On again, off again – the story of the Irish pub reopening(s) DIGI’s new Chairman Liam Reid - “Every week of closure counts” Spirits sector performed strongly in 2019 -- Irish Spirits report Gin up, stay cheerful!
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CON T EN T S
DRINKS INDUSTRY IRELAND | October 2020
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COVER STORY 20 On again, off again - the story of the Irish pub reopening(s)
Volume 21 Issue 1 www.drinksindustryireland.ie Editor PAT NOLAN (01)2046230 patnolan@mediateam.ie
Head of Production LIZ O’ROURKE (01) 2947781 liz.orourke@mediateam.ie Publisher Louisville Publishing Ltd ‘Louisville’ Enniskerry County Wicklow (01) 204 6230 drinksinireland@gmail.com Printing W&G Baird Subscription details Nine issues a year €80 (including VAT). No part of this publication may be copied, reproduced or transmitted in any form without permission of the publisher.
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6 News
Head of Business IAN MULVANEY (01)2947766 ianmulvaney@mediateam.ie Account manager MARK MORGAN (01) 2947767 markmorgan@mediateam.ie
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While the public now seems to empathise with publicans some of whom have had to endure up to four ‘false starts’, the true cost in terms of time and effort – not to mention the financial expense – of reopening has not been detailed. We spoke to some publicans and suppliers about the frustrations and wasted effort, expense and heartbreak that’s gone into prepping the ‘wet’ pub for re-opening dates that failed to show.
NEWS & ANALYSIS
Tourism may not recover until middle of decade - report; Rye River Brewing Company takes on global giants 7; Pandemic significantly impacts Heineken’s H1 business 8; Level Three: 50,000 jobs to go in pub sector - VFI 9; Threat to pallet supplies averted? 10; Government’s Hospitality policy - “an outlier” in Europe 11.
12 Liam Reid - “Every week of
closure counts” Liam Reid, Corporate Relations Director at Diageo Ireland, is the new Chairperson of the Drinks Industry Group of Ireland. He talks about his new role to Pat Nolan.
14 Off-trade
Alcohol sales up in Lockdown; Duty-free sales could be restricted here post-Brexit 15; Take-home growth begins to taper 16; August alcohol - fastest FMCG growth category 17.
36 Campaign Trail
3 CWSA medals for Hinch; Guaranteed Irish for Hope Beer 37.
38 Closing Time
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The Great Liberties Whiskey Fire.
FEATURES & REPORTS 24 Gin up, stay cheerful
While Coronavirus may have utterly changed everything in the on-trade, not surprisingly off-trade sales have soared. Over the full eight weeks from March the 9th to May the 3rd, purchases of gin in off-licences here showed growth of 38%. What can we expect demand to be like this Autumn?
18 Spirits sector performed strongly in 2019....
... But that was before the Pandemic. So 2019 will be seen as a “benchmark” year for the spirits industry in light of Covid according to Drinks Ireland|Spirits’ Irish Spirits Market report 2019, published recently.
30 When is a shot not a shot?
When it’s part of a cocktail. With one or two notable exceptions brands originally destined for the shots market are happily finding themselves an integral part of cocktail culture. We look at the health of the shots market.
33 Liqueurs - offering a cocktail of possibilities The fourth-largest-selling spirit after vodka, whiskey and gin, we look at the liqueur market here.
www.drinksindustryireland.ie NEWS • PODCASTS • MARKETING • ON-TRADE • OFF-TRADE • OPINION
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OPINION
October 2020 | DRINKS INDUSTRY IRELAND
False dawns & fanciful words AS WE MOVE through this pandemic (with no end in sight) we discover that circumstances can change very rapidly. This happens so quickly that it’s difficult to keep up with the latest developments befalling the licensed trade (for they mostly befall the licensed trade, seldom being of the ‘blessing’ variety) in a monthly magazine. Our Main Story this month, for example, went to press just before Level Three came into force and before we learned what was to befall (that word again) the drinks industry in Budget 2021. But what’s emerging clearly is that the country needs to find a level of ‘acceptable risk’ and to live with Covid-19. The damage that this virus is wreaking on the population and the resultant fatalities must be balanced now against the irreversible havoc that’s being wrought on the country’s economy. No government should have to strike this balance but we are where we are, to paraphrase a previous government. What’s also emerging clearly is that there is some distance between what the government promises an ailing hospitality trade and what it delivers. Actions, not words, define a government’s credibility. To date the government’s actions rather than its words have shown it to be one lacking in credibility with the country’s pubs, restaurants and hotels. Alongside other employers those in hospitality received the Temporary Wage Subsidy Scheme payments within 48 hours of their applying for them. This system worked in allowing management to keep on employees. But replacing this with the Employment Wage Subsidy Scheme which now delays payment up to six weeks makes no sense. Pubs that had been deprived of income for six months and others trying to make ends meet on 50% capacity are now expected to pony up more money from empty space. That shows the credibility gap at its best between an out-of-touch government and formerly flourishing businesses now trying to survive this pandemic with some sort of livelihood as best they can. This lack of ability to live in the ‘real’ world just reinforces the words of LVA Chief Executive Donall O’Keeffe when he pointed out, “We already had one very false dawn when it comes to the Government providing support when we got spin and little substance”.
“The damage that this virus is wreaking on the population and the resultant fatalities must be balanced now against the irreversible havoc that’s being wrought on the country’s economy” Pat Nolan Editor patnolan@mediateam.ie Twitter: @drinksind_ie
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NEWS
October 2020 | DRINKS INDUSTRY IRELAND
8 Up to 33,000 Dublin drinks and hospitality jobs jeopardised by Government’s Covid response
Tourism may not recover until middle of decade – report With the country’s bars and pubs moving to Level Three for a minimum of three weeks recently, a new economic report shows that 33,000 of the capital’s Accommodation and Food Service jobs, which include jobs in drinks and hospitality businesses like pubs, hotels and restaurants, could be lost by the end of the year without additional supports from government. As many as 114,000 AFS jobs could be lost across the country by the end of 2020, including 36,300 jobs among the 15-24 age group according to the report. Employment in the drinks and hospitality industry: the threat of Covid-19 to jobs and how to minimise it was commissioned by the Drinks Industry Group of Ireland and authored by DCU Business School economist Anthony Foley. The report poins out that while all pubs, with the temporary exception of Dublin, were permitted to reopen on the 21st of September in accordance with Covid guidelines, the real question is how many of them and the jobs they provide will survive the next six months? The industry’s current commercial environment is dire: restaurants are operating at approximately 60% capacity, pubs serving food at 50% and hotels at 25%. These figures are unlikely to improve over Christmas and the Winter period, it warns. “After half a year of closure for pubs and significant periods of closure for all hospitality businesses including restaurants and hotels, they must now contend with an indefinite period of reduced operating capacity and opening hours as well as the postponement of all supporting social and cultural activities. Tourism will remain virtually non-existent in 2020, significantly reduced in 2021 and may not fully recover until the middle of the decade,” notes the report. It goes on to show that the 15-24 age group, which comprises nearly one-third of all AFS employment in Dublin, is particularly exposed and could suffer 10,600 job losses before the end of 2020. The report suggests that as many as 63% of all AFS jobs in Ireland could be lost by year’s end without further supports.
7.6% of all national employment is in the AFS sector. 31.8% of all workers are in the 15-24 age group and the majority of all employees are women (54.6%). Tourism is non-existent and few social or cultural activities are permitted. “Dublin’s lockdown and further restrictions on restaurants and pubs serving food will have grave material consequences for thousands of livelihoods, hundreds of businesses and local communities and Ireland’s long-term economic prospects,” said the new Chair of the Drinks Industry Group of Ireland and Director of Corporate Affairs at Diageo Ireland Liam Reid, “Every drinks and hospitality business owner in Dublin and across the country realises the public health risks associated with Covid. They’ve supported the longest hospitality lockdown in Europe and where they’ve been able to open, they’ve taken steps to ensure their staff and customers are safe and that their premises are controlled environments and invested tens of thousands of €uros doing so. “If the 2008 crash showed us anything, it’s that what we lose now cannot be simply reconstructed next year. If businesses cannot operate, jobs will go. This is a highly precarious industry and every week of closure counts. The long-term risk is enormous and a specific package of support measures is urgently required.”
Knock-on effects on the rest of Ireland Lockdown in Dublin also had knockon effects on drinks and hospitality businesses elsewhere in the country as domestic tourists from the capital cancelled their bookings in regional hotels, restaurants, and pubs.
Immediate additional remediation The DIGI has called on the government to aid the drinks and hospitality industry by removing barriers to business and delivering a comprehensive and coordinated set of measures over the coming period to support their recovery. “Reopening these businesses is not enough,” said Liam Reid, “We have to focus on recovery, which means making it as easy as possible to actually do business within Covid guidelines. Ireland’s pubs, hotels, restaurants and wider drinks and hospitality industry needs practical financial supports this year. As this report shows, intervention in 2021 will be too late and jobs will be lost.” As part of a broad package of measures the DIGI called on the government to deliver a 15% reduction in excise tax on drinks.
Budgetary Options The Department of Finance’s Tax Strategy Group recently produced the following table showing the estimated effect of a range of VAT-inclusive increases or decreases in excise duties’ yield for beer, spirits and cider and the estimated effect of a range of VATinclusive increases in excise duties yield for still and sparkling wine. Notes: (1) these figures do not incorporate the temporary 2% cut in the standard VAT rate (2) these figures assume no change in consumer behaviour, including in relation to cross border purchases.
