2023 Justice Plan.

“Over the course of our Plan, we will modernise our licencing laws to support the development of the Night-time economy so our cities can take their place among the cultural capitals of the world,” stated the Minister.

These sectors, she believes, will revive and she will introduce reforms to support the development and regulation of the Nighttime economy including modernising the licensing laws.

And her Department will engage with

“We see Dublin as similar to London, Berlin, Paris, Rome and Madrid -all have booming late night activities that run ‘till at least 5am” - Dave Morrissey.

the work of the Night-time Economy Taskforce, set up at last July by the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin TD to examine and address the challenges facing the development of a vibrant Night-time culture and economy.

These challenges include the present licensing legislation in regard to nightclubs & late bars as well as broader issues such as transport and the diversity of cultural activities and this is likely to be presented to the Government this month.

To help contribute towards the development of a vibrant Night-time culture and economy the Dublin Nightclub and Late Bar Association was set up last June when many businesses, including restaurants, were permitted to reopen following the first

Lockdown - but not nightclubs.

It was recently subsumed into the Licensed Vintners Association’s Nightclub & Late Bar Committee.

“It was born out of the frustration” explains Dave Morrissey, co-owner of Lost Lane and the Porterhouse, Nassau Street, who’s also Chairman of the LVA’s Dublin Nightclub & Late Bar Committee and LVA Vice Chairman, “The stakeholders felt that we were being ignored and were not on any Government roadmap to reopening.

“We’ve formulated a policy document which we submitted to the Late Night Government Task Force last November.”

The association comprises late bar & nightclub operators in Dublin only and the policy document covers a number of the more long-term issues.

DRINKS INDUSTRY IRELAND | Spring 2021

ON E & ONE

SEOs In 2007 the price of a Special Exemption Order was increased from €220 to €410 per night for permitting premises to stay open until 2.30am - and that’s before lawyer’s fees get involved.

“We proposed that SEO applications be simplified,” he adds, “Currently it involves attending court on a Wednesday and applying for a maximum of four weeks of SEOs. Perhaps an online system may save Court, Garda and Legal costs.”

According to research carried out by Barry O’Sullivan, the former Chief Executive of the now defunct Irish Nightclub Industry Association, in 2007 there were 90,000 SEOs and 1,600 Dance Licences.

Ten years later this figure had been driven down to just 37,500 SEOs and just 930 Dance Licences. This has resulted in the government losing €5 million a year in revenue. Nevertheless, in pre-pandemic 2019 SEOs still generated over €14 million in revenue for the courts.

The Committee therefore proposed that the existing Late Bar SEOs keep their 2.30am closing time but suggested that the cost should revert to the previous €220 per night. It proposed too that there should be a new ‘Nightclub’ SEO available to premises that have a Full Seven Day Publicans Licence which will permit a closing time of 5am at a cost similar to the current SEO levy of €410 per night.

“We felt that budgeting towards alreadystrained Garda resources would be an issue” Dave explains, “if the figures asked for were reduced below €410 it might be grounds for ignoring our well thought-out request.”

Trading hours proposed would be the same for the seven days of the week with Sunday treated just like every other day.

Taskforce submission One of the four Taskforce questions put to stakeholders asks, “What do you see as the key attributes of a positive Night-time Economy? What does the best-case scenario for you (as a group) look like?”.

Here, the LVA would simply like to see a broad range of activities available to tourists as well as residents of Dublin.

“We feel there’s a need for not only late night bars and clubs but also more cultural activities like comedy, theatre and museums to open later into the evening,” says Dave, “We’d be more than happy to offer our venues for performances of evening events that promote The Arts.

“However our focus is to promote our businesses first and foremost as our experience extends to bar, club and live music events.”

This would also seem to cover the Taskforce’s second question to stakeholders: “What cultural, creative or other activities are currently missing from the Night-time Economy?”.

It’s third question asks, “What are the

“We’d be more than happy to offer our venues for performances of evening events that promote The Arts”

Dave Morrissey on...

8 ...why the LVA’s Late Bar & Nightclub Committee was formed - “It was born out of the frustration the stakeholders felt that we were being ignored and were not on any Government roadmap to reopening”.

8 ... simplifying SEOs - “Currently it involves attending court on a Wednesday and applying for a maximum of four weeks of SEOs. Perhaps an online system may save Court, Garda and Legal costs.”

8 ...... what the Committee sees as the key attributes of a positive Night-time Economy - “We feel there’s a need for not only late night bars and clubs but also more cultural activities like comedy, theatre and museums to open later into the evening.”

8 .... the challenges for this particular group and others - “Once there’s a way forward and we get back to business our biggest challenge will be to address the claims culture and crazy payouts awarded by the Courts and Settlements agreed between legal practitioners and underwriters.”

8 .... how Dublin nightclubs might compare internationally - “We see Dublin as similar to London, Berlin, Paris, Rome and Madrid. All have booming late night activities that run ‘till at least 5am.”

8 ... Local Authorities administering nightclubs - “We’d not like to see this process transfer to a Council-based system as we feel that it may become too committeedriven and would cause our members problems.”

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challenges for your particular group and others? Any suggested solutions?”.

Obviously the current challenges the Association’s members face all relate to the pandemic.

But it’s also looking beyond the present.

“Once there’s a way forward and we get back to business our biggest challenge will be to address the claims culture and crazy payouts awarded by the Courts and Settlements agreed between legal practitioners and underwriters,” says Dave.

The fourth Taskforce question posits, “What, in your view, is a best practice example of a successful Night-time Economy internationally and/or are there international examples we can draw from?”.

The Association notes that in a lot of European cities the clubs can stay open until 5am or 6am for a minimal fee.

“We see Dublin as similar to London, Berlin, Paris, Rome and Madrid,” says Dave, “All have booming late night activities that run ‘till at least 5am.”

The Committee would envisage a 5am closing time for nightclubs here with 30 minutes drinking-up time so that nightclubs would be cleared by 5.30am.

Against Local Authority administration of Licensing hours The Committee reflects the LVA’s belief that the Irish Courts’ current administering of Licencing Law is “very fair” and the suggestion that Local Authorities should now administer Late Licences is not welcome.

“We, as a group of stakeholders, are by-and-large happy with the current system of interaction with the Garda, Fire Officer and Court System,” explains Dave, “It’s expensive but fair. We’d not like to see this process transfer to a Council-based system as we feel that it may become too committee-driven and would cause our members problems.”

One-off events The Association believes too that the existing facility to grant licences for Special Events is fit for purpose as it requires Garda/Fire Officer approval and any objectors/residents can raise their concerns for adjudication by the presiding Judge.

Dave concludes, “We’ve made our submission to the Task Force with one single voice for this section of our Industry”.

Not too long ago, Wexford Senator Malcolm Byrne raised concern that young people are not experiencing the “rites of passage” enjoyed by other previously youthful generations due to the global coronavirus outbreak.

