Drinks Industry Ireland - May/June - Issue

Volume 21 Issue 9

drinks THE VOICE OF THE LICENSED TRADE

May/June 2022

2021 Dublin pub sales values triple No lazy Summer sales Poitín appeal

IRELAND

“What we want!”

-- insight into how hospitality workers view hospitality sector

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OPINION

May/June 2022 | DRINKS INDUSTRY IRELAND

Train to retain ACCORDING to a Fáilte Ireland survey released last February as many as nine in 10 hospitality businesses have problems recruiting staff, with many employers linking the shortage to a lack of training.

Unfortunately, this has become clear in the vertiginous fall-off in standards of service witnessed around the country.

Recently we decided to have dinner in a Dublin pub. Despite standing by the ‘Please wait here’ sign on entering, nobody approached us for five full minutes. When they did, the ‘meet & greet’ said nothing but simply stared at us with a pained expression on her face instead, waiting for us to speak first. On receiving our meal, we can testify that it was one of the worst we’d ever experienced. We felt sure that it had spent most of its life that day under a Bain Marie.

Elsewhere in the country the 40,000 staff scarcities have became all too apparent in reduced menu offerings matched by reduced room capacities to give reduced staffing levels a fighting chance of completing the evening’s work.

This state of affairs has become a vicious circle with staff shortages themselves being cited as the reason by staff for leaving the hospitality sector due to their increased workload.

So the launch of the government-supported VFI Bar Manager Apprenticeship degree and the TU Dublin courses to develop skills and capabilities for the hospitality trade have come not a moment too soon if indications from the UK of only one in four hospitality staff feeling ‘very satisfied’ that their level of training has left them confident enough to fulfil their role to the best of their ability, are true here too.

The very basics of greeting and customer care seem to be absent in many outlets as ‘trainee’ staff get to grips with the practical aspects of taking orders and dishing up food and drink without mishap.

Of course outstanding levels of service remain consistent in some parts - all the more outstanding considering that these establishments are equally under the cosh of staff shortages, With so many other challenges to today’s licensed trade, publicans should seriously consider investing in the proffered training courses, not only for retaining their customers but, in all likelihood, retaining their staff.

With so many other challenges to today’s licensed trade, publicans should seriously consider investing in the proffered training courses, not only for retaining their customers but, in all likelihood, retaining their staff.

Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie

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NEWS

May/June 2022 | DRINKS INDUSTRY IRELAND

8 ‘Pubs as Community Hubs’ pilot programme to be rolled out in five rural locations

Minister launches ‘Pubs as Community Hubs’ Pilot Programme The Minister for Rural and Community Community Development for the “Often people in rural areas might Development Heather Humphreys funding that will allow us develop have to travel many miles to access TD recently launched ‘Pubs as the project. Upon completion certain services. In other instances, Community Hubs’ – a new initiative these pilot projects will offer a there may not be a suitable meeting designed to support rural pubs and roadmap for our members as they place for local groups to come communities. navigate the coming challenges and together for activities. Through the The initiative, being rolled out on a opportunities faced by the rural ‘Pubs as Community Hubs’ initiative pilot basis, will see financial supports hospitality sector.” we want to see how rural pubs can provided to publicans in rural Sheila & Bryan McKiernan are the diversify during quiet trading times areas to diversify their facilities for proprietors of The Keeper’s Arms by acting as community cinemas, community use. and Sheila outlined their plans to book clubs and meeting spaces for Modelled on a similar scheme in install a community cinema under local community groups.” the UK, ‘Pubs as Community the new initiative.

Hubs’ is designed to “We hope that the transform pubs during quiet cinema will cater in trading times into the likes particular for elderly of digital hubs, community people during the cinemas, book clubs, arts daytime,” she stated, and crafts workshops and “The nearest cinema in community meeting spaces.

Cavan Town is almost Funding of €50,000 40km away, so we think has been provided to the there will be strong Vintners Federation of demand from the local Ireland which will select community. five pubs in Cavan, Kerry, “We’re going to be Donegal, Clare and Cork as using funding from the part of the pilot programme. pilot programme to The Rural Development secure a projector and Policy 2021-2025 – Our screen, new cinema Rural Future includes a pilot At the launch of the ‘Pubs as Community Hubs’ programme seating and black-out at the Keepers Arms in Bawnboy, County Cavan, were (from scheme to support the use blinds. I’ve spoken to local left): VFI President Paul Moynihan with Sheila McKieran of the of rural pubs as community Keepers Arms, Minister Heather Humphreys, the Keepers Arms’ community organisations spaces and hubs for local who fully intend to support Bryan McKieran and VFI Chief Executive Padraig Cribben. services. The initiative, which the cinema. The general was a commitment under ‘Our Rural view is that the cinema will promote The Minister continued, “The Future’ is set to be expanded to local community integration and possibilities are endless but the goal other parts of the country if the pilot assist with combating rural isolation. is simple – supporting our rural pubs is successful.

“Ireland is changing, but through so that they can continue to be a “The local pub is part of the initiatives like this the pub can still focal point in our rural communities fabric of Rural Ireland,” said Minister be at the heart of rural communities where friends and neighbours can Heather Humphreys in announcing – sometimes it just takes a little bit of gather for a range of services and the new initiative in The Keeper’s thinking outside the box.” activities into the future.”

Arms in Bawnboy, County Cavan, The VFI is refining proposals with VFI Chief Executive Padraig recently, “Traditionally down through local community groups in rural Cribben welcomed the initiative, the years it’s where people in rural Cavan, West Clare, West Donegal, stating, “Pubs are a vital part of communities have come to meet East Kerry and West Cork before Irish life but as local communities with their friends and neighbours to submitting funding proposals to the evolve it’s more important than ever socialise. In recent years our rural Department for consideration. to understand how our pubs can pubs have faced challenges and Funding is being made available continue to enhance their offering those challenges were exacerbated from the Department’s CLÁR to the villages and towns they serve. further during the pandemic.

Innovation Measure and the project The Pub as Community Hub pilot The new initiative which she has will address specific challenges faced programme is a fantastic opportunity launched in collaboration with the by communities in CLÁR areas such to examine how pubs will thrive in VFI is about exploring how the rural as rural isolation and village decline. rural localities well into the future, pub can be utilised as a space for so I’d like to pay particular thanks community activities and services, to Minister Heather Humphreys TD she explained. and the Department of Rural and

DRINKS INDUSTRY IRELAND | May/June 2022

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8 200 attend VFI Conference in Tullamore Court Hotel

VFI holds first in-person AGM in 2 years The Vintners Federation of getting people here will of Ireland’s Annual be a challenge in relation Conference took place in to accommodation and this the Tullamore Court Hotel again will be more difficult recently, attended by over as we try to accommodate 200 delegates from the 25 those Ukrainian people counties represented by the fleeing the ravages of war.

VFI. All in all, this is and will It was the first time that remain a major challenge.”

VFI members gathered in Final AGM person for the AGM since This was Padraig Cribben’s Cork in 2019. final AGM as VFI Chief The 2021 management Executive. In his address report was presented by to delegates President outgoing Chief Executive Paul Moynihan praised Padraig Cribben and not Padraig for his unstinting surprisingly, the impact of Minister for Rural and Community Development Heather dedication to the Covid featured strongly.