Table 7: Budgetary Options +/-1c
+/-2c
+/-3c
+/-4c
+/-5c
+/-10c
+/-15c
+/-20c
Beer (per pint)
€6.8m
€13.6m
€20.4m
€27.2m
€34.0m
€67.5m
€100.7m
€133.5 m
Spirits (1/2 glass)
€4.2m
€8.4m
€12.6m
€16.7m
€20.8m
€40.9m
€60.3m
€79.1m
Cider (per pint)
€1.0m
€1.9m
€2.9m
€3.8m
€4.8m
€9.5m
€14.1m
€18.7m
+5c
+10c
+15c
+20c
+25c
+50c
+75c
+100c
Wine (per bottle)
€3.2 m
€6.4m
€9.5m
€12.6m
€15.7 m
€30.3 m
€43.9 m
€56.5m
Sparkling Wine (per bottle)
€0.06 m
€0.11 m
€0.17 m
€0.22m
€0.28 m
€0.54 m
€0.79 m
€1.03m
NEWS
DRINKS INDUSTRY IRELAND | October 2020
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8 Celbridge brewery crowned Most Decorated Independent Craft Brewery In World for 2nd consecutive year
Rye River Brewing Company takes on global giants The 2020 World Beer Award winners were announced recently with Ireland’s Rye River Brewing Company crowned The Most Decorated Independent Craft Brewery In The World for the second consecutive year. Rye River picked up no less than 30 awards including one of only nine overall category winner awards for its McGargles Sean’s Export Stout, named World’s Best Stout in the Stout and Porter Category, overtaking all other style and country winners. The brewery also picked up an additional three World’s Best in Style awards for: • McGargles Dan’s Double IPA which received the World’s Best Double IPA
title for the second time in three years • Rye River Miami JIPA, named World’s Best American Style IPA • The Crafty Brewing Company American Style Pale Wheat Ale, named World’s Best American Style Wheat Beer. Based in Celbridge, Co Kildare, Rye River Brewing Company was founded in 2013 and brands brewed there include McGargles, Rye River Brewing Company, Grafters and Solas. The brewery also brews Lidl’s Crafty Brewing Company range of beers. “It’s a challenge to produce over 30 unique products on one site yearround and an absolute honour that they receive such recognition on a global
Rye River Brewing Company’s brands include McGargles, Rye River & The Crafty Brewing Company.
platform,” said Head Brewer Bill Laukitis, proud of their success.
8 Half of adults feel prolonged pub closures will result in decreased level of community spirit and morale
Over 70% of population want government to support hospitality industry Almost two-thirds of Irish consumers are concerned about the impact of prolonged pub closures on the local economy according to research from the Drinks Industry Group of Ireland. The research, released as part of DIGI’s ‘Support Your Local’ campaign, revealed that up until the 21st of September over half the pubs in Ireland (56%) were reported to be temporarily or permanently closed as a result of Covid-19 restrictions. Broken down further, 61% of people living in rural areas reported a local pub closure compared to 50% in urban areas. These prolonged pub closures raised a number of concerns for those within local communities, with over 60% of people concerned about the knock-on effects of the restrictions on the local economy. According to the research, the main concerns surrounding the closure of pubs in local areas included: • the loss of jobs within the local community (78%) • the negative impact on supporting industries (75%) • the isolation and loneliness of elderly people within the community (67%) • the lack of support for musicians and the arts (67%). Commissioned by the DIGI the research was carried out by Core Research which sampled 1,000 consumers for a national sample of those aged 18 or over.
Community impact In addition to economic concerns, people also noticed significant changes to their local communities as a direct result of the pub closures. According to the research almost six in 10 (59%) visited their local pub at least once a month before Covid-19. Since the government implemented restrictions on the opening of pubs, half (53%) feel that the vibrancy of the community has dampened with 50% also noting a decrease in the level of community spirit and morale among the community.
Supporting the industry Over 70% of the Irish population believes that the government needs to step in and provide support measures to save the drinks and hospitality industry. At the time, three-fifths of the population believed that local publicans would act responsibly and ensure that public health measures and guidelines were enforced correctly, while the vast majority (90%) said that they were also taking personal responsibility for their health and safety by adhering to public health advice, suggesting that most would be compliant with all pub re-opening requirements. “The prolonged closure of pubs in Ireland is not only having a negative effect on those who are directly involved
in the industry” commented Rosemary Garth, former DIGI Chair and Director of Communications and Corporate Affairs at Irish Distillers at the time, “it’s having widespread impact on local communities. “This is truly devastating to see. According to our research the vast majority of people in Ireland have noticed significant change to their local community, with a particular decline in community spirits and morale. “The role of the pub in local communities has never been more prominent. It is only now, as many pubs remain shut or have closed permanently as a result of the lockdown, that people are recognising how important the industry is for local wellbeing, job creation and the broader economy.” She advocated putting meaningful supports in place to allow pubs to reopen with a fighting chance of survival, to recover from the damage of the past six months. “To help facilitate this, the Drinks Industry Group of Ireland is calling on the government to introduce a 15% reduction in excise tax in Ireland, which currently poses a threat to both the short- and long-term viability of the drinks and hospitality sector,” she added.
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NE W S
October 2020 | DRINKS INDUSTRY IRELAND
8 After low point in April volume started to recover gradually into June
Pandemic significantly impacts Heineken’s H1 business Heineken nv’s markets and Operating profits businesses were significantly declined organically by impacted by the Covid-19 52.5% compared to H1 2019 pandemic in the first half of while net profit declined by 2020. 75.8% in H1. Heineken nv’s Its beer volumes declined exceptional items include organically by 11.5% in H1 around €550 million in resulting in a net revenue impairments on tangible decline of 15.5% to €11.56 billion and intangible assets which on an organic basis for the will lead to a reported net world’s second-largest brewer. loss of around €300 million. This was driven by an Input costs per hectolitre organic decline of 13.4% in increased significantly and total consolidated volume and from late March onwards an organic decline of 3.6% Heineken took significant in net revenue per hectolitre cost mitigation actions according to Heineken. leading to an overall However the Dutch brewer decrease in costs for the stated that despite these first half of 2020. The “short-term” challenges, it company is committed to “remains confident in its ability further intensify its focus to navigate the crisis”. on costs. As expected, the impact of The Heineken brand itself the Covid-19 crisis deepened performed well in relative The Heineken brand itself performed well in relative terms in the second quarter of terms suffering only a 2.5% 2020. After a low point in April, suffering only a 2.5% overall decline. overall decline. volume started to gradually Heineken 0.0 also brewer. However, given Heineken’s recover into June as lockdowns were experienced a double-digit increase in strong position in the on-trade and lifted around the world and customers sales with growth across all regions. the structural differences between restored depleted inventories. This was particularly the case in the channels, operating profit was In Europe off-trade beer volume grew US and Mexico. disproportionally affected as on-trade “in the mid-teens” and market share outlets were closed for a large part of increased in key markets, claims the the second quarter.
8 Camile offers publicans flexible franchise model
Camile franchise offering publicans income stream in Lockdown As Government restrictions remain in place on pubs across the country putting previously viable businesses at risk, one company, Camile, is offering publicans a partial solution to restoring income streams through a flexible franchise model. The Garavogue Bar, The Blind Tiger and Andersons rank among Sligo’s busiest venues. Like everyone else in the country Brian O’Sullivan, an experienced publican and nightclub owner, had to close his businesses during Lockdown but has now partnered with Camile Thai Kitchen, a leading Asian food brand specialising in home delivery. Camile had only recently launched a new flexible, low-cost franchising model
From left: The Garavogue’s Laurie Kenna, Brian O’Sullivan and Sinead Canning “doing food better as part of our business than before”.
that makes use of unused or underused kitchen space.
Within eight weeks of joining Camile and an initial investment of approximately €35,000 - Camile Sligo opened its doors on the 28th July. “There was huge hype in the town before we opened and it has just carried on,” said Brian. In fact, Camile Sligo has become a top performer in the growing chain of 35 Camile restaurants. “Our guests love the food, we’re doing food better as part of our business than before and the delivery and collection really adds to the turnover and makes us less dependent on footfall,” he added. For more information about Camile’s flexible franchising options goto https://www.camile.ie/franchising/
NEWS
DRINKS INDUSTRY IRELAND | October 2020
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8 Many pubs had only reopened two weeks prior to Level Three’s introduction
Level Three: 50,000 jobs to go in pub sector - VFI Although Level Three restrictions refer to pubs remaining open, the reality is that the majority will close as outdoor service limited to 15 customers is not a viable proposition for most hospitality businesses, especially with the approach of Winter. The recent Government decision to move the entire country to Level Three will therefore see 50,000 bar staff lose their jobs in another devastating development for the pub sector in a year where it has borne the brunt of Lockdown restrictions and closures, the Vintners Federation of Ireland has stated. Many pubs had only reopened two weeks prior to the introduction of Level Three nationally after closing on the 15th of March. The VFI now feels that there’s an urgent need for Government to announce immediate additional support for the pub trade including a substantial increase in the Restart Grant - although it warned that there could not be a repeat of the situation in Donegal which was earlier moved to Level Three and where pubs were excluded from the 30% ‘top up’ grant because technically they remained open. “It’s impossible to overstate the impact this news will have on publicans across the country,” stated VFI Chief Executive Padraig Cribben at the time, “They now join their colleagues in Donegal and Dublin on Level Three with all the uncertainty that entails. We also face the grim fact that over 50,000 people will once again have to sign-on this week. “There now must be an immediate return to the original Pandemic Unemployment Payment for pub staff along with liquidity supports that will allow our members re-establish their businesses once restrictions are removed. As a customer-focused sector disproportionally impacted by restrictions the very least publicans require is an emergency bailout fund that will support our members until they can return to normal trading conditions.” There was some hope when pubs reopened two weeks before Level Three’s introduction that pubs could
There was some hope when pubs reopened two weeks before Level Three’s introduction that pubs could trade their way to a successful Christmas period but that looks impossible now, said Padraig Cribben.
