Drinks Industry Ireland - Feb Issue 2022

Global Alcohol Beverage Industry - Key 2022 trends “The legacy of these experiences will live on and shape the emerging on-trade” -- CGA’s Phillip Montgomery Irish Whiskey Awards Stouts & Ales

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OPINION

January/February 2022 | DRINKS INDUSTRY IRELAND

Compelling the consumer

The consumer’s knowledge of quality cuisine has become a lot more sophisticated as they’ve had little choice but to experiment and improve their own skills at home Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

THE DICTIONARY DEFINITION of ‘compelling’ is: ‘adjective, a compelling argument or reason is one that convinces you that something is true or that something should be done. If you describe something such as a film or book, or someone’s appearance, as compelling, you mean you want to keep looking at it or reading it because you find it so interesting’.

And so it must be with the pub and the post-Covid consumer’s visit.

During this long period spent in Lockdown, we’ve had to provide our own hospitality. It’s made many consumers something of an expert in upping the catering ante.

The consumer’s knowledge of quality cuisine has become more sophisticated as they’ve had little choice but to experiment and improve their own skills at home. In so doing, many have learned how to produce a variety of attractively presented tasty dishes.

The result of all this self-learning is that the quietly muttered phrase “I could do better at home myself” is one that has begun to pass the consumer’s lips more frequently when venturing out to some venues to eat in these self-aware times.

This is especially true for that all-important older age-group consumer.

As CGA’s Phillip Montgomery points out in our 1&1 interview this month, the more mature cohort will need to be coaxed out of the home having built up the ‘stay-at-home-and-entertain-ourselves’ habit during Lockdown.

“To facilitate a full sales recovery, driving confidence in older age groups will be key with only half of consumers over 55 confident in returning,” he points out, “After 18 months where there have been significant restrictions on late-night, outlets must ensure they’re providing a compelling offer to benefit from a consumer appetite for higher tempo occasions.”

For outlets to achieve that compelling offer status it’s key to work with suppliers to ensure that their range is fully aligned to consumer preference.

Indeed, it’s going to take a compelling offer from you, one that convinces the consumer that your premises should be visited, in order to drive footfall out of the home and in through your door - it’s the only thing that’s going to guarantee the sustainability of your business in the longer term. n

DRINKS INDUSTRY IRELAND | January/February 2022

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8 27 Dublin pubs sold in 2021

2021 “largest Dublin pub market turnover in over a decade” - Lisney Despite significant challenges and periods where the licensed trade was unable to open for business, sales of licensed premises significantly increased in 2021 according to property agent Lisney in its annual report and Review.

According to its Outlook 2022, 27 Dublin pubs “transacted” in 2021, with a combined value of over €70 million, “the largest market turnover in over a decade” states the report, pointing out that the 10-year average is €35 million, with 2020 at €41.65 million and 2019 at €57million.

Despite this, some 349 pubs or 5% of the total licensed trade stock in Ireland have closed permanently as a result of Covid and 33 of these took place in Dublin according to the Licensed Vintners Association.

Nevertheless, according to Lisney, “Demand for prime Lisney believes that premises in well-populated areas will recover more quickly than those relying central Dublin pubs and those on tourism. in densely-populated suburban areas will remain strong in funds and Lisney is aware of several in the year ahead, which will 2022. Larger pubs that are capable with active commitments in this have an impact on activity and of seating a meaningful number of direction for 2022. pricing in the licensed premises customers while accommodating The Review continues, “Many property market”.

Social Distancing or those benefitting operators invested heavily in their Lisney believes that premises from usable outdoor space to outdoor dining areas in 2021, which in well-populated areas will accommodate additional patronage, will continue to drive customer recover more quickly than those will attract the greatest interest”. demand, particularly during relying on tourism, “Hence, spots Upper-tier pubs, high-profile venues the warmer months. As such, such as Temple Bar will take and pub groups are also likely to be we are optimistic about further longer to revert to pre-Covid an attractive target for private equity improvements in trading conditions levels of trade”.

n Pre-tax losses at Copper Face Jacks - mostly closed since March 2020 - totalled €1.51 million in the year to the 31st of January 2021, well down on the previous year’s pre-tax profit figure of €2.5 million. The year before that pre-tax profits hit €3.8 million. Thanks to Covid, turnover at the Dublin nightclub fell during the year to the 31st of January 2021 by over 90% to €1.1 million from €11.6 million according to the Annual Report & Financial Statements of Breanagh Catering, Copper’s parent company. In the few weeks between the end of January 2020 and the general closure of hospitality in March of that year until the 31st of January 2021, Copper’s bar & nightclub sales were responsible for €977,306, with the remainder coming from accommodation sales since the holding company also operates the Jackson Court Hotel where Copper’s is located. As a result, the Cathal & Paula Jackson-owned company suffered an Operating Loss of €1.5 million where Operating Profits of €2.5 million had been declared the previous year. The number of employees (including the two Directors) fell from 173 to 80, thus halving staff costs from just under €4 million to just under €2 million, with the two directors taking out €381,393 in remuneration, down by just over a fifth from the previous year’s remuneration figure of €485,142.

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NEWS

8 Guinness sales up 76%

Diageo Ireland sales up 50% in H1 Drinks giant Diageo reported a 49% organic growth in sales volumes here in Ireland (26% on a reported basis) in its Interim Results for the six months ended the 31st of December 2021.

Net sales of Guinness grew by over 76% thanks to the partial recovery of the on-trade as restrictions eased during the first half of Diageo’s financial year.

Diageo states that this growth was not only driven by the recovery of the on-trade channel but also by resilient consumer demand in the off-trade channel, “.. where Diageo continued to gain market share”.

Net sales of beer grew 44% here, driven by a strong increase in Guinness with the continuing easement of on-trade restrictions, reports the company which points out that this result compares to “a significant decline in the first half of fiscal ‘21”.

Across Europe, organic net sales were up 27%.

Indeed the global beer and spirits

manufacturer delivered strong net sales growth across all regions with reported net sales up 16% to £8 billion, “... with strong organic growth, partially offset by an adverse foreign exchange impact” and with organic net sales up 20%.

This growth reflects “continued recovery in the on-trade, resilient consumer demand in the off-trade and market share gains and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and Premiumisation”.

The global brewer and distiller reported an Operating Profit of £2.7 billion for its H1, up 22.5% or up 24.7% organically.

Net sales of Guinness grew by over 76%, benefitting from the partial recovery of the on-trade as Irish Government restrictions eased during the first half of Diageo’s financial year.

8 Non-alcoholic beer popular alternative during Dry January

Non-alcoholic beer sales up by 129% Non-alcoholic beer here saw growth of 129% between 2017 and 2020 as a host of new additions and innovations appeared on the market.

Having become increasingly popular here in recent years, the non-alcoholic beer trend is set to continue in 2022, according to Drinks Ireland|Beer, which represents Irish beer makers.

The array of non-alcoholic beers now available offers consumers great tasting alternatives if they’re driving, cutting back or simply looking to try something new, states Drinks Ireland|Beer.

While popular all year-round, non-alcoholic beers are particularly in-demand among beer-lovers during Dry January and new data from the ibec body estimates that nonalcoholic beer sales in Ireland grew from 1.79 million litres in 2017 to 4.12 million litres in 2020.

Meanwhile, its share of the beer market jumped by 175% during this time, from 0.4% in 2017 to 1.1%.

Drinks Ireland|Beer says that beer

sales across the board were heavily impacted by Covid-19 and the closure of hospitality venues. While it anticipates that non-alcoholic beer sales will have dropped slightly in 2021, sales nevertheless remained strong and it expects that the category will have maintained Drinks Ireland|Beer estimates that non-alcoholic its growing market share. beer sales in Ireland grew from 1.79 million litres Internationally, IWSR has in 2017 to 4.12 million litres in 2020. predicted that the non-alcoholic and many established mainstream beer category will grow brands have recently crossed over annually by 8.7% between 2021 to develop NoLo alcohol versions of and 2025. their popular beer, wines and spirits.”

“While January has become a Jonathan McDaid adds, “We see popular month for people to cut from the latest international data back or abstain from alcohol, interest that the category is set to continue in No- and Low-alcohol drinks has growing globally in the coming increasingly become a year-round years and we expect this to be trend among consumers across reflected here in Ireland too as nonthe world,” says Emily Neill, Chief alcoholic beer goes from strengthOperating Officer for IWSR Drinks to-strength.”

Market Analysis, “To meet that demand, beverage alcohol companies have invested heavily to introduce a number of innovative new products

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January/February 2022 | DRINKS INDUSTRY IRELAND

8 HSE to be informed of every licensing application under Intoxicating Liquor Acts

HSE to be consulted on licensing applications The Health Services Executive will have to be informed of every licensing application under the Intoxicating Liquor Acts and it will be permitted to give evidence at court hearings on all licensing applications under Section 4 of the Public Health (Alcohol) Act 2018.

Section 4 comes into operation in November next year. The purpose of this provision is to ensure that the Environmental Health Service of the Health Service Executive the enforcement authority for the Act - will be notified in advance of applications for licences under the Intoxicating Liquor Acts and if it wishes to do so, can appear and give evidence at court hearings on such applications.

Section 4 provides that “an applicant for the grant or renewal of a licence under the Licensing Acts 1833 to 2011 and an applicant for the

grant or renewal of a licence under the Registration of Clubs Acts 1904 to 2008 shall notify the Health Service Executive of the application”.

Applicants are expected to give “one month’s notice in writing (or such shorter period of notice as the Executive may in the special circumstances of the case agree to accept) of the application of the Executive and the Executive may appear, be heard and adduce evidence in respect of the application at the hearing”.

However the need to inform the HSE is likely to have limited application to the on-trade.

The reason for the HSE’s involvement here is that this Act confers certain powers on Environmental Health Officers that has not previously been the case.

For example, EHOs have a responsibility to ensure that

segregation in mixed trading outlets is adhered to. They’ll also have powers in respect of ensuring Minimum Unit Pricing is adhered to. Previously, they were not a ‘competent objector’ to the renewal of a licence but because of this development, they now can be a competent objector.

“As MUP and segregation are not issues, by and large, for the pub trade we don’t think this will be a major issue other than extra administrative work when renewing,” commented Vintners Federation of Ireland spokesman Brian Foley, “It might be compared to the so-called ‘yellow form’ that must be sent to the fire officer when renewing a licence but is really only relevant to publicans with a dance licence. In this case, it’s supermarkets and off-licences that will be most impacted.”

8 Volumes up 9%, Bulmers volumes up 4.5%.

C&C’s Irish H1 revenues up 26% At €115.1 million net revenues at C&C Group’s Irish operation for the six months ended on the 31st of August 2021 showed a 26% rise on the first half figures for its previous financial year of €90.7 million according to the Group’s unaudited results.

This led to €8.3 million being declared in Operating Profits.

Volumes too were up by 9% with Bulmers volumes showing growth of 4.5%.

Total cider volumes were up 2.7% in the six months compared to the same half-year in 2020, with corresponding net revenues up 27.7% but these were down 28.4% compared to this same half year in 2019.

“Bulmers has continued to perform strongly with 50.3% MAT volume share in off-trade cider, reflecting a 0.5% growth on a year ago and 2.4% growth on two years ago with value outperforming this,” states C&C, “In the on-trade Bulmers volumes in August 2021 returned to 74% of August 2019 levels with corresponding net revenues at 77%, demonstrating

how robustly trade has returned.”

The partial reopening of hospitality here contributed to this rise while the company points out that it was only in the last five weeks of H1 that the hospitality industry had been able to operate at anything close to preTotal cider volumes were up 2.7% in the six months Covid-19 levels. compared to the same half-year in 2020.