Humphreys TD, with outgoing VFI Chief Executive Padraig Cribben at this year’s VFI AGM in Tullamore. The Minister Federation, particularly “2021 also saw a major paid tribute to Padraig’s 14-year stint as VFI Chief Executive, during the Covid crisis. move to outdoor activity particularly his “constructive and pragmatic” approach to the “Padraig has led the as there were long periods Covid crisis that led to pubs closing for an extended period.

Federation for 14 years in June and July when only and his contribution to the outdoor was available,” he “Equally, it has to be noted that VFI cannot be exaggerated,” said said, speaking to delegates, “This the supports from Government were the President, “I particularly want to necessitated a quick change in the and continue to play a major part in mention his work over the past two law to allow for the sale of alcohol in ensuring businesses could open.” years when the trade was faced with the outdoor areas. With cooperation Speaking about future trading an unprecedented crisis that had all round, Government enacted this prospects Paidraig Cribben explained, most of us fearful for our businesses piece of legislation very quickly “Availability of staffing has also and staff. to ensure easy compliance for all become a significant issue after the “Padraig’s calm and measured publicans. two-year restrictions. Many have left response to the crisis, including “We saw further restrictions being the trade due to the stop/start nature keeping the channels of put in place towards the back-end of of the openings and their inability as a communication open with the year but thankfully they’re now all result to meet ongoing commitments.

Government, helped steer the VFI removed.

This is hardly surprising. Many other during a period of immense pressure.

“The past two years have created international workers have returned “That he did all this with unfailing challenges that businesses could to their countries of origin and are politeness and good nature is a never have anticipated. It would be unlikely to be returning here again in testament to the man he is.” remiss not to note the very significant the near future. support afforded to the sector by “We’re working with Fáilte Ireland Gala dinner the major suppliers. Their support to identify pockets of available labour Minister for Rural Affairs Heather in terms of retrieving both full and within the EU in an effort to begin to Humphreys TD was guest of honour broached kegs, extending credit fill these gaps. Obviously, significant at the subsequent VFI Gala Dinner and providing materials for outdoor training input will be needed if we are and her speech also paid tribute to activity certainly ensured that the to encourage numbers to relocate Padraig Cribben, stating that he was vast majority of businesses would be to take up the jobs that are available a “brilliant advocate” for the sector. in a position to re-open. here. Side-by-side with the challenges

n Pre-tax losses at Treasure Trail Holdings, the holding company for Howth Railway Refreshment Rooms, the company behind outlets such as the Bloody Stream in Howth, Wrights Café Bar in Airside and Gilbert & Wright in Malahide, amounted to €1.76 million in the year to the 30th of September 2020 according to the company’s consolidated Profit & Loss account, lodged with the Companies Registration Office recently. Turnover fell 13.6% to €16.79 million from €19.42 million the previous year. Staff numbers also fell by nearly 43% to 195 from 342 the previous year, with the number of Operational Staff reducing to 186 from 330, no doubt due to the effects of Lockdown. The total bill for staff costs (including directors’ salaries) came to €4.26 million, down 18.6% from the previous year’s €5.23 million. Directors’ remuneration and pension contributions totalled €234,139, down 14.7% from 2019’s €274,502 figure.

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May/June 2022 | DRINKS INDUSTRY IRELAND

8 Beer sales, production and exports fall for second consecutive year

2021 another challenging year for brewers The continued closure of hospitality venues domestically and in key international markets resulted in another challenging year for Irish brewers in 2021 according to a new report released by Drinks Ireland|Beer.

But there were some signs of early recovery in the second half of the year, primarily driven by the easing of restrictions in the hospitality sector in H2.

Its annual Irish Beer Market Report shows that following a 13% fall in production in 2020, the pandemic resulted in a 46% fall in production of Ireland’s most popular alcoholic beverage between 2020 and 2021.

With sales down by 1.2% and per capita consumption down by 2.3%, overall alcohol consumption continues to decline dramatically in Ireland.

Beer types Stout sales were heavily hit by the pandemic, falling from a 43.3% on-trade share to 38.6%, as stout is mostly consumed in the on-trade. Prior to Covid, around 30% of beer consumed in Ireland was stout. This fell to 25.3% in 2020, but rose by 6.9% to 32.2% last year.

Lager, which was more popular during Covid as it was consumed at home, saw its market share fall last year by just over 8.3% to 61.2%, with ale’s market share up by 1% to 5%.

“Lager’s market share fell from 69.5% in 2020 to 61.2% in 2021,” according to the report.

Focus on driving recovery Producers are now focused on driving recovery in the sector but face a range of external pressures like inflation which has increased Alcohol consumption continues business costs. to fall To support recovery and Data from Revenue shows that manage these significant Brewers are now focused on driving recovery in the alcohol consumption fell by pressures Drinks Ireland|Beer sector but face a range of external pressures like inflation which has increased business costs.

4.7% between 2020 and 2021. has called on government to Consumption also fell by 9.6% reduce alcohol excise in this between 2019 and 2021. However, year’s Budget as Irish beer and France in third at €26 million. consumption has continued to decline drinkers continue to pay the At €15m and €9m respectively, The on a longer-term basis too. It’s now at second-highest rate of excise Netherlands and Germany took fourth its lowest level in 20 years, down by on beer in the EU with 55 centsand fifth places. about 30% since the peak of 2001. worth going to the Exchequer Non-alcoholic beer is also becoming from each pint of Lager.

Beer & market share increasingly popular, with its market “Prior to Covid just over 60% of According to the report, beer’s share share up from 1.1% in 2020 to 1.4% beer sales were in Ireland’s pubs, of the Irish alcohol market increased in 2021. Non-alcoholic beer’s market restaurants and hotels,” said Peter 1.3% from 38.9% in 2020 to 40.2% in share was 0.4% in 2017.

Mosley, Managing Director of the 2021.

Porterhouse Brewing Company “Beer’s market share before the Exports and Chair of Drinks Ireland|Beer, pandemic was steady at 45%,” states The value of beer exports fell by 3% “In 2020 an estimated 29% the report. last year too but were still significant of beer sales were from the Spirits’ market share rose by 2.7% at €246 million. Accounting for €91 hospitality sector, but this rose to to 24.7%. Cider’s share of the alcohol million Great Britain was the most 46% in 2021.” consumption market declined by 1.1% popular destination for Irish beer, with to 5.8% and wine’s share dropped by the US in second place at €49 million 2.9% to 29.3%.

n Accumulated losses at College Inns, the parent company of The Bank pub on Dublin’s College Green, totalled €33,609 in the year to the 30th of April 2021 according to the company’s Unaudited Abridged Financial Statement for the year. The previous year had seen a 56% fall in accumulated profits to €101,610 from €232,153 the year before that. Numbers in employment at The Bank fell again from 35 to 20 (including the two directors David and Charlie Chawke) but staff savings are not provided here. The two directors took out €58,660 in emoluments, down 21% on the previous year’s figure of €74,469.