trade their way to a successful Christmas period but that looks impossible now, he said. “We’re facing the prospect of being closed for at least nine months of 2020, a fact that Government needs to address.” He added, “While Government say these restrictions will remain in place for three weeks, we’ve learnt from bitter experience that reopening dates can move at the last minute. Our members face another prolonged bout of uncertainty at the worst possible time”. For its part the LVA pointed out that Lockdown in Dublin had not reduced the level of Covid-19 infection rates where non-food pubs in the capital had now been closed for a minimum of 225 consecutive days. And most of the food-pubs and restaurants across the capital were forced to close on the 18th September following the Government’s decision to ban indoor service. Since their forced closure, the level of infection in Dublin has continued to grow. This was despite National Public Health Emergency Team’s claims that the infections were arising in pubs and restaurants, a claim it has failed to produce data to justify, stated the LVA. The Level Three announcement meant that Dublin’s non-food pubs would now face their sixth potential reopening date following the initial ‘false’ reopenings. Since the 15th of March pubs that do serve food in Dublin will have had their doors closed by the Government for 144 days. Despite advocating a “living with Covid-19” approach, the Government has repeatedly singled out the
hospitality sector to bear the brunt of restrictions without providing meaningful supports to ensure that businesses and jobs that were viable preLockdown will remain so, the Association stated. A further sign of the inconsistent approach being taken to the hospitality sector is that the non-food pubs are allowed offer outdoor service in every county except Dublin. “The Government and NPHET’s big idea for reducing the level of infections in Dublin was to keep the pubs and restaurants closed – and that hasn’t worked,” pointed out LVA Chief Executive Donall O’Keeffe, “Yet despite that lack of progress they’re taking the same approach around the country and extending these short-sighted measures in Dublin. “They expect pubs and restaurants to take blow after blow while all other aspects of society can continue to go about their business. This is disproportionate and tokenistic. “How can they justify allowing the non-food pubs to offer outdoor service in every county apart from Dublin? This makes no sense and it’s easy to see why the faith in the Government and NPHET has been shattered amongst most of the pub sector in this country. “It is worth remembering that onethird of the pubs in Dublin have not been able to open their doors since mid-March. They’ll be closed for a minimum of 225 days at this point, have made zero contribution to this problem and they have to remain closed. This is not allowing these pubs and their employees to live with Covid. “We already had one very false dawn when it comes to the Government providing support when we got spin and little substance.”
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October 2020 | DRINKS INDUSTRY IRELAND
8 Risk of pallet supply shortages in latter part of this year “and most definitely Q1 2021”
Threat to pallet supplies averted? A situation that threatened the supply of wooden pallets for suppliers and exporters may have been averted with the introduction of red tape reforms by the Government. As a result of lobbying on the part of the timber industry delays in the granting of tree-felling licenses in Ireland (thus leading to a possible shortage of wooden pallets for exporters) have now been tackled with the Cabinet recently approving a number of forestry sector reforms to reduce this backlog.
risk that there will be supply shortages in the latter part of this year and most definitely Q1 2021,” stated Timcon’s President John Dye who urged that legislation be implemented here urgently “to ensure that work can commence immediately to reduce the massive backlog of applications”. It’s understood that at least 2,000 forestry jobs were under direct threat because of a licensing and appeals logjam that threatened to bring the entire sector to a halt.
Over 8,000 Irish exporters use wooden pallets for exporting their goods.
Coillte, the semi-State body, had warned that the licensing delay could lead to shortages of wood and thousands of layoffs in the timber industry. Timcon, the UK-based industry body representing major manufacturers in both the Irish and UK sectors, had also warned the Irish Government in a detailed submission sent to the Junior Agriculture Minister here Pippa Hackett. Over 8,000 Irish exporters use wooden pallets for exporting their goods providing the Irish pallet manufacturing industry with a turnover of around €130 million. “Ultimately we feel that there’s a real
“The backlog in appeals is hugely damaging to the forestry industry and it needs to be dealt with urgently as job losses are imminent and an industry which supports 12,000 mainly rural jobs in Ireland and contributes €2.3 billion to the economy is at immediate risk,” agreed the Junior Minister. Around 90% of the world’s goods are transported on wooden packaging material which “means that any disruption to the suppliers will have an almost immediate effect on a country’s economy if goods cannot be exported,” the Timcon President warned Pippa Hackett. In the case of Ireland this would be
most unwelcome, he stated. “There’s an ongoing issue with regard to selling licences for trees which has reached a backlog caused by the Lockdown Coronavirus,” explained Timcon’s spokesman Dominic Weaver. “That was one issue. The other issue is the situation with regard to borders & ISM15 after Brexit.” From a plant health point-of-view, pallets that move between the EU and the US, for example, need to be ISM15compliant; they need to eradicate any ingrained pests by warming the wood up in a kiln to dry it out and kill any resident pests in pallets coming to or from the US/EU. The risk of this within the EU itself is deemed to be negligible because there are no widespread incidences of pests. But with the UK leaving EU it then takes on ‘Third country’ status and while the risk of pest infection remains unchanged, World Trade Organisation rules dictate that the wood must be heat-treated for any pallets going into the EU and viceversa. “When those pallets cross borders they have to be heat-treated to ISM15 standards,” explained Dominic Weaver, “This issue is being talked about with regard to it’s enforcement in the UK & EU. “If agreement isn’t reached it could cause considerable delays to shipments in both directions.” The whiskey industry tends to use heat-treated pallets already for its exports from Ireland. “At the beginning of the year the focus was on getting some kind of clarity on enforcement,” said Dominic Weaver, “We still think now that an agreement is the most desirable arrangement to have in that the EU doesn’t enforce inspections on pallets between the UK and Ireland and vice-versa but we do suggest that suppliers have decent stocks of ISM15 pallets available.”
n Swigmore Inns, the holding company for Tom and Paul Mangan’s popular Doheny & Nesbitt pub on Baggot Street, recorded a rise in accumulated profit for the year to the 31st of January 2020 to €4.1 million from €3.8 million. Doheny’s added three staff during the year and had an average of 44 working at the pub, up from 41 the previous year.
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DRINKS INDUSTRY IRELAND | October 2020
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8 €60 million in written-off stock tip of iceberg - DIGI
Government’s Hospitality policy “an outlier” in Europe Over €60 million-worth of stock, including beer and food, has had to be written-off to date by drinks and hospitality businesses, namely food-serving pubs, as a result of the Government’s ‘stop-start’ approach to reopening the sector according to figures supplied by the Drinks Industry Group of Ireland. On three occasions the Government signalled a date on which ‘wet’ pubs and pubs serving food would be permitted to reopen after the extended lockdown and on each occasion these were false starts giving very short notice to businesses that they were not being permitted to reopen after all. This left many with extensive stocks of beer and food purchased from suppliers, while customer bookings were made and staff rostered. The industry estimates that the cost of each of these false starts stands at up to €20 million in terms of beer and food stock. In Dublin alone each false start cost up to €7 million in wasted beer stock for pubs in the capital. This is in addition to the investment businesses made - and continue to make - in preparing their premises (including cleaning, PPE equipment, staff and wage costs) to reopen. “Drinks and hospitality businesses have endured the longest lockdown in the EU and the short notice nature of the Government’s three failed pledges to reopen the industry is crippling businesses who’re incurring costs with no means of recouping them,” said DIGI Chair Liam Reid, “€60 million is only the tip of the iceberg while we risk a credit crisis in the industry where product is written off and credit terms are reviewed – a situation we need to avoid. “Dublin publicans, whose businesses have been caught in the government’s costly and unpredictable stop-start lockdown strategy, will endure further
Over €60 million-worth of stock, including beer and food, has had to be written-off to date by drinks and hospitality businesses as a result of the Government’s ‘stopstart’ approach to reopening the sector.
financial strain for the next period of weeks - or it could be months, we don’t know. “The key challenge for the industry right now is that current Government policy is an outlier compared with other European countries. Ireland is closing far more of our hospitality sector and for far longer. If this approach is maintained and we fail to explore other ways of living with Covid and operating our businesses, it will cause long-term and irreparable damage to the sector. The Government needs to urgently look at what other European countries are doing and adapt the current approach.”
Employment risk to the sector A recent report suggests that as many as 63% of all Accommodation and Food Services jobs in Ireland, 114,000 in total (including jobs in pubs,
restaurants, and hotels), could be lost by year’s end without further supports. This includes 36,300 jobs among the 15-24 age group.
