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I ND U S T R Y RE PORT
October 2020 | DRINKS INDUSTRY IRELAND
Spirits sector performed strongly in 2019 A strong domestic hospitality sector will be vital in allowing the sector to return in coming years to the level of growth seen in 2019.
T
he value of spirits exports from the island of Ireland continued its upward trajectory, up by nearly 16% to €1.17 billion last year as Irish whiskey sales volumes grew 10.9% worldwide, from 10.58 million nine-litre cases to 11.93 million. Meanwhile, sales of Irish cream liqueur increased by 3.9%, from 8.2 million cases to 8.52 million according to Drinks Ireland|Spirits which published its Irish Spirits Markets report 2019 recently. However this year’s Covid-19 crisis has significantly impacted Ireland’s spirits sector, hitting production, exports and sales according to Ireland’s spirits producers and in the context of current challenges 2019 will come to be regarded as a “benchmark” year for the industry as it seeks to recover from the Covid crisis in years to come. This will require solid foundations upon which to build. The fourth report from the Ibec trade association representing the spirits sector details its performance at a time before Covid (BC?) when the economy was performing well.
Domestic spirits sales But it also shows that domestic spirits sales – mostly via the off-trade - grew just 0.7% from 2.4 million cases to 2.42 million last year as overall alcohol
consumption in Ireland continued to decline. Nevertheless this growth, while slower than that in 2018, illustrates the continued popularity of high-quality spirits products created by a dynamic and innovative Irish industry, states Drinks Ireland|Spirits. Spirits’ overall share of the alcoholic beverage trade in Ireland rose to 20.8% of the market last year, up from 20.5% in 2018. By volume, the off-trade enjoyed 68.2% of spirits sales and was responsible for selling 1.2 million nine-litre cases. But the on-trade took the lion’s share of the value, accounting for 64.7% of sales or €658 million. Ireland’s most popular spirits drink was vodka, driven in part by its use in cocktails, followed by Irish whiskey and gin. While growth of Irish whiskey and gin slowed in 2019 compared to 2018 both remained significant with sales up by 1.5% and 4.6% respectively, states the report. Vodka sales grew by 0.6%. “Continuing a trend from last year, sales of Scotch continue to fall (dramatically) with a -13.1% decrease on the previous year,” notes the report, “US whiskeys and bourbons have also registered a decrease (-4.4%) the most likely reason for which being the EU’s 25% tariffs on these products.”
2019 will be seen as a “benchmark” year for the spirits industry in light of Covid according to Drinks Ireland|Spirits’ Irish Spirits Market report 2019, published recently. We take a look at the report here.
Their value too fell by 16.6% from €4.4 million to €3.7 million. Biggest gain last year was tequila with sales up 6.2% to 17,000 cases from 2018’s 16,000 cases.
Covid reverses spirits’ fortunes However it’s fair to say that the growth in the spirits market last year has been reversed as a result of Covid-19 this year. A strong domestic hospitality sector will be vital in allowing the sector to return to the level of growth seen in 2019 in years to come according to Drinks Ireland|Spirits which adds that a safe and sustainable reopening is important. Drinks Ireland|Spirits reports that, “Spirits producers have been significantly impacted by the closure of the hospitality sector, saying that that these venues should be allowed to reopen or stay open in a controlled, safe and sustainable manner where possible”. It says that the on-trade, including pubs and restaurants, are vital for enabling new and emerging producers to gain traction in the domestic market. “These venues give consumers the opportunity to try new or different Irish spirits, championed by staff in