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8 Ministers Martin and Noonan host workshop with sectoral and industry representatives

Night-time Economy representatives attend workshop Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin TD and Minister of State for Heritage and Electoral Reform Malcom Noonan TD co-hosted a workshop in The Chocolate Factory in Dublin recently which aimed to revitalise the NightTime Economy and increase cultural and community spaces through an improved planning system.

Representatives from organisations relating to the sector participated in the Opportunities as well as challenges to creating new and diverse activity in the Night-Time Economy event, seeking to identify were identified and addressed collaboratively in the how artistic, creative and workshop. community spaces can be related actions that can support supported by the planning and the NTE. The aim is to develop development process.

Best Practice guidance to assist Invitees to the workshop included local authorities and others to plan those working in the NTE Sector, Give effectively for the NTE in a multi-use Us The Night, An Garda Síochána, urban context. local authorities, members of the NTE Opportunities as well as challenges Taskforce (including Fáilte Ireland), to creating new and diverse activity the Arts Council, representatives in the NTE were identified and from the retail sector, the Vintners addressed collaboratively in the Federation of Ireland, the Licensed workshop and a number of key Vintners Association, Government themes were addressed including: Departments and agencies as well as 1. town centre revitalisation, including other representative groups. outdoor spaces The workshop took place in direct 2. meanwhile use of vacant spaces response to Action 16 in the Report of 3. cultural infrastructure provision the Night-Time Economy Taskforce.

4. defining and identifying cultural Challenges around planning, spaces regulation and access to space had 5. noise management, including agent been raised consistently by those of change principle working in the industry throughout 6. planning and licensing. the consultation process for the “We’ve heard loud and clear development of the NTE Taskforce throughout the development of the Report.

Night-Time Economy Taskforce Action 16 of this Report committed Report that we need more artistic, to the holding of a dedicated creative and community spaces which workshop to understand and can operate and support the Nightdetermine the range and practical Time Economy and we all want to scope of planning and development-

see our planning and development system supporting this need,” said Minister Catherine Martin, “Cultural spaces are really important for our communities and individuals and this importance shouldn’t be underestimated. It can bring communities together, make people feel more engaged and part of something bigger than themselves.”

Minister of State Malcom Noonan added, “The Night-Time Economy is a key economic sector of our cities and towns and also one of the things that makes them great places to live in and visit. Supporting this through a Town Centre First approach that maximises the use of vacant buildings and encourages the development of quality public spaces is part of our agenda to invest in regeneration and amenities that benefit local communities in the widest sense. In doing this, it’s important too that a vibrant Night Time Economy doesn’t impact negatively on town centre living.

“Through this workshop we can learn from the many voices interested in seeing a lively and successful Night-Time Economy maintained – hearing the different experiences and suggestions on how changes can be made.”

The feedback from this workshop is to be collated into a report which will be submitted to the Department of Housing, Local Government and Heritage and the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media. It will also be considered by the Taskforce Implementation Group for further action where necessary.

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DRINKS INDUSTRY IRELAND | May/June 2022

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8 First anniversary of Judicial Guidelines sees insurance costs continuing to climb

90% of SMEs say government is not addressing insurance costs Despite a fall of 9% in the cost of Motor Insurance renewals since the 24th of April last year, Liability Insurance renewals have seen yet another increase in premia costs this time by 16%.

These were among the findings of a major survey of its members by the Alliance for Insurance Reform.

The AIR survey revealed that since 2019 some 28% of respondents had been subject to increased excesses while 24% had had new exclusions added to their policy and 29% had been subject to both.

In marking the first anniversary of the implementation of the Judicial Guidelines for personal injury awards the AIR published the results of its survey which show that 42% of organisations say that insurance premia are threatening their future while 90% say that the Government is not doing enough to address the issue of insurance costs.

“Personal injury damages are by far the biggest component of the cost of insurance and the Judicial Guidelines implemented on 24th April 2021 introduced significant reductions in the level of damages for minor injuries,” said Peter Boland, Director of the Alliance, “So it’s worth

reflecting on the impact of those reductions one year on.

“While they’re having an impact on motor premiums, they’re clearly not having an impact on the liability premiums paid by businesses, voluntary and community groups, sports and cultural organisations and charities.”

Research carried out over a threeweek period shows that 73% of organisations had also had additional excesses or exclusions imposed on their policies since 2019.

The AIR survey revealed that since 2019 some 28% of respondents had been subject to increased excesses while 24% had had new exclusions added to their policy and 29% had been subject to both.

Eoin McCambridge, Managing Director of McCambridge’s of Galway and a Director of the Alliance, urged Government to speed up promised reforms.

“In particular, they must now deliver very quickly on the delayed rebalancing of the duty of care and the delayed reform of PIAB,” he said, “Ultimately they must get liability insurance premiums down to affordable levels with reforms that keep them that way.”

Timelines have been repeatedly missed by Government.

Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and a Director of the Alliance said, “Of all the major challenges facing Ireland right now, insurance is the one that Government can fix quickest”.

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EXCLUSIVE COCKTAIL BRANDS n Pre-tax losses at Fox’s Pub, the Glencullen tourist attraction just outside Dublin, amounted to just €8,569 in the year to the 31st of March 2021. The previous year the company had declared pre-tax profits of €262,234. The company’s Abridged Financial Statement put retained earnings up 12.4% to €996,393. Average employee numbers fell during the year from 43 to 18 while remuneration for the two directors, Tony and Geraldine McMahon fell by nearly half to €109,808 from €200,000 the previous year.

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May/June 2022 | DRINKS INDUSTRY IRELAND

8 Packaged Lager appeals to female Lager-drinkers

Draught sales up but packaged still matters in on-trade Demand for draught beer has returned strongly since Covid-19 restrictions were eased, research from market insight consultants CGA shows—but packaged products have an increasingly important role as Summer approaches.

CGA’s On Premise Measurement data shows that draught serves have increased their share of the Lager segment by six percentage points from 2020 as a result of consumers choosing draught beers that they weren’t able to recreate at home during Lockdowns.

However, packaged Lagers still account for one in 10 on-trade serves and CGA’s Opus survey shows that over a third (39%) of Lager drinkers consume packaged product when out. This is much lower than the 73% of drinkers who choose draught— but it shows that packaged brands

remain an essential part of drinkers’ repertoires.

The Opus survey also shows how they’re particularly appealing to female Lager drinkers, more than half (52%) of whom buy packaged options. They’re also likely to become more popular over the Summer.

CGA’s Opus survey shows that over a third CGA’s On-Premise Market data (39%) of Lager drinkers consume packaged shows packaged products overproduct when out. index on their share of the beer and cider markets from June to there will be major potential to grow August, relative to the rest of the packaged sales over the next few year. months—especially if the sun shines “After months of being limited and pent-up demand for drinking out to packaged Lager at home, it’s no is released after restricted Summers surprise to find that drinkers have in 2020 and 2021. Monitoring embraced draught serves since pubs trends and the preferences of and bars reopened,” says CGA’s beer drinkers—especially female Client Director for Ireland Sian ones, who’re more pre-disposed to Brennan, “However, while the focus at packaged brands—will be crucial to the moment is on the front of the bar, growing market share.”