According to C&C, a 65% increase in revenues to the off-trade share of total LAD has €657.3 million for its H1 financial slowed as a result of the reopening of year leading to an Operating Profit the on-trade. declaration of €16 million despite As of last August C&C was back some restrictions still being in place. trading with 91% of those RoI This compares to an Operating outlets it had been trading with in Loss of €13.2 million for the same August 2019. period the previous year.

Having taken on the exclusive “We’re encouraged by how distribution of Budweiser in July quickly the on-trade recovered” 2020, C&C was unable to trade the stated the C&C Group’s Chief brand properly until the first six Executive David Forde, “and we’re months of the current financial year pleased to report that trading in the to August the 31st. Despite this first half has been ahead of plan.” the company has added 450 new Budweiser distribution points.

Overall, the C&C Group declared

DRINKS INDUSTRY IRELAND | January/February 2022

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8 42% of consumers typically drink lager out-of-home

Lager drinkers consume average of 3.4 pub pints Lager remains Ireland’s most popular alcoholic drinks category after Lockdown and with drinkers continuing to Premiumise, suppliers will need to work hard to protect their share of the market in 2022 believes market analyst CGA. CGA surveyed more than 2,500 consumers to find that 42% typically drink lager out-of-home, putting it clear of other big categories like white wine (39%), red wine (35%) and cider (30%).

Those are among the top takeaways from CGA’s in-depth Opus research in Ireland which highlights a range of on-trade opportunities and challenges.

Lager drinkers tend to be good spenders on trips out, consuming an average of 3.4 serves on their most recent visit to the on-trade.

The research reveals the motivations of lager drinkers too and the value of good branding in particular. More than two in five (42%) say they always choose their favourite brand while a third look for value-for-money (32%) and quality (31%).

The interest in quality suggests the Premiumisation trend in lager will extend into 2022 states CGA. One in eight (13%) lager drinkers say they opt for Premium drinks more often than they did a year ago and nearly as many (11%) say they’d trade-up their choice. It mirrors CGA’s global research that has shown consumers’ desire for Premium drinks after months of Lockdowns - ‘though with

Lager drinkers tend to be good spenders on trips out, consuming an average of 3.4 serves on their most recent visit to the on-trade.

spending polarised, many drinkers are chasing value too.

However, only 16% of lager consumers say they’re drinking it more often than they were a year ago - a figure that’s notably below drinkers of ale (21%), stout (20%) and cider (19%). This suggests that some lager drinkers may be reducing their consumption or are being lured away to other categories.

Other big trends identified by CGA, like a new focus on health and innovation and a surge in cocktail sales, could further affect the lager category.

“Lager is still Ireland’s top drink, but Covid-19 is changing the category’s

dynamics in subtle but significant ways,” says Sian Brennan, CGA’s Client Director for Ireland, “With other categories outstripping it for frequency since venues reopened, suppliers will have to stay right on top of consumers’ preferences in 2022.

“As the Premium and value ends of the market grow, this will be particularly important for mainstream and established lager brands in the middle ground of drinking out.”

To learn more, email Sian Brennan at sian.brennan@cgastrategy.com.

n Pre-tax profits at Orsen, the group behind Pady McKillen’s hospitality vehicle, totalled nearly €1.3 million over a 17-month period to the 31st of May 2020 according to a financial statement filed with the Companies Office.

The figure for the 12 months to the end of 2018 had been €887,929. Turnover at Orsen, the ultimate holding company for a number of prestigious Dublin outlets including those in the Press-Up Entertainment Group portfolio, totalled €99.63 million for the 17 months beginning in January 2019 where the previous 12-month accounting period had seen turnover of €70.96 million. Orsen enjoyed an Operating Profit of over €3 million for the 17-months. In the 12 months before this period, it had seen an Operating Profit of €2.35 million. Staff costs at the company (including those of the two directors) totalled €43.85 million for the 17 months for a staff complement of 1,200 bar, restaurant & hotel staff (12-month figure for 2018: 1,209), 159 management, administration and support staff (2018 12-month figure: 154). Directors’ remuneration amounted to over €1 million over the 17 months compared to €209,038 for the 12 months before that.

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January/February 2022 | DRINKS INDUSTRY IRELAND

8 2020’s beer sales drop by over 3bn litres

2020’s 3bn litre drop in European beer sales Beer sales across Europe collapsed in the first year of the pandemic with statistics from The Brewers of Europe showing that combined beer sales in 31 European markets fell from 385.5 million hectolitres to 354.5m hl in 2020.

This was a staggering drop of over three billion litres representing a collapse of more than 8% in beer sales according to The Brewers of Europe, the voice of more than 12,000 breweries across Europe, which released its 2021 European Beer Trends Statistics Report recently.

Based in Brussels, The Brewers of Europe brings together national brewers’ associations from 29 European countries and provides a voice to support the united interests of Europe’s breweries.

The current 2021 Brewers of Europe statistical report covers the 27 EU member states, plus Norway, Switzerland, Turkey and the UK and shows how the steady, decade-long renaissance in both production and consumption of beer ground to a stuttering halt as the pandemic hit.

The hospitality sector took the brunt of the damage; by mid-March 2020 almost all of Europe’s bars, cafés and restaurants were closed and would not reopen until around May. Autumn’s second wave forced them to close again in October 2020, often only reopening from April 2021. The result was an average 40% drop in beer hospitality sales in 2020, a loss that was only marginally recouped by retail sales.

These closures impacted the whole social economy: people’s livelihoods, government tax revenues and citizens’ wellbeing were hit as communities shut down, Europeans self-isolated, culture was curtailed and social lives ground to a standstill.

The diverse expansion of the beer culture also stalled.

The previous decade had seen a flowering of start-ups and innovation in the sector. Indeed, for five consecutive years, over 1,000 new breweries opened annually across

Europe, almost doubling the total between 2014 and 2019. However this entrepreneurial boom came to a staggering halt in 2020. At the end of 2020, there were some 12,473 active breweries across Europe – but just 225 new ones had opened during the previous 12 months.

Restrictions remain While the 2020 and 2021 Lockdowns have now lifted Combined beer sales in 31 European markets fell from 385.5 million hectolitres to 354.5m hl in 2020. to varying degrees, there are still many restrictions the UK which produced 32.2m hl in in place across Europe 2020. and consumer confidence remains Some 1,132 were employed in beer low amongst some groups. These production here last year, down from continue to affect the brewing sector.

2019’s 1,147.

However, with the right targeted framework support, particularly Beer consumption focused on the hard-hit beer hospitality market, brewers can Ireland sits well down the Brewers of bounce back and lead Europe’s Europe beer consumption table with recovery through job creation, 3.8m hl putting it in 18th place. In increased value and government tax 2019 this figure was 4.5m hl, putting generation, believes the Group. us in 14th place. The UK, on the other “The beer industry is part of a hand, sits in second place with a complex chain involving many consumption figure of 40.9m hl after businesses,” said the Brewers of Germany (78.7m hl).

Europe’s Secretary General PierrOur per capita consumption figure Oliver Bergeron, “Concrete long-term was also down - 64 litres, down from support will help them recover or 77 in 2019 - dropping us three places maintain their operations. to 12th.

“Governments need to step in The Lockdown put its stamp with measures to cope with the on hospitality’s share of beer negative economic impact of the consumption too with our on-trade to pandemic. With targeted support off-trade ratio falling from 63%/37% beer hospitality can lift the economy, in 2019 to 30%/70% in 2020. bring in much-needed government revenues and boost jobs all along the Beer exports brewing, production and hospitality Ireland’s global beer export figure value chain. Bars and pubs can puts it in eighth place with 3.4 m hl, once again become pillars of the three places below the UK which local community - and with it, the exported 4.5 m hl of beer in 2020. economy.”

The previous year, Ireland exported

Beer production Beer production was highest in Germany at 87 million hectolitres, far ahead of second-placed Poland on 39.1 million hl. On 7.1 million hl Ireland took 12th place, down two places from its from 8.2m hl production figure in 2019 and eight places below

over 3.8m hl of beer when the UK was exporting just under 5.3m hl.

Beer imports The UK was our top beer importer, importing 10.4 m hl in 2020.

DRINKS INDUSTRY IRELAND | January/February 2022

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8 ABV’s first entry into fast-growing Irish whiskey sector

ABG buys Walsh Whiskey The Walsh whiskey brands join the ABG core brands portfolio and Bernard continues as Managing Director.

“Given the underlying strengths of our brands and of the long-term trajectory of Irish whiskey this is a logical next step for us” commented Bernard, “providing a means of scaling-up the business.”

ABG Chief Executive Jekaterina Stuģe added, “This is a major step for us as a company. We already own and bottle 100 brands as well as distributing and selling more than 1,300 third-party brands.

Walsh Whiskey was founded in 1999 by husbandThis is the first time and-wife team Bernard and Rosemary Walsh, who’ve we’ve entered into two multi-award-winning brands in The Irishman and the whiskey sector Writers’ Tears which are sold in over 50 countries. and we’re particularly Global producer and distributor of pleased that ABG is alcoholic beverages Amber Beverage now part of the consistently highGroup has acquired Walsh Whiskey growth story that is the Superfor an undisclosed sum but the Premium end of the Irish whiskey existing management and staff will market.” remain in place.

The whisky sector worldwide ABG, established in 1900, has was valued in 2020 at €58.4 grown from its original core billion with the highest sector production business in the pan-Baltic growth within the category region to a global spirits industry coming from Irish Whiskey. player with around 2,000 employees According to the Irish Whiskey in almost 20 companies in the Baltic Association the category saw States, Austria, Australia, Germany, 140% growth between 2010 and Ireland, Russia, Mexico and the UK. 2020, equating to an average Walsh Whiskey was founded in Compound Annual Growth Rate 1999 by husband-and-wife team of 9.1%.

Bernard and Rosemary Walsh, who’ve With Irish whiskey now sold in two multi-award-winning brands in over 140 countries, drinks industry The Irishman and Writers’ Tears which analyst IWSR projects that Irish are sold in over 50 countries. whiskey sales will grow by 33% With ABG’s current reach into from 2020 to 2024. It forecasts 185 countries, these Super Premium that after slipping to 11.4 million brands are likely to expand still cases last year, it will reach 11.9 further geographically. million in 2021. From there it’s This is a strategically significant expected to continue to grow, move for ABG too as it’s ABV’s first recording sales of 13.1 million this entry into the fast-growing Irish year, 14.2 million in 2023 and 15.3 whiskey sector – a category that has million cases in 2024. outstripped all other spirits categories for over a decade, enjoying buoyant sales growth.

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January/February 2022 | DRINKS INDUSTRY IRELAND

8 Alcohol consumption down 6.6% in Ireland

2020 on-trade share of beer halved Ireland’s Covid-19 Lockdowns were by far the longest in Europe for pubs, bars and restaurants according to Drinks Ireland’s Annual Review for 2020/2021, published recently.

The Review shows that the share of the beer market sold through hospitality businesses fell in 2020 from around 60% in 2019 to less than 30% in 2020.

The 2020/2021 Annual Review also shows: • that periods of global on-trade and Global Travel Retail closures over the last two years - as well as restrictions in supply to off-trade channels in some markets - saw overall alcohol consumption decline by 6% worldwide in 2020 and by 6.6% here in Ireland • that Irish brewers, distillers and wine importers extended credit lines to support customers in the on-trade and when product went out-of-date during the repeated Lockdowns, in a massive logistical undertaking, collected beer and cider from 7,000 outlets across the country and disposed of it in an environmentallyfriendly manner at no cost to the pubs • that Government supports to help the hospitality sector with cashflow - to assist exporters re-enter 140 foreign markets worth €1.45 billion and encourage domestic tourists to visit brewery and distillery visitor centres - were vital.

