mar.06 Irish Whiskey 2/8/06 10:57 AM Page 1

THE IRISHare

ComingBY RYAN MALKIN

all it the luck C of the Irish, but Irish whiskey is seeing green. Consumption of the spirit has risen steadily for Brandy Library, New York

more than a decade Those new recruits will “gravitate toward and 2004, while Irish whiskey shipments jumped brown spirits that are built to a more approach- 11.7 percent over the same period, more than and the customer able taste,” says Kelley. That’s where Irish any other brown spirit, according to the Distilled whiskey comes in, a generally lighter bodied Spirits Counsel. And super premium Irish base continues whiskey with less of a burn. whiskey rose 39.1 percent over the same period, That gives Irish whiskey a unique place in with Scotch and bourbon super premiums climb- growing. A new wave the industry, appealing to nearly everyone. ing 9.2 percent and 16 percent, respectively. There are those entry level drinkers drawn to Sales are likely to get even better since Irish whiskey because of its lighter body and Pernod Ricard’s sale of Bushmills to Diageo last of whiskey drinkers heavy fruit characteristics. Then you have your year. Bushmills and Jameson are responsible for die-hard Scotch drinkers who have tried virtual- the bulk of the roughly 559,000 case Irish are emerging as ly everything and get pulled into Irish whiskey whiskey market in the U.S.– Jameson sold because it’s a new area to explore. Either way, 304,000 cases and Bushmills 134,000 cases in people are becom- Irish whiskey is poised for a more prominent 2004, according to DISCUS. Because the two place behind the bar. biggest names in the business are going head-to- ing more familiar Sure, single malt Scotch is still king, with head with competing brands, even more market- 892,000 cases shipped in 2004, compared to ing dollars will be pumped in to the category, 559,000 Irish whiskey cases. But Scotch ship- increasing demand for the overall market. with the spirit. ments climbed just 5.4 percent between 2003 “Diageo didn’t buy Bushmills to sit on it,” notes mar.06 Irish Whiskey 2/8/06 10:57 AM Page 2

mented a “flanking strategy” to benefit from the marketing dollars the big guys are spending on the Irish whiskey category, says Cooley’s Jack Teeling. Cooley Distillery, the only independently owned Irish distill- ery in Ireland, is repackaging Kilbeggan, its flagship, early this year to coincide with the launch of a new product, Greenore, a single grain whiskey imported/distributed by Preiss Imports. Cooley will be bottling small batch lines starting with an 8 year old, then mov- ing into different ages over the next four years with a 10 year old, 16 year old and 18 year old. “It will be very interesting to see how the wood and extra aging effects the character and taste of the whiskey, and we hope U.S. whiskey connoisseurs in particular will be interested in trying all the different ages,” says Teeling. In addi- tion, Cooley’s Connemara Peated Single Malt Irish Whiskey is also benefiting from the increased interest in distilled spirits. Although peat is more associated with Scotch, Connemara brings back the traditional Irish custom of drying the malted barley over peat fires. And the nation’s third-leading Irish Whiskey, Tullamore Dew, is on track for more growth with its recent move to the Skyy Spirits portfolio. Skyy’s aggressive marketing will no doubt infuse the brand with new energy, bring in new drinkers and increase vol- umes from its current 40,000 cases annual. In addition, Sidney Frank Importing Co., the importers of Jägermeister Liqueur, Tequila Corazón de Agave and Gekkeikan Sake, are launching Michael Collins Irish Whiskey this month. With water from the Irish hills, Michael Collins will be available in a blend and single malt. The blend is a combination of pot and column-distilled whiskeys aged for a minimum of five years in small oak casks. Lee Einsidler, CEO of Sidney Frank, says he’s moving into Irish whiskey for the first time because there’s tremendous opportunity for growth. “We see Irish whiskey as the perfect alternative to Scotch whiskey and ripe for a product of exceptional quality and promotion,” he says. Overall, “people are becoming more familiar with Irish whiskey – partially from salesmen making suggestions – but most- ly people learning on their own; it’s all a function of increased “Within distilled spirits, Irish whiskey interest in spirits,” says Pontoni. Over at Brandy Library, for example, Kelley has seen Red Breast make a huge comeback. is the most underdeveloped. It’s like “We’re getting people coming in and asking for it specifically.” Similarly, interest in Clontarf has been on the rise at Brandy buying a stock at $5 and knowing it Library, especially the single malt. “I have six people truly addict- will go to $50.” ed to it, that’s a bottle a week minimum,” Kelley says. “These things are taking off,” he adds. Your stock portfolio may soon take — Lee Einsidler, CEO off from that demand as well. Castle Brands, with eight Irish spir- Sidney Frank Importing, Co. it brands, is in the midst of an IPO. Within its portfolio of premi- um and super premium Irish whiskies are Clontarf Irish Whiskey, Brett Pontoni, spirits buyer for Binny’s, a Chicago-area chain of 18 (Reserve and Single Malt), and the beloved Knappogue Castle, stores. And Diageo spokeswoman Laura Peet couldn’t agree more, bottled on a vintage basis. saying, they plan to “utilize the same marketing muscle used to So get in early. The industry as a whole has seen a return to make the rest of our portfolio of brands successful worldwide.” classic cocktails and consumers are gravitating towards distilled Granted, no other distillery will pump out as many cases as spirits. Within distilled spirits, Irish whiskey is the most underde- Bushmills or Jameson. However, with premiums and super premi- veloped, according to Sidney Frank’s Einsidler. It’s like buying a ums moving better, according to Pontoni, the independent distill- stock at $5 and knowing it will go to $50, he explains. We’d like eries are reaping the rewards. Cooley Distillery, for one, has imple- to see your stock broker guarantee returns like that.