8 Heineken Ireland’s 2021 Sustainability Report shows Cork brewer to be 96% self-sufficient in CO2

Heineken Ireland brewing “green” beer Recycled carbon dioxide cups from events this Summer originally created in the through the introduction of a natural fermentation process reusable plastic cup. is now used in Heineken Ireland’s beers.

Zero Zones The CO2 reuse project Heineken Ireland has also represents just one element of funded dedicated Zero Zone Heineken Ireland’s commitment spaces in retail outlets to help to sustainability across all showcase NoLo alcohol options facets of its operation both in for consumers.

Ireland and globally.

So far, the brewer has Heineken Ireland released created over 1,100 off-trade its 2021 sustainability Zero Zones across Ireland.

Heineken Ireland Managing Director Maarten Schuurman progress report recently, These are used to showcase and Sustainability Manager Barbara-Anne Richardson demonstrating the brewer’s all NoLo products rather than commitment to continuing its announcing the 2021 sustainability results. just Heineken Ireland’s brands, environmental progress.

2021 Heineken Ireland ensured no further underscoring the brewer’s Despite the continued industry pints went to waste. Across 2020 and commitment to the promotion of challenges presented by Covid-19 2021 over 19 million pints – from the moderation. the Cork brewery has continued to cellars of pubs in Lockdown - were Building on the widespread showcase its strong commitment repurposed and turned into energy availability of bottled Heineken to creating a sustainable business, and animal feed.

0.0%, the draught pint 0.0 is now moving towards a circular economy Using recycled CO2 for millions also available in over 2,200 bars through initiatives such as the reuse of of pints of beer has helped make and restaurants across Ireland with by-products like CO2 and grain dust Heineken’s Cork brewery 96% carbon continued expansion to a further 700 as well as the repurposing of kegs of dioxide self-sufficient. outlets this year. n beer during Lockdown.

And working with industry partners, While the hospitality sector the brewer also plans to remove more continued suffering Lockdowns in than half a million single use plastic

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ONE & ONE

May/June 2022 | DRINKS INDUSTRY IRELAND

Barry O’Sullivan – staying close to his customers

Diageo Ireland’s Managing Director Barry O’Sullivan talks to Pat Nolan about a trade emerging from Lockdown.

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ord on the street has it that publicans feel happy with Diageo Ireland’s Managing Director since April last year Barry O’Sullivan.

As one Dublin publican put it, “He goes out to meet us at our place of work and doesn’t stay in an ivory tower in St James’s Gate”.

This approach reflects Barry O’Sullivan’s business philosophy.

“Any business needs to be close to its customers and needs to understand what their needs are and how to best serve them,” says Barry, “Ultimately we’ve set ourselves a clear ambition to emerge stronger together with our partners, colleagues in Diageo, customers and the communities in which we work.”

Barry joined Diageo from the Mars Group having worked with the company for the last 20 years. He’d been based in Australia with his wife and two daughters for the latter five years as Australia & New Zealand’s General Manager for Mars Petcare. But he’d also spent time as General Manager for Mars Chocolate based in Mexico and General Manager for the Middle East, Turkey and Africa at Mars Incorporated.

Major concern Now, he enjoys trips to pubs which have highlighted that “A major concern for our customers is staffing and training so we’re doing everything we can and engaging in a

lot of initiatives to address this - TU Dublin, for example, where we’ve created courses to develop skills and capabilities for the hospitality trade.

“Of course, we’ve had other activities going on to support the trade such as ‘Raising The Bar’, the €14 million fund to support publicans during Covid. We’ve almost emerged from one crisis but we’ve still a lot of challenges to deal with together.”

Not there yet Undoubtedly, the on-trade has been on a journey through Covid but might feel deep in the woods still. But Barry believes that progress has been made.

“I think the majority of publicans would say they’ve made very strong progress since the recovery began but we’re definitely not there yet,” he points out, “We’ll be supporting on things such as the great outdoor spaces, for example.”

Over the next 12 months Diageo will also invite hospitality workers and publicans into Roe & Co to enjoy the distillery experience and learn more about the product and how it’s a great fit for cockails.

“This is just a simple example of how we can help our customers develop, retain and engage their staff.”

Apart from staffing, rising costs represent a challenge we all face.

“It’s almost one and same thing” believes Barry, “for a lot of publicans staff is their biggest cost. But consistently what we hear is their biggest problem is around staffing.”

Central role of the pub The experience of Covid over the last two years has underlined the importance of the pub and the central role it plays in Irish sociability.

“So, when it was taken away from us it left a huge void which we’re very grateful to have back,” he says.

“There’s been a renewed sense of the importance of the pub and how it can be an ‘unlock’ for great social occasions and experiences.

“Over the last few years we’ve seen outlets that have invested in the quality of the experience they provide - and they’re seeing an exponential return for their investment and time.

“If you’re not looking to continually enhance the experience that you’re providing, even in really simple terms, then people may look elsewhere for that quality experience.”

And Diageo contributes to that ‘experience’ through innovations like Guinness 0.0%.

“People who wouldn’t have gone to the pub in the past or wouldn’t have been a

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“There’s been a renewed sense of the importance of the pub and how it can be an ‘unlock’ for great social occasions and experiences”

The data shows a broader appeal than ever for Guinness, says Barry O’Sullivan.

regular might now consider going out for a midweek occasion and may also wish to have a non-alcoholic drink. Now we’re giving that person a reason to go to the pub. These are the ways that we’re helping to enhance the experience in the pub.”

Guinness broadening its appeal Despite Covid Guinness has emerged stronger as a brand, he claims, “Market share is higher now than it was pre-pandemic across both on-trade and takehome channels according to the latest Nielsen and CGA share data.”

It aims to broaden its appeal to all Legal Drinking Age consumers and seems to be meeting with success in this endeavour too.

The data shows a broader appeal than ever for Guinness which is now appealing to all Legal Drinking Age consumers, he says, “We also looked at how many people are consuming a Guinness over a three-month period and these figures are greater than they were.”

Happily, too, production at St James’s Gate is back up to 2019 levels. Over the last few months the Irish, GB and US markets have all reopened at the same time so brewing is certainly up to pre-pandemic levels, he says, eyebrows indicating it to be most likely surpassing 2019 levels.

Indeed, St James’s Gate has just received planning permission to extend its on-site beer processing facility.

Ukrainian supplies Naturally there will be a global impact from Russia’s actions in Ukraine which remains a significant source of many raw materials for the rest of the world.

Diageo Ireland is traditionally very strong in local businesses as it sources locally and brews here and is proud of being a local Irish business that relies on local sourcing for the making and selling of its products.

But it also has the benefit of being a global business where it’s able to tap into the expertise and knowledge that exists in the global Diageo business.

Barry O’Sullivan on…

8 … his business philosophy: “Any business needs to be close to its customers and needs to understand what their needs are and how to best serve them,” 8 … major concerns: “A major concern for our customers is staffing and training so we’re doing everything we can and engaging in a lot of initiatives to address this - TU Dublin, for example, where we’ve created courses to develop skills and capabilities for the hospitality trade.”

