Latest news with #IrishWhiskeyAssociation
Irish Examiner
18-07-2025
- Business
- Irish Examiner
From Midleton to Tokyo: Selling Irish whiskey to the Japanese
Eoin Ó Catháin, director of the Irish Whiskey Association: 'Japan is one of the most interesting and exciting whiskey markets in the world, and I am heartened to see the hard work of Irish whiskey producers pay off.'
Extra.ie
07-07-2025
- Business
- Extra.ie
Irish distilleries are running dry as Trump's trade war hits exports
Irish distilleries are running dry as Donald Trump's trade war hits exports, stakeholders have warned. Dennis O'Flynn, director of Clonakilty Distillery and vicechair of the Irish Whiskey Association, yesterday warned that 90% of distilling capacity is now on hold. The EU and US are yet to reach a trade agreement ahead of Wednesday's deadline, and as a result, most whiskey distilleries in Ireland have had to halt production. Irish whiskey is a billion-dollar industry, but the US represents more than 50% of its export market. Denis O'Flynn of Clonakilty Distillery. Pic: Supplied The White House introduced tariffs of 10% in April, and President Trump has threatened rates of between 20 and 50% should a trade agreement not be reached this week. Cabinet members have warned the 10% baseline may remain even if a deal is made. Mr O'Flynn said that even this scenario would pose an unacceptable risk to the sector in Ireland. He added: 'We can't have a concept of 10% as a new norm; it's not a new norm, it is hurting and already affecting the industry'. Pic: Shutterstock Mr O'Flynn explained that when selling a bottle of whiskey to the US, a 10% tariff brings the price of a $30 bottle to $35, but a 20% tariff could raise it to $40. He has called on the Government to ensure the Irish whiskey industry is exempt from US tariffs. He said that if the purpose of tariffs is to bring jobs back to America, 'the only effect of tariffs on Irish whiskey is punitive'. Mr O'Flynn pointed out that by law, Irish whiskey must be produced in Ireland, the same way American bourbon must be produced in America. He told RTÉ's This Week yesterday: 'It's not like we can move over to the US, we can't by law.' Minister for Enterprise Peter Burke said the Government hopes 'to get carve-outs for certain sectors that are strategically important for Europe and indeed the Irish economy, that we could have zero for zero in certain areas or at least most favoured nation status'. Mr Burke did admit, however, that as it stands, the Government was 'still very much in the dark on what way the framework will land'. The Fine Gael TD said the best-case scenario in the EU-US trade talks is that by tomorrow evening, the Government will have 'at minimum' a framework that would 'deliver a pathway for further negotiations'. Mr O'Flynn also stated that there were concerns around employment, saying: 'You will absolutely have direct effects.' The broader drinks industry employs over 10,000 people in Ireland. Mr O'Flynn went on to say that for the future, 'clearly we've got to look outside of the US'.
Belfast Telegraph
28-05-2025
- Business
- Belfast Telegraph
Indian market ‘now on radar' for NI whiskey makers: ‘The population is high and opportunities are vast'
The agreement includes specificities around rules of origin which allow NI whiskey producers to source ingredients and materials from other countries. The Irish Whiskey Association [IWA], an all-island trade association, which counts 20% of its membership in Northern Ireland, describe the deal as 'a great opportunity for Northern Irish producers'. The India-UK trade deal has refocused export efforts on the Indian market among smaller local whiskey manufactures. Mourne Dew Distillery in Co Down makes blended and single malt whiskies alongside a range of gin, poitíns and vodkas. 'We started talking to people in India last year,' says Donal Farrell, managing director of Mourne Dew. 'It ground to a halt because the administrative complexity of shipping to India was difficult and the tariffs weren't helping. After this deal, India is on our radar.' India, a country of 1.44 billion with an economy currently growing at over 7%, is considered the world's biggest whiskey market. It consumes an average 2.4 billion bottles every year. The nation's biggest whiskey seller is its indigenous brands, which are made of out molasses (in a similar production process to rum). Ireland largely exports its brands – 95% of the product distilled on the island is sent overseas – but although Irish whiskey's biggest market remains the US (at around 45% of export value) regions like India are experiencing greater thirst. Data from HMRC's Overseas Trade in Goods statistics database shows 1,500% growth for NI exports of whiskies to India from 2020 to 2024: a rise of £100,000 to £1.6m in value. Famous distilleries from Northern Ireland include the Old Bushmills Distillery, Hinch Distillery, Rademon Estate Distillery, Killowen Distillery, and The Echlinville Distillery. 'Bushmills is one of the top three Irish whiskey brands worldwide,' says Eoin Ó Catháin, IWA director. 