Supports required The DIGI called on the government to aid the drinks and hospitality industry by removing barriers to business and deliver a comprehensive package of measures to support their recovery. “We need to consider how best to reopen these businesses and in tandem, focus on the recovery,” stated Liam Reid, “We must ensure we do all we can to make it as easy as possible to operate within Covid guidelines and support the recovery of this sector and our economy. “Central to this is jobs and this industry has proven capacity to create and maintain employment.” n
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ONE & ONE
October 2020 | DRINKS INDUSTRY IRELAND
Liam Reid -
“Every week of closure counts”
L
iam Reid, the Drinks Industry Group of Ireland’s new Chair, should be used to political pressure. In the past he’s worked as a press adviser at the former Department of the Environment, Heritage and Local Government. Previously he was Environmental Correspondent and political reporter with the Irish Times. Since joining Diageo Ireland he’s held the posts of Head of Government Relations as well as Head of Public Affairs and Corporate Communications. So as he takes over the role formerly held by Rosemary Garth the DIGI would appear to be in good hands at this very precarious time for the industry. “The drinks and hospitality industry is
among the hardest-hit sectors of Covid19 and it’s currently in crisis,” he agrees, “Having endured the longest lockdown in the EU, recovery for the sector will be a prolonged and difficult journey. “The prospects for the sector are not overly promising right now and we need to ensure that sufficient meaningful supports are put in place to facilitate the recovery of the industry.” These requirements for support result from a number of key challenges. “Current Government policy is an outlier compared with other European countries in that we’re closing far more of our hospitality sector - and for far longer,” he says, “If we keep doing this and fail to
Liam Reid, Corporate Relations Director at Diageo Ireland, is the new Chairperson of the Drinks Industry Group of Ireland, taking on the mantle at a very precarious time for the industry. He talks about his new role to Pat Nolan.
explore other ways of living with Covid, it will cause long-term and irreparable damage to the sector. The Government needs to urgently look at what other European countries are doing. “For businesses that are allowed to open the second challenge is that restaurants are operating at approximately 60% capacity, pubs serving food at 50% and hotels at 25%. These figures are unlikely to improve over Christmas and the Winter period. Tourism is non-existent and few social or cultural activities are permitted. What we need now is coordinated and strong support from Government to help the industry through this. It’s clear that the Government’s July stimulus package has not been effective and requires a much more focussed plan.” Liam stated recently that, “If the 2008 crash showed us anything, it’s that what we lose now cannot be simply reconstructed next year.” He added, “This is a highly precarious industry and every week of closure counts. The long-term risk is enormous and a specific package of support measures is urgently required.” What else should we have learned from that crash? “Two things,” he responds, “The first is that the hospitality sector helped lead this country out of the recession - one in seven jobs created during the recovery was in hospitality. “The role of the hospitality sector is often under-appreciated, but apart from the almost 200,000 employed directly in the sector, there are thousands of additional jobs in services, in food production, in construction, logistics and other fields that rely directly on the sector. Some estimates put it as high as one in five jobs in Ireland being reliant on the experience economy. “The second thing is that if the government fails to protect it, our sector
DRINKS INDUSTRY IRELAND | October 2020
Liam Reid on… 8 … Government’s response to the hospitality industry: “Current Government policy is an outlier compared with other European countries in that we’re closing far more of our hospitality sector and for far longer.” “It’s clear that the Government’s July stimulus package has not been effective and requires a much more focussed plan.” “We don’t have much control over this virus, but we do have control over Ireland’s economic policy decisions.” “It’s simply unsustainable in my view that the Government is pocketing around a third of the price of the average drink in excise and VAT receipts at a time when the majority of businesses are at least 50% down on their revenues.” “Currently, consumers in Ireland pay the second-highest excise on beer despite exporting Guinness to every continent on the planet. We also pay the third-highest on spirits irrespective of Ireland being the birthplace of whiskey. These punitive rates directly undermine a crucial employer, growing export business and tourism product. ” “If the government fails to protect it, our sector will not be rebuilt overnight and it requires a huge amount of targeted support to get through the coming months.” 8 … the importance of the hospitality industry to the economy: “Some estimates put it as high as one in five jobs in Ireland being reliant on the experience economy.” “It’s important to recognise the severity of the number of jobs at stake in the drinks and hospitality sector.” “The hospitality sector helped lead this country out of the recession - one in seven jobs created during the recovery was in hospitality.” will not be rebuilt overnight and it requires a huge amount of targeted support to get through the coming months. “We don’t have much control over this virus, but we do have control over Ireland’s economic policy decisions and the policy instruments available to us to stimulate and support this industry, the rate of excise tax that we level on this industry being one.” He can also elaborate on the kinds of support package he’d envisage for a pub trade in difficulty right now. “The Government has, to date, failed
to provide meaningful supports for the longer term to support the recovery of this industry,” he believes, “The industry was shut down for over six months while many businesses remain closed and others restricted further. “Ireland’s drinks and hospitality industry has endured the longest lockdown in the EU - as I speak today in early October, wet pubs in Dublin are now in their seventh month of lockdown. “The industry has invested in their businesses to meet the public health guidelines and to operate safely for customers – health and safety is the priority. Following a series of false starts and short notice closures, this industry is paying a huge price. “We’re calling on the government to introduce a practical and long-term support package which will help hospitality businesses to not only open their doors but to keep them open. “Businesses that open are also paying almost the highest levels of tax on the drinks they sell. “It’s simply unsustainable in my view that the Government is pocketing around a third of the price of the average drink in excise and VAT receipts at a time when the majority of businesses are at least 50% down on their revenues.
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“A reduction in excise tax would not only support pubs, restaurants, hotels, but all businesses which depend on this industry for revenue. This targeted support would therefore be a direct economic injection into an industry which has the proven capacity to create jobs.” For the DIGI, recovery means longer term strategies that will ensure businesses and jobs are protected during the uncertain period ahead. “For many businesses within the industry being permitted to reopen their doors after enduring the longest lockdown within the EU does not guarantee their future. While it is certainly the first step towards recovery, it’s not the solution,” he says, “Providing all necessary support to our membership, ensuring their voices are heard and their needs are met at a national level is our priority right now. We’re working to ensure that longer term, meaningful supports are provided from Government. ” Specifically, with further lockdown measures and restrictions likely to be introduced and struggling businesses operating with significantly lower capacities and demand he feels that it’s imperative that the government provides financial support to those within the drinks and hospitality industry as soon as possible.
“As I speak today in early October, wet pubs in Dublin are now in their seventh month of lockdown” “While temporary supports have already been introduced by the Government, none of them have been specifically designed to support the hospitality sector,” he says, “The industry requires longer term, targeted measures that will not only tide them over in the short term but will give them a chance of survival and recovery.” To facilitate this the Government must look at the current constraints within the sector including the excessively high tax rates imposed on the industry. “A 15% reduction in excise tax would not only benefit customer-facing businesses within the sector but would also support Ireland’s brewers, distillers and distributors as they face an uncertain and difficult period ahead,” he says. He also believes that our having the second-highest excise tax in the EU immediately puts businesses within the drinks and hospitality sector on the backfoot when it comes to recovery. “Currently, consumers in Ireland pay the second-highest excise on beer despite exporting Guinness to every continent on the planet. We also pay the third-highest on spirits irrespective of Ireland being the birthplace of whiskey. These punitive rates directly undermine a crucial employer, growing export business and tourism product.
A recent report commissioned by the Drinks Industry Group of Ireland and carried out by DCU Business School economist Anthony Foley, Employment in the drinks and hospitality industry: the threat of Covid-19 to jobs and how to minimise it, suggests that as many as 63% of all Accommodation and Food Services jobs in Ireland, 114,000 in total (including jobs in pubs, restaurants and hotels), could be lost by year’s end without further supports. This includes 36,300 jobs among the 15-24 age group. “There is much at stake,” he believes, “For many, a job in the drinks and hospitality industry is a rewarding lifelong career. For others, like students, farmers, carers and homemakers, it offers flexible part-time hours that work for them and their families. If these opportunities are taken away from these people because of the impending downturn, we’ll face years of mounting inequality between them and the hightech professional. “It’s important to recognise the severity of the number of jobs at stake in the drinks and hospitality sector,” he concludes. The Government can consider itself as having been warned. n
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October 2020 | DRINKS INDUSTRY IRELAND
8 “Strong substitution effect when on-trade closed”
Alcohol up in Lockdown Unsurprisingly, with the closure of the on-trade over the months of March, April, May and June figures from the Department of Finance show that the off-trade channel benefitted through increased alcohol sales from the move away from the country’s pubs, bars, restaurants and hotels. The Department of Finance’s Tax Strategy Group Papers, published ahead of this month’s Budget, show that people actually consumed more alcohol in the seven months to the end of July than in the same period in 2019 despite the pubs being shut. While beer, spirit and cider volumes were down 17.4%, 9.8% and 9.4% respectively in the second Quarter of this year compared to the same Quarter in 2019, wine volumes showed an increase of 10% according to Revenue’s calculations. “Despite the closure and ongoing restriction of the on-trade, we are not seeing a decrease on a similar magnitude in overall alcohol sales volumes,” state the Departmental Papers. “This indicates that in Q2 2020 alcohol sales in supermarkets have increased significantly due to a substitute purchasing effect.” Excise tax on alcohol accounted for €1.232 billion in 2019, down from 2018’s €1.239 billion figure. But the Papers point out, “Total excise receipts on alcohol to the end of July 2020 (at €669.1m) is marginally higher than for the same period in 2019 (€666.8m),
Wine volumes showed an increase of 10% in the second Quarter of this year compared to the same Quarter in 2019 according to the Department’s calculations.
reflecting a strong substitution effect when the on-trade was closed”. The report also notes that consumer tastes changed too. “The increased consumption of wine has had implications for the pub trade, as over 80% of wine is purchased in the off-trade,” notes the report, “Given that excise duty on alcohol is largely unchanged as a proportion of price over the years, it is unlikely that tax is the driving factor in consumption changes. In this regard, the consumption and composition of consumption of alcohol products is driven by factors such as personal disposable income, individual consumer preferences, the availability of alcohol products, the pricing strategies of retailers and publicans and cultural changes”.
The Strategy document illustrates the trend in excise duties as a percentage of the national average price of the representative pint of stout, lager, cider and glass of whiskey sold in the on-trade. “Since 2014” it notes, “excise duty as a percentage of the retail price has fallen across all these products, due to pub price inflation.” The Department of Finance Papers compare this with the trend in excise duties as a percentage of the national average price of the representative can of lager or cider or bottle of wine or bottle of whiskey sold in the off-trade. “Broadly speaking, the trend has been relatively flat since 2014”, states the report, indicating that average retail alcohol prices in the off-trade have not changed much since 2014.