As we move out of Covid restrictions, expect to hear more from this sector of our industry. n

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E XP E R T VIE W

Spring 2021 | DRINKS INDUSTRY IRELAND

Alcohol exports down 19% last year Bord Bia report details key performance highlights from Ireland’s food and drink exports in 2020

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ith four-fifths of world economies likely to contract this year, Covid-19 has had a significant impact on alcohol exports here which were down 19% in 2020 to €1.3 billion according to Bord Bia in its annual Export Performance and Prospects report 2020/2021 launched by the Minister for Agriculture, Food and the Marine Charlie McConalogue.

Bord Bia’s report details key performance highlights from Ireland’s food and drink exports in 2020 as well as an analysis of prospects for the year ahead.

The report states that last year’s decline in alcohol exports was proportionately larger than that seen at the height of the global financial crisis in 2008.

“The figures underline the dividend of a decade-long diversification strategy that has seen Ireland achieve a broad global base for its food and drink exports which now reach in excess of 180 countries,” states the report.

However, despite the decline, the value of alcohol exports remains 12% higher than it was in a pre-Brexit 2016, underscoring the scale of the growth trajectory in this category in recent years according to Bord Bia. The majority of the decline can be accounted for by declines in the value of exports of whiskey (down 26% or €205m to €620m), cream liqueurs (down 14% or €53m to €311m) and beer (down 17% or €51m to €254m).

Alcohol exports to the US were worth €552 million last year. That’s growth of €144 million on the 2016 figure.

Irish alcohol exports to the UK declined 12% to €198 million but while the UK remains important to exporters, simultaneous heavy investment in market diversification has limited their

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Spring 2021 | DRINKS INDUSTRY IRELAND

Pubs - biding their time through gritted teeth Emotionally & financially, the current Lockdown has come at a harder cost than the first Lockdown. Pat Nolan asked publicans around the country how they’re coping and what they hope for the future.

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ith pubs, restaurants, Restriction Support Scheme and the in the shadow of restrictions being bars and hotels now not Pandemic Unemployment Payment in reintroduced. expected to reopen until place it’s possible to find some level “We took difficult decisions in the the end of May or June at the earliest of security” he says, “but I’d like to see best interests of public health and - and even then with the focus likely the level of CRSS increased as we’ll be I believe that the majority of our to be on outdoor dining and drinking one of the last sectors of the economy members want to do what’s right” only - it seems that the current to open”. says John, “but they also feel that Lockdown is having a more significant Overall, publicans faced with the they’ve outlets where they can be impact on publicans than the previous conundrum of when they can reopen responsible and provide a safe, ones. also wonder can they remain open healthy and reassuring environment The lack of certainty for their customers.” surrounding clear Government Publicans’ & coping plans for hospitality to emerge from Lockdown is unsettling. strategies Clearly, a lot of frustration The licensed trade is “a unique has made itself evident among enough industry in that we’re vintners to the point that a probably all ‘scrappers’ who number have already decided adjust well and are progressive that they won’t open again enough people,” reckons Michael anyway.

O’Sullivan of Clancy’s Bar in Cork’s It’s been one long, arduous Princes Street, “We live on the side up-and-down journey over the of getting on with things. last 12 months, agrees John “Some of our staff are fed-up, Clendennen of Giltrap’s Bar in “I’d like to see the level of CRSS increased as we’ll be of course, as are our business Kinnitty, County Offaly, “But one of the last sectors of the economy to open” partners etc but others are now that we have the Covid John Clendennen with Percy & Eleanor Clendennen. enjoying that time off - for

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DRINKS INDUSTRY IRELAND | Spring 2021

example those with a young family.”

Michael has been able to give more time to his four and six year-olds than he was able to devote to his teenage daughter when she was their age.

“On the flip-side we’ve staff who don’t have anything to be doing,” he continues, “They’d be in my thoughts and I hope that they’re getting through their days.”

In Dublin, “Everyone is dealing with

“We’re probably all ‘scrappers’ who adjust well and are progressive enough people” - Michael O’Sullivan.

it differently” says Alan Byrne of Harry Byrne’s in Clontarf, “but everyone is feeling the same way - stressed about the future of our business, the welfare of the staff - and I know everyone’s first priority is making sure that there’s a viable business for the staff to come back to”.

This Lockdown since Christmas Eve has been pretty different believe publicans like Michael O’Donovan, proprietor of the Castle Inn on Cork’s South Main Street.

“It now seems like a very long tunnel with no reopening dates and so nothing to work towards,” he said.

During the first Lockdown publicans used the time to paint, renovate and set up Social Distancing signage etc.

This time, not so much.

No one has any guidelines and there’s not a lot of work to be done in the months of January and February.

Nevertheless, the VFI has been organising online seminars on various issues to keep members informed.

For example VFI County Secretaries and Chairmen recently took part in an online discussion with Chief Executive Padraig Cribben to discuss the Lockdown.

In fairness, says Martin Harley of Ballybofey’s Cheers Bar, the VFI carried out a lot of work over the Winter on keeping members informed.

“One thing I’d be worried about for my fellow members is their mental health,” says Martin, “But this has

been the case for everybody... It’s been tough to get up in the morning and trying to figure out what you’re going to do with your time and before you know it, it’s dark again..”.

“It now seems like a very long tunnel with no reopening dates and so nothing to work towards” Michael O’Donovan.

Weekly running costs covered?

What the trade is getting from the Department of Finance is not ideal but it’s better than nothing.

People like Alan Byrne believe that the CRSS can go a long way, “... especially for the ongoing bills that don’t go away: insurance, light & heat, small bank loans”.

But opinions differ on whether the government’s business support scheme is keeping up with a pub’s weekly running costs. All agree that there are challenges in certain areas and in others it’s not ideal.

The introduction of the CRSS scheme hasn’t worked out too badly for Martin Harley, for example, “.... but we’re looking to get the CRSS up to 15% instead of 10%,” he adds.

Every situation is different.

Publicans like John Clendenning don’t want broad sweeping statements on this to be the message from the sector, “... because everyone’s financial demands are different” he says, “but I personally think 10% is relatively fair, all things considered.

And we’ve to acknowledge the government’s decision to double the CRSS payment for the Christmas holidays considering the business we lost.”

Might the Government look at this again and similarly double CRSS payments for such fiscal highlights in the publicans’ calendar such as St Patrick’s Day, Easter and the June Bank Holiday etc?

John Quealy operates Quealy’s Bar

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in Dungarvan’s O’Connell Street.

In John’s case it all depends on the turnover level beforehand and on what your pub’s closed costs are.

“Bad and all as I am as a ‘wet’ pub” he observes, “it must be worse if you’ve got a kitchen to maintain too.”

But while both John & his wife Caroline get the PUP, the CRSS leaves them 15 to 20% short of their fixed expenses while closed.

“It’s difficult to complain in that we’ve got a certain amount of money but very few will have anything put aside to reopen at this stage.”

Over the past 12 months publicans such as John are probably talking of close to €50K gone.