Beer The Review highlights the fact that beer remains Ireland’s favourite alcoholic beverage but that the closure of the hospitality sector saw beer sales decline by 17.3% in Ireland.

Wine Wine is Ireland’s second-favourite alcoholic drink with sales rising due to wine’s association with home consumption coupled with the hospitality sector Lockdowns.

As a result, wine sales were up 12%, increasing its share of the alcohol market by five percentage points to 32% in 2020 with off-sales up 28%.

Off-trade wine sales were responsible for 95% of all wine sales last year while the on-trade took

in the remaining 5%. In 2019 the on-trade had a 17% share.

With 25.8% of the wine market here, Chile tops the favourite wine country of origin table followed by Spain with 15.4% and Australia with 13.8%.

Rosé’s share of the overall wine market grew to 7% doubling its share since 2016.

At 48%, white wine dominates with red at 45%.

while the EU takes second place with 27%.

“Imports of US whiskey and Bourbon into Ireland fell for the third year running, down a massive 39.5% on the previous year. Much if not all of this is due to the EU’s rebalancing tariffs of 25%.”

The on-trade was responsible for just 12% of spirits sales in 2020 by volume but 35.3% by value.

The share of the beer market sold in hospitality businesses fell to less than 30% in 2020 from around 60% in 2019.

Spirits Sales of spirits, the country’s thirdfavourite alcoholic drink category, dropped by 4.8% overall while spirits exports dropped 16% in value.

However domestic consumption of Irish Cream Liqueur saw a 26.5% jump and sales of Scotch were up by 9.9%.

The Review observes, “Vodka and Tequila however did less well registering, what we believe to be temporary, decreases of -10.2% and -30.4% respectively. The gin and Irish gin category registered its first decline in growth since 2015. These fluctuations can be placed at the door of Covid-19 and the restrictions in place in the on-trade, a key consumer channel for the category.

February 2020 saw the 12-month rolling total for Irish whiskey global sales break the 12 million case-mark.

Thanks to Covid, however, the calendar year 2020 saw 11.4 million cases sold. The whiskey industry purchased 270,000 used American Oak barrels from the US whiskey industry in 2020.

Indeed the US is also Irish whiskey’s biggest export market, being responsible for 44% of such exports

According to the Review, spirits contributed €373.3 million or just over 31% to the excise duty collected by the Irish State.

Cider Ireland’s fourth-favourite drink, cider, saw sales hit hard by the closure of pubs, down by 11.3% with its share of the alcohol market falling from 7.4% in 2019 to 6.9% in 2020.

Cider consumption volumes dropped 11.4% in 2020 to 56 million litres from 63.2 million litres in 2019.

With Lockdowns, hospitality’s share of the cider market stood at just 16% last year compared to its 45% share in 2019.

Cider exports, too, suffered with a decline of 2.7% to €58.2 million from €60.9 million the previous year.

The Review puts last year’s overall alcohol consumption share by category at: Beer: 38.9%; Wine: 32.2%; Spirits: 22.3% and Cider: 6.6%. n

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ONE & ONE

January/Febuary 2022 | DRINKS INDUSTRY IRELAND

It comes as no surprise to hear that the pandemic has had a profound impact on hospitality venues across the globe - for the Irish market has felt these effects more than most.

But from its surveys market analyst CGA has been able to provide some insight into how the pandemic will have affected consumers’ alcohol purchasing trends going forward.

Phillip Montgomery, CGA’s UK & Ireland Director of Client Services, outlines some of these to Pat Nolan.

“The legacy of these experiences will live on and shape the emerging on-trade” -CGA’s Phillip Montgomery

T

he Irish like their pubs.

Last September a Reach survey by market analysts CGA showed that 51% of Irish consumers predicted they’d visit the on-premise more often in 2022, the highest such rate in any European country in CGA’s 26-country global on-trade market survey. Take heart!

Following ‘The Great Irish Lockdown’, by mid- to late-2021 the licensed trade was beginning to show signs of recovery albeit still some considerable way from the seemingly carefree pre-pandemic levels of trade. During all this, CGA tracked consumer attitudes and trends as Covid-19 wore on.

“In September, total drinks volumes were tracking at 81% vs 2019” Phillip Montgomery, CGA’s UK & Ireland Director of Client Services, tells me, “while 80% of Irish on-trade consumers had been out in the last three months.”

However, with the emergence of Omicron and the reimposition of restrictions later in the year, we saw a crumbling of confidence.

Nevertheless CGA’s Reach survey showed that one-third of Irish on-trade consumers planned to spend more on eating/drinking when they got out again.

“With this sentiment to return amongst consumers” states Phillip, “it’s key for suppliers, operators and wholesalers to understand the key elements in encouraging consumers to return to the on-trade.” he says.

Food & confidence

Outside at the local

Confidence around returning to hospitality is clearly demonstrated with two in three Irish consumers now confident in visiting the on-trade, says Phillip, but it’s crucial to understand how, where and why consumers are interacting to maximise this opportunity.

“Unsurprisingly, the younger consumer has highest confidence to return (75% of 18-34 consumers feel confident),” he says.

This cohort visits and spends most and will be a key target group for any supplier or operator, “However, to facilitate a full sales recovery, driving confidence in older age groups will be key with only half of consumers over 55 confident in returning,” he points out. The key to success here will be understanding what consumers want from their on-trade experience.

“CGA’s research shows that food is increasingly important in on-trade experiences,” he states, “70% of consumers say that the quality of food is an important factor in choosing where to eat/drink while consumers are visiting food-led venues, with 57% having gone out for a casual meal in the last three months. With consumers also engaging more with relaxed and quiet drinks, ensuring that venues have a provision to accommodate a lower tempo daytime/ early evening offer will deliver competitive advantage vs other outlets.”

Over the course of the pandemic CGA found that consumers discovered venues in geographical proximity to them, being hesitant to travel to city/town centres due to infection rates. They’d also less reason to travel due to the Work From Home mandate.

“This is highlighted most clearly by the fact that in September 2021 Dublin sales had only recovered to 66% of pre-pandemic levels,” he says. Consumers also felt more comfortable with venues that had outside seating, with 62% of on-trade consumers most comfortable in such venues globally.

“Of course as the pandemic progresses and vaccination rates continue to increase, there will be a shift slightly away from these preferences, but operators and suppliers must still consider these elements in their consumer engagement strategy as the legacy of these experiences will live on and shape the emerging on-trade.”

Compelling offer Licensees must remember too that the consumer appetite for higher tempo occasions remains strong. CGA found that after-work drinks and high tempo drinks (big nights out) are still the occasions that consumers most want to go out for on a weekly basis.

“As the WFH mandate ends and confidence returns to town/city centres,

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the relevance of late-night/higher tempo occasions will continue to grow,” he believes, “Therefore, after 18 months where there have been significant restrictions on late-night, outlets must ensure they’re providing a compelling offer to benefit from a consumer appetite for higher tempo occasions.”

For outlets to achieve that compelling offer status he stresses that it’s key to work with suppliers to ensure that their range is fully aligned to consumer preference.

This will allow outlets to maximise revenue streams from their offer and aid recovery.

There are some emerging trends here that licensees must acknowledge in their offer.

“The pandemic has put significant pressure on the finances of lots of people in Ireland and 77% of on-trade consumers were concerned about the long-term financial impacted of Covid-19,” he points out, “Despite the squeeze on disposable income, consumers are increasingly looking to ‘treatspend’ in the on-trade as they make-up for missed occasions and celebrations.”

Treat-spend CGA found that 45% of consumers are likely to pay extra for a better-quality drink in the Irish on-trade and 33% feel it’s more important to have a high quality/Premium drink than a year ago.

“This desire for a Premium offer is most entrenched in the Wine and Cocktail categories” says Phillip, “and certainly range reviews in this area should be a priority.

However, even in established categories like Lager, there’s an underlying desire for Premium choices in an outlet’s range and therefore suppliers and operators must work together to optimise range across an outlet’s entire alcohol offer to provide consumers with Premium choices and drive footfall.”

Philip Montgomery on...

8 ... stimulating consumer confidence in going out: “To facilitate a full sales recovery, driving confidence in older age groups will be key with only half of consumers over 55 confident in returning”.

“With consumers also engaging more with relaxed and quiet drinks, ensuring that venues have a provision to accommodate a lower tempo daytime/early evening offer will deliver competitive advantage vs other outlets.”

“As the WFH mandate ends and confidence returns to town/city centres, the relevance of late-night/higher tempo occasions will continue to grow.”

8 .... the importance of food going forward: “70% of consumers say that the quality of food is an important factor in choosing where to eat/drink”.

8 .... achieving a compelling offer: “After 18 months where there have been significant restrictions on late-night, outlets must ensure they’re providing a compelling offer to benefit from a consumer appetite for higher tempo occasions.”

8 ... ‘treat-spending’ & the desire for Premium: “Even in established categories like Lager, there’s an underlying desire for Premium choices in an outlet’s range.”

“28% of Irish consumers drink cocktails out-of-home and a quarter of these consumers are drinking the category more so than last year.”

Cocktails When considering that outlet offering, leveraging cocktails may be a highly effective way “Despite the squeeze to draw consumers. Cocktails on disposable can be an effective vehicle in income, consumers promoting an outlet’s spirits are increasingly offering and the category looking to ‘treatspend’ in the has gained traction since on-trade as they re-opening. make-up for missed Cocktails are hitting the occasions and mark as an indulgent treatcelebrations.” spend option that deliver a Phillip Montgomery. great on-trade experience for consumers, he says.

“28% of Irish consumers drink cocktails out-of-home and a quarter of these consumers are “The growth in cocktails is being fuelled drinking the category more so than last year. by the younger consumers” he continues, While this might not be the right solution “with one-third of 18-34 year-old consumers for every venue, there are some compelling drinking within the category more frequently.” reasons to engage with this provision.

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As this cohort visits and spends the most, using cocktails to engage could have a positive impact on revenue returns. However the provision of a range of cocktails that engage different flavour profiles and incorporate mainstream and Premium serves will be key.

CGA can demonstrate that cocktail taste, quality and serve are the key drivers to the category, so ensuring that outlets have the required skills provision to deliver cocktails in an outstanding way will maximise the opportunity to deliver a competitive advantage.

Catering for the consumer health agenda The pandemic has also brought into sharp focus consumers’ health agenda. This continues to permeate an outlet’s offer.

10% of on-trade consumers state that health is more important than a year ago and whether healthy options fit into an outlet’s offering represents a key decision.

65% of NoLo consumers still choose No/Low Beers, the traditional ‘go to’ choice in the non-alcohol space. However, consumers are increasingly engaging with NoLo Spirits, Cider and Wine as well as Mocktails, meaning that licensees may need to continually re-appraise how their NoLo offering needs to evolve, he says.

Hard Seltzers Hard Seltzers comprise one of the newer considerations for outlets.

Having gained traction in the US in recent years major suppliers have looked to launch brands in this space in Ireland and it’s clear there’s some consideration from consumers for this category.

“38% of consumers are willing to try Hard Seltzers and if outlets can deliver with great execution, this could be another effective weapon in helping consumers make healthy decisions in their alcohol choices,” he believes.

The Irish market has undergone unprecedented adversity in the last 18 months, challenging hospitality to its very core. However, as restrictions lift, there appears to be light at the end of the on-trade’s tunnel.

“As outlets begin the road to recovery, it will be vital that they stand out, understanding their consumer and delivering that compelling drink offer to drive footfall through the door that will guarantee the long-term sustainability of their businesses.”

Rest assured, throughout 2022 CGA Strategy and Phillip Montgomery will be watching this space. n

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8 The value of 2021’s Island of Ireland Foodservice sector increased by 14.6% to €5.145 billion but turnover levels remained 41% lower than pre-pandemic. Here, we take a look at Bord Bia’s 2021 Irish Foodservice Market Insights Report.