“I think the majority of publicans would say they’ve made very strong progress since the recovery began but we’re definitely not there yet,” 8 …. The role of the pub: “There’s been a renewed sense of the importance of the pub and how it can be an ‘unlock’ for great social occasions and experiences.”

“If you’re not looking to continually enhance the experience that you’re providing, even in really simple terms, then people may look elsewhere for that quality experience.”

8 …. the broadening appeal of Guinness: “Market share is higher now than it was pre-pandemic across both on-trade and takehome channels according to the latest Nielsen and CGA share data.”

8 …. Guinness 0.0%: “We’re selling Guinness 0.0% as fast as we can make it, so that’s good.”

But in regard to Ukraine, Barry explains that, “Currently we’re focused on the humanitarian response and have pledged €2 million to be shared equally between Red Cross and CARE International to help humanitarian efforts in the region.”

But with inflation running at 7% and uncertainty dogging production costs, can the trade – and the consumer - avoid further price increases?

“Across the economy costs are rising for everybody,” he replies, “We can see that in the cost of weekly groceries, the fuel put into the car etc. It doesn’t feel like that pressure is going to ease any time soon.

“But it’s good to build up resilience in your business against some of the future cost pressures.

“For example, by going all-electric in transportation we can offset some of our fuel costs.”

Brewing & sustainability Here at home one of the main challenges Diageo has focused on is ‘sustainability’.

“We’ve committed ourselves to some very ambitious targets, what we call ‘Society 2030’ which includes a ‘grain to glass’ approach to sustainability,” he explains, “We’ve announced a number of pilots to examine how we can do this including regenerative agriculture which is an approach to farming that puts back more than it takes out.

“Earlier this year we announced that our ‘Quality’ fleet will switch to electric vehicles and we’re adding four electric Volvo trucks to our fleet this Summer which will be used in a pilot to deliver kegs in Dublin City.”

Today St James’s Gate is one of the most sustainable breweries in the world, committed to working towards a low-carbon future.

“Also there’s the redevelopment of the James’s Gate site which will see 12.6 acres transformed into the Guinness Quarter, an urban neighbourhood that will open up the historic Gates to the people of Dublin, maintaining brewing operations, obviously, but also utilising the vacant space here to bring to life something that we can be proud of as a community -- and to have exciting spaces to live and work in in Dublin 8.”

But for now, given the challenges everyone is facing in the months ahead, Barry just wants to ensure that Diageo “stays close to our customers”.

Alongside this, Diageo Ireland intends maximising the potential of new products.

“We’re selling Guinness 0.0% as fast as we can make it, so that’s good,” he observes. n

DRINKS INDUSTRY IRELAND | May/June 2022

OFF-TRADE DEVEL OPMEN T S

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8 High End Premium Irish Whiskeys in US grew by 847,000 cases last year

Irish whiskey shares in US spirits boom Another good year was had by Marketplace Irish whiskey in the US last year trends with it becoming the thirdThe US Spirits fastest-growing spirits category, market is itself growing by 16.3% or by $195 experiencing its million according to the Distilled fastest growth for Spirits Council of the US’s 2021 two decades as Economic Briefing published revenue from USearlier this year. made spirits grew Irish whiskey also took third by $3.8 billion in place in terms of fastest-growing 2021 to $35.8 billion volume with a 17.8% increase, and volumes grew equivalent to growth of 891,000 by 24.7 million ninecases to top 5.9 million US case High End Premium Irish litre cases to 291 Whiskeys grew by 847,000 sales. million cases. cases last year.

What’s also encouraging is The number of that High End Premium Irish distilleries there Whiskeys grew by 847,000 cases last has also grown from around 50 in year.

2005 to over 2,300 last year.

The US is the second-largest market According to the DISCUS report, in the world for spirits and the spirits “Over the past 20 years, the spirit industry there supports around 1.7 industry’s average annual growth was million jobs through the production, 5.5% compared to 7.3% in the past five distribution and sale of distilled spirits. years”.

Spirits sales accounted for over 41% of US alcohol industry revenues and 38% of US volumes last year.

But as the report warned, “Only 19% of small businesses in food service and hospitality are operating at pre-pandemic levels”.

However online sales are flourishing as the pandemic changed buying behaviours, with the report citing the IWSR finding that two-thirds of US shoppers who buy alcohol online made their first purchase during the pandemic.

And at $6.1 billion, online alcohol sales last year accounted for 4% of all off-trade sales in the US. But this could also be due to the unstable nature of on-trade recovery there, of the local restaurants and bars that are such critical sales channels for generating awareness of local craft brands.

8 Kinnegar first Irish brewery to win Gold in largest competition to date

Kinnegar triumphs at World Beer Cup Kinnegar Brewing has claimed a Gold award in the 2022 World Beer Cup. Black Bucket from Kinnegar Brewing in Donegal was awarded the Gold in the American-Style Black Ale/ American-Style Stout category.

Awards were given in 103 beer-style categories at the recent competition at the Minneapolis Convention Centre in the US town of Minnesota.

A black rye IPA, Black Bucket is part of Kinnegar Brewing’s core range of 12 beers.

“Kinnegar is quite wellknown for rye beers — any of our beers with ‘Bucket’ in the name feature rye”, explained Kinnegar Brewing’s Co-Owner Libby Carton, “We first made Black Bucket in 2014 and while it’s one of the more challenging styles in our core range, it’s

actually a remarkably drinkable beer that beautifully balances rye and roasted malts with fresh hop aromas and flavours.”

Until Kinnegar’s triumph last week, no Irish brewery had ever achieved a Gold award since the inception in 1996 of this competition presented biennially by the Brewers Association. One Silver and two Bronze awards have been brought back in the past by Galway Bay Brewery in 2016, Eight Degrees in 2014 and The Porterhouse Brewery in 2010.

The 2022 World Beer Cup was the largest competition to date. Some 2,493 breweries from 57 countries worldwide entered 10,542 individual beers in 103 different categories, with a maximum of one Bronze, one Silver and one Gold per category up for grabs. Kinnegar’s win with Black Bucket also elevated Ireland to the number one spot in the “country with highest winning rate” table at 16.67%.

“Naturally we’re delighted with every award we win but there’s one accolade

Black Bucket from Kinnegar Brewing in Donegal was awarded the Gold in the AmericanStyle Black Ale/AmericanStyle Stout category.

that matters more to a brewery than any other and this is it,” said Founder and Head Brewer Rick LeVert. “We’re consistently improving what we do at our base off the beaten track in Donegal and it’s exceptionally rewarding to receive this level of recognition for our effort.”

Producing at commercial scale since 2013, the brewery rapidly outgrew its original premises in Rathmullan and moved to K2, a state-of-the-art facility in nearby Letterkenny in 2017. n

www.drinksindustryireland.ie

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E XP E R T V IE W

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Average alcohol consumption per adult declined in 2020 and 2021 Anthony Foley, Emeritus Associate Professor of Economics at Dublin City University Business School, outlines the evidence.