'It is more established in new and emerging markets. Often it's these [larger] companies who have the back of an international or a multi-national company and have the scope and the resources to enter into a challenging market like India. Any ease of access to a market such as India, where the population is high and opportunities are vast, has great potential. Northern Irish whiskey producers have been recognised by the government for their unique nature.' Irish whiskey traditionally sold in India under the 150% tariff was 'targeted at the upper, upper middle, premium or super premium categories,' Eoin says. 'Oftentimes brands can do quite well, even with a 150% tariff, because it raises the price so high it can be seen as a sign of wealth.' The decrease to 75%, however, has the potential to expose Irish brands to new audience. 'A 75% tariff might seem very high, but believe me – that's a big difference. It might allow some smaller companies to start looking at India.' The NI whiskey and spirit production supply chain is integrationist. The example of Bailey's Irish cream was often brought up during Brexit negotiations. 'This is a product that crossed the border up to 10 times before it made it onto the shelves,' Eoin says. 'We need to make sure that in these free trade agreements a product that has certain parts of the process undertaken in RoI can still be considered a Northern Irish product.' According to a spokesperson from NI's Department for the Economy (DfE), during negotiations around the UK-India trade deal, DfE officials 'worked closely with the Department of Business and Trade to ensure the interests of the economy in the north were fully taken into account, including our unique trading position with dual market access.' The India-UK deal secures rules of origin for products from NI, allowing producers and manufacturers 'to source ingredients and materials from other countries'. The Department for Business and Trade's conclusion summary for the deal cites the example of 'whiskey distilled in Northern Ireland [which] can use barley or neutral grain spirit from the Republic of Ireland and can be bottled in transit, on the way to India.' Irish whiskey distilled in the Republic continues to face a tariff of 150% but RoI producers are unlikely to uproot. The identity of whiskey brands are usually related to their place of origin. 'The providence behind the liquor is important for people,' says Donal Farrell of Mourne Dew, which uses an unconventional cold distillation technology for the production of its gins, poitíns and vodkas. 'We have a back story when it comes to our manufacturing processes.' India remains a market with challenges. The country has different import charges spread across its 28 states and eight union territories (unlike the UK which has a single system). However, the opening of a new Indian consulate in Belfast is expected to ease business between the regions. A DfE spokesman described the consulate as 'another welcome step to strengthening connections and creating opportunities for our local businesses to engage with the Indian system directly.' Eoin Ó Catháin says of the consulate: 'This deepening of diplomatic ties shows the affinity between our two peoples and the determination to strengthen the business links between our two nations. Irish whiskey can help with this.' The UK-India deal comes at a time when Irish whiskey's biggest market, the U.S., is under siege from tariffs. Mourne Dew exports its whiskies to the region and spent much of 2024 trying to organise new business. However, since President Trump introduced the threat of tariffs 'it's all over the place' according to Donal Farrell. 'Importers don't know what's happening on a macroeconomic perspective. Is there going to be a recession? Are they going to be hit with a 50%, 5% or 10% tariff? They're hedging their bets and doing nothing. We just want to sell our product. Trump's behaviour is creating uncertainty in the market.' Mourne Dew is now considering a visit to India in October for ProWine Mumbai, the country's largest spirits and wine trade show. 'Canada and the EU are probably our main export targets at the moment,' Donal says. 'But after that: India. We're also trying to get into Thailand and China. But it's a resource issue for us. We're tiny." Some details are 'still being worked through around the new trade deal', the DfE spokesperson says, 'but it is anticipated it will be a positive for our whiskey sector as well as our pharma and manufacturing sectors.' Northern Ireland exported £55m of goods to India in the 12 months ending in September 2024. Beverages accounted for £7.4m in export sales. Chemical materials were valued at £5.9m and specialised machinery at £3.6m. NI's medtech and medical devices sectors are also likely to benefit from the deal. An emerging Indian market might open up new brand development for whiskey producers. Mourne Dew, for example, is making plans for a coffee liqueur. The boss, Donal Farrell, would now like to see politicians follow India's lead and seek similar deals with other lucrative territories: 'Hopefully this isn't just a one-off,' he says. 'Hopefully it's a trend.'