“I put in a lot of my own money into it and any we had in the bank which is now gone,” he says, “We’d do around 25% of our turnover at Christmas but as a pub that doesn’t serve food we didn’t get that opportunity and the Government promised that we’d be looked after for this in the New Year - but we’re still waiting on that from them.”

And there’s not so much as a hint as to what form this will come to the trade in.

“Bad and all as I am as a ‘wet’ pub it must be worse if you’ve got a kitchen to maintain too” - John Quealy.

Outside proposition Last April and May would have been good for some as the milder weather allowed outdoor service as an alternative but some publicans don’t even know if they’ll be open again this year.

With the approach of Summer and a possible easing of restrictions back to the ‘bad old days’ of permitting a maximum of 15 persons outside the premises, it’s not really feasible for >>

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M A I N S T ORY

some, especially without appropriate outdoor facilities.

For operating outdoors a small pub would need at least an owner and one staff member. But with a 15-person limit many feel that it’s simply not worth the candle to fund two such salaries.

It would seem more logical therefore to match the numbers outside to the available space there rather than a one-size-fits-all 15.

Surely someone could look at the size of the outdoor area and allocate a pro-rata customer number?

The Castle Inn is ‘landlocked’ so for Michael O’Donovan operating outside is not an option.

“But if outdoors is an option for some, I hope the government will consider raising the current limit on numbers,” he adds.

Spring 2021 | DRINKS INDUSTRY IRELAND

the model we were designed for obviously!”

And publicans can’t go looking for a bank loan based on a turnover of just 15 people outside the premises.

Originally a ‘wet’ pub, during the first Lockdown Martin Harley subsequently decided to change over to offer food, investing some €40,000 in the conversion process.

“In the long term it’s a good move” he says, “but when are we going to get operating again?” he wonders, cautiously eyeing-up his costly new slumbering combi-ovens, “I’ve talked to different businesses about this and we need 50-60% of capacity,” says Martin.

Then again CRSS payments are not going to last forever. Most publicans can wave them goodbye as soon as the pubs are allowed open in any format. Then they may have to move into this space.

“Perhaps the government could allow some to open to the 15-people maximum and allow them to qualify for a 15% CRSS payment,” suggests Martin, “That would be doing two things: taking staff off the PUP and paying out less in social welfare and benefits.”

Notice period “Everyone is dealing with it differently,” says Alan Byrne of Harry Byrne’s in Clontarf.

In Clontarf, Alan Byrne agrees. His larger pub wouldn’t merit bringing staff back for just 15 people.

“We’ve a big area outside in the car park which we transformed last Summer into the permanent structure we now have for dining,” he says, “I was operating with three pods of 15 with completely separate staff and toilet area etc.

“If you could be Socially Distanced in comparison to your size of premises, everyone would like that,” he believes.

But serving up to 15 people outside does remain an option for publicans like Michael O’Sullivan as Clancy’s traded well the last time the restrictions were eased.

His location in the middle of Cork City in a new and rejuvenated Princes Street means that his outside business will be feasible.

But he’s also a realist.

“If our busines model was trading on only 15 people outside at a time then we’d be great - but that’s not

Everything appears to operate on a week-by-week basis with the country’s pubs seemingly the last thing the Government’s thinking about, so it’s unfair to ask a business to open up at short notice.

Two weeks would probably be a really good timeframe in terms of suppliers, getting staff rotas up-andrunning and organising training etc. “l need a couple of weeks to get restocked and my suppliers would need that too,” believes Alan Byrne, “We’re dealing with hundreds of pubs and most importantly you need to give your staff notice to come back and get training done too.”

The future As for what vintners expect on reopening, it’s probably going be a bit different to what it was before, says Michael O’Donovan, “... but without getting an opening day and seeing what the guidelines are going to be, it’s a bit difficult to know exactly what it’ll be like”.

The trade is watching closely government sentiment in relation to ‘herd immunity’. Clarity is still required where there has been little but

uncertainty and fudging throughout this whole ghastly period.

Inevitably then, hospitality has witnessed a steady haemorrhaging of good staff from the industry during the past 12 months.

Some of the food outlets look to June or July but for ‘wet’ houses John Quealy reckons on another six weeks again,”.....And now there are murmurs of September...”.

Even then, it may take a long time for some people to go into the pub with any degree of confidence.

“I think Social Distancing is here for a good while and probably even if the coronavirus disappears off the face of the earth it will take people a while to get confidence back,” John concludes.

Going forward, John Clendennen intends investing further in his own premises.

“These are uncertain times” he agrees, “and while by far the most extreme ever, they’re not dissimilar to others we’ve experienced as a trade but we’ve stepped up to the plate before and attracted people to premises despite it all.

“Nevertheless, it’s going to be a long road back and so Government support must stay in place for a considerable period of time yet so that when we do finally reopen we’ll be like a bike with (Government) stabilisers.”

We need to be getting the vaccination rate up to 50% at least before you could think about opening the hospitality sector, believes Martin Harley who feels that this too is going to be a long year.

“So that’s going to be two years that the industry won’t forget!”

Everyone Alan Byrne meets out and about tends to say how much they’re missing the pub.

“It’s not just the drink - they really miss the pub and meeting their friends and even the staff - just to be around people - it’s a very lonely world out there. The pub is a lot more important to the people than just drink.” n

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According to Morrissey’s|Lisney, who sold nearly 40% of all pubs on the market in Dublin last year, given the right opportunity well-resourced established operators remain keen to engage.

“In addition to traditional demand, recently there has been an emergence of new demand through Private Equity,” noted the auctioneer, “These purchasers are targeting the upper tier of the Dublin City market with a preference to acquire scale through the purchase of established pub groups, or alternatively acquiring a number of high-value premises at the same time.”

Activity Some 13 transactions were recorded in 2020 equating to 1.78% of the total market with a combined capital value of €41.53 million, reports Morrissey’s|Lisney which points out, “We believe 2020 was on-track for an increase in activity bearing in mind the strong early activity witnessed in Q1”.

The pre-Covid market opened strongly with eight Dublin pub sales contracted. However only six of these sales had completed by year’s end.

“The seven sales concluded during the Covid period were across varying asset classes and value ranges and included The Black Forge in Drimnagh, Ruin Bar on Townsend Street, The Dark Horse in Blackrock, The Queen’s in Dalkey, JK Stoutman’s on James Street, Hyne’s on Prussia Street & Grainger’s in Clontarf.”

The report continues, “While the level of activity is positive in the current climate the Covid pandemic has had a significant impact with some sales becoming protracted with closing dates delayed such as The Eagle House in Dundrum and The Old Punch Bowl, Booterstown, whilst other sales have fallen through completely such as The Concorde in Edenmore, Becky Morgan’s on Grand Canal Street and The Bowery in Rathmines”.

Scruffy Murphy’s (in Powerscourt Townhouse Centre) did sell via Timmy O’Connor (Oil Can Harry’s) for redevelopment but the sale did not include the licence. It was bought for redevelopment.