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s a consequence of on-licensed premises having been closed for much of the period 20202021, on-licensed consumption declined greatly while off-licence purchases and home consumption increased significantly. However, the net effect has been a decline in average alcohol consumption in each of 2020 and 2021.

The data used in this article are taken from the CSO Population and Migration Estimates for April 2021 (published in August 2021) and the Revenue Commissioners’ alcohol clearances data.

The performance reflects two different features of the impact of the Covid-19 restrictions.

Total and average alcohol consumption per adult 2019, 2020 and 2021

Total alcohol consumption as measured by Revenue clearances decreased by 4.7% in 2021 compared with 2020. This follows a decrease of 5.1% in 2020 compared with 2019.

The 2021 total volume was 9.6% lower than in 2019 while the number of adults (as defined by 15 yearsand-over) increased by 1.1% in 2021.

This resulted in a decrease of 5.7% in 2021 compared with 2020 in average alcohol consumption per

adult. It was 9.557 Litres Per Adult in 2021 compared with 10.139 LPA in 2020.

In figures rounded to one decimal place the average per adult consumption is 10.1 LPA in 2020 compared to 9.6 LPA in 2021. This gives a decrease of 5.0% for 2021.

Average consumption decreased

from 10.856 LPA to 9.557 LPA, a decrease of 12.0%.

The relevant data are presented in the Table.

The aggregate alcohol clearances and the “adult” populations are presented. These two are combined to provide the average per adult consumption.

Average per adult alcohol consumption 2019, 2020 and 2021 2019

2020

% change 2019/2020

2021

% change 2020/2021

Litres of pure alcohol (lpa), Total consumption

42,476,575

40,291,740

-5.1

38,381,422

-4.7

Adult Population (aged 15 and over), millions

3.9126

3.973.8

1.6

4.0159

1.1

10.856 (rounded to 10.9)

10.139 (rounded to 10.1)

-6.6 (-7.3 based on rounded levels)

9.557 (rounded to 9.6)

-5.7 (-5.0 based on rounded figures)

18,931,618 3,159,103 8,821,113 11,564,741

15,654,741 2,799,891 8,883,306 12,953,802

-17.3 -11.4 0.7 12.0

15,462,700 2,680,169 8,991,008 11,247,545

-1.2 -4.3 1.2 -13.2

Litres of pure alcohol per adult (LPA) Beer (LPA) Cider (LPA) Spirits (LPA) Wine (LPA)

Sources: CSO Population and Migration Estimates August 2021.

Revenue Commissioners, Alcohol Clearances data, 2019, 2020 and 2021 Website, 2022.

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C O V E R STORY

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“What we want!”

A new collaboration between UK employee experience platform Harri and insight consultancy CGA offers an in-depth insight into how hospitality workers here might view the hospitality sector.

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early £115 billion-worth of anticipated sales were lost in the UK hospitality trade between March 2020 and December 2021 according to estimates in a recent UKHospitality and CGA Quarterly Hospitality Tracker.

With the return of the hospitality trade highlighting a 40,000 employee shortfall in employment in the sector here, a new collaboration between UK employee experience platform Harri and insight consultancy CGA offers an in-depth insight into how UK hospitality workers’ view the hospitality sector.

The survey, Working in Hospitality, finds that while some UK consumers remain anxious about Covid, concerns mount that the cost-of-living crisis will cut disposable incomes as the year goes on.

“On top of that, rising prices in energy, food and many other areas are squeezing margins in hospitality while supply chain problems are dogging the sector,” states a followup joint in-depth report on the survey entitled Transforming The Employee Experience In Hospitality.

In the hospitality industry both here and in the UK, thousands of unfilled vacancies only add to the problem for businesses trying to recover from Covid. This shortage is likely to remain a problem for the rest of 2022 and as the report states, “These shortages are having a material impact on sales and driving up labour costs”.

The pandemic has led to some businesses having to streamline menus and limit opening hours to reduce the pressure on remaining workers.

Recruitment

When it comes to how staff are being recruited, “Digital channels now dominate hospitality job hunts,” states the report, “More than twothirds (69%) of surveyed employees say they have searched online for new roles and two in five (41%) have used social media. Digital channels are especially popular among younger adults and those seeking work in pubs and Quality Service Restaurant venues”.

But at 23%, just under a quarter of respondents to the survey

The survey leaves readers in no doubt about employees’ biggest problem at the moment, with well over half citing staff shortages, making it even more significant than perennial challenges like unsocial hours.

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continue to use boards in recruitment centres and in-venue job ads (23%).

Word-of-mouth remains important too and nearly one third (30%) say they’ve used recommendations from family or friends to find work while a fifth (21%) have used networking.

“People also look for different qualities in their potential employer,” points out the report, “The most common are honesty (47%) and mutual respect (41%), followed by knowledge (39%), trustworthiness (39%), social skills (38%) and equality (38%).”

But pay remains a significant consideration for 67% of potential employees before deciding on whether or not to accept a job offer while 49% tend to look at the employment’s flexibility and work-life balance.

Training

The standard of training has also become an issue for many employees, with the UK survey finding that just under a third believe that training has been too basic. Only a quarter felt ‘very satisfied’ that their training had left them confident enough to fulfil a role to the best of their ability.

Shadowing other employees emerges as the leading training method, something experienced by 66% of employees - though online training at 51% and top-up face-toface training at 43% are used too.

Four in five said their online training was compulsory.

Retention

According to the report, “While Harri and CGA’s survey highlights the importance to employees of things like being good at the job (59%) and salary and benefits (45%), many other factors are significant too including flexibility (45%), good management (42%) and general care (29%). With such a large supply of jobs in hospitality, employers that don’t consider these factors risk losing staff to competitors.

“There are lots of reasons why employees leave hospitality, with unsociable hours (54%), insufficient pay (47%) and difficult customers (42%) among the most common.

Around half (49%) say that staff shortages themselves are causing more people to leave, because they are now facing an increased workload. This shows how hospitality has become trapped in a vicious circle of shortages.”

Emoloyees’ suggestions to rectify

these shortages include better pay and promotion opportunities or better rota flexibility and variety - concepts that have increased in importance during the pandemic.

Reducing staff turnover and keeping the most talented staff has also been a focus for employers.

As with recruitment, this is being done through a variety of measures like raising pay, adding benefits and improving working conditions which figure increasingly among the solutions alongside perks like generous discounts, trips abroad and retention bonuses.

Satisfaction

According to the report, well over half (61%) of employees say they’re ‘very’ or ‘somewhat’ satisfied with their current role, while 18% feel ‘somewhat’ or ‘extremely’ dissatisfied.

Older workers and those who’ve been in the industry for more than a few years tend to feel more satisfied than newcomers.

But nearly half (45%) think hospitality jobs are less appealing than they were before the pandemic, with 72% citing factors such as insufficient pay rises, or 53% a lack of appreciation from employers.

Others cite a lower level of support for hospitality (41%) and a decrease in tips (34%).

“Conversely, those who find the sector more appealing now say they enjoy more flexibility (54%), greater appreciation (42%) and more demand for hospitality roles (33%).”