Eating out most missed social activity during Covid

T

hree in four Irish adults (73%) have missed dining in restaurants, pubs and cafes as a result of Covid-19 according to Bord Bia’s latest 2021 Irish Foodservice Market Insights Report.

Adults most look forward to the social aspect of dining out, making eating out the social activity most missed compared to shopping for leisure (59%), concerts, sports and live events (57%) or spending time with colleagues (45%).

Value of Foodservice According to the report the Republic of Ireland will be responsible for €3.7 billion of the total Island of Ireland Foodservice (or out of home) industry for 2021 which is likely to reach €5.15 billion. This represents year-on-year growth of 14.6% but remains 41% off pre-pandemic turnover levels.

In 2020 the IoI’s Commercial Foodservice - as opposed to Institutional Foodservice - was responsible for €4.05 billion in consumer spend, growing 16% to €4.7 billion in 2021.

The Report notes that this is still below the total pre-pandemic (2019) commercial turnover level of €7.8 billion.

Pub food Pubs formed 10% of the total IoI Foodservice market but were responsible for 12% of IoI’s total Commercial Foodservice spend in 2020. This is expected to rise to 13% in 2021.

As a sector, Foodservice in IoI pubs had grown by 2.0% in 2019 but a 64.6% decline followed this in 2020 as Lockdowns came in. For 2021 Bord Bia expects a growth figure of 3.1% for the sector which would leave it at

just 37% of its 2019 figure.

This year Bord Bia forecasts growth in the RoI Pub Foodservice market of 141.4% and 72.9% in NI making a total growth forecast of 119.8% for the IoI market which would bring recovery to 80.2% of 2019 levels.

Pubs split 90%/10% in terms of food/(non-alcoholic) beverage in 2021 with IoI pubs taking in €517 million in consumer spend on Foodservices, up from €501 million in 2020. But in RoI, this figure was up only slightly to €353 million in 2021 compared to €350 million in 2020.

RoI pubs’ growth in Foodservice turnover in 2022 would still leave them at only 82.2% of 2019 levels.

Cautious consumers The report reveals that there remains a degree of consumer caution around eating out, especially among older demographics and full recovery in

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the sector is unlikely before 2023 at the earliest. Despite a widespread view that there are adequate Covid-19 safety measures in place, six in 10 diners (61%) expressed some degree of nervousness about eating out.

Younger cohort returns to Foodservice The appeal of fast food, pubs and bars is growing among younger customers in particular according to the report which states, “It seems that the return to foodservice overall is being driven very much by the younger cohorts”.

The report finds that 50% of RoI customers over 18 who previously used pubs and bars will continue to use them as before Covid-19 while 35% will use them less than before and 15% will use them more.

Similarly, 42% of all IoI adults will use them the same as before Covid-19 while 29% will use them less, 16% have never used pubs and bars or have no view on them while 12% will use them more.

Trends Overarching trends in these commercial channels include the shift to off-premise as takeaway and delivery continue to grow and expand.

Menus were reduced in size in 2020 to cope with Lockdown but some operators report a move back to more complete menus. However there have been supply chain issues here, reports Bord Bia. Technology has been an enabler for increased sales and many operators have apps or mobile ordering solutions enabling a more seamless ordering process.

“Beyond this, kiosks are appearing

“Coffee shops saw an increase in trucks and horseboxes and a number of operators worked to develop mobile solutions to bring their food to consumers outside the restaurant,” states the report.

in more Limited Service Restaurant sectors which reduces labour needs and allows some menu flexibility if necessary”.

With the restriction of indoor dining for much of 2020 into ‘21, operators invested more in outdoor dining spaces (particularly those who’d space, mostly outside city centres) and mobile units.

“Coffee shops saw an increase in trucks and horseboxes and a number of operators worked to develop mobile solutions to bring their food to consumers outside the restaurant,” states the report.

Consumer motivations/attitudes in Foodservice Bord Bia identified three different consumer motivations/attitudes that

have led to the currently prevailing views in the Commercial Foodservice sector: Out of Home Embracers - more female, mid-age groups and relatively well-to-do, “They’ve welcomed the resumption of foodservice with open arms and relish the sociability and experience of eating out once again. They represent four in 10 in the population.”

To balance this, we also see a group representing approximately one in four in the population: Out of Home Reluctants, typically older and less well-off, they don’t expect to return to ‘business as usual’. This is driven by nervousness, but also by changed habits and in reaction to cost increases.

The remaining four in 10 in the population, Homies, have continued to use home delivery to the same extent, even after restrictions eased.

They expect to continue to do so into the future and are likely to have younger children.

The majority of consumers (71%) prefer dining out to eating a takeaway at home yet at the same time the growth in takeaways driven

by Covid-19 restrictions is likely to continue, particularly amongst those with younger families according to Bord Bia. With a proliferation of new takeaway and delivery options and further exposure to ordering and delivery apps, takeaways are here to

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stay – 41% of adults say they’re likely to consume more takeaways in the future compared to pre-Covid-19.

Sustainability remains important too with almost half (45%) saying that in a post-pandemic world they’ll be more likely to choose options that are kinder to the environment, with packaging a key influence on this.

Meanwhile, the ‘Support for local’ movement appears to have been bolstered by the pandemic: half of all adults - especially those in the older demographic (57% over the age of 50) - are now more likely to choose a Foodservice option that supports local business and the community, found Bord Bia.

Critical Factors Facing Foodservice Over the last 18 months the industry has adapted to changing demands.

The report calls out eight Critical Factors facing the industry which are set to continue into the future: 1. ‘Big Three’ barriers to growth comprising supply chain challenges, labour shortages and higher prices/ inflation - all have the potential to hamper stronger growth in 2022.

Across all consumer groups there’s a recognition by eight in 10 that it has become more expensive to eat out now.

2. Ongoing restrictions - underlying consumer demand remains strong but full return to normality won’t occur until the public health situation allows.

3. Return of international travel while domestic demand helped sustain many segments of the tourism industry, it’ll struggle to reach full recovery until public health advice allows a return to full international travel.

4. Off-premise initiatives - even as the industry is allowed to re-open for dine-in, click and collect, “take-away drive-through offtrade initiatives” are critical to operator success.

5. Experience is increasingly important - consumers crave the experience of eating out and will increasingly be looking for something new, unique or different to drive their decisions.

6. Workforce remains unsettled consumers have yet to return to any type of ‘routine’ and a return

Certain segments of the market such as Limited Service Restaurants and coffee shops have been less impacted and will recover quicker in 2022 believes Maureen Gahan, Bord Bia’s Foodservice Specialist, “However others, such as restaurants, hotels, pubs and workplace catering will continue to be impacted not only by Covid-19 public health restrictions but also by other broader sector challenges”.

to the office and resumption of pre-pandemic activities remain unlikely in the short term.

7. Changing consumer priorities outside of Covid-19 protections, other priorities have an important bearing on choice of foodservice outlet. Healthier food choices, sustainability and ‘support for local’ will all play a greater role.

8. Future consumer demands - the future of Foodservice will not simply be a return to ‘business as usual’. Operators will need to embrace a changing consumer that has more choice in the range of options they can access and the means by which to access them.

“The Irish foodservice sector has shown itself to be incredibly resilient in the face of immense pressure and has successfully adapted to meet many of the challenges it has faced in the last 18 months,” said Bord Bia’s Chief Executive Tara McCarthy, “There’s no doubt that suppliers can play an important role in helping operators to navigate ongoing challenges facing the sector and we would encourage them to work collaboratively in helping to identify future solutions. This could include creating labour-saving products, providing transparency around environmental, sustainability and provenance messages, enhancing communications around supply

chain issues and developing new products that meet the needs of hybrid workers or delivery customers. It’s reassuring to see that for consumers, sustainability and supporting local remain important considerations in choosing foodservice options, trends that are also being reflected in some of our recent global consumer insight studies.”

Certain segments of the market such as Limited Service Restaurants and coffee shops have been less impacted and will recover quicker in 2022 believes Maureen Gahan, Bord Bia’s Foodservice Specialist, “However others, such as restaurants, hotels, pubs and workplace catering will continue to be impacted not only by Covid-19 public health restrictions but also by other broader sector challenges.

“These barriers to growth include labour shortages, supply chain disruption and rapidly rising inflation – all of which are complex issues being faced at a global level, which will require global solutions.”

Foodservice Seminar The findings of the report were shared with more than 500 delegates at Bord Bia’s virtual Foodservice Seminar from the RDS, Dublin, late last year. The annual event discusses emerging trends in the sector. n

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8 Consumers welcome technology in bars and restaurants

70% of Irish consumers want QR code table ordering to stay Research from Irish online ordering company Flipdish revealed that 70% of Irish adults wanted pubs and restaurants to continue offering QR code table ordering when Covid-19 restrictions were lifted.

As staff shortages worsened and Covid continued to hamper the recovery of the hospitality industry, technology has been key to the survival of many businesses.

Consumers welcomed technology in bars and restaurants as evidenced by the research from Flipdish.

Adults aged 18 to 24 (89%) and those aged 33 to 44 (82%) were the age groups with the highest preference for restaurants and bars to continue using this technology after the pandemic.

However, 68% of those aged 65 and over preferred restaurants and pubs to continue to use table ordering technology with the lifting of restrictions.

78% of women compared to 60% of men preferred this technology to remain.

Only 1% of adults aged 18 to 24

preferred to order drinks at the bar over Christmas compared to 9% of those aged 25 to 34.

Staff shortages and scheduling

68% of those aged 65 and over would prefer restaurants and pubs to continue to use table ordering technology when restrictions are lifted.

Of those surveyed who’d used QR code table ordering technology 11% said it had alleviated staff shortages, stated Flipdish, adding that many restaurant, bar and hotel owners have embraced digital ordering as a way of keeping staff off the phone and in the kitchen, helping to prepare meals or serve in-house customers.

“QR code table ordering and digital kiosks keep staff and customers safe while also encouraging innovation within the business,” stated Flipdish, “By removing the barriers of traditional print menus, restaurant and bar owners are encouraged to constantly revamp their menus, trial promotions and alter prices.

“Digital kiosks are emerging as a powerful way of creating an

environment for employees that feels more controlled. They also make a lot of commercial sense.

Flipdish data shows that digital kiosks can reduce wait times by nearly half (49%), increasing table turnover for commercial value.”

What’s more, customers spend on average 30% more per order using kiosks, it found.

Supported by tech-like website and app ordering, QR codes and digital kiosks, business owners can focus on creating a safe, clean and secure working environment for staff, as well as paving the way ahead for transformational changes the industry needs, believes Flipdish.

8 Stout tends to be popular during colder Autumn and Winter months

Food pairings to enjoy for International Stout Day International Stout Day last November saw the Irish Stout sector encouraging everyone to toast their favourite stout.

Stout tends to be popular during the colder Autumn and Winter months and is perfect to pair

To mark International Stout Day, Drinks Ireland|Beer had a range of food suggestions that can be paired with stout.

with a range of different hearty comfort foods according to Drinks Ireland|Beer, which represents Irish beer producers.

A stout pairing To mark International Stout Day, Drinks Ireland|Beer had a range of food suggestions that can be paired with stout: • Szechuan Chinese Kung Pao Chicken • Loin and mushrooms and a cherry sauce • A platter of oysters • BBQ dark meats covered in creamy and rich sauce • Coffee and dark chocolate desserts

As the brewing sector moved towards recovery in the latter half of 2021 more stout products came onstream - even some nonalcoholic variants.