Also, Ruin Bar and adjacent properties including three floors of apartments above the bar were reportedly sold for €8 million.

The auctioneer points out that, “A large volume of vendors that had been considering offering their businesses for sale have deferred their decisions to go to market until Q1 or early to mid-Q2 2021 when they feel there will be more certainty in the anticipation of the market stabilising off the back of the roll-out of international vaccines”.

THE AVERAGE SALE PRICE OF THE LICENSED HOUSE TRANSATIONS / SALES IN DUBLIN 2011 - 2020

Sources of demand & emergence of Private Equity Morrissey’s|Lisneys found 2020 an interesting year in relation to market demand which witnessed the emergence of Private Equity as a key player in terms of market volume acquired.

“Over the past 24 months we’ve seen Private Equity take a considered interest in the Dublin licensed premises property market. This is due in part to the recovery of the sector throughout 2018 & 2019 and indeed early 2020 witnessing an uplift in both trading and underlying property values.

“With the emergence of Private Equity and foreign funds considering the Dublin Licensed Premises market for investment, the purchasing of highvalue pub groups could become a new phenomenon in the Irish market and should any of these funds be successful, it’s conceivable that the value of the 2021 market could exceed all previous years,” believes the auctioneer.

7-Day Licence values Licence values remained relatively consistent prior to the Covid period realising approximately €50,000 to €52,500 in the vast majority of cases between January 2018 and Q1 2021.

But the impact of Covid on the market for Licence extinguishment & transfer purposes was a reduction of value of around 20-25% with prices now somewhat stabilised at €40,000, notes the report.

Licence demand throughout 2020 continued to be driven by the offlicence channel.

“Licensing requirements were predominantly for the creation of new retailing concerns such as supermarkets, convenience retail outlets and more recently, petrol forecourt retailing,” states Morrissey’s|Lisney who also warns that current value could possibly reduce further should a large volume of licences be brought to the market.

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The Provincial market in 2020 2020 was a quiet year in terms of provincial market activity according to the report which states, “The characteristics of the trading environment in Dublin were echoed regionally with licensed premises that enjoy a local residential customer base coupled with a strong food offering faring significantly better than premises that are city/town centre-located, beverage-only, tourist-driven or predominantly late night focused”.

Outlook 2021 With the vaccine likely to be rolled-out in the coming months workers may start returning to offices and Social Distancing precautions are likely to become less stringent over time, allowing for greater levels of trade.

Morrissey’s|Lisney believes that the outlook for future activity is positive.

“Sentiment within the market remains positive with most operators viewing the current crisis as a shortterm issue and remaining confident, in most cases, that previous trading levels will return,” it reports.

But until this trade stabilises and the risk of future closure periods dissipates, we’re unlikely to see significant levels of lending from pillar banks. The hope is that the economy - and with it most licensed premises - will reopen in the second half of the year; however trading levels are likely to be impacted as long as Social Distancing remains in place, states the report.

“The hope is that onwards into 2022 after an unprecedented period for the licensed industry and hospitality sector it may be in line for a ‘honeymoon period’ due to significant pent-up demand from people realising over multiple Lockdowns the value of social interaction, meeting up with family and friends and appreciating the unique atmosphere offered in an Irish pub.”

Let’s hope so. n

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

Spring 2021 | DRINKS INDUSTRY IRELAND

8 Supermarket voucher schemes & multi-buy deals for alcohol shelved

Alcohol loyalty card points banned

The traditional use of or the awarding of loyalty card points for the purchase of alcohol in supermarket and grocery offlicences has been banned since Monday the 11th of January 2021 under the Public Health (Alcohol) Act 2018 (Sale and Supply of Alcohol Products) Regulations 2020 (SI No 4 of 2020).

The legislation also bans selling alcohol at a reduced price for a limited period or because it’s sold with another product or service.

In welcoming the new regulations, Minister for Health Stephen Donnelly stated that, “One of the primary objectives of our Public Health (Alcohol) Act is to delay the initiation of alcohol consumption by children and young people. These Regulations will ensure that price promotions which result in the sale of alcohol products at pocket-money prices cannot continue.

“The coming into force of these Regulations is further progress toward our objective of reducing harmful drinking and the health harms of alcohol consumption in our country.”

The changes come as part of the Government roll-out of alcohol legislation to try to reduce the consumption of alcohol under the Public Health (Alcohol) Act 2018.

The Act has been introduced in stages over the past year or so.

This coming November will see the introduction of a ban on

Grocers and other mixed trade off-licence outlets are now prohibited from promoting multi-pack alcohol sales.

alcohol advertising at sporting events or events aimed at children as well as events involving driving or racing motor vehicles.

“As responsible retailers of alcohol, NOffLA supported the Public Health (Alcohol) Act 2018 whole-heartedly and in full,” Evelyn Jones, NOffLA’s Government Affairs Director, told Drinks Industry Ireland, “The Act impacts every part of the alcohol supply chain.

As with other parts of the retail sector, NOffLA members have been preparing for all relevant aspects of the legislation, including the new alcohol regulations introduced in January.”

She continued, “We remain concerned by the Government’s position that it will not commence Minimum Unit Pricing until similar measures are introduced in Northern Ireland. The Northern Irish Executive, however, has neither developed draft regulations or publicly consulted on the issue to-date.

“NOffLA and its members continue to call for the immediate commencement of MUP in this jurisdiction alone. With a targeted alcohol pricing policy on

ultra-cheap alcohol, MUP would allow Government to consider reverting the excessively high excise rates that burden the wider drinks sector in this country.”

The Vintners’ Federation of Ireland also welcomed the introduction of the new laws but said that the continued refusal by Government to introduce MUP dilutes the impact of the new regulations.

Although price promotions such as “buy six bottles for €50” are now banned, discounts on individual bottles of alcohol are still permitted while promotions that continue for more than three days will also be allowed.

“While the introduction of measures that prohibit to some degree the sale of alcohol through promotions and loyalty schemes is welcome, there remains much work to be done in relation to access to cheap alcohol,” said VFI Chief Executive Padraig Cribben, “It’s misleading of the Minister for Health to say that measures introduced ‘will ensure that price promotions which result in the sale of alcohol products at pocket-money prices cannot continue’.

“This is not the case as individual bottles of alcohol will continue to be sold at giveaway prices so in that regard nothing has changed.

“If the Government is serious about this issue it must introduce MUP as a matter of urgency.”

He pointed out that MUP is legislated for in the same Act as the measures introduced here, “... so it simply is a matter of the Minister commencing the relevant legislation”. n

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Bottled Water still increasing in volume Bottled water continues to grow volume sales in Ireland.

We take a look at the market.

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ith the ontrade sealed hermetically shut for much of the past year, the off-trade remained the main bottled water beneficiary of the Coronavirus Lockdown in Ireland.

But whether one chooses to have it shipped all the way from its origins in an Icelandic glacier, or from the tropical Pacific fresh water streams of Fiji, East of Australia, or from the crags and crevices springing water all over Ireland, bottled water remains a fashionable and healthy purchase for consumers.