Challenges

The survey leaves readers in no doubt about employees’ biggest problem at the moment, with well over half (58%) citing staff shortages, making it even more significant than perennial challenges like unsocial hours (51%).

Well over a third (38%) state that they’re challenged by inexperienced staff - another sign of employers’ recruitment difficulties - it being particularly high in QSRs and bars.

“Employers can’t do a great deal to fix some of employees’ challenges, like unreasonable guest demands (28%) and food waste (29%),” states the report, “But it is possible to tackle other big bugbears like ineffective communications (30%), a lack of training (29%) and pressure from managers (25%). By addressing these, businesses can make a significant difference to retention rates.”

COVER ST ORY

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Wellbeing

Over a quarter of employees surveyed by Harri and CGA state that they’re happy (29%), satisfied (28%) and comfortable (28%) in their work at the moment.

More concerning is the finding that a greater proportion of employees feel stressed (38%) and challenged (34%). One in five feel overwhelmed and anxious.

The report points out that some of the employees receive good support, like help with a better worklife balance (19%), opportunities to socialise with colleagues (15%) and monitoring of wellbeing (15%). Others say they get opportunities to have their say (14%), one-to-ones with managers (13%), helpful information (12%) and support sessions (10%).

But well over a third (38%) say they get no help at all, while more than half (52%) think their employers aren’t doing enough to support their staff’s wellbeing. The numbers are notably higher among younger staff than older staff, states the report.

Career-building

Less than a quarter (23%) of the sample chose hospitality as their career path initially. Significantly, far more worked there while studying, saving or finding work in another sector (41%) or had simply “fallen into it” as a career (36%).

Men, older employees and people working in restaurants are all more likely to have chosen hospitality as a career path.

“Those who are not seeking a long-term career in hospitality cite a variety of reasons including pay levels, unsociable or limited hours” states the survey adding to this list with, “stresses and a lack of career progression.”

Significantly, too, only half (53%) of employees are currently satisfied with the career opportunities they see.

Updating hospitality’s reputation as a stop-gap solution both here and in the UK and creating clearer progression paths will help solve hospitality’s retention crisis as one of the most common misconceptions about restaurants, pubs and bars is that they don’t offer long-term careers.

The survey also shows that teams would welcome more and better implemented technology in the workplace, with digital clocking-in and out, smart scheduling and shift management highlighted as areas that technology could help improve their work experience the most. n

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8 63 regional winners to receive prize package to value of €20,000

Irish Pub Awards 2022 launched The Irish Pub Awards 2022 were launched at Lemon & Duke in Dublin 2 recently.

Jointly presented by the Licensed Vintners Association and the Vintners’ Federation of Ireland, pubs are now free to enter in up to nine categories with judging set to take place over the Summer.

The nine categories comprise: Best Food Pub (sponsored by Musgrave Marketplace); Best Tourist Pub (sponsored by Fáilte Ireland); Innovative Pub of the Year (sponsored by Bank of Ireland Payment Acceptance); Best Local Pub (sponsored Picture: Conor McCabe Photography.

by Diageo); Best Outstanding Customer At the Irish Pub Awards 2022 launch were (back row, from left): Musgrave MarketPlace’s Gary Byrne, Service (sponsored by Fáilte Ireland’s Sarah Dolly, Irish Distillers-Pernod Ricard’s Brian Brown, Heineken’s Ciaran Dalton and BOIPA’s Seamus Murphy. Front Row (from left): Edward Dillon’s Darren Finlay, LVA Chair Noel Edward Dillon); Best Anderson, Diageo’s Deborah Maher, VFI President Paul Moynihan, IMRO’s Victor Finn and Bulmers’ Music Pub (sponsored Ken McIntyre-Barn. by the Irish Music Rights Organisation); Best Late thereafter with the regional winners efforts of those contributing to one Night Bar (sponsored by Irish Distillersbeing announced in October. of the biggest employment sectors Pernod Ricard); Best Outdoor Space “It’s great to see the return of the in Ireland." (sponsored by Bulmers) and - new Irish Pub Awards, which sends a “Now the definitive national for 2022 - Best Digital Campaign strong message that the pub sector industry standard, the Irish Pubs (sponsored by Heineken). is back and raring to celebrate what’s Awards are quickly gaining 63 regional winners will be showcased best about the trade,” said VFI recognition throughout the trade as best in class in their region and will President Paul Moynihan, speaking at as a programme that provides receive a prize package to the value the launch, “In a few short years the a credible and comprehensive of €20,000 comprising management awards have established themselves assessment of the best in Irish Pubs. training and media coverage to help as the marque benchmark for all that’s It offers pubs in Dublin and around develop their business. best about pubs in Ireland. We’ve a the different regions an opportunity The media coverage includes a unique offering that’s copied across to raise the profile of their business profile piece in an awards supplement the world, but nothing beats the through national and regional media in the Irish Independent on the day of home-grown pub. coverage. That, together with the the awards presentation.

“The Irish Pub Awards would not be technical and management training The Irish Pub Awards Gala night, possible without the fantastic support afforded to all regional finalists where the overall National Pub of from our sponsors who’ve invested makes it an initiative the LVA are the Year is revealed along with heavily in the pub trade over the delighted to support.” all category award-winners, takes years, so I’d like to put on record our The Awards’ partners include the place in Dublin on Wednesday, 16th deepest thanks for their continued Irish Independent and trade media November. involvement.” partner Drinks Industry Ireland.

The Awards are open to all VFI The LVA’s Chairman Noel Anderson This is the fourth year of the and LVA members and entry is free added, “While we’re aware of the Awards which celebrate excellence anyone interested in entering can do importance of the Irish pub around and innovation across various so on www.irishpubawards.ie.

Ireland, they also play a very categories in the pub sector.

There had already been 18 entries by important part in Irish social culture Previous ‘Pub of the Year’ winners the time of the launch event following at the heart of our communities and include Paris Texas in Kilkenny City, the two-year sabbatical. a central part of our hospitality and The Gylde Inn in Annagassan, Louth The closing date is Friday, the 3rd of tourism sectors. Also, an Awards and The Porter House in Wexford’s June. The judging will then take place programme is fitting to reward the Castlebridge.

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I ND U S T RY RE PORT

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2021 Dublin pub sales values triple Dublin licensed premises property market sales reach highest-ever value

The Brazen Head – Ireland’s oldest pub and one of the Premium high-profile licensed premises brokered in 2021 by Lisney (incorporating Morrissey’s).

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he value of pub sales activity in Dublin tripled last year compared with that in 2020 according to Lisney Morrissey’s in its Review of 2021 and Outlook for 2022 report, published recently.

The year 2020 saw 13 licensed premises being sold in Dublin (or 1.78% of the total population of Dublin licensed premises) which realised a combined value of over €41 million.

But this was tripled last year when 30 sales (representing 4.11% of Dublin’s

total pub population) returned a combined value of more than €124 million. (The figure for 2019 was 16 transactions or 2.19% of total Dublin licensed premises and valued at over €57 million.)