Belfast Telegraph
27-05-2025
- Business
- Belfast Telegraph
Indian market ‘now on radar' for NI whiskey makers
The agreement includes specificities around rules of origin which allow NI whiskey producers to source ingredients and materials from other countries. The Irish Whiskey Association [IWA], an all-island trade association, which counts 20% of its membership in Northern Ireland, describe the deal as 'a great opportunity for Northern Irish producers'. The India-UK trade deal has refocused export efforts on the Indian market among smaller local whiskey manufactures. Mourne Dew Distillery in Co Down makes blended and single malt whiskies alongside a range of gin, poitíns and vodkas. 'We started talking to people in India last year,' says Donal Farrell, managing director of Mourne Dew. 'It ground to a halt because the administrative complexity of shipping to India was difficult and the tariffs weren't helping. After this deal, India is on our radar.' India, a country of 1.44 billion with an economy currently growing at over 7%, is considered the world's biggest whiskey market. It consumes an average 2.4 billion bottles every year. The nation's biggest whiskey seller is its indigenous brands, which are made of out molasses (in a similar production process to rum). Ireland largely exports its brands – 95% of the product distilled on the island is sent overseas – but although Irish whiskey's biggest market remains the US (at around 45% of export value) regions like India are experiencing greater thirst. Data from HMRC's Overseas Trade in Goods statistics database shows 1,500% growth for NI exports of whiskies to India from 2020 to 2024: a rise of £100,000 to £1.6m in value. Famous distilleries from Northern Ireland include the Old Bushmills Distillery, Hinch Distillery, Rademon Estate Distillery, Killowen Distillery, and The Echlinville Distillery. 'Bushmills is one of the top three Irish whiskey brands worldwide,' says Eoin Ó Catháin, IWA director. 'It is more established in new and emerging markets. Often it's these [larger] companies who have the back of an international or a multi-national company and have the scope and the resources to enter into a challenging market like India. Any ease of access to a market such as India, where the population is high and opportunities are vast, has great potential. Northern Irish whiskey producers have been recognised by the government for their unique nature.' Irish whiskey traditionally sold in India under the 150% tariff was 'targeted at the upper, upper middle, premium or super premium categories,' Eoin says. 'Oftentimes brands can do quite well, even with a 150% tariff, because it raises the price so high it can be seen as a sign of wealth.' The decrease to 75%, however, has the potential to expose Irish brands to new audience. 'A 75% tariff might seem very high, but believe me – that's a big difference. It might allow some smaller companies to start looking at India.' The NI whiskey and spirit production supply chain is integrationist. The example of Bailey's Irish cream was often brought up during Brexit negotiations. 'This is a product that crossed the border up to 10 times before it made it onto the shelves,' Eoin says. 'We need to make sure that in these free trade agreements a product that has certain parts of the process undertaken in RoI can still be considered a Northern Irish product.' According to a spokesperson from NI's Department for the Economy (DfE), during negotiations around the UK-India trade deal, DfE officials 'worked closely with the Department of Business and Trade to ensure the interests of the economy in the north were fully taken into account, including our unique trading position with dual market access.' The India-UK deal secures rules of origin for products from NI, allowing producers and manufacturers 'to source ingredients and materials from other countries'. The Department for Business and Trade's conclusion summary for the deal cites the example of 'whiskey distilled in Northern Ireland [which] can use barley or neutral grain spirit from the Republic of Ireland and can be bottled in transit, on the way to India.' Irish whiskey distilled in the Republic continues to face a tariff of 150% but RoI producers are unlikely to uproot. The identity of whiskey brands are usually related to their place of origin. 'The providence behind the liquor is important for people,' says Donal Farrell of Mourne Dew, which uses an unconventional cold distillation technology for the production of its gins, poitíns and vodkas. 