“With hospitality venues now open Irish stout-makers are looking positively to the future,” says the Head of Drinks Ireland|Beer Jonathan McDade, “We’d encourage everyone to raise a glass of their favourite Irish stout to celebrate International Stout Day. Irish stout continues to be hugely popular both at home and abroad and while the sector was hit hard

by Covid-19, 2020 saw 466 million litres of stout being brewed in Ireland.” n

22 Global Alcohol Beverage Industry M A I N S T O RY

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Key 2022 trends

IWSR analyses the key drivers that it believes will shape the global beverage alcohol market landscape in 2022.

S

hipment costs and delays, container shortages, higher packaging costs and rising energy costs continue to dog the world’s alcohol beverage market.

But beverage alcohol has proven to be one of the most crisis-proof consumer goods categories at a time of significant disruption according to IWSR Market Analysts through a number of beverage alcohol reports.

Soaring inflation and a changing political landscape have contributed to the recruitment challenges in the hospitality sector states IWSR. In the US, for example, inflation hit its highest level in 40 years last November, up 6.8%, while supplychain and recruitment struggles in the UK continue to be impacted by the fallout from Brexit.

Despite all this, consumers are increasingly comfortable returning to the on-trade, especially the Millennial and Gen X cohorts.

However e-commerce has developed into a sophisticated and nuanced sales channel too, with digital engagement becoming a crucial part of the customer journey. As e-commerce grows in strength alongside the ontrade, structural long-term changes to the off-trade will present a very different beverage alcohol market landscape in years to come.

With consumer behaviours continuing to shift and guide market strategies and product innovation, here are the key trends driving the beverage alcohol market landscape in 2022 according to IWSR.

Emergence of non-traditional luxury categories Although ‘international status spirits’ (spirits, excluding Baijiu, sold at $100 and above) suffered declines in 2020 at a rate that exceeded that of the

Companies are no longer selling products to groups of consumers but are selling products that fit particular consumption occasions, states IWSR.

total global spirits market, IWSR expects a bullish rebound in line with the previous growth levels of 2014 to 2019.

Future category growth will be underpinned by increasing levels of wealth and new market entrants – especially in Asia and the US. IWSR consumer research shows that 39% of urban affluent Chinese alcohol drinkers said they’d spent over 500 Chinese Renmimbi (approximately $79) on a bottle of alcohol to drink at home in the first half of 2021.

As new consumers enter the market, a key disrupter to the current international status spirits landscape is segment diversification and the emergence of niche status categories such as Agave-based spirits, Irish whiskey, US whiskey and Japanese whisky - which all registered absolute growth in 2020.

‘Substituters’ vs ‘Blenders’: moderation choices driven by consumption occasion No- and Low-alcohol products are becoming more approachable for consumers, being increasingly accepted as a lifestyle and societal norm. Channels solely dedicated to selling alcohol-free drinks for adult occasions are also on the rise, with dedicated e-commerce sites, retailers and bars coming to market.

A distinction in how and when consumers choose No- versus Lowproducts is becoming increasingly evident too. Across key markets, the majority of NoLo consumers can be

identified as ‘Substituters’ – those who use NoLo products in place of fullstrength for certain occasions.

IWSR’s consumer research shows that in the UK, for example, 40% of NoLo consumers are ‘Substituters’ with Legal Drinking Age Gen Z and Millennials more likely (46% and 41% respectively) to substitute than Boomers (36%).

LDA Gen Z and Millennials in the UK are also more likely to be ‘Blenders’ where they switch between NoLo and full-strength on the same occasion.

A similar trend can be seen in other markets such as the US. Tapping into No-alcohol occasions, new technologies are also enabling producers to launch alcohol-free products offering mood-enhancing or functional benefits, many with ingredients such as CBD, nootropics and adaptogens. These focus on how ingredients will make consumers feel and are seen as an alternative way to enjoy traditional alcohol occasions – tapping into health-conscious (and stressed-out) consumers.

e-commerce landscape becomes more nuanced as sub-channels blur The value of e-commerce increased by almost 43% in 2020 across 16 key markets, up from 12% in 2019.

IWSR data shows that by 2025 e-commerce in these markets could represent about 6% of all off-trade beverage alcohol volumes compared to less than 2% in 2018.

As e-commerce alcoholic drinks

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sales develop, the number of retailers is increasing and the range of business models they employ is becoming more diverse and nuanced.

Distinctions between different e-commerce channels and even between online vs offline purchasing, are becoming increasingly irrelevant to consumers.

This is leading to a blurring of lines between online sales channels. For example omnichannel retailers are establishing logistics partnerships with on-demand services to offer faster delivery; on-demand platforms are using ‘dark stores’ to improve delivery times and so become more like marketplaces; and marketplaces are establishing networks of physical stores.

A more sophisticated homepremise impacts the return of the on-trade Changes in living location, work commutes and hybrid working policies mean that consumers are spending more time at home and in local ontrade venues. As such, IWSR findings indicate that Premium consumption may potentially shift, to some extent, from the on-trade to the homepremise.

As consumers return to the ontrade, their experiences will be shaped by the last two years of their Premium at-home experiences such as at-home cocktail-making and subscription services.

Consumers will therefore be more conscious of higher prices and more easily deterred by poorer quality products or experiences in bars, pubs and restaurants.

IWSR also expects brand-owners to be more selective in where they support their brands in the on-trade, likely increasing focus on the top-end and most active on-trade accounts.

Early signs of Premiumisation in RTD category New RTD launches coming to market have a higher representation of Premium-and-above products than volumes consumed in 2020, suggesting a trend towards Premiumisation. This marks a clear diversion from RTD innovation so far, with the vast majority of the global RTD category currently sitting within the standard-and-below price bands.

The move towards Premiumisation will appeal to spirits and wine brandowners as most of the value growth

within the broader spirits and wine categories over the past decade has come from the Premium-and-above segment.

While flavour is the primary purchase driver for RTD selection by consumers in key markets, alcohol base (as well as cocktail type) are also significant motivating factors, with consumers more likely to perceive spirits-based products as being of higher quality.

Spirits-based RTDs already dominate the category in most key markets apart from Mexico and - most notably - the US, where malt-based RTDs dominate.

Although spirits-based RTDs hold a minority share in the US, their small volumes are driving the development of a Super-Premium segment – the first to be seen across the global RTD landscape.

Diversification as category lines blur People are switching with increasing frequency between beverage options or trialling completely new beverages. IWSR research shows a wide repertoire of product trial with consumers showing strong interest in trying craft beer, Hard Seltzers, wine and Japanese whisky.

Drinks companies are responding by moving into previously unexplored categories to diversify their portfolios and in some cases proactively plan for the softening or decline of existing core brands and/or categories.

Diversification also better positions beverage alcohol categories to address changing consumer tastes and the blurring of lines between traditional soft drinks and alcohol, or alcohol-adjacent products such as CBD and other enhancements.

Companies are no longer selling products to groups of consumers but are selling products that fit particular consumption occasions. Having a wider portfolio allows them to be more exhaustive in their approach, better understand the adjacent and competing categories and use smallscale investments to learn more about new products and occasions.

Clear commitments to sustainable practices Sustainable packaging solutions have been at the top of corporate and social responsibility agendas in the drinks industry for many years. But concerns around climate change have

MAI N ST ORY

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been growing in intensity, especially following events such as Cop26.

Influential figures across the industry, as well as consumers, are increasingly looking for drinks companies to show a clear commitment to sustainable practices.

For example IWSR’s consumer research shows that 48% of US alcohol-drinkers say their purchase decisions are positively influenced by a company’s sustainability or environmental initiatives, rising to 70% of urban affluent Chinese alcoholdrinkers and 72% among Brazilian alcohol-drinkers.

Solidarity with local brands and businesses has also been a key trend during the pandemic and is one that’s closely associated with the consumers’ sustainable mindset.

Shaky international supply chains and relative price were not the only drivers of this trend: in many cases consumers reported they also wanted to ‘do their bit’ for the local economy.

Building on this crisis response, local brands may hope to reinforce their status for the long term by emphasising sustainability, quality and community values.

External pressures Factors beyond consumer demand continue to impact production and route-to-market for the global beverage alcohol industry.

Rising packaging costs, container capacity and other supply-chain issues, inflationary pressures and environmental change will impact some suppliers significantly. Some companies may therefore need to be more tactical and adjust some of their near-term market and brand strategies to adapt to the economic and operating environment.

Brand-owners should also be conscious of false positives witnessed through 2020 and 2021 that will revert to previous historical trends, especially as international travel resumes.

Particularly for Premium beverage alcohol, the past two years saw a marked shift in where products were purchased – a trend that may reverse as the market normalises.

As such, purchasing spikes seen in domestic markets throughout 2020 and 2021 will likely face some downwards correction going forward concludes IWSR. n

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8 Growth in e-commerce beverage alcohol value to be led by US

Alcohol e-commerce to grow by 66% to 2025 Over the next five years, total e-commerce sales of beverage alcohol across key global markets are expected to grow by 66%, reaching more than $42 billion, according to a comprehensive e-commerce strategic study published by IWSR Drinks Market Analysis, the global leader in alcohol data and analysis.

The IWSR research shows younger Legal Drinking-Age consumers driving a shift from ‘traditional’ e-commerce channels to more ‘modern’ app-led online platforms.

Among the 16 focus markets examined in the report (Australia, Brazil, Canada, China, Colombia, France, Germany, Italy, Japan, Mexico, Netherlands, Nigeria, South Africa, Spain, the UK and the US), e-commerce value increased by about 12% in 2019 and then by almost 43% in 2020 during the height of the pandemic.

Looking ahead to 2025, e-commerce is projected to represent about 6% of all off-trade beverage alcohol volume sales compared to less than 2% in 2018.

IWSR forecasts that the greatest growth in e-commerce value will come from the US thanks to average annual growth in the country of about 20% which will see it become the top global market for online beverage alcohol.

China, which currently accounts

for a third of total e-commerce value, is expected to expand less rapidly but still contribute substantial value.

The IWSR study also found consumers increasingly shifting between channels and retailers according to their specific needs at any given time.

By 2025 e-commerce is projected to represent about 6% of all global off-trade beverage alcohol volume sales compared to less than 2% in 2018.

In general terms, the online beverage alcohol space can be perceived as two distinct but overlapping worlds: more ‘traditional’ e-commerce – often omnichannel or online specialists – accessed via websites and used by older consumers seeking good prices and known brands, who’re prepared to wait for delivery; and more ‘modern’ app-driven e-commerce – often on-demand or marketplaces – used by younger LDA consumers willing to pay for rapid delivery and looking for interesting/premium brands.

“Given the pandemic and overall

changing consumer shopping behaviour it’s certainly not surprising that alcohol e-commerce is growing very quickly,” says Guy Wolfe, Strategic Insights Manager, IWSR Drinks Market Analysis, “But what’s interesting is to see the significant variations that have developed both across and within markets in how different consumer groups shop via e-commerce and what their priorities are. “e-commerce has clearly become engrained for many consumers, cementing its place as the third sales channel for beverage alcohol purchase.”

IWSR found that around onequarter of alcohol drinkers across the globe report buying alcohol online, with two-thirds having made their first purchase pre-pandemic.

China has the highest proportion of online shoppers among all beverage alcohol buyers at nearly 60% and the US has the highest proportion of online buyers who made their first purchase during the pandemic (54%).

In most markets wine is the largest major alcoholic drinks category in e-commerce (representing about 40% of total e-commerce value), with notable exceptions being China, Colombia, Mexico and Nigeria, where spirits lead online sales by value.

8 Takehome alcohol values down 5% this Christmas

Consumers chose less boozy Christmas The growth in NoLo sales, coupled with the strong growth in soft drinks indicates that many Irish consumers chose to have a less boozy Christmas this year.