Whether it be “vapour distilled spring water with added electrolytes” or simply supplied from a nearby well, when it comes to consumer purchase, on-trade price sensitivity is not foremost among people’s ordering priorities when picking out a water but value-for-money can be in the offtrade.

Nielsen’s Scantrack of multiples, convenience stores and discounters for the 52 weeks ending on the 28th February this year values the bottled water market at €182 million, down 7% on last year.

But Nielsen points out that the value decline is driven by the convenience channel witnessing a value sales decline of 16.6% during this period despite a volume jump of 4.7% to 340 million litres as people moved to purchase larger bottle sizes. Sales of the litre bottles were down 8.5%.

Tipperary Water

In the last year, Tipperary Water has been listening to customers who’ve been looking for an alternative to single-use plastic and its new eco-friendly carton, available nationwide, is the perfect solution.

88% Plant-based Carton 100% recyclable, the carton can be completely flattened and placed in the recycling bin for kerbside collection. The pack has just 14% fossil plastic – the lowest in the category, with lower carbon emissions than its standard plastic bottle.

Even the cap is derived from sugar cane.

Tipperary Water will educate consumers on the benefits of choosing its eco-friendly carton this Summer through a social campaign and by leveraging its sponsorship with the Football Association of Ireland.

The TV, Digital, VOD, In-Store and PR campaign highlights the importance of creating a closed loop for packaging.

It encourages everyone to play their part by making small changes, choosing a bottle made from recycled materials and then continuing the recycling journey.

Deep RiverRock

Deep RiverRock leads the way as the brand taking the most active measures to reduce its impact on the environment, with a 31% headway on the next-closest competitor.

This follows the launch of Deep RiverRocks’ 100% Recycled Bottle range, supported in trade with a 360 ‘Made to make a difference’ campaign.

Olympic medallists Gary and Paul O’Donovan, Leinster Rugby stars Jonathan Sexton, Josh Van Der Flier and Rhys Ruddock as well as TV personality Cassie Stokes have all lined-out to support Deep RiverRocks’ 100% recycled bottle campaign, demonstrating how the bottle is made to make a difference.

Kilbroney Irish Water

Kilbroney pure water is drawn from a natural source deep within the beautiful Glens of Antrim. A healthy level of rainfall and the ever-present ground water in the Glens trickles down the volcanic bedrock and natural limestone filtration to reach an ancient aquafer which traverses beneath this historic and mineral-rich landscape.

At the wellhead in Magheramorne, water is drawn from 180 feet beneath the surface. This depth allows the water to maintain a constant yearround temperature and composition, creating the perfect conditions for its pure and natural water. n

I N DUSTRY REPORT

DRINKS INDUSTRY IRELAND | Spring 2021

on the Irish market.

Its four-pack 50cl cans work well in this category and will only improve over the coming months and years.

Stockists can avail of a variety of POS including freestanding shop tidies, posters and shelf-strips. You can find more information on Hüfi Beer on its Facebook or Instagram pages or by visiting www.comans.ie.

Brú Lager

Brú Lager, also available in cans in the coming weeks, is a gluten-free, Irish craft beer that’s clean, bright and refreshing with a soft nuttiness and biscuit from the malts and spicy notes from the German Tradition hops, states the brewery, adding that grassy and floral aromas are enhanced by a rounded mouthfeel to make this a crisp and sessionable beer, suitable for coeliacs.

Akin to the cheerful chief of the Celtic god Dagda’s devotion to agriculture, this lager is Brú Brewery’s “lovesong to malt”.

In 2020, it won a Bronze in the Speciality Beers category at the International Beer Challenge and a Silver at the Concours International de Lyon.

Part of the Brú Brewery’s core range, it’s one of the best-selling products available in bottles at the moment, claims the brewery.

Beekon’s for the bees

Not a beer, wine or a cider, Beekon is something entirely new - a 5% ABV honey refresher. Available in classic Honey (like a honey prosecco at 5%), Ginger & Lime and lastly Elderflower & Sicilian Lemon, it’s free from additives, preservatives and gluten and is one of the more natural new market entrants in alcoholic drinks.

Irish-made and founded by an industry marketing veteran having spent most of her career in Diageo & Heineken, Karen O’Neill (the ‘KON’ of Beekon) branched out to create something that wasn’t just another alcohol

product. While many have made the shift to lower alcohol and even alcohol-free alternatives, Karen’s more focused on what chemicals are in her drinks - and in Beekon’s case there are none in creating a drink from a pure Honey base that’s carbonated and bottled in a unique beehiveshaped bottle.

Where many consumers look to cut out drinking entirely, others seek more natural forms of alcohol.

Despite only 1% of us being gluten-

29

intolerant over 20% of us adopt a gluten-free diet, she says.

This is a massively growing segment that Beekon fulfils with its naturally-fermented honey base.

Not only is Beekon offering better choices, it’s also got bee welfare at the heart of its ethos, with the ultimate goal that everywhere Beekon’s sold, there’s something happening to directly help the bees.

Contact us at hello@beekonbatches.com. n

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NoLos gaining share at pace NoLo consumption projected to increase 31% by ‘24

W

hile 2020 was undoubtedly a challenging year for beverage alcohol, consumer demand for No- and Lowalcohol beer, wine and spirits products continued to increase.

Last year the NoLo category grew its share of the total beverage alcohol market to 3% and volumes are forecast to grow by 31% by 2024 according to IWSR Drinks Market Analysis’ No- and LowAlcohol Strategic Study 2021.

The comprehensive study examines the NoLo space in 10 focus countries: Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the UK and the US. Together these represent over 75% of global NoLo alcohol consumption.

While the traditional alcohol market’s greater exposure to bars and restaurants saw it struggle in the wake of mass venue closures across the world, NoLo categories have seen largely positive (albeit muted) growth, with a volume consumption increase in the above 10 markets of approximately 1% in 2020.

“What we’re seeing is a

moderation trend that’s sweeping across key global markets and that’s bringing with it increased demand for reduced alcohol or alcohol-free drinks,” says IWSR Chief Executive Mark Meek, “Brand-owners will have an important role to play in the future development of noand low-alcohol as increasing the breadth of products available to consumers and their price points will support category growth and broaden its appeal.”

58% of consumers drink NoLo and full-strength alcohol on same occasion

Examining the consumer drivers and occasions for drinking NoLo alcohol beverages, IWSR research shows that people are mainly choosing to drink NoLo beverages to ‘avoid the effects of drinking alcohol’ but it also highlights a marked preference for moderation over abstention: more than half (58%) of NoLo consumers choose to switch between

NoLo and full-strength alcohol products on the same occasion while only 14% state they don’t drink alcohol at all.

The most popular occasion to consume NoLo products is when relaxing at home (64%) and the category’s suitability to lowtempo occasions is a key reason to why it has been so resilient during the pandemic.