'We have a back story when it comes to our manufacturing processes.' India remains a market with challenges. The country has different import charges spread across its 28 states and eight union territories (unlike the UK which has a single system). However, the opening of a new Indian consulate in Belfast is expected to ease business between the regions. A DfE spokesman described the consulate as 'another welcome step to strengthening connections and creating opportunities for our local businesses to engage with the Indian system directly.' Eoin Ó Catháin says of the consulate: 'This deepening of diplomatic ties shows the affinity between our two peoples and the determination to strengthen the business links between our two nations. Irish whiskey can help with this.' The UK-India deal comes at a time when Irish whiskey's biggest market, the U.S., is under siege from tariffs. Mourne Dew exports its whiskies to the region and spent much of 2024 trying to organise new business. However, since President Trump introduced the threat of tariffs 'it's all over the place' according to Donal Farrell. 'Importers don't know what's happening on a macroeconomic perspective. Is there going to be a recession? Are they going to be hit with a 50%, 5% or 10% tariff? They're hedging their bets and doing nothing. We just want to sell our product. Trump's behaviour is creating uncertainty in the market.' Mourne Dew is now considering a visit to India in October for ProWine Mumbai, the country's largest spirits and wine trade show. 'Canada and the EU are probably our main export targets at the moment,' Donal says. 'But after that: India. We're also trying to get into Thailand and China. But it's a resource issue for us. We're tiny. Some details are 'still being worked through around the new trade deal', the DfE spokesperson says, 'but it is anticipated it will be a positive for our whiskey sector as well as our pharma and manufacturing sectors.' Northern Ireland exported £55m of goods to India in the 12 months ending in September 2024. Beverages accounted for £7.4m in export sales. Chemical materials were valued at £5.9m and specialised machinery at £3.6m. NI's medtech and medical devices sectors are also likely to benefit from the deal. An emerging Indian market might open up new brand development for whiskey producers. Mourne Dew, for example, is making plans for a coffee liqueur. The boss, Donal Farrell, would now like to see politicians follow India's lead and seek similar deals with other lucrative territories: 'Hopefully this isn't just a one-off,' he says. 'Hopefully it's a trend.'
Agriland
19-05-2025
- Business
- Agriland
Irish Whiskey Association: Spirits sector ‘uniquely exposed' to tariffs
The Irish Whiskey Association, together with Drinks Ireland, has warned that the Irish and EU spirits sectors remain uniquely exposed, should no resolution of EU – US trade tensions be found. The organisations have recommended an immediate removal of all tariffs on EU and US spirits, allowing a return to the tariff-free environment in which the sector has 'found such success'. According to the Irish Whiskey Association, 95% of Irish whiskey is exported, and exports to the US are worth around €420 million per annum. Overall drinks exports from Ireland to the US total €865 million every year. The Irish Whiskey Association believes that the 10% US tariff on Irish whiskey is already costing Irish drinks producers thousands of euro every week. It said: 'This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required. 'The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country,' the association explained. Irish whiskey Both Drinks Ireland and the Irish Whiskey Association are encouraged by the fact that the European Commission has consistently sought to negotiate a deal and has engaged in discussions with their US counterparts in 'good faith'. The groups said: 'Irish whiskey, cream and poitín producers appreciate the consultation and communication both the European Commission and the Irish government has engaged in with affected sectors. '(We) hope that a satisfactory conclusion of these negotiations can be reached, as this would benefit all spirits drinks producers in Ireland.' 'A tariff-free environment has worked and will work best for the spirits sector. The spirits sector in both the USA and the EU remain interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk,' they added. According to the Irish Whiskey Association, there are further threats which may impact on the competitiveness of the Irish drinks sector. It claims that Ireland is the primary importer of US casks in the EU, and that ex-bourbon and ex-American whiskey casks are an integral component of Irish whiskey.