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8 Proposed legislation allows Ireland option of charging excise on duty-free products for travellers
Duty-free sales could be restricted here post-Brexit With the space between the UK and Ireland likely to become a duty-free zone, the wider availability of lowpriced tobacco and alcohol products threatens the Exchequer take as the short distance involved could well promote “fiscally-motivated” travel by RoI citizens according to the government’s Tax Strategy Group. The Group’s Brexit Readiness – Taxation and Customs Issues report, published recently, points out that under the present Brexit agreement, post transition, the UK (excluding Northern Ireland) will be considered a “third country” for the purposes of excise duty and VAT. “In the absence of any action on behalf of the UK and Ireland, Duty Free sales would emerge between the UK and Ireland due to the UK’s status as a ‘third country ’post transition,” states the report. “This has the potential to significantly affect the Government’s Exchequer figures. As matters stand, a dutyfree regime for UK/Ireland travel will create significant tax administration difficulties and compliance costs, will reduce indirect tax revenues and will have a negative and distorting impact on the retail sector in Ireland given
the frequency of air/sea passenger movements involved.” This will apply not just in relation to excise products, but also in relation to retail trade in other high value items eg jewelry, cosmetics, IT devices. However, the report adds that a legislative measure was included in section 63 of the 2019 Brexit Omnibus Act which provided for an option to restrict duty-free sales, in relation to excise duty, in the case of passenger travel between Ireland and the UK. “The measure provided that excise duty would apply to alcohol and tobacco products sold in tax-free shops in Ireland to passengers travelling to the UK, post Brexit,” states the report, “The policy intention was to commence the measure in the event that the UK decided to restrict the scope of duty-free sales on excise products (alcohol and tobacco products) on a reciprocal basis.” The proposed legislation allows Ireland the option of ensuring that excise is payable, where applicable, on duty-free products for travellers, leaving Ireland, going to the UK (not including Northern Ireland). “When the transition period ends the UK will assume the status of a
‘third country’ in terms of their trading relationship with the European Union,” a spokesman for the Department of Finance told Drinks Industry Ireland, “In the absence of any action on behalf of the UK and Ireland, duty-free sales would emerge between the UK and Ireland due to the UK’s status as a ‘third country’ post transition. “The ‘Brexit Preparedness – Taxation and Customs Issues’ Tax Strategy Group paper (see link https://www.gov. ie/en/collection/dc3850-budget-2020tax-strategy-group-papers/) set out a possible scenario around duty-free post transition. Were the UK to decide not to introduce duty-free sales for passengers travelling to the EU post transition, the approach to date has been to look to reciprocate the actions of the UK. In reality, this meant that we could only legislate to apply excise duty on alcohol and tobacco products, as the EU VAT directives provide that no VAT is payable on duty-free products to Third Countries, subject to quantitative limits. “The UK has announced recently that duty-free will apply between the UK and the EU post transition. However, the Government has yet to announce its position in this regard.”
8 Porterhouse Bar, Nassau St, reacts to latest Dublin Lockdown
Porterhouse ‘Bottle House’ Off-Licence opens A new off-licence opened its doors in Dublin 2 on the back of the recent Lockdown in the city. With Dublin being put into Level 3 of the new road map, the Director of the Nassau Street Porterhouse Dave Morrissey decided to act quickly and turn a section of the front of the premises into a craft beer and premium local spirits off-licence. ‘The Bottle House’ was the idea of hospitality veteran Dave and Porterhouse Director Elliot Hughes. Within 72 hours the venue was transformed. “It’s been an incredibly difficult week for hospitality” explained Doug Leddin, Marketing Manager for the
Porterhouse Brew Co, “but the team at Porterhouse aren’t the type to lie down and stop. Dave has worked tirelessly to ensure that if Dublin was to be locked down again we’d have an opportunity to generate revenue, support local suppliers and most importantly stay employed. “We opened our doors on Saturday the 19th of September and plan to open seven days a week from 2pm - 10pm, selling local craft beers, premium local spirits and an amazing selection of wines from our local suppliers.” The Bottle House - offering the Porterhouse an opportunity to generate revenue, support local suppliers and most importantly stay employed.
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8 UK government’s “red tape requirements” to push up price of wine for consumers and cause “chaos” for wine industry
Red tape to cause chaos & price hikes for UK wine A new report from a committee of UK MPs shines light on the impact on the UK’s wine business of the government’s new red tape requirements. These will push up the price of wine for consumers and cause “chaos” for the wine industry. Following an inquiry into the impact of introducing a number of controversial new wine import requirements (including the introduction of the infamous VI-1 forms which would “be chaos” for all those companies buying and selling European wines which are unfamiliar with VI-1s and lab tests) the All Party Parliamentary Group for Wine and Spirits published a report on the subject. Wine companies there have spelled out the cost to consumers and businesses of a series of new inspections and paperwork requirements voluntarily proposed by the UK government for wine imported from the EU from the 1st of January next year. If the government refuses to scrap plans such as those to introduce wine import certificates (so-called VI-1s) and lab tests, experts warn that businesses could fold or be forced to relocate outside the UK. Job losses are inevitable and the Treasury will lose tax revenue. Worried UK wine firms gave or submitted pages of evidence to the
Fine wine merchants have told MPs it will be impossible for them to meet the testing requirements (which would mean opening and thereby ruining expensive bottles of wine) and remain competitive.
inquiry citing a catalogue of concerns. The report was published in the same week as an amendment from Lord Holmes of Richmond to the Agriculture Bill calling for a Government review into the requirement for VI-1 forms and calling for a “revolutionary electronic alternative” for any necessary information. “For those suppliers who were trying to be proactive and work out what to do, they’re getting little to no information from their own Customs officers,” said a spokesman for one of the companies, Direct Wines, as part of the inquiry.
“This is going to be unbelievably difficult to implement” added Liv-Ex, a leading global trader in fine wines, in giving evidence to the effect that LivEx alone will have to produce at least 15,000 forms and “600,000 or more forms are going to be produced” LivEx predicted. Fine wine merchants have told MPs it will be impossible for them to meet the testing requirements (which would mean opening and thereby ruining expensive bottles of wine) and remain competitive, which will inevitably result in businesses having to relocate from the UK to avoid using the forms. As well as the huge cost to wine >>
8 Off-sales growth slowdown as people now more inclined to socialise out of home
Take-home growth begins to taper After months of exceptionally strong growth, take-home alcohol sales have begun to taper off according to Kantar’s survey data on the grocery sector. In the four weeks to the 9th of August, growth in sales of takehome alcohol started to slow down with consumers more inclined to socialise outside of their homes as lockdown lifted. Alcohol sales increased by 56% in the 12 weeks to the 9th of August, which represents a significant decline from the 76% growth recorded in the previous month’s 12-week period according to Kantar. “This represents a significant slowdown from the 76% growth rate we saw last month as people get used to new rules and are more inclined to socialise out of home,” said Emer Healy, Kantar’s Retail Analyst.
In the four weeks to the 9th of August, sales of take-home alcohol started to slow down with consumers more inclined to socialise outside their homes as lockdown lifted.
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businesses – estimated at over £70 million a year – there will be a big reduction in range and choice. One independent wine merchant said, “UK customers have become accustomed to being able to buy the food and drink they like from all over the world. If they’re suddenly unable to buy major brands from Bordeaux, Champagne, Rioja, Prosecco, I think they’re going to be very unhappy”. Other wine businesses stressed that this was an opportunity for the government to move forward rather than take a step back. Chainvine, experts in digital systems, said, “The Government should declare a ‘War on Paper’. It is wasteful, unsustainable and in the long term not resilient as Covid-19 has shown us”. The report concluded that the introduction of import certificates for EU wine, something that isn’t required of any other category of alcoholic drink, will add further time and costs which will ultimately fall to the consumer, with no demonstrable benefit. MPs were told it would push up the price of the nation’s favourite alcoholic drink and reduce the range of wines offered to the UK’s 33 million wine drinkers. Last year the Wine & Spirits Trade Association warned that the new inspections for imported EU wine would treble the workload of UK wine inspectors overnight. On top of this the report pointed out that VI-1 forms will damage the UK bottling industry and could hinder the growth of the English Sparkling wine industry. “Sadly Defra [Department of Environment, Food & Rural Affairs]
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Ministers are stubbornly ploughing ahead with the introduction of costly VI-1 certification for EU wines” said WSTA Chief Executive Miles Beale, “meaning that at the end of the year wine drinkers will be facing price hikes and inevitably find that some of their favourite European wines will vanish from the shelves. “It’s madness! More than half our wine comes from Europe. Instead of choosing to suspend and reduce red tape and costs for wine, Ministers have elected to apply additional burden and some £100m in costs for UK businesses and consumers. And with no idea where the lab testing capacity will come from. “Deal or no deal – it’s within Government’s gift to reverse this decision. It’s baffling why the politicians seem hell bent on pushing up prices for British consumers and punishing British business.” The APPG’s Co-Chair Neil Coyle MP said, “Wine import certificates were designed by the European Union to make importing wine from outside the EU more difficult. The UK is the second-largest importer of wine, by volume and by value, in the world. “About 99% of wine consumed in the UK is imported and it makes no sense for the UK Government to retain or extend these costs. This would contradict the Government’s claim of opening up the country to world trade and would hit consumers and our economy.” APPG Co-Chair Helen Grant MP added, “I hope officials will consider our recommendations and remove barriers to trade, incorporate new technology and reduce bureaucracy”.
