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May/June 2023 | DRINKS INDUSTRY IRELAND
NEWS
n Announcement was made as part of Pernod Ricard’s decision to cease exports of all its international brands
to Russia
Irish Distillers confirms that exports of Jameson to Russia have ceased Irish Distillers has said it will no longer export any of its international products to Russia. This freeze of exports includes Jameson, the world’s most popular Irish whiskey. The announcement was made as part of parent company Pernod Ricard’s decision to cease exports of all its international brands to Russia. Pernod Ricard also announced that it will cease the distribution of its portfolio in Russia, a process that is anticipated to take some months to complete and is assessing how to adapt the local organisation in light of these decisions, while fully complying with all local legal regulations. “Since the outbreak of the war, we have utterly condemned the invasion of Ukraine by Russia,” said
The announcement follows a campaign which encouraged people to avoid purchasing Jameson whiskey after the company resumed trade in Russia
Irish Distillers and Pernod Ricard in a statement. “We have stood and stand firmly
with the people of Ukraine, providing assistance to our local team members, including direct financial assistance, psychological support, accommodation for some employees and their families in neighbouring countries and employment outside Ukraine for those who required it.” The announcement follows a campaign which encouraged people to avoid purchasing Jameson whiskey after the company resumed trade in Russia. Ukraine’s ambassador to Ireland Larysa Gerasko, who was in support of the campaign, said it was a “matter of morality” for Irish pubs and restaurants to decide whether to stock the product.
n Many expected to upgrade their pubs in the coming year
Publicans cautiously optimistic for future A total of 72% of publicans outside Dublin say turnover is now similar or greater than pre-Covid, with many expected to upgrade their pubs in the coming year. A new survey shows the vast majority are confident about the future of their bars, despite the spiralling cost of energy, insurance, and other operating expenses. The research for the Vintners’ Federation of Ireland (VFI) which found more publican’s turnover is now at a similar level or has exceeded pre-pandemic turnover, with the same number turning a profit in in 2022. Its new president, John Clendennen, told the group’s 50th AGM on 16 May that post Covid-19, pubs are striving to become established visitor destinations and vital economic pillars in local areas. But he also warned pubs face a “huge battle” to stay afloat and will need key State supports such as the retention of the 9% hospitality VAT rate and insurance reform. “In 2020, it felt as if our world was coming to an end. Through an abundance of resilience, innovation
and diversity in product offering, we came through the crisis,” he said. “Pubs are no longer simply competing with the bar down the road, but with everything from gym membership to television subscriptions, live events and foreign holidays as people choose where to spend their hard-earned disposable income. “Across the country, pubs have been inventive, many becoming visitor destinations for tourists from at home and abroad, attracting and keeping money and jobs in the country. “The Irish pub is a cultural institution, but publicans face a huge battle to keep their businesses viable over the coming years. “Key supports such as keeping VAT at 9%, and energy interventions, are crucial to the pub trade and the wider hospitality sector.” The survey bears out strong anecdotal sentiment within the industry that post-Covid investment in pubs is critical to the industry recovering after three pandemic
Research for the Vintners’ Federation of Ireland (VFI) found publican’s turnover is now at a similar level or has exceeded pre-pandemic turnover
lockdowns, the most stringent in Europe. It found over a third of publicans will upgrade their premises this year. Over 80% are confident their financial performance will be at least equal or improve in 2023 compared to last year. The survey of 514 members, conducted late last month by business consultants BDO on behalf of the VFI, found that 96% of them operate standalone pubs while 4% are part of a chain. Nearly a third, or 30.8%, describe their businesses as gastropubs, with the remainder being traditional bars.