According to the auctioneer, “The Dublin licensed premises property market reached its highest-ever value in possibly the most challenging trading environment in its history, with the market witnessing a 131% increase in the volume of sales and 198% in

overall value realised when compared to the previous year”.

While Dublin City Centre suffered from the absence of a working population as a result of the need to Work From Home and the lack of cultural/sporting events, suburban pubs enjoyed more favourable trading prospects, states the report, “... as in the vast majority of circumstances, they were enabled to capitalise on the benefit of an increased volume of patronage and discretionary spend

“Private Equity became a principal demand driver for pubs as a going concern.

These purchasers have teamed up with established operators and are continuing to target the upper tier of the Dublin City market and may begin reviewing prime assets within other cities such as Galway, Cork, Limerick and Kilkenny”

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through the emergence of remote working coupled with a general reluctance in customers to frequent the city centre”.

But the 2021 pub market continued to suffer from a shortage of supply with many operators postponing their decisions to enter the market until such time as trading restrictions ceased, states the report.

Supply remained stable throughout Quarters 1 to 3 in 2021 with five sales completed in each of the first two quarters and six in Q3, states the report, adding, “Q4 by comparison was strong, accounting for the remaining 14 transactions in the year”.

Lisney Morrissey’s therefore expects the initial months of 2022 to follow the end of Q4 with strong appetite and engagement from the market as purchasers remain active in seeking out opportunities, most of which are being explored via off-market approaches.

In a subsequent update to this report Morrissey’s informed Drinks Industry Ireland that in Quarter One of 2022, “Six licensed premises were publicly offered for sale in Dublin: Boland’s of Stillorgan, The Punch Bowl in Booterstown, Golden Ball in Kilternan and Ryan’s of Store Street as well as both 37 Dame Street and 67 Leeson Street (both required SevenDay Publicans’ Licences).

“Eight licensed premises were sold: O’Neill’s in Dun Laoghaire, The Eagle House in Dundrum, The Three Tunn in Blackrock, The Firhouse Inn in Tallaght, The 67 Lwr Leeson St, The Red Parrot in Dorset St and Baker’s of Thomas Street (now Dudley’s) and a licensed premises opportunity in Merrion Row. Of these five were handled through ourselves, two through other agents and one was ‘no agent’.

“A further six licensed premises were ‘Sale Agreed’. Three were handled off-market and three were offered publicly to market.

“The combined value of the eight sold was in the order of €17 milllion and the combined value of the six ‘Sale Agreed’ was in the order of €13.5 million.”

The auctioneer’s report itself also cites one notable change within the market - the significant rise in demand for well-located suburban units capable of enjoying high volumes of both trade and profit.

This demand has come from many purchasers that historically only focused on city centre areas but which now look to the suburbs too.

“In continuation of the trend of recent years and possibly an indication of the make-up of the market into

the future” states the report, “Private Equity became a principal demand driver for pubs as a going concern.

These purchasers have teamed up with established operators and are continuing to target the upper tier of the Dublin City market and may begin reviewing prime assets within other cities such as Galway, Cork, Limerick and Kilkenny.”

I N DUSTRY REPORT

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Off-market activity

Off-market activity has increased steadily in recent years. This accounted for 23% of total sales volume in 2020 rising to 37% in 2021. But in terms of market value, off-market sales accounted for 49% of total market value in 2020 and 40% in 2021.

Licence values

The pandemic and the outright absence of transactions throughout Q2 & Q3 of 2020 caused licence values to fall from €50k-€52k in Q1 of 2020 to €40k-€44k in Q4 of the same year.

But by a year later, Q4 of 2021, licence values had recovered their lost value and were transacting in the region of €55,000.

Provincial market

2021 was again a quiet year in terms of activity in the provincial market with limited transactions occurring in the cities of Cork, Galway, Limerick, Waterford and Kilkenny, states the report.

Looking forward

Private Equity’s net is likely to widen “in terms of consideration being given to other key city trading localities outside of Dublin” in 2022 predicts the report.

“These funds in particular will continue targeting the upper-tier of the market, seeking established pub groups and/or high-profile venues and we are aware of several with active 2022 requirements.”

The auctioneers have also witnessed “positivity” feeding into the lending sector “... with both pillar banks and non-traditional lenders witnessing a notable uptake in funding applications for licensed premises property”. n

DRINKS INDUSTRY IRELAND | May/June 2022

CAMPAI GN T RAIL

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8 Double Gold winners considered among finest products globally

Double Gold for Connacht Distillery The Connacht Distillery was awarded a Double Gold medal for Batch 1 of its Connacht Single Malt Irish Whiskey at this year’s San Francisco World Spirits Competition.

For the distillery’s first core Single Malt release less than a year after the whiskey’s launch last Autumn, this represents a major recognition by the San Francisco World Spirits Competition, one of the world’s most prestigious spirits competitions. It’s also considered to be one of the global spirits industry’s most important endorsements.

Batch 1 achieved a Gold medal rating from all members of the judging panel following a blind-tasting by the group of industry experts.

Winners of the Double Gold medal are considered among the finest products in the world.

The first whiskey to be distilled in County Mayo in over 150 years is crafted using 100% Irish malt barley, aged in ex-Bourbon casks for four

This represents a major recognition from one of the world’s leading industry competitions for Connacht Distillery’s first core Single Malt release.

years and finished in ex-Oloroso sherry casks; it’s then doubledistilled from the distillery’s own copper pot stills.

In less than a year since its launch, demand for Connacht’s Single Malt Irish Whiskey has accelerated worldwide, with the Connacht Distillery appointing distributors in seven world markets including France, Poland, Germany and the US. The Connacht Distillery also recently announced its expansion into the UK on- and off-trade through the appointment of Spirit Cartel to supply its whiskey brands across the UK. In Ireland, it’s available through the Connacht Distillery’s own website www.connachtwhiskey.com and through Bevella Drinks.

8 New releases, informative masterclasses & ever-expanding range of Irish spirits on view

Whiskey Live Dublin for 10th June Ireland’s premier whiskey-tasting event, Whiskey Live Dublin, takes place on Friday June the 10th (6.00-9.30pm) and Saturday

June the 11th (1.00pm-4.30pm & 5.30pm-9.00pm) at the RDS (Hall 1), Simmonscourt, Dublin 4.

Attendees have the opportunity

Attendees to Whiskey Live Dublin have the opportunity to meet the faces behind their favourite brands from both Ireland and beyond.

to meet the faces behind their favourite brands from both Ireland and beyond. New releases, informative masterclasses and whiskey cocktails from some of Ireland’s most esteemed bars will all be present this year as well as an ever-expanding range of Irish craft spirits.

All proceeds from a charity raffle (as well as €10 from every ticket purchased) is being donated to Down Syndrome Dublin.

For more information: Website: whiskeylivedublin.com Facebook: @whiskeylivedublin Facebook link: https://www. facebook.com/WhiskeyLiveDublin/ Twitter: @whiskeylivedub Twitter link: https://twitter.com/ WhiskeyLiveDub Instagram: @whiskeylivedub Instagram link: https://www. instagram.com/whiskeylivedub/ #WLD22 n