Despite Omicron, many people returned to the pubs this Christmas and as a result Takehome alcohol sales saw

value decline by 5% compared to Christmas 2020, reports NielsenIQ. Lager sales were the main driver of this decline with consumers spending

€6 million less this Christmas versus Christmas 2020 with Champagne & Sparkling wine sales down 3.8%.

NoLos represented the only growth segment in the alcohol market, with sales up 26% compared to Christmas 2020.

The growth in NoLo sales, coupled with the strong growth in soft drinks indicates that many Irish consumers chose to have a less boozy Christmas.

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DRINKS INDUSTRY IRELAND | January/February 2022

Unemployment Payment between March 2020 and the 29th of August 2021 were employed in Accommodation and food service activities.

Many economic sectors experienced falls in employment throughout 2020 but the largest percentage decreases were in Accommodation & food service activities, with falls of 39.1% in the year to Q2, 22.4% in the year to Q3 and 30.4% in the year to Q4, according to the report.

CSO Statistician Brian O’Mahony pointed out that Accommodation & Food Service Activities had close to a third fewer employees.

The figures for employment in the Accommodation and Food Services sector show that Quarter 1 of 2021 saw employment fall to 100,200 from 169,500 in Q1 of 2020 and 174,900 in Q1 of 2019.

Q2 of 2021 saw a rise in employment in the sector to 120,900 from 110,100 in Q1 of 2020. In Q2 of 2019 this figure stood at 180,800.

Taking Q3 of 2020, employment in the sector stood at 137,200, down 22.4% on 2019’s Q3 figure of 176,700.

And at 124,600 2020’s Q4 figure for employment in the sector was 30.4% down on 2019’s 179,000.

In Q1 2021, there were 40.9% fewer

OFF-T RADE DEVEL OPMEN T S

people employed in this sector compared with one year earlier, but in Q2 2021 there was a rise of 9.8% in the numbers employed compared with the second quarter of 2020.

Hours worked The Accommodation & food service activities sector experienced the highest percentage fall in total number of hours actually worked in each quarter of 2020 when compared with 2019, states the report.

This coincided with declines in employment numbers recorded in the sector throughout 2020. At 1.696 million hours, the total number of hours actually worked per week in the sector was 2.7 million hours less or 61.5% fewer in Q1 2021 than Q1 2020 and 3.4 million (66.5%) less than Q1 2019. Some signs of improvement were evident in Q2 2021 with 1.5 million additional hours worked per week in comparison with Q2 2020, an increase of almost 125%. However, this was still just over half the number of hours worked per week in the same quarter prepandemic (2019) for this sector, states the CSO. But the effects of the pandemic were not uniformly experienced.

Those who remained in

8 Third year in row that global wine production below average

2021 - another record low for global wine production Last year’s global wine production volume is expected to be extremely low - estimates put it down 4% on the previous year - at a level not seen since 2017, predicts OIV, the international Organisation for Vine & Wine.

This would make 2021 the third year in a row that global wine production has been below the average.

Speaking at the OIV’s headquarters in Paris by web conference Director General Pau Roca recently presented the first estimates for 2021’s world wine production.

The OIV anticipates low production volume in the EU, notably in Italy, Spain and France, which altogether lost about 22 million hectolitres compared to 2020 due to that late Spring frost and generally unfavourable climatic conditions.

In France, for example, the 2021

harvest is likely to result in some 34.2 million hectolitres in total, 27% down on 2020.

At 35 million hectolitres, Spain’s 2021 harvest is likely to be down by 14%. The only large EU wine-producing countries that recorded larger harvests than 2020 were Germany, Portugal, Romania and Hungary.

But first harvest forecasts in the US indicate production volumes slightly above those of 2020.

US & Southern Hemisphere yields It has also been a very positive year for Southern Hemisphere vineyards where relatively favourable climatic conditions led to record high production levels in South America, South Africa and Australia. New Zealand was the only exception to this.

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employment in this sector received higher hourly earnings from Q1 2019 to Q1 2021, with average hourly earnings of €15.63 in Q2 2021 compared with €13.29 two years previously.

In 2020 average hourly earnings in this sector increased by €2.41 (18.1%) in Q2, €2.01 (15.0%) in Q3 and €1.99 (14.6%) in Q4 compared to the same quarters one year previously.

Average hourly earnings in Q1 2021 were €2.32 higher than in the same quarter in 2020 and €2.78 more than the same quarter in 2019.

However, there was a fall of seven Cent in average hourly earnings in Q2 2021 compared with Q2 2020 at a time when the numbers working in the sector were rising quickly.

Government supports Over one in five (22.7%) PUP claims between March 2020 and the end of August 2021 were from people employed in Accommodation & food service activities. This sector was heavily reliant on Government income supports and accounted for 28.8% of EWSS and 16.8% of TWSS supports.

This sector also had the largest percentage drop in hours worked per week in 2020 compared with 2019.

The higher-than-average harvests in the Southern Hemisphere vineyards are unlikely to make up for the loss in yields of the world’s biggest wine producers overall, states the OIV.

Wine production in Australia and Chile increased by around 30% in 2021, to 14.2m hl and 14.4m hl respectively, while US production will likely be up 6% to 24.1m hl.

However the higher-thanaverage harvests in the Southern Hemisphere vineyards are unlikely to make up for the loss in yields of the world’s biggest wine producers overall.

Furthermore, New World and Old World Wines are likely to be further adversely affected by the huge hike in transportation costs as global supply chain pressures continue to build. n

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Jack Teeling and William Lavelle present the Irish Whiskey of the Year Award to Ally Alpine for Celtic Cask 1999 - Tríocha a Cúig - 35.

Celtic Cask 35 Irish Whiskey of the Year Eighth Irish Whiskey Awards held in Powerscourt Distillery, Enniskerry

C

eltic Whiskey’s Celtic Cask 1999 - Tríocha a Cúig-35, won this year’s Best Irish Whiskey of the Year title at the 2021 Irish Whiskey Awards, just pipping a Gold medal-winning Dunvilles 18 Year-Old Single Cask to the post.

This year’s Awards again honoured emerging and established Irish whiskey producers and took place late last year at the Powerscourt Distillery in Enniskerry, County Wicklow.

The evening began with a distillery tour and drinks reception hosted by the Powerscourt Distillery’s co-

founders and team.

Keynote speaker Jack Teeling, Founder and Manager of Teeling Whiskey, presented the awards, now in their eighth year.

Premiumisation a sales driver

He pointed out that the first Irish Whiskey Awards had been held in 2013, attended by around 30 to 40 people. This year’s attendance of over 110 was testament to the growth in appreciation for quality Irish whiskey.

Just five years after his father John Teeling addressed a previous Irish Whiskey Awards

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DRINKS INDUSTRY IRELAND | January/February 2022

ceremony, Jack spoke of the need for distillers to get local support for their operation.

Whiskey sales in 2020/21 had stayed level and he hoped that sales would be back on track by the end of 2021.

Premiumisation was one of Irish whiskey’s sales drivers, a trend that’s set to continue as is the case elsewhere with Tequila, white spirits and gin, he said.

Long-term, he saw a cyclical uptrend emerging for Irish whiskeys with growth coming from the value end.

Now producers need to focus on adding to the Irish whiskey category as it expands into “the premium space occupied by Scotch, American and Canadian whiskies”.

Judging

Later, the Head of the Irish Whiskey Association William Lavelle told those in attendance that the winning whiskey from Celtic Whiskey “had got the highest score from all 56 judges and was therefore the ‘undisputed champion’”.

Judging of this year’s Awards took place earlier in the Summer when organisers Celtic Whiskey posted out several hundred blind-tasting packs to members of the Celtic Whiskey Club, the Irish Whiskey Society - Dublin and Dingle, the Cork Whiskey Society, the Waterford Whiskey Society, the Kilkenny Whiskey Guild, the Ennis Whiskey Club, the 1875 Whiskey Club and the Belfast Whiskey Club.

All results were audited and verified

by William Lavelle and Serghios Florides, owner and editor-in-chief of Irish Whiskey Magazine.

Commenting on the awards, Organiser Ally Alpine - Managing Director of Celtic Whiskey Shop and Organiser of Whiskey Live Dublin said, “We’re delighted to celebrate the excellence and innovation in the Irish Whiskey industry this evening, all whilst raising funds for our incredible charity partner Mary’s Meals.

Tonight’s event will feed 572 pupils at Kapatamoyo school in Zambia every day for a year.”

Mary’s Meals - www.marysmeals. ie - feeds two million children every day whilst ensuring that they attend school. Tickets for the awards were priced at €60 and all proceeds from the night help sponsor the school.

Drinks Industry Ireland magazine is the event’s media partner as it has been for many years and key sponsors include the Irish Whiskey Association and Tuath Irish Whiskey Glass.

The Awards span 12 categories.

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Overall Winner - Irish Whiskey of the Year 2021 Best Irish Whiskey of the Year – Celtic Cask 1999 - Tríocha a Cúig-35 CATEGORIES: Single Pot Still 11 and Under Winner: Method & Madness Single Pot Still French Chestnut Gold: Busker Single Pot Still Gold: Teeling Single Pot Still Single Pot Still 12 Year and Over (only two entrants) Winner: Powers Johns Lane Gold: Redbreast 12 Year-Old Blended Limited Release Winner: Writers’ Tears Inniskillen Icewine Cask Finish Gold: Dubliner Old Fashioned Beer Cask Gold: Eiregold Special Reserve Blended No Age Statement Winner: Jameson Black Barrel Gold: Sailors Home The Journey Gold: The Irishman Founder’s Reserve Rum Finish Blended With Age Statement Winner: Jameson Bow Street 18 Year-Old Gold: Pearse 7 Year-Old Distillers Choice Gold: Tullamore DEW 12 Year-Old Single Malt 11 and Under Winner: The Irishman Single Malt Marsala Cask Finish Gold: Writers Tears Red Head Gold: Jack Ryan Haddington Single Malt 12-15 Years Old Winner: Gelston’s 15 Year-Old Sherry Cask Gold: Method & Madness Single Malt Gold: The Irishman 12-Year-Old Single Malt Single Malt 16 Years and Over Winner: The Irishman 17 Year-Old Single Malt Gold: Tullamore DEW 18 Year-Old Gold: Dublin Liberties Keepers Coin Batch 2 Single Grain Winner: Teeling Single Grain (Vintage 13 Year-Old) Gold: The Bridge Bethlehem Release Gold: Method & Madness Single Grain Single Cask Winner: Celtic Cask 1999 - Tríocha a Cúig - 35 Gold: Dunville’s 18 Year-Old Cask 989 Gold: The Irishman Peated Red Ale Cask Cask Strength Winner: Dunvilles 12 Year-Old PX Cask Strength Gold: Redbreast 27 Year-Old Gold: Writers’ Tears Cask Strength 2021 New Irish Whiskey Winner: Shortcross Single Malt Gold: Connacht Whiskey Single Malt Gold: Teeling Black Pitts >>

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I ND U S T RY RE PORT

January/February 2022 | DRINKS INDUSTRY IRELAND

Stouts & Ales -

an increasingly competitive market Always under pressure from their big brother lager, the market for stouts and ales has taken to broadening its appeal by innovating and even food pairing. As a result of innovations from both international and small craft brewers, today a variety of ales and stouts are available to the on-trade. We take a look at some of the stouts and ales in this increasingly competitive market.

S

ome 9.8% of all alcohol consumed in Ireland is stout according to Drinks Ireland|Beer, the ibec representative body for Irish beer producers. But this figure had been 13% before the pandemic when beer sales slumped and stout’s market share fell in 2020.

Traditionally, stout would have represented about 33% of all on-trade beer sales. This dropped to 25% in 2020 stemming from the fact that most stout is consumed in pubs and bars. This is emphasised by the fact that 2020’s on-trade share of the stout market was 43.3% while that of

the off-trade was 56.7% according to Drinks Ireland|Beer.