Beer dominates NoLo alcohol but spirits post largest volume increases

IWSR’s study finds that, driven by early innovation and investment in quality, the NoLo beer and cider category dominates the NoLo market overall, commanding 92% of the total NoLo alcohol segment. Thanks to investment in the category by the major brewers consumers are becoming more familiar and accepting of NoLo beer as a quality product. While several key beer players continue to steer the category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space.

The segment is likely to become even more of a focus for smaller craft producers who’ll bring a diverse range of products to the market.

But NoLo beer registered a flat performance for the 2019-2020 period, up just 0.5%. >>

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DRINKS INDUSTRY IRELAND | Spring 2021

In contrast the NoLo spirits category – with just 0.6% of the NoLo market – increased volume sales by 32.7%, largely thanks to new interest in home experimentation among consumers.

New product development and increasing consumer demand for NoLo spirits will see the category experience the largest volume CAGR rate between 2020 and 2024 at approximately 14%.

Wines

NoLo wine increased sales by 4.9% last year, having made strong gains in the US and the UK and is expected to command a 7% to 8% volume CAGR 2020 to 2024.

According to IWSR’s Top Five Trends for 2021, No- and Low-alcohol offerings have now become aspirational rather than subject to derision, with 2020 cementing the NoLo category as a mainstay in consumers’ drinking repertoire. Indeed Covid has helped drive both the at-home occasion and an increased awareness of health and wellness.

These consumer attitudes are set to continue into 2021, believes IWSR. Where NoLo offerings were once almost stigmatised, the category has now become aspirational, with consumers increasingly willing to pay a premium for NoLo products.

Peroni Libera 0.0% and Aston Martin Cognizant F1 team announce multi-year partnership Asahi Europe & International-owned Italian brand Peroni Nastro Azzurro launched its first non-alcoholic beer Peroni Libera 0.0% in 2019. The Super Premium Peroni Libera 0.0% is triplehopped and made with Nostrano Peroni Maize to produce its distinctive rich fruity aroma, states the company, adding that Peroni Libera 0.0% offers distinct notes of citrus and powerful

Lance Stroll, one of the drivers in the Aston Martin Cognizant Formula One Team.

hoppy bitterness, resulting in a crisp and refreshing finish.

It adds, “Peroni Libera 0.0% offers the same fresh taste experience as Peroni Nastro Azzurro and has been crafted with authentic Italian skill, passion and flair”.

Peroni Libera 0.0% has also announced a long-term, multi-year partnership with the Aston Martin Cognizant Formula One Team.

The new partnership celebrates the global launch of Peroni Libera 0.0% as a stylish and aspirational alcohol-free beer choice and comes as the Aston Martin Cognizant F1 team prepares to make its highly anticipated return to Formula One after more than 60 years.

The partnership is in line with parent company Asahi Europe & International’s responsible drinking ambition to have 20% of its portfolio dedicated to non-alcoholic products by 2030. Peroni Libera 0.0% invites consumers to feel free to live every moment, safely and in style, inspiring them to drink less but better by providing an aspirational choice which suits their lifestyle.

It will be served at prestigious events across the global F1 calendar.

Noreast

Independent Dundalkbased family business Noreast has been specialising in sourcing, importing and marketing exclusive ranges of the finest NoLo beers to the Irish drinks trade since its formation in 1995.

Erdinger Alkoholfrei

Besides being pleasingly refreshing, according to Noreast Beers, Erdinger Alkoholfrei non-alcoholic wheat beer (0.5%) has reduced calories (107 kj/25 Kcal per 100ml). Alkoholfrei’s monosaccharides, like glucose and fructose provide energy quickly while polysaccharides (carbohydrates) provide longer-lasting energy.

In the late 90s, Erdinger Weissbräu revolutionised the beer market with this the first non-alcoholic beer to be a true sports drink too.

With its isotonic properties it’s the ideal regeneration drink after sports. Despite numerous imitators of its positioning and colour code, it has never relinquished its market leadership

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Erdinger Lo & No Innovation Grapefruit & Lemon

Erdinger Grapefruit & Lemon are a new taste for a new wheat beer generation. With the bittersweet taste of fruit the recipe comprises purely natural ingredients without any artificial aromas or preservatives.

Erdinger Alkoholfrei Grapefruit and Lemon are the perfect product for the fast-growing, non-alcoholic mixed beer segment.

Budejovicky Budvar Non Alcoholic

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

Krombacher Alkoholfrei 0.0%

Easy-drinking and ultrarefreshing with a wellbalanced malt character and light hop aromas, there are plenty of snacks and dishes that work well with Krombacher Alkoholfrei 0.0% Pils. The malty sweetness means it pairs perfectly with garlic- and olive-forward pesto and pasta dishes.

Also harmonious with fish dishes. >>

I N DUSTRY REPORT

DRINKS INDUSTRY IRELAND | Spring 2021

and highest-scoring non-alcoholic spirit in the world at the International Wine & Spirits Competition.

Lyre’s cocktails have already been included on the menus of some of the world’s top 100 cocktail bars such as Happiness Forgets in London, Manhattan Bar in Singapore and Trick Dog in San Francisco.

Hollows Superior Alcoholic Ginger Beer

Hollows uses only the finest Chinese Ginger root to botanically brew Hollows Superior Alcoholic Ginger Beer. There’s no wine, nuts, hops, malts or any other artificial nonsense.

That’s why the company calls it a Superior Ginger Beer.

“The quality and superior taste of Hollows is attributed to the traditional slow fermentation and botanical brewing method,” states the company, “The unique process combines the finest hand-picked herbs, natural flavourings, sugar and brewer’s yeast.”

It’s then fermented for a two-week period with Chinese root Ginger and botanical ingredients.

The process releases a deeper and more satisfying Ginger flavour

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resulting in a pleasantly quaffable naturally cloudy real Ginger Beer, free from all artificial flavourings, colours and preservatives.

Seedlip teams up with Currabinny to create perfect taste experience

Seedlip, the world’s first distilled non-alcoholic spirit, has partnered with Irish-based food company Currabinny to help create the perfect home taste experience, where bespoke dinner recipes compliment perfectly paired nonalcoholic cocktails.

People are looking for new fun ways to spend their Lockdown so, inspired by their mutual love of nature, Seedlip has teamed up with Currabinny to create delicious food and drinks inspiration, sharing recipes people can easily replicate at home.

Currabinny, founded by James Kavanagh and William Murray, takes pride in creating recipes “using the freshest and most organic ingredients possible”. Similar to Seedlip, Currabinny also immerses itself in the same ‘Farm to Fork’ philosophy.

“Seedlip is on a mission to connect

people to the wonders of nature,” says its founder Ben Branson, “We source the best ingredients from the natural world to make delicious non-alcoholic drinks. Sharing a similar ethos and commitment to nature & quality ingredients, together we aim to provide an opportunity for people not drinking alcohol for whatever reason to experience grown-up & sophisticated options that pair perfectly with Currabinny’s delicious food from the comfort of their homes.”

