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Vision for Irish Whiskey a Strategy to Underpin the Sustainable Growth of the Sector in Ireland

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Vision for Irish Whiskey a Strategy to Underpin the Sustainable Growth of the Sector in Ireland Vision for Irish whiskey A strategy to underpin the sustainable growth of the sector in Ireland 1 2 Foreword for the strategic vision for Irish Whiskey I welcome the publication of the ‘Vision for Irish While unprecedented opportunities exist for whiskey’. growth and expansion in the Irish whiskey sector, their very scale is a challenge. A shared Agri-food beverages have been key to Ireland’s vision is, however, a powerful thing. It is good economic recovery, contributing €10.5 billion in to see the sector encouraging and mentoring new exports in 2014, that is 45% above 2009 levels entrants, funding global brand ambassadors and and on track towards the Food Harvest 2020 committing to sustainable growth. The sector target of €12 billion. has seen the immense opportunity that is Irish whiskey and I look forward to its contribution to Irish Whiskey has led the export contribution of the development of the 2025 Agri-Food Strategy the drinks sector. Growth of almost 200% over a process which I launched on the 25th November. decade reflects an industry with ambition, a sense of mission and a deep understanding of individual This timely Vision reflects the ambition and markets. Irish whiskey brands now represent the commitment of a sector of great value to Ireland. fastest growing premium spirit globally and with I wish you well. investments of €1 billion planned over a ten year period, Irish whiskey and those who champion it will be well placed to generate growth, exports and jobs and a very special tourist offering celebrating an all-island heritage. Quality production processes underpin the international brand recognition of Irish whiskey. This is reflected in the Geographical Indication status which Irish whiskey enjoys in EU law and in EU trade agreements with third countries. Maintaining that premium reputation has several ingredients, including responsible promotion and marketing, educating hospitality staff and building a strong sense of national pride and ownership of the quality product that is Irish whiskey. Each year over 600,000 visitors pass through visitor centres to see the craft and character of Simon Coveney T.D. individual distilleries and the stories behind Minister for Agriculture, Food and the Marine famous brands, creating revenue of over €12 million and employment in cities and rural communities. The Irish Whiskey Association aims to increase this to over 850,000 visitors through a programme of new and refurbished visitor centres and an inclusive, all-island whiskey trail emphasising the historical, cultural and overall tourism experience. This is ambitious and achievable and will add a unique dimension to Ireland’s tourist offering. 1 2 Contents About the Irish Whiskey Association 4 Welcome 5 Executive Summary 7 Economic impact and ambition for the future 13 Pillar 1: Adequately resourced infrastructure 23 Pillar 2: Category integrity and promotion 29 Pillar 3: Sustainable supply and demand 33 Pillar 4: Vibrant tourism offering 39 Pillar 5: Strong home market 41 Appendix 1: A Short History 45 3 About the Irish Whiskey Association The Irish Whiskey Association provides a forum for all operators, new and old, to come together to share expertise and cooperate in building the Irish whiskey category brand. It was established in 2014 and is an all-island organisation open to the entire industry. The Irish Whiskey Association’s mission is to: • Promote the Irish whiskey category in Ireland and internationally, working with Government agencies and the European Commission. • Support new market entrants. • Protect the high standards of Irish whiskey by working with the relevant authorities to ensure that the legal protection offered by the geographic indication is applied in Ireland and internationally. • Ensure public policy supports the sustainable growth of the Irish whiskey sector. In short, the Irish Whiskey Association is the one-stop-shop for comprehensive, up-to-date information on Irish whiskey. The following companies are the founding members: REWING B CO W M O P L A R N A Y C I R S I R SH E CRAFT BE 4 Welcome The Irish whiskey sector is ambitious for its industry’s ability to protect the Irish whiskey future. Having been distilled in Ireland since the geographic indication internationally. 