So that would give Stout’s on-trade sales a market share (by volume) of 4.3% of the total alcohol market in 2020, believes Drinks Ireland|Beer’s Jonathan McDaid.

Traditionally too, Stout has been an

DRINKS INDUSTRY IRELAND | January/February 2022

Autumn/Winter seller - especially in the on-trade. But brewers have been working towards creating demand for stout as an all-yearround product.

Sales

During the pandemic IWSR believes that stout and ale sales fell by over 40% here.

Off-trade sales of stout are worth over €100 million while Ale sales top more than €50.5 million here according to NielsenIQ’s Scantrack which covers specialist off-licences as well as the multiples (including Dunnes Stores) and discounters, symbol groups and forecourt traders.

Stout makes up 10.2% of the off-trade’s Long Alcoholic Drinks sales whilst ale accounts for 5.2% according to NielsenIQ which points out that total LAD sales (Beer and Ready-To-Drink) declined by 2.6% in the latest 52 weeks to the 2nd of January 2022. However both stout and ale are performing ahead of LAD sales with year-on-year value growth up 4.3% and 10.7% respectively.

Looking at a shorter time-frame, in the latest four weeks ending on the 2nd of January, at 1.9%, stout has maintained growth but ale has fallen behind the average growth for the year, declining by 11.6%.

Stout maintained its share gain in the LAD category throughout the year.

Jonathan McDade also points out that as the brewing sector moved towards recovery in the latter half of 2021 more stout products came onstream – even some nonalcoholic variants.

“With hospitality venues now open, Irish stout-makers are looking positively to the future,” he said on International Stout Day last November.

“Irish stout continues to be hugely popular both at home and abroad and while the sector was hit hard

by Covid-19, 2020 saw 466 million litres of stout being brewed in Ireland.”

In 2020, stout was responsible for 66.5% of total beer production here, up by 2.1 percentage points from 2019, but stout also makes up a significant part of Ireland’s beer exports which were responsible for €246 million last year.

Between January and September consumption fell by almost 15% compared to 2019. And looking specifically at Q3, which covers July to September, it was down by 17.2%.

Innovation

Innovation in the stout market has been a key driver of growth in 2021; Heineken launched Islands Edge and Guinness launched Nitrosurge.

New product development has therefore been successful for this category.

And restrictions in the hospitality industry may have benefitted the stout market. Because stout was such a large proportion of on-trade sales there are many pub drinkers who hadn’t drunk stout at home but have since converted to drinking cans of stout, NielsenIQ points out, adding, “Clever innovations and strong marketing strategies have helped to embed stout consumption in the off-trade”.

The annual growth in ale sales has been driven by increased volumes and increases in average price per litre (up 3.4%); this is reflective of the change in legislation which came into effect in January 2021 prohibiting multibuy offers on single units and driving sales into multipack offerings.

Multi-pack formats have been a key driver for traditional big brand Irish ales states NielsenIQ.

Island’s Edge proving refreshing for consumers

Heineken Ireland’s newest stout is proving itself to be refreshing for Irish consumers since its launch last year as Island’s Edge continues its roll-out across Ireland. The innovative addition to the stout category aimed at 28 to 35 year-olds is giving choice within stout and is proving popular with consumers

PJ Tierney Master brewer, Heineken Ireland.

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who appreciate its distinctive taste.

Island’s Edge was almost two years in development in Heineken Ireland’s Leitrim Street brewery in Cork, with the team testing more than 100 brews before settling on a product which involves adding a new hero ingredient, brand new to stout - tea - to the process to reduce bitterness and deliver a smooth, refreshing taste.

“We’re delighted to see Island’s Edge so strongly welcomed by publicans and pub-goers across Ireland,” said Aisling O’Brien, Ontrade Channel Manager at Heineken Ireland, of the launch, “Consumers love its uniquely refreshing taste and are excited to have new choice in the stout category.”

Island’s Edge is now available in 700 outlets nationwide, with a further roll-out and an extensive marketing campaign planned for 2022.

O’Hara’s Irish Stout /Red Nitro

O’Hara’s Brewery successfully launched the first in its Nitro range in can with the release of its Irish Stout Nitro in 2021. It allowed the team at the Carlow-based brewery to fulfil a longstanding ambition, with Chief Executive Seamus O’Hara commenting, “This is something we’ve wanted to do for a long time and we’re delighted with the result”.

The widget technology used in the Irish Stout Nitro allows consumers to experience the same brilliant cascading effect and smooth creamy head as a draught pour.

They’ll recognise the same great flavours of O’Hara’s Irish Stout with

DRINKS INDUSTRY IRELAND | January/February 2022

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8 Writers’ Tears stages Programme of Celebrations across 2022 for Ulysses Centenary

Writers’ Tears honours Ulysses Centenary The first event of the Writers’ Tears Ulysses Centenary Programme took place recently on the Centenary of Ulysses’ first publication, the 2nd of February 1922.

A free 7pm Facebook Live reading from a 1st Edition copy of Ulysses owned by Walsh Whiskey Co-founder Bernard Walsh took place at Sweny’s Pharmacy, Lincoln Place, Dublin.

Following the author’s own visit to the pharmacy in 1904, Sweny’s features prominently in Episode 5 of Ulysses.

And Writers’ Tears announced plans to release special limited edition collectors bottling of its Writers’ Tears-Copper Pot expression to celebrate the Centenary of James Joyce’s celebrated novel. The bottle design features a well-known location

and chapter from Ulysses.

A rare blend of Single Pot Still and Single Malt whiskeys Writers’ TearsCopper Pot is inspired by the golden era of Irish whiskey, pot still distillation and the creative thinkers and artists that define Irish culture, particularly those of the 19th and 20th Centuries.

The brand has undertaken a yearlong programme of events, online and in-person, where patrons of the Irish whiskey can join others in celebrating and gaining insights into what many consider to be the greatest novel of the 20th Century.

“Ulysses is a global treasure, not just a national one” said Bernard in announcing the Programme, “and we invite everyone to explore and enjoy it, page-by-page, with us.”

Creator of Writers’ Tears Bernard Walsh at Sweny’s Pharmacy, Dublin – a location in Episode 5 of Ulysses – The Lotus Eaters.

8 New bespoke bottle design introduced across range

Irishman rebrands The Irishman range of Super Premium whiskeys produced by Walsh Whiskey (now part of the Amber Beverage Group) has undergone extensive rebranding.

The €500,000 rebrand sees wholesale changes to The Irishman’s bottle, labelling and packaging following a strategic review commenced in April 2020.

Bord Bia’s specialist insight centre The Thinking House assisted Walsh Whiskey in the review which involved research, commissioning new bottle and brand designs, packaging production and a range of marketing initiatives to double sales across over 50 markets within five years.

“As the Irish whiskey category continues to develop with increasing variety, it’s important that we’re clear in our proposition to whiskey consumers,” explained Walsh Whiskey Co-founder Bernard Walsh, “Our message is simple: The Irishman will always be Single Malt-focused – whether championed in pure expressions or blends – and that it will always be triple-distilled to leave a lasting impression.

The most striking change in the rebrand sees the introduction of

addition of a a bespoke, tall, limited-edition tapered bottle. to the core All expressions in portfolio. the range are now This sealed with a cork, expression, a affirming their Super truly unique Premium nature. blend of two The rededication Premium styles and rebrand in of whiskey, honour of Single started life as Malt whiskey began the first-ever in Ireland (including whiskey created Dublin Airport) and

by Bernard. will be rolled-out First released across Europe and as a limitedNorth America from edition bottling April onwards and The €500,000 rebrand sees wholesale in 2018, The to the rest of the changes to The Irishman’s bottle, labelling Irishman world in the second and packaging following a strategic review commenced in April 2020.

Caribbean Cask half of 2022. is being added Other unique and to the portfolio’s core expressions notable features of the new labels are which include The Harvest; Single Malt; the addition of braille for the visually12 Year-Old Single Malt; 17 Year-Old impaired and nutritional/calorific Single Malt & the Vintage Cask. information on e-labels on the back of The Irishman Caribbean Cask Finish the pack and online. is a rare vatting of Single Malt and There are also changes to the Single Pot Still whiskeys finished for composition of the range, with six months in Chairman’s Reserve Rum a change of name for one core casks from the tiny tropical Caribbean expression - the Founder’s Reserve island of Saint Lucia before being blend (70% Single Malt & 30% Pot bottled at 46% ABV. Still), renamed The Harvest - and the

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8 Boann picks up Best Brand Innovator 2020

Boann wins Whisky magazine’s Best Brand Innovator Boann Distillery has won a top Whiskies Awards last prize at Whisky magazine’s April.

2022 Icons of Whisky (Ireland) “Weeks earlier we Awards. won six prizes in the At a ceremony in Dublin’s national category Iveagh Gardens recently Peter of the same awards Cooney of the Droghedaincluding Gold for based distillery collected our Whistler Bodega the award for Best Brand Single Malt (12 Years Innovator 2022.

And Under) and The family-owned distillery our Oloroso Sherry was recognised for its vintage Cask Finish (Blended mashbills campaign, recreated Whiskey), a Silver from long-lost distilleries of for the Single Malt the late 19th and early 20th Whistler PX I Love From left: Paddy Cooney with Peter, Founder Pat, James and Sally Anne celebrate the world’s Best New Make award earlier this year, Century.

You and two Bronze These mashbills were revived alongside Max the dog. awards for our as part of a collaboration important part in our development Whistler Calvados with historian and author Fionnan since they were distilled in December Cask Finished Blend and Whistler O’Connor who discovered them 2019,” said Peter, a Co-Founder of Mosaic (Single Grain). while completing his Technological Boann, “The recipes for our new The Whistler range is exported to University of Dublin thesis. single pot still ‘New Born’ spirit came more than 25 countries across the “The mashbills have been a out of the mashbills project and it world. groundbreaking development for went on to win the Best New Make the company and have played an and Young Spirit 2021 at the World

8 Uais and a new Clan Colla expression released

Ahascragh Distillers launches new whiskeys Ahascragh Distillers has launched two new releases into its Family Bond series.

In 2021 construction commenced on its new state-of-the-art distillery in County Galway. While waiting for the first drop of Ahascragh spirit, the company began its whiskey journey with the Family Bond series of handselected releases, Clan Colla Irish Whiskey and Xin Gin. The company is now finishing the year with a new whiskey brand, Uais Irish Whiskey and a new Clan Colla expression.

These special releases, although not distilled in Ahascragh, are partly matured, finished and blended by Gareth and Michelle McAllister and bottled in the village of Ballinasloe, County Galway.

Clan Colla – 20 Year-Old Cask Strength Single Malt uses American Bourbon Barrels and Italian Amarone Casks. The newest addition to the Clan Colla Irish Whiskey collection

Ahascragh Distillers has launched two new releases into its Family Bond series.

comprises a single cask release of just 300 bottles at cask strength, 55% ABV. This 20 Year-Old Malt was double-distilled in 2001 and has been carefully matured for 19 years in American Bourbon Barrels before being finished for one more year in

Italian Amarone casks.

Finishing in the Amarone cask elevates this remarkable whiskey to new heights of texture and flavour.

Uais Irish Whiskey, the triple blend, Ahascragh Distillers’ newest whiskey, is a unique blend of Pot Still, Single Malt and Grain Whiskeys, aged in Ex-Bourbon and Virgin Oak casks and named after Cairel Colla Uais - one of the famed Three Collas brothers who once ruled ancient Ireland.

Clan Colla Cask Strength Single Malt 20 Year-Old and Uais Irish Whiskey are available to pre-order now at Celtic Whiskey Shop.