For more information and serves visit www.seedlipdrinks.com or Instagram at @SeedlipDrinks; like on Facebook at www.facebook.com/ seedlipdrinks/. n

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8 New set of Single Farm Origin releases for Spring

New whiskies released by Distiller & Brand Innovator of Year Waterford Distillery, winner of both the Distiller and Brand Innovator of the Year awards at the 2021 Icons of Whisky Ireland - and only seven months on from its first bottlings at that - has a new set of Single Farm Origin releases for Spring 2021.

The fully-traceable Single Farm Origin whiskies each carry a unique digital number, the Téireoir code, on the back label which introduces the Irish farm origin, the people that work it, the casks used to compose the whisky and an array of media.

from mid-March onwards: Hook Head: Edition 1.1 - The lighthouse at Hook Head takes on the full force of the Atlantic Ocean on Ireland’s southern coast. Exposed to salt-laden storms, Martin Foley’s barley grows on clay/loam soils.

Lakefield: Edition 1.1 – Lakefield, County Laois, is farmed by the enigmatic Seamus Duggan – a Barley Grower of the Year trophy-winner.

Derived from limestone and sandstone, these well-drained, deep loam soils produce exceptional barley.

The precision of place

Irish exclusive

Waterford’s pioneering technology offers unprecedented levels of transparency and every bottle features a Téireoir code which, when entered online, gives full disclosure on each whisky including barrel breakdown, barley agronomy, farm origin maps, distillation data, farm photography and field audio.

Two Waterford Single Farm Origins will be available worldwide

Part of Waterford’s strategy is to allow individual markets follow the development of ‘their own’ single terroir over a number of years such as Ratheadon. Edition 1.2 is an evolution of its 1.1 predecessor. This Irish Exclusive is the second release from the 2016 distillation of Irina barley grown by Stephen and Andrew McDonnell in the limestone lowlands of County Carlow

Ratheadon: Edition 1.2 is an evolution of its 1.1 predecessor.

on rich & loamy soils.

“While our unique terroir approach has been extremely well-received” says Waterford Distillery’s Founder and Chief Executive Mark Reynier, “it has been rather frantic meeting the rapid growth – a good problem to have in these troubled times. These new releases allow the discerning drinker to further compare, contrast and enjoy Irish barley, farm-by-farm.”

Waterford Whisky is distributed exclusively in Ireland by Barry & Fitzwilliam.

Waterfordwhisky.com

8 Independent and experimental distillery Stillgarden delivers unique range of products

Stillgarden launches vacuum-distilled ‘Under Pressure’ vodka Combining science, community Social Gin and nature, independent Social Gin and experimental distillery combines fresh Stillgarden in Dublin 8 now bursts of Mint delivers a unique range of with citrus and products. floral undertones.

From a community-sourced Dry and floral gin and vacuum-distilled vodka on the palate to a mid-strength botanical with a hint of spirit and Ireland’s first Amaro, herbaceous spice it’s arguably one of the most on the finish, this trailblazing distilleries in the is a refreshing gin country. Stillgarden also has a with botanicals Stillgarden’s unique range range of sustainably-sourced sourced by its of products. micro-batched hand-crafted team of local cocktails including its take on volunteer social the Cosmopolitan and Espresso Martini. botanists in their community garden.

Under Pressure Vodka By removing oxygen and applying immense amounts of pressure during the distillation in Stillgarden’s rotary evaporator, the purest, lightest elements from the rich, grain-based spirit create a vodka that’s extremely smooth, fresh and even slightly sweet in Under Pressure.

O’Maro Ireland’s first Amaro, O’Maro features local ingredients such as Strawberry leaf, Rosehip and Raspberries - an Irish take on the classic Italian Aperitif.

Give & Take The mid-strength botanical spirit Give & Take uses vacuum distillation

to distil the botanicals at a lower temperature, capturing their purest flavours. Macedonian Juniper and local nettles, a layered combination of Ginger, Coriander Seed, Basil and Chamomile create a fresh yet complex flavour that, when paired with natural tonic water, all discerning G&T drinkers are sure to love.

Cocktail Range The range of socially- and sustainably-sourced cocktail classics with a hand-crafted twist includes Espresso Martini, Cosmo and Raspberry Collins, all available in 50cl and 20cl bottles.

All Stillgarden products are available for prompt delivery online from the distillery. For partnership opportunities and to keep up to date on its latest offerings visit www.stillgardendistillery.com and follow on Instagram and Facebook: @stillgardendistillery and on Twitter @stillgardend8.

D R I N K S I N D U S T R Y I R E L A N D | | S pDrei cn g2 021072/1J a n 2 0 1 8

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8 New table heater warms customers from legs up, not head down

Customers can now enjoy Outdoors in comfort Sitting outdoors in the cold may not seem so appealing whenever the present restrictions are relaxed but new infrared patio table heaters from AirOPol might change that.

The company’s unique Eco Infrared Patio Table Heater was designed & developed for bars, beer gardens, hotels, restaurants, cafes and smoking zones etc.

The motion sensor-operated infrared quartz table unit combines an electrical radiant heat lamp with a table-top of choice, automatically switching on when customers take their seats and off when the table is vacated.

Its very compactness reduces the amount of space needed.

The patented outdoor table heater is safe for everyone, claims the company.

“The reason it’s always only warm to

the touch is the custom-made 0.4 Kilowatt quartz shortwave bulb inside – the most energy-efficient infrared light with a 92% efficiency in producing radiant heat,” states the company, “The bulb is protected by a shield, making it safe and it doesn’t splay energy – and heat – out into the air as other outdoor heaters do.”

Manufacturer’s tests have shown that the energy-efficient & environmentfriendly unit emits 80% less CO2 than traditional gas heaters. The unique heater warms people and objects not the environment.

“It warms the body up quickly and keeps its heat at a comfortable level.

A directional heater, it works with your body’s own heating system, warming you from the legs up, not the head down.”

The unit saves energy as the heater features a motion sensor which automatically switches on when customers take their seats and off again when the table is vacated.

The tables can be linked with a special serial connector cable, one end plugging into the unit’s base, the other into the next table until five are connected.

All five run off of one 13amp electrical plug.

For more information Tel: CallSave: 1850 303 303/01 865 1950 e-mail: John@AirOPol.com.

8 Hope Beer launches nitro stout in can without widget

Hope’s Limited Edition 21 For its latest Limited Edition, Number 21, Hope Beer has launched a nitrostout in a can - without a widget!

“When poured, this 4.8% stout gives a beautiful creamy head as well as the great stout flavours consumers are used to from Hope,” states the Howth Junction-based craft brewery.

The flavour is a balance between hop bitterness and roasted malt - more specifically, notes of coffee and bitter chocolate. The smooth, creamy texture is provided by a small amount of oats making this a special and satisfying beer.

Limited Edition 21, along with Hope’s entire range of beers, is available to

order directly from Hope or from Noreast Beers.

Limited Edition 21, along with Hope’s entire range of beers, is available to order directly from Hope or from Noreast Beers.