6th century, Irish whiskey is one of the oldest spirit drinks in Europe. It is a premium product The founding members of the association are that can only be made on the island of Ireland. committed to ensuring the sector delivers its The existing players have driven the global ambitious growth targets. We will be providing renaissance in Irish whiskey and now it is the a range of supports to new entrants, including a fastest growing spirits category in the world. mentoring programme, technical information and promotional activities. Our ask of Government In the last decade, the category grew by almost and its agencies is to support these initiatives 200%. In 2014, more than 6.7 million 9-litre through targeted financial, fiscal and educational cases of Irish whiskey were exported to over 100 interventions in addition to providing a business countries around the world. This figure is set to environment that ensures Irish whiskey can exceed 12 million cases by 2020 and 24 million remain competitive in the global marketplace. cases by 2030. Three years ago, the island of This document reflects the industry’s ambition for Ireland had four distilleries in operation – in the Irish whiskey – to 2020 and beyond. next three years that number will grow to over 15 if all the current projects move forward. Bernard Walsh, Chairman of the Irish Whiskey Association The industry is a key contributor to Irish food and drink exports and its growth will play a large part in helping to achieve the ambitious targets laid down in Harvest 2020. The key to our success is to ensure that this growth is sustainable: economically and environmentally. To do this, we need a cohesive strategy, incorporating the industry, Government and its agencies, to act as a ‘light hand on the tiller’ to reach our targets. The potential is massive. If we look to our neighbours in Scotland, we see the world-leading Scotch industry exporting over 90 million 9-litre cases annually, with exports of £4.3 billion every year, Gross Value Added of £3 billion to the Scottish economy and employing one in five people in Scotland directly or indirectly. There are over 130 Scottish distilleries that bring investment and employment into rural areas. The UK is proud of Scotch as one of its most successful exports. There is no reason that Ireland cannot achieve similar success. The industry came together to form the Irish Whiskey Association in March 2014. In addition, industry concluded work on the Irish whiskey technical file, which was submitted to the European Commission in October 2014. The technical file is instrumental to underpin the 5 6 Executive summary Irish whiskey has been distilled in Ireland since • Old Bushmills Distillery (est. 1784) – the 6th century and is one of the oldest spirit producing all Old Bushmills, Black Bush, drinks in Europe. It has deep roots in Ireland and 1608, Bushmills 10-, 12- and 16- and 21-year- is a product of which we can be proud. old single malts Industry investment and consequent production By 2014, the industry was firmly in expansion grew rapidly in the late 18th century. At its height mode: in the mid-19th century 88 licenced distilleries, producing more than 12 million 9-litre cases • Irish Distillers completed a €110m annually, made Irish whiskey the largest investment programme that doubled capacity global spirits category of the time. However in Midleton a combination of events led to the industry’s demise and by the mid-1980s only two Irish • William Grant & Sons brought distilling back whiskey distilleries remained, both owned by to Offaly, officially opening the Tullamore Irish Distillers. Scotch, Bourbon, and Canadian Distillery in July whiskey had all surged and left Irish volumes far Walsh Whiskey broke ground on its distillery behind at about 1% of global sales. • in Carlow The late 1980s marked the beginning of Irish Teeling Whiskey Company broke ground on whiskey’s comeback. In 1988, Irish Distillers • its distillery in Dublin (IDL) became a member of Group Pernod Ricard, which provided massive distribution By the end of 2014, there were eight working opportunities for Jameson, and the other IDL distilleries: Irish whiskey brands, through its well established global sales network. In 1987, Cooley Distillery • Irish Distillers was established and was the first independent distillery to begin distilling Irish whiskey in over • Bushmills 100 years. • Cooley Distillery Moderate at the beginning, the recovery has grown at pace in the past fifteen years. As the potential of • Tullamore Distillery Irish whiskey became apparent Diageo, William Grant and Sons and Beam Suntory all entered • Echlinville Distillery the category by purchasing Bushmills, Tullamore DEW and Cooley respectively. • Alltech Distillery Dingle Distillery By 2013, there were four distilleries in Ireland in • operation producing and selling Irish whiskey: • West Cork Distillers • Cooley Distillery (est 1987) – producing And a number of projects in various stages of Connemara, Michael Collins, Tyrconnell, planning – see Irish whiskey investment map: and others www.irishwhiskeyassociation.ie/map • Kilbeggan Distillery (est 1757, recommissioned 2007) • New Midleton Distillery (est 1975) – producing Jameson, Powers, Paddy, Midleton, Redbreast, Green Spot and
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