Visit ahascraghdistillery.com for more #FamilyBond #ClanColla #UaisWhiskey #TheTripleBlend

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8 Single Barrel Irish Whiskey garners Whiskey Awards, expands internationally

Limavady named Best Irish Whiskey “The foundation for Limavady has been re-established and I couldn’t be happier with all the momentum behind it, both in the US – one of the world’s most exciting markets for Irish whiskey – and back at home in Northern Ireland,” says Darryl McNally, Master Distiller and Founder of Limavady Irish Whiskey.

Darryl, a descendant of Limavady Distillery’s 18th Century operators, is leading the revival in partnership with WhistlePig Whiskey, declaring a new era of Irish Whiskey with Single Malt quality and Single Barrel distinctiveness.

For additional information visit www.limavady.com and follow @limavadyirishwhiskey on Instagram, @limavadywhiskey on Twitter.

Limavady Single Barrel Whiskey has won a number of honours in the spirit industry’s leading competitions.

One of Ireland’s oldest whiskeys, dating back to 1750, Limavady made a remarkable comeback recently and is now celebrating four Gold Medals from the Beverage Testing Institute, Whiskies of the World, The Drinks Business and John Barleycorn Awards as well as being named ‘No1 Irish Single Malt’ by the Beverage Testing Institute and John Barleycorn’s 2021 ‘Best Irish Whiskey’.

Limavady will be launching in key international markets and expanding across the US and launching in key international markets this year.

In 2021, Limavady launched in Northern Ireland, California, Florida, Washington, Arizona and Colorado. In 2022, Limavady will launch in Texas, Illinois, Georgia and Maryland in February, as well as abroad, with the addition of Australia and the UK this Spring.

In 2022, Limavady will launch in Texas, Illinois, Georgia and Maryland in February, as well as abroad, with the addition of Australia and the UK this Spring.

8 Ha’Penny’s range of hand-crafted, small-batch distilled spirits captures flavours, stories and charm of Dublin

Ha’Penny Rhubarb Gin – a Country Winner Ha’Penny Rhubarb Gin took away the Country Winner award for Ireland at this year’s World Gin Awards with Ha’Penny Dry Gin & Míl Gin each taking a Silver medal.

Ha’Penny Rhubarb Gin is a distinctively pink small-batch pot-distilled gin featuring the finest Rhubarb Ha’Penny Rhubarb Gin - Country Winner for Ireland at this year’s World Gin Awards.

alongside 13 botanicals.

Initially fresh Rhubarb with a bright botanical mix, rounding to a pleasant classic resinous Juniper-forward gin, a silky palate accompanies a lingering crisp fresh Rhubarb finish - a wellrounded Irish gin to be enjoyed on the rocks.

Serve with Premium tonic and a wedge of Orange.

The Ha’Penny range of handcrafted, small-batch distilled spirits captures the flavours, stories and charm of Dublin using only the finest botanicals, inspired by the Victorian walled-garden of Dublin’s Phoenix Park.

Silver medalist Ha’Penny Dublin Dry Gin is also small-batch pot-distilled featuring 13 botanicals offering a Dublin-inspired unique flavour and

taste. Named after the iconic Ha’Penny Bridge, the gin features botanicals which would have been growing in the nearby Phoenix Park in Victorian times when the bridge was built.

Serve with tonic, a slice of Lemon and sprig of Mint.

The other Silver medalist, Mil Gin, is a full-flavoured Mediterranean gin made in Ireland, with Summer fresh citrus and subtle herb notes of Basil, Thyme, Rosemary and Piney Juniper on the nose. The taste is fresh, bittersweet with a clean citrus finish.

Serve with Premium tonic water, a wedge of Grapefruit and a Basil leaf.

www.drinksindustryireland.ie

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8 Micil among Irish ‘Country Winners’ at World Gin Awards

Micil Distillery - World Gin Awards’ Best Contemporary Irish Gin Micil Distillery ranked among the Irish ‘Country Winners’ at the recent World Gin Awards 2022, taking home the outright prize for Best Contemporary Irish Gin for its classic Micil Irish Gin. This follows previous medal wins at the San Francisco Spirits and World Gin Awards.

Micil Irish Gin is a luxury 42% ABV Connemara Gin made using 17 botanicals including four hand-picked Connemara flowers & herbs: bog bean, bog myrtle, Heather and Hawberry.

The botanicals are macerated in a hybrid copper pot still for 12 hours prior to distillation, remaining in the still throughout distillation, allowing for maximum extraction of oils and infusion of flavour.

Micil Distillery’s flagship gin was recently joined by Micil Spiced Orange Gin, a re-imagination of its classic gin

recipe, which sold 110,000 bottles to Craft Gin Club UK last October.

At just 30 years-of-age Head Distiller Jimín Ó Griallais has worked tirelessly since taking over the distilling reins at Micil. His talent and devotion to the distilling craft is an inspiration.

“We’re delighted to win at such prestigious awards, judged blind by our peers in the spirits industry and we hope our portfolio continues to be recognised for our flavour-forward style of production,” commented Micil Distillery Co-Founder Pádraic Ó Griallais, “We’re honoured to be compared alongside many of the other Irish winners who’ve been elevating the gin category in Ireland by distilling their own unique recipes of Irish Gin.” Micil - winner of Best Contemporary Irish Gin at the World Gin Awards.

8 ‘Why have zero craic, when you can have 0.0 craic?’

Heineken’s 0.0 Dry January 360 Marketing Campaign 1st of January with As a whole, 2021 has seen consumers winning a reduction in alcohol one of five prizes consumption for some worth €500 by consumer groups, according interacting with to new research carried out a 3D billboard on

by PR company Thinkhouse Dublin’s Macken and Bounce Insights.

Street.

This study showed a Heineken 0.0 growing number of Irish brand ambassador adults participating in this Lucy Kennedy year’s Dry January and launched the stunt indicated decreased alcohol on the day. consumption this year in “Heineken comparison with previous 0.0 is not just a years. It also found that solution for when 78% of people feel that you cannot drink there’s less of a stigma now surrounding not drinking at Heineken 0.0 brand ambassador Lucy Kennedy launched the stunt on alcohol,” said Mark the day, engaging with passers-by and handing out prizes.

Noble, Heineken 0.0’s social occasions. Over 70% Marketing Manager, of respondents said that It enlisted the help of interagency “It’s also perfect for socialising can be just as partners Honey+Buzz, Thinkhouse, those occasions when you just enjoyable when opting for alcoholRed Star and Talon Ireland. On the prefer not to drink alcohol.” free alternatives and 0% options. back of the research Honey+Buzz This campaign will help As a result of the research the developed a campaign around an springboard the brand into 2022, Heineken 0.0 Brand Team rolled insight of ‘Why have zero craic, he added. n out a campaign to kick-off 2022 when you can have 0.0 craic?’ and aimed at showing the nation that the Heineken 0.0 Brand Team held less alcohol doesn’t mean less a surprise and delight stunt on the craic.

42

C LO S I N G TIME

January/February 2022 | DRINKS INDUSTRY IRELAND

Jumped-up fine of £1,000 The seemingly infinite gap between politics and the people couldn’t have been more pronounced. At a time when Boris Johnson was drinking “at work” with his civil service colleagues “making the most of the lovely weather” in the back garden at No 10 Downing Street back in May 2020, others, who were truly working for a living, were scratching their heads.

Not least among them was a working publican in Wales, rapaciously fined £1,000 by the authorities when some of his customers leapt to their feet to celebrate a goal against Manchester City on the pub’s TV. Raymond Wellings, who runs the Minsthorpe Hotel near Pontefract, was fined £1,000 for breaking Coronavirus legislation in October 2020 because Leeds United fans in his pub reacted as fans usually do when their team scores a goal - they jumped up from their seats in celebration.

Unfortunately it happened just when council officials and the local constabulary were checking out the bar for compliance with Covid regulations.

Raymond Wellings of the Minsthorpe Hotel was fined £1,000 for breaking Coronavirus legislation in October 2020 because Leeds United fans in his pub reacted as fans usually do when their team scores a goal - they jumped up from their seats in celebration.

For failing to keep his customers seated, Raymond was hit with the fine.

Only a few months earlier Boris Johnson had attended a “bring your own booze” garden party in the back garden of No 10 attended by up to 30.

Raymond, who understandably describes May’s Downing Street shenanigans as “absolutely disgraceful”, said, “It’s one rule for the rich and another rule for the poor.

“It’s just ridiculous. And then they’re having cheese and wine and saying it’s OK. It’s just a complete farce the whole lot of it.”

Some £300 was raised to offset Raymond’s fine by the bar’s customers and he could have taken a court case against the authorities but could not risk losing more money “... especially with being closed and no money coming in”.

It’s believed that the UK hospitality industry has lost £81 billion in sales between April 2020 and April 2021, somewhat more than it took even to redecorate Boris’s boudoir....

Midleton Silent Distillery Chapter Two’s charity auction One of the rarest Irish whiskeys of its charity partners Down Syndrome in the world was up for grabs Dublin. recently through Celtic Whiskey “We’ve worked closely with Down Auction’s online event.

Syndrome Dublin for many years now Midleton Silent Distillery as the charity partner of our event Chapter Two|Lot 272 had a Whiskey Live Dublin but sadly due reserve of €40,000 and in the end to Covid-19 the event could not take it went for just that. place,” said Celtic Whiskey ShopLaunched in May 2021 owner Ally Alpine, founder of the and limited to just 70 bottles Celtic Whiskey brand, “Therefore we’d worldwide, the Single Pot Still hoped that any funds raised from this whiskey had aged over 46 years very special bottle of Midleton would and had captured the traditional help to make up for this.” signature style of the Old Celtic Whiskey Auction was Midleton Distillery originally launched in November 2018 and runs Midleton Silent Distillery Chapter Two|Lot 272’s guardianship has passed from Master Distiller to Master curated by Max Crockett, one of the largest monthly whiskey and Distiller until finally Kevin O’ Gorman saw this unique recently-retired Master Distiller spirits auctions in Ireland, featuring Irish whiskey reach the peak of its perfection.

Barry Crockett’s father. predominantly Irish whiskey and All profits (over the cost price) promising plenty of rare, collectible and unique Irish whiskey reach the peak of its were donated to Down Syndrome Dublin unusual bottlings. perfection. and on its journey this treasure passed And this was not the first time that Celtic Last Autumn’s Celtic Whiskey Auction, through many maturation stages including Whiskey Auction had teamed-up with Irish founded by Celtic Whiskey Shop on Bourbon, Sherry and Port casks before Distillers for a charity bottling. In July 2020, Dawson Street in Dublin City Centre, had finally maturing in a third-fill Bourbon cask.

Bottle Number 1 of Redbreast Dream Cask an allocation of one bottle of this rare Irish Its guardianship passed from Master 28 Year-Old Ruby Port was auctioned in whiskey. It auctioned this through its online Distiller to Master Distiller until finally aid of Mary’s Meals, raising funds to feed platform rather than sell it in-store in the Irish Distillers’ Kevin O’Gorman saw this children in impoverished parts of the world. hope of raising much-needed funds for one

“I had thought of handing back the award but that would mean that Stephen McGuinness would have got it!”

- Celtic Whiskey’s Ally Alpine, in accepting the Irish Whiskey of the Year Award for Celtic Cask 1999 - Tríochna a Cúig at this year’s ceremony in Powerscourt Distillery, Co Wicklow.

Licensed wisdom a collection of notable quotes

“Unfortunately, if this was a school report for the Government, it would be a disappointing one.”

-- Director of the Alliance for Insurance Reform Peter Boland in reviewing Government progress on multifarious insurance issues in 2021.

“By missing key timelines, the Government is in danger of turning an open goal into an own-goal.”

-- Director of the Alliance for Insurance Reform Peter Boland. n

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