8 Aged in tropics then further aged in French Oak casks in Cognac

Plantation Rum - winning rum-lovers wordwide Plantation rums and their iconic raffiawrapped bottles are found at the world’s most prestigious tables and bars.

Each expression showcases the flavours of a specific heritage and terroir whose double-ageing technique has become a trademark.

As per centuries old tradition, Plantation Rum is first aged in the tropics, then further aged in French Oak casks in Cognac, France.

A bridge between rum’s heritage and new ways, Plantation Rum’s home at the West Indies Rum Distillery in Barbados is the epitome of resurrecting ancestral techniques to preserve rum excellence.

Plantation’s Founder and Master Blender Alexandre Gabriel is a

Plantation Rum is imported into Ireland

by Intrepid Spirits and distributed by Classic Drinks and Celtic Whiskey Shop.

committed perfectionist and his nearconstant research unearths historical production techniques that he shares with his equally committed team.

Today, he’s recognised as a standard bearer among the great distillers and cellarmasters.

Thanks to its originality and quality, the Plantation range has won the hearts of rum lovers around the world. Expressions like Stiggins’ Fancy Pineapple (named best spirit in the world three times) and Barbados XO 20th Anniversary have become classics.

Plantation Rum is imported into Ireland by Intrepid Spirits and distributed by Classic Drinks and Celtic Whiskey Shop. n

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C LO S I N G TIM E

Spring 2021 | DRINKS INDUSTRY IRELAND

For Scotch whisky afficionados there’s ‘Fishky’ - that’s simply Scotch aged for three months in a salted herring cask.

Pass the Fishky “The evolutionary function of disgust is to help us avoid disease and unsafe food” – so says the Disgusting Food Museum in Malmo, Sweden.

Yes, there is such a museum.

“Disgust is one of the six fundamental human emotions,” it continues, “While the emotion is universal, the foods that we find disgusting are not. What is delicious to one person can be revolting to another.

Disgusting Food Museum invites visitors to explore the world of food and challenge their notions of what is and what isn’t edible. Could changing our ideas of disgust help us embrace the environmentally sustainable foods of the future?”

We don’t know, but while the exhibit has 80 of the world’s most disgusting foods, the museum is not limited to food. Drink too can be disgusting, you know.

A three-month temporary exhibit on ‘disgusting alcohol’ was launched there recently. The exhibition included Soviet-era surrogate alcohol and even BrewDog’s 55% beer End of History (sold in a taxidermied squirrel), South Korean poo wine and Icelandic sheep dung or smoked whale testicle beer. “Hold us back…” we hear you cry.

For Scotch whisky afficionados there’s ‘Fishky’ - that’s simply Scotch aged for three months in a salted herring cask.

Gin-lovers haven’t been overlooked either with Anty Gin, wherein the essence of 62 red wood ants can be found.

Then there’s a South Korean rice wine containing human faeces.

“Our drinking habits vary by country just like our food habits” says the Director & Co-Founder of the Disgusting Food Museum Andreas Ahrens, “so we’ve found the strangest, most interesting, most challenging alcohol types from around the world. Some of these are home-made alcohols going back thousands of years while others are experimental, made by local brewers.”

Might one perchance pig-out on some Peruvian smoothies made from frogs and fried caterpillars or feast on a fruit bat soup?

Elsewhere, adventurous visitors will appreciate the opportunity to smell and taste some of these notorious foods. Today, fermented shark (impossible to eat without a large shot of Icelandic Black Death schnapps) competes with duck foetus (eaten

by Andreas’ Co-Founder Dr Samuel West in the Philippines) for the most disgusting dinner.

Dare you smell the world’s stinkiest cheese? Or taste sweets made with metal cleansing chemicals?

Other oddities to oogle include fried caterpillars known as ‘Mopane Worms’ or how about maggot-ridden cheese, a Sardinian delicacy, in which the little maggots can jump up to 15 cm so you have to cover your eyes when eating it.

Intending to launch only as a temporary exhibit two years ago the Disgusting Food Museum proved so popular that it became a permanent exhibit in July 2019.

On the museum wall hangs a chart which tracks the number of days since a visitor last vomited: The last time - it was Vomit Number 97 - #bagoong, a fermented shrimp paste from the Philippines that claimed a victim.

Haggis and Vegemite, the Australian national spread, also get honourable mentions at the Museum.

“Sadly, Swedish alcohol laws prohibit us from serving any of the drinks,” Andres tells Closing Time, adding the interesting footnote that, “Visits are either booked on our webpage or tickets can be bought upon arrival. The tickets are vomit bags, just in case…”.

Celebritisation of spirits Brangelina, Cliff Richard, John Malkovich, Jessica Sarah Parker and Kylie Minogue have all done it and our own Graham Norton too has got in on the act with his range of wines and gins – celebrities owning vineyards and spirits brands is nothing new.

A number of prominent celebrities in the US have launched their own versions of traditional spirits.

Actor George Clooney started his own brand to tap into the growing demand for tequila in the US and sold the company to Diageo for an estimated wallet-inflating $1 billion in August 2017, states market researcher euromonitor, while actor

Matthew McConaughey also launched two whisky brands.

Deadpool star Ryan Reynolds did quite some research, it seems, before launching his Aviator gin onto an unsuspecting world before it too was snapped up by Diageo.

“I’ve tried every gin on the planet and Aviation is, hands down, the best,” he states modestly on Aviation’s website, “Also, I don’t recommend trying every gin on the planet. Stick with this one.”

And Bob Dylan has launched the first three expressions in his Heaven’s Door series comprising a blended double-barrel whiskey, a straight rye whiskey and a Tennessee Bourbon.

“I don’t recommend trying every gin on the planet. Stick with this one.” – Ryan Reynolds of Aviation Gin.

Not to be outdone Aaron Paul and Bryan Cranston, the stars of Breaking Bad, launched Dos Hombres mescal.

Licensed wisdom a collection of notable quotes

“It feels like the sector has been through a 12-round war with Mike Tyson — but he had a baseball bat as well.” CGA’s Group Chief Executive Phil Tate of the Covid trials and travails of the English on-premise.

“We are loved by consumers… I can’t see banking getting those same kind of figures.” - CGA’s Group Chief Executive Phil Tate of the Covid trials and travails of the English on-premise. n

Picture courtesy of Tourism NI: Harry Avery’s Castle, Co. Tyrone

Northern Ireland.

Open for Business.

Following the end of the transition period, Northern Ireland continues to be a great place to buy from if you are in Ireland: The Protocol on Ireland/ Northern Ireland has ensured there are no border controls.

So for trade between Northern Ireland and the EU that means: • No tariffs • No new customs checks • No new regulatory checks Our products continue to move to Ireland as they always have, friction free with no delays. Just the same, Pure, Natural, Quality from our trusted food and drink manufacturers.

Contact our business development team for more information.

E: jen.guiney@investni.com T: +44 (0) 79 8511 1024

Northern Ireland. Altogether more.