Irish Whiskey: Not Easy Being Green How Can the Category Break out of Its Well-Defined Niche?

Category focus

Irish Whiskey: Not Easy Being Green How can the category break out of its well-defined niche?

By Garrett Peck

ccounting for only 2% of the U.S. whiskey market, back to 1608, and this year marks its 400th anniversary. Watch for a major promotion- “Irish whiskey is the underdog of the whiskey category,” al push for the Irish whiskey. “Bushmills noted Abaigeal Hedron of Michael Collins. “Irish whis- has gained a little bit of a cult following,” A Topf claimed. The New York Times recently key has intensely niche–marketed itself, so there’s still a long road named the 10-year old malt as the Best Irish ahead.” However, that long road is starting to look brighter. Whiskey. Since Skyy began distributing Tullam- ore Dew in 2006, on-premise growth has ris- Irish malt sales in the U.S. climbed 66.2% Irish whiskey traditionally spikes around en in many more bars and restaurants. Kim from 2002 to 2006, according to DISCUS. St. Patrick’s Day, or when it’s cold enough Winter, group brand director, pointed out Of course, this growth is relative: it’s coming for Irish coffee. “St. Patrick’s Day obviously that Tullamore Dew is becoming known as from a very low base, and reaching 721,000 plays a role,” laughed Bill Topf of Bushmills, “Tully,” and fans are known as “Tullyheads.” cases in 2006. But Irish whiskey is potential- owned by Diageo. “Everybody becomes Irish It sponsors a Dew and a Brew promotion tar- ly well positioned for future growth: every for a day.” Yet all of the distilleries are focus- geted at on-premise consumers. Similar to a malt is either premium or super-premium. ing on year-round sales. “We try not to fall Boilermaker or an Irish Car Bomb, it fea- There are no value brands, which fits per- into a St. Patrick’s Day trap,” Spillane said. tures a shot of Tully and a pint of beer. “It’s fectly with today’s consumer tendency to Pernod Ricard-owned Jameson “is far kind of a natural,” said Jim Brennan, brand trade up. and away the number one selling Irish whis- manager. “Beer and whiskey are made with The Big Three Irishmen – Jameson, key brand in the U.S.,” noted brand direc- similar ingredients.” Bushmills and Tullamore Dew – constitute tor Wayne Hartunian. It claims 60% market Michael Collins is the youngest brand most of the market.* These three own the share and is a prime driver for growth in the in the category. Only available in Ireland only distilleries in Ireland. But there are category. “Jameson, in fact, has truly tran- and the U.S., Sydney Frank Importing Co. other brands that have popped up, and these scended the category and become synony- launched the whiskey on St. Patrick’s Day are generating consumer interest. “It’s one mous with Irish whiskey,” he adds. 2006, and had its full year of business in of the few categories screaming for more Diageo has reinvigorated Bushmills by 2007. Two versions are available: a blend – brands, not less,” said Kelley Spillane, senior touting its heritage. This Irish whiskey dates light and smooth enough to mix in cocktails vice president, U.S. sales at Castle Brands. – and a single malt that uses peat. Michael Collins has quickly grown to 25,000 cases annually. Castle Brands imports Clontarf and Knappogue. Clontarf is the company’s mainstream blended Irish malt. “Irish whiskey is very approachable,” said Spillane. “It doesn’t have that smoky, peaty flavor like Scotch. It’s kind of sweet.” Clontarf was ini- tially packaged in an unpainted Boru Vodka bottle, but once sales picked up, Castle released a new design on March 1, 2007. Spillane calls Knappogue “the Tiffany of Irish whiskies” for its appeal to connoisseurs. It’s a single malt, vintage-dated whiskey, which is unusual for Irish malt. Knappogue tweaks its flavor profile so every year it tastes slightly different. The 1996 vintage will be released in 2008. n * According to The Adams Liquor Handbook