8 August alcohol sales up 37% in off-trade
August alcohol – fastest FMCG growth category Alcohol was the highest-growing category in the four weeks to the 30th of August according to Nielsen. Nevertheless, at 37% up on the same period in 2019, this was the lowest growth rate that the alcohol category had experienced
since March. Compared to this, Fast Moving Consumer Goods sales (in multiples & convenience stores) reached €1.04bn for the four-week period, up 13.1% on the same period in 2019. n
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I ND U S T R Y RE PORT
October 2020 | DRINKS INDUSTRY IRELAND
Spirits sector performed strongly in 2019 A strong domestic hospitality sector will be vital in allowing the sector to return in coming years to the level of growth seen in 2019.
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he value of spirits exports from the island of Ireland continued its upward trajectory, up by nearly 16% to €1.17 billion last year as Irish whiskey sales volumes grew 10.9% worldwide, from 10.58 million nine-litre cases to 11.93 million. Meanwhile, sales of Irish cream liqueur increased by 3.9%, from 8.2 million cases to 8.52 million according to Drinks Ireland|Spirits which published its Irish Spirits Markets report 2019 recently. However this year’s Covid-19 crisis has significantly impacted Ireland’s spirits sector, hitting production, exports and sales according to Ireland’s spirits producers and in the context of current challenges 2019 will come to be regarded as a “benchmark” year for the industry as it seeks to recover from the Covid crisis in years to come. This will require solid foundations upon which to build. The fourth report from the Ibec trade association representing the spirits sector details its performance at a time before Covid (BC?) when the economy was performing well.
Domestic spirits sales But it also shows that domestic spirits sales – mostly via the off-trade - grew just 0.7% from 2.4 million cases to 2.42 million last year as overall alcohol
consumption in Ireland continued to decline. Nevertheless this growth, while slower than that in 2018, illustrates the continued popularity of high-quality spirits products created by a dynamic and innovative Irish industry, states Drinks Ireland|Spirits. Spirits’ overall share of the alcoholic beverage trade in Ireland rose to 20.8% of the market last year, up from 20.5% in 2018. By volume, the off-trade enjoyed 68.2% of spirits sales and was responsible for selling 1.2 million nine-litre cases. But the on-trade took the lion’s share of the value, accounting for 64.7% of sales or €658 million. Ireland’s most popular spirits drink was vodka, driven in part by its use in cocktails, followed by Irish whiskey and gin. While growth of Irish whiskey and gin slowed in 2019 compared to 2018 both remained significant with sales up by 1.5% and 4.6% respectively, states the report. Vodka sales grew by 0.6%. “Continuing a trend from last year, sales of Scotch continue to fall (dramatically) with a -13.1% decrease on the previous year,” notes the report, “US whiskeys and bourbons have also registered a decrease (-4.4%) the most likely reason for which being the EU’s 25% tariffs on these products.”
2019 will be seen as a “benchmark” year for the spirits industry in light of Covid according to Drinks Ireland|Spirits’ Irish Spirits Market report 2019, published recently. We take a look at the report here.
Their value too fell by 16.6% from €4.4 million to €3.7 million. Biggest gain last year was tequila with sales up 6.2% to 17,000 cases from 2018’s 16,000 cases.
Covid reverses spirits’ fortunes However it’s fair to say that the growth in the spirits market last year has been reversed as a result of Covid-19 this year. A strong domestic hospitality sector will be vital in allowing the sector to return to the level of growth seen in 2019 in years to come according to Drinks Ireland|Spirits which adds that a safe and sustainable reopening is important. Drinks Ireland|Spirits reports that, “Spirits producers have been significantly impacted by the closure of the hospitality sector, saying that that these venues should be allowed to reopen or stay open in a controlled, safe and sustainable manner where possible”. It says that the on-trade, including pubs and restaurants, are vital for enabling new and emerging producers to gain traction in the domestic market. “These venues give consumers the opportunity to try new or different Irish spirits, championed by staff in
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DRINKS INDUSTRY IRELAND | October 2020
these establishments who take pride in sharing their knowledge with domestic and international visitors alike.” In addition to Covid-19, the report points to other challenges facing the sector as a result of the ongoing trade dispute between the US and the EU. These have resulted in tariffs of 25% being placed on Irish cream liqueur and other Irish liqueurs as well as on Single Malt Irish whiskey from Northern Ireland. An earlier round of tariffs saw the EU apply 25% in tariffs to US whiskey and bourbon imports in retaliation for US tariffs on European steel and aluminium products. These are due to increase automatically to 50% in July 2021. And like many other industries, the spirits sector faces many uncertainties as a result of Brexit, with a trade deal still to be agreed.
Biggest markets In 2019, the US (at 7.4 million cases) and UK (at 1.6 million cases) were the two biggest export markets for Ireland’s Geographic Indicationprotected spirits: Irish Whiskey, Irish cream liqueur and Poitín. The third-largest market for GI-protected Irish spirits was Global Travel Retail (1.3 million cases), now under severe pressure as a result of the global collapse in international travel.
Germany on 982,000 cases comes fourth while Canada comes fifth with 965,000 cases. The top five markets for Irish cream liqueur emerged as the US (2.39 million cases), the UK (1.1 million cases), Canada (672,000 cases), Global Travel Retail (633,400 cases) and Germany (616,100 cases).
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Ireland itself consumed an estimated 89,400 cases. Poitín sales fell 3.6% from 3,890 cases to 3,750 cases.
Excise reduction call The spirits sector too called for a reduction on excise in Budget 2021 as an additional measure to support recovery. “Ireland retains its thirdplace position in the 2019 European spirits excise league table with only Sweden and Finland ahead of it,” states the report which puts excise taken on spirits in 2018 at €372.2 million. “In 2019 excise raised by all alcohol categories fell by 0.64%. Spirits contributed €373.4 million or 30.3% of the excise duty collected by the Irish State. While the overall total fell by 0.64% spirits contribution increased by 0.32% in 2019.”
Return to dynamic spirits industry sought Pat Rigney, Drinks Ireland|Spirits’ Chair and Managing Director/Founder of The Shed Distillery (producer of Drumshanbo Gunpowder Irish Gin) points out that, “In 2019, we see that Ireland had a dynamic spirits industry with domestic sales and exports continuing to grow. “This growth allowed the sector to support the domestic economy and jobs across Ireland including in more rural locations where many of our distilleries are located. While the sector remains vibrant and innovative, it has been severely impacted by Covid-19. For example the hospitality sector is vital for consumers to explore products from new and emerging Irish spirits producers. This is on top of other challenges associated with Brexit and the EU and US trade disputes.” In his forward to the report Pat Rigney states, “In many ways this report represents a lodestar to where the sector is looking to return to in the coming years”. He adds that, “The pubs, bars and restaurants of the home Irish market are vital to the continued growth and prosperity of Ireland’s spirits and craft spirits businesses. In many instances the hospitality sector is the first opportunity the Irish
consumer or the overseas visitor has to experience new and exciting Irish spirits. The barman behind the bar or the waiter offering suggestions is key to educating the Irish and overseas consumer and providing profile to new Irish brands and distilleries.” Author of the report and Head of Drinks Ireland|Spirits Vincent McGovern added, “The Irish Government can support the indigenous spirits sector in a number of ways as it seeks to recover from Covid-19. Ireland’s excise taxes are the second-highest in Europe and will act as a barrier to recovery. “As part of a broad package of measures the government should look to deliver a 15% reduction in excise tax on drinks products which would help the industry and minimise the risk of job losses. “In addition, in the immediate term Government could also look to facilitate a safe and sustainable reopening of the hospitality sector. Venues, including pubs and restaurants, are regulated environments and should be allowed to reopen and remain open in line with other EU countries. “They are hugely important for our spirits sector, including for new and emerging producers who need the opportunity to get their product in front of consumers. It’s #OpeningTime.” n
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M A I N S T O RY
October 2020 | DRINKS INDUSTRY IRELAND
On again, off again – the story of the Irish pub reopening(s) While the public now seems to empathise with publicans some of whom have had to endure up to four ‘false starts’, the true cost in terms of time and effort – not to mention the financial expense – of reopening has not been detailed. We spoke to some publicans and suppliers about the frustrations and wasted effort, expense and heartbreak that’s gone into prepping the ‘wet’ pub for re-opening dates that failed to show.
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he postponement of his pub being allowed to reopen at the end of June took its toll on Tom Dunbar of Dunbar’s pub in Ferns, County Wexford. “I didn’t go back down to the bar for two or three weeks afterwards,” he recalls. A publican of 50 years standing, in a pub dating back to 1882, he’s never experienced anything so damaging. For him, the on/off again reopening of pubs by the government has been
painful – mentally as much as physically. For people like Tom reopening has been a fraught learning process. “We were a bit more cautious about what we were doing after that and so stock didn’t come before the rug was pulled the second time,” he says. For Tom Dunbar, the failure to reopen the first Three false starts later – time was “such a deflation” with only two days’ and with the accompanying notice being given.
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drain on finances, effort and mental wellbeing – he’s open once more. But he’d to put up Perspex screens at the counter and capacity was clearly reduced when he reopened, having reorganised the seating to comply with Social Distancing and having installed appropriate signage. This had all been done before the first June reopening date, subsequently postponed by Government. “We’d everything ready” he remembers, “with everything polished, painted and cleaned. “The suppliers were very good ‘though and we’d no problem getting stuff back when reopening didn’t happen.” The failure to reopen the first time was “such a deflation” with only two days’ notice being given. “It just knocked the equilibrium out of me in terms of when I was working and when I wasn’t working,” he explains, “Before Covid closed us, every day I used know exactly what was going on and where I should have been but then I didn’t know Monday from Tuesday as my body clock got all messed up.” He really missed his customers too as he’s someone who speaks to people all the time. Now he’s open again. But he reckons that he’s had to spend around €10,000 to €12,000 on Covid-19 precautions “… and I’m not completely finished yet”.
Mellett’s Emporium, Swinford For Marie Mellet of Mellett’s Emporium in Swinford, County Mayo, it was also a case of third time lucky having endured two ‘false starts’. The drink that had been ordered and delivered had to be taken back but the suppliers were really good about it, she told Drinks Industry Ireland. “We’d turn on the fridges about a week beforehand, start up the cold room and the heating etc only to be told we weren’t opening!”. They’ve deep-cleaned the pub four times now! So while she’s reopened since, she’s also very aware that they could be closed again at any moment. “Now, we won’t open two cases of bottled beer at the same time. In March we were left with an obscene amount of stock comprising halfopen cases so it was a serious loss of
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“Never before has a business sector experienced what the pub trade has gone through over the past six months. When we closed on 15th March the general assumption was pubs would reopen in a matter of weeks. The ensuing drawn-out process was torture for many of our members.
“We won’t open two cases of bottled beer at the same time” - Marie Mellett is very aware that they could be closed again at any moment.
stock,” she explains. And in reopening, she’s also become acutely aware of the amount of waste being generated to comply with Covid countermeasures. “Bar staff aren’t allowed to dry their hands on a standard towel so we use paper towels,” she says, “We’re going through reams of it and the bins are constantly full.” Then there’s death by a thousand cuts. “It’s small in the grand scheme of things” she offers, “but another cost nonetheless – we’ve six automatic hand sanitisers, four automatic soap dispensers and four hands-free taps - in total we’d to buy 76 AA batteries for them!” So far, she’s not had to let any staff go as a result of the pandemic. “We actually took on a new member of staff thanks to the EWSS which, while not enough, is still a great help,” she says, “But we’ve to cover the wages for six weeks until payment is made. The biggest problem with that is that tomorrow is pay day and I’m not sure where the money is going to come from. It’s a huge problem for lots of places.” For Marie, the most annoying aspect of the whole thing is that no barstools are allowed in the rural pub. On reopening on the Monday night they were at full capacity with just 10 people in the pub. “That’s not sustainable,” she believes, “The barstool situation could be the death of the rural pub.” This is a common story says Brian Foley, VFI Communications and Public Affairs Manager.
“There was huge frustration over the Summer months as we attempted to obtain guidelines for reopening which only appeared days before the scheduled 20th July opening date.” – Brian Foley.
“From the outset publicans wanted to know two things - when and how; when could they open and what guidelines were required. There was huge frustration over the Summer months as we attempted to obtain guidelines for reopening which only appeared days before the scheduled 20th July opening date. Then reopening was postponed, a disappointment publicans were unfortunately going to get used to. “There was huge enthusiasm amongst publicans to get it right, installing everything from hand sanitisers, signage and contract tracing to protective gear for staff and cleaning protocols. It’s all geared towards making customers and staff as safe as possible but it shouldn’t be forgotten the work to make pubs ready for the ’new normal’ was undertaken when publicans had overnight lost their entire livelihoods. “Having gone through hell, they’re finally open and finding their feet. The pressure remains though as the country ducks and weaves in its battle with Covid; publicans face the threat of trading being limited to outdoor areas if NPHET deem their county to be at risk, like Donegal. For now, most are simply glad to be open and back >> meeting old regulars.”
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Dublin closed In Dublin, around 250 pubs that don’t serve food were prevented from opening for the fourth time while those that did serve food – were closed anyway as the capital moved to Level Three. Gary Cusack of Mulligan’s of Poolbeg Street has found the many ‘false dawns’ to be very annoying.
“If we have a week’s notice we’ll get the cold room back up-and-running, replenish the ice-makers and liaise with the breweries to deliver stock.” – Gary Cusack.
“Getting so close and then being told ‘no’,” he recalls, “When the lockdown came on Paddy’s Weekend we had 120 to 150 kegs in Mulligan’s. We sell a lot of Guinness but unfortunately it had to go out and back onto the truck.” While closed, initially, they got all the jobs done that needed to be done. “We’d the floors redone, the furniture cleaned and we did a lot of work on our cellar. The wiring was also updated – it was a lot easier to do it while we were closed. “But there’s only so much painting and cleaning and decluttering that you can do and we did it all in the first weeks.” Now he finds being closed simply frustrating. After 32 years in the family-run pub he and his brother Ger just want to get back open again. “When it came to reopening, we always waited for guidance from the government so we didn’t do anything before the first couple of false starts,” he says, “It was only for the last two dates that we actually went to work putting in partitions, setting up sanitiser stations, putting in Perspex and introducing extra chairs and tables. “If we have a week’s notice we’ll get the cold room back up-andrunning, replenish the ice-makers
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and liaise with the breweries to deliver stock. “All the staff have done the Covid19 course online and myself and Ger, along with our nephew Darren, are looking at introducing separate bubbles of staff on one shift that never meet the other shift. “We’ve set up two separate pods that will never cross paths.” In all, Gary reckons he’d to spend between €5,000 and €10,000 on preparing Mulligans for reopening. Others have adapted in order to survive by going into partnership with a nearby pizzeria to fulfil the €9 meal threshold qualification. Many publicans had put a great deal of work into the setting-up of staff rosters etc for the opening dates orginally proposed - the 29th of June, the 20th of July, the 10th of August and the 31st of August - only to get the slap of disappointment. “The 20th of July was the shocker,” believes LVA Chief Executive Donall O’Keeffe, “That’s when the mood music changed very close to the dates given in an environment of there having been no significant change in the infection rate.
“The trade has done all that’s been asked of them and so to remain closed is just heartbreaking.” - Donall O’Keeffe.
frustrated and disillusioned” with a government who’ve let four reopening dates pass by for wet pubs in the capital - and many feel at this time of high infection rates that a fifth postponement may be on its way. “The trade has done all that’s been asked of them and so to remain closed is just heartbreaking,” he says, “The uncertainty is the killer. We could handle it if we had a definitive date on re-opening but we’ve no confidence on the next reopening date given being adhered to.” It’s conceivable, he tells Drinks Industry Ireland, that the country is heading towards there being rolling lockdowns and restrictions. Brewing is a costly and timeconsuming process. Suppliers had already started to work with Dublin publicans countrywide all over again to supply product for the latest re-opening, delivering kegs ahead of the September the 21st date. Drinks Industry Ireland Director Patricia Callan, who’s called on the Government to avoid this ‘stop and start’ approach to re-opening pubs, points out that these ‘stop and starts’ are bad for the pubs concerned, for the suppliers but also for the economy and society. “As a result of previous ‘false starts’ beer was brewed and delivered, beer lines were cleaned and subsequently breweries had to do a massive keg uplift as the pubs then couldn’t re-open,” she says. “This is now the fourth time new product has been brewed and delivered in kegs to Dublin pubs to then not be used. It’s also the fourth time drinks suppliers have worked
“There was huge investment in management time and expense as well as the once-off but substantial cost of recreating the physical infrastructure in the Dublin pubs for these reopening dates,” he explains, pointing out that table arrangements had to be re-thought, customer management had to be pre-planned. “There was all that time spent as well as the distress, hassle and emotions that went into these preparations for a day that, ultimately, they didn’t get to open on,” he said, “This was compounded by the absolute lack of clarity going forward.” At the time of going to press Donall O’Keeffe describes Dublin publicans as being in “deep despair, extremely
Drinks Industry Ireland Director Patricia Callan, who’s called on the Government to avoid this ‘stop and start’ approach to re-opening pubs.
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with pubs in Dublin to clean beer lines ahead of a re-opening. “This is now the fourth time that pubs in Dublin that do not serve food have been told they could re-open to then be told, at very short notice, that they no longer can. “It’s completely disproportionate and unfair for these pubs to be treated as political scapegoats and differently to the rest of the hospitality sector. Dublin pubs that serve food have reopened safely.”
Supplier costs Indeed, the cost to suppliers of these false starts in pubs that closed for so long involves dealing with significant ‘legacy stock’. “During that time we had to replace stock that remained unsold which was costly as it had sat there in some instances since last March,” explains David Whelan, Bulmers Commercial Director, “We carried out an uplift and have given credit to the trade for this.
“We had to replace stock that remained unsold which was costly as it had sat there in some instances since last March.” - David Whelan.
“In addition, we invested some €1,500 in 500 pubs around the country over the last few months,” he says. Following the first false alarm, suppliers were more circumspect about getting supplies out to the on-trade for the second proposed reopening date. “We’ve probably taken a more pragmatic approach over recent times,” he reckons of the repeated postponements, looking to see ‘the whites of their eyes’ in government before placing stock. Certainly the Friday evening announcement on the 18th of September for the cancellation of reopening for non-food pubs in Dublin the following Monday the 21st
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of September – and the closing of restaurants and non-food pubs at midnight that very night was way too late for both the on-trade and its suppliers. “There was a roadmap launched earlier in the week and for that to change at the back-end of the same week was incredibly disruptive and disheartening,” he Heineken Ireland deployed the largest operation in its explains, “At a minimum, history which saw its teams clean the beer and cider a lot of those pubs will taps in every one of the outlets across the country have been closed for 220 following the swift lockdown in March. days by end of the latest Lockdown in Dublin beer collected for green energy and which would have ended on October animal feed. the 12th and we’re seeing the impact “We worked closely with those of this on them and on ourselves as pubs as they got ready to open and suppliers - and on our staff.” prepare for the new reality. We found Heineken Ireland deployed the that our customers were particularly largest operation in its history which concerned with being kept informed saw its teams clean the beer and of the latest updates on supports, cider taps in every one of the outlets learnings from how other European across the country following the swift pub sectors were responding to the lockdown in March. crisis and how best to reopen under “We collected over 100,000 kegs the new guidelines. of beer and cider and committed “To address these needs, we to shouldering the cost of the developed an innovative new Pub unused stock in outlets,” comments Hub digital platform (https://www. Heineken Ireland’s Commercial heinekenireland.ie/pub-hub/) to keep Director Sharon Walsh, “This was connected to our customers and allow the equivalent to a contribution of them to access information and advice over 10 million pints to pubs across from Europe and from their peers who Ireland. This contribution ensured have been able to open earlier. that all Heineken Ireland product in “However, the delay in reopening outlets around the country was at the so-called ‘wet pubs’, along with peak freshness and of the highest the decision not to open these pubs quality when the sector started to in Dublin and to close hospitality reopen from the 29th June. We in counties at Level 3 of the Living also remained committed to our with Covid Plan, is a real challenge Sustainability Strategy, Brewing a for our customers and for our own Better World, by repurposing the business. Remember, those pubs in Donegal had only just opened four days before they were told they had to shut their doors again. “The pub sector is a highly regulated environment and they’ve played their part as responsible businesses throughout this crisis. Neither they, nor suppliers such as ourselves, can continue with this level of uncertainty and the disproportionate constraints we are faced with,” she concludes. At the time of going to press the trade awaits developments on the latest 12th of October reopening date. And Christmas is coming in fast “We collected over 100,000 kegs of beer with these next few months being the and cider and committed to shouldering most important trading months of the cost of the unused stock in outlets.” the year. - Heineken Ireland’s Commercial Director Hark. n Sharon Walsh.
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While the Coronavirus Lockdown may have utterly changed everything in the on-trade, not surprisingly off-trade sales have soared. Over the full eight weeks from March the 9th to May the 3rd, purchases of gin in off-licences here showed growth of 38%. What can we expect demand to be like this Autumn? We review the ever-exuberant gin market.
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ith a third of the world’s best-selling cocktails being gin-based, the on-trade should be paying attention to the changing fortunes of the gin sector. While the Coronavirus lockdown may have utterly changed everything in the hospitality trade, not surprisingly off-trade sales have soared. During lockdown it seems that spirits – especially gin and whiskey – gained in popularity. According to Nielsen, over the full eight week period from March the 9th to May the 3rd, purchases of gin in offlicences here were up 38%. And IWSR forecasts whisky and gin to rebound fastest to pre-Covid-19 levels. A further bonus - the EU accounts for 46% of all gin exports from the UK. With it looking increasingly likely that the UK will crash out of the EU without a deal, that leaves a potential export opportunity worth €378 million for Irish-made gins. Richard Corbett is Senior Market Analyst for Ireland, UK and the Nordics at IWSR. “With the on-premise decimated, inevitably, off-premise sales of gin have rocketed within the category” he told Drinks Industry Ireland, “it is however very evident that premium and super premium gins have been outpacing the standard gin segment. This premiumisation process has accelerated since lockdown. “If you’ve not been impacted economically by the crisis, then with no commuting costs and no (or limited) opportunity to spend money eating out or on holidays then
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Gin up, stay cheerful disposable incomes have jumped for many. This will have encouraged people to upgrade. “There are also some in the industry that believe that with travel retail sales collapsing some of this volume has come back into the domestic off-trade. “The Summer has also seen the pink gin momentum continue but this time supplemented by the rapid expansion of other flavour alternatives proving popular. “Those drinking gin in Ireland are likely to be more affluent types, between 25 and 40 years-of-age with a bias towards women,” he adds, “It’s hard to retain brand loyalty in the gin market as the variety on offer keeps changing as brands and new flavours appear.”
Gin in Ireland
Around 50 different brands of gin are sold in Ireland. According to the annual report from Drinks Ireland|Spirits, just-published, gin sold 338,500 cases here last year, indicating a sales increase of 4.6% on 2018’s 323,650-case figure. This puts gin’s share of the spirits market at 14.4%, slightly up on 2018. “While it’s unlikely that gin will ever overtake vodka there’s no doubting that gin now offers clear competition as a category in a way that perhaps it didn’t in years gone by,” comments the Head of Drinks Ireland|Spirits Vincent McGovern. Of the total nine-litre case sales figure for 2019, just under one-third (102,300 cases) is distilled ‘locally’ here in Ireland. Obviously the vast
majority comprises imported gin according to IWSR figures. At 55.5% most gins are sold via the off-trade. According to IWSR, gin’s value increased by 3.9% last year. Indeed gin’s volume sales experienced a Category Annual Growth Rate of nearly 25% between 2014 and 2019 and IWSR forecasts volume growth of 0.3% CAGR from 2019 to 2024. But volume sales of local gin in Ireland were down 3.5% in 2019. Nevertheless, value was up 0.2%. Between 2014 and 2019 local gin volumes showed a CAGR of 17.8%. “The data contained in our most recent Spirits Report (for the calendar year 2019) shows that gin sales in Ireland were still growing in 2019 although at a much slower rate than previous years,” commented Vincent McGovern, “That should not be seen as a negative development for the gin market in Ireland - quite the opposite because in line with objectives outlined in the 2018 Irish Gin Strategy the growth in gin sales over the last number of years has been extraordinary. And market share is not going to suddenly evaporate just because growth is returning to - what would be considered in any other spirits category as - more normal levels. From a gin point-of-view the growth of the last five years illustrates quite clearly that there was a consumer desire for gin as a category, the challenge of which producers and brand-owners in Ireland stepped up to meet. “The question now, in these Covid-19 times, is what’s next for the >>
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category? Drinks Ireland members who produce or own gin brands are clear in their view that the next step for the category in Ireland is to focus on gin made in Ireland and to look to grow that share of the gin market in Ireland. So, following on from the FSAI’s publication earlier this year of its Guidelines for the Marketing and Labelling of Irish Gin we believe that one way of looking to contribute to this is through raising consumer awareness of the diversity and quality of Irish gin produced and available in Ireland. “We have recently started a social media campaign called #ExlporeIrishGin as a first step. With #ExlporeIrishGin we’re looking to generate more consumer awareness of and raise Irish gin’s profile by telling the story behind many Irish gin brands through focusing on the four Ps of each brand. “That is the People behind the gin, the Process by which their own unique
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gin is produced, the Provenance of their gin and how the land, rivers and seas of the locality influence the flavour profile - and of course the gin Product itself. “We hope that a conversation about Irish gin will gain momentum and that awareness of the many great Irish gin brands out there and the different story each has to tell will illustrate to the Irish consumer and overseas visitor when they start to return to these shores, that the Irish gin sector is a diverse, innovative and highly creative industry and a core part of our native drinks industry.”
Bombay Sapphire
Every drop of the worldfamous gin in the distinctive blue bottle contains 10 handselected botanicals from exotic locations around the world.
Unique to Bombay Sapphire, the brand’s Master of Botanicals doesn’t just go the extra mile but goes an extra thousand miles, hand-selecting the botanicals used and building personal relationships with each grower. Once Bombay has hand-selected the finest botanicals on earth, it’s just not an option to boil them! They’re gently vapour-infused to capture their bright, vibrant flavours. Every Bombay gin reflects the rigorous selection process and uncompromising approach to creating fresh, clean, bright flavours - perfect for creating exceptional mixed drinks. From the heat of the Moroccan Cubeb berries to the spice of the West African Grains of Paradise, every one of the 10 precious botanicals is chosen to bring its own
Q&As with Bombay Sapphire’s Richard Brickley, Market Development Manager, Bacardi Martini portfolio 1. How were sales of Bombay Sapphire in 2019? An excellent year for Bombay from a sales perspective, achieving an overall double-digit volume increase versus 2018. We saw volume and value increases across all channels showing both the incredible consumer demand and trade loyalty towards Bombay. In 2019 the on-trade was the largest channel for us in terms of volume so it’s extremely important for us.
Secondly this new gin is the result of a highly-crafted, intensive process that challenges the common practice of other flavoured gins on the market which often use concentrates, additional sugars and additives to flavour the liquid. The vapour infusion method favoured by Bombay is a more complex, time-consuming process but the end result provides a more naturally flavoured product with a more sophisticated taste.
2. How have off-sales of Bombay Sapphire been affected by the Covid-19 crisis? Along with most premium spirit brands, we’ve been impacted by the situation in the on-trade. However Bombay Sapphire has shown tremendous resilience in these uncertain times with growth in independent and grocery channels. According to Nielsen MAT August 2020 figures the Gin category grew
4. What should the on-trade know about Bombay Sapphire? Firstly, Bombay Sapphire is a firm favourite amongst the bartender community. The expertise of the
by 19% in volume and 26% in value. Honing in further on these figures Bombay has enjoyed a 34% volume uplift for the period June to August versus the same period last year. 3. What plans has the brand for the rest of 2020 in light of the present circumstances? The newly-launched Bombay Bramble will be a key priority for us. We’re responding to a new consumer demand with a premium flavoured and coloured gin created using real ingredients and by marrying the brand’s vapour distilled gin with real berry infusion, creating a distinctive crimson colour. So you might ask what makes Bombay Bramble different? Firstly it’s naturally flavoured – we only use real fruit, freshly harvested blackberries and raspberries.
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special something to the gin. Uniquely distilled, they come together to give Bombay Sapphire its tantalising, smooth and complex taste.
Graham’s Silver & Gold
Two of Graham Norton’s new-to-market gins won Gold and Silver at the Gin Masters 2019 competition in London. Judged alongside 300 industry peers in a blind-tasting competition Graham Norton’s Own Irish Gin scooped a Gold medal while his popular Graham Norton’s Own Pink Gin landed a Silver award. Created in collaboration with West Cork Distilleries, Skibbereen, Graham Norton’s Own Irish Gin is a combination of Juniper and Coriander with hints of locally-foraged Rosehip, Fuchsia petals and Gooseberries rounding off the special blend of 12 botanicals. The gins boast a London Dry style. Graham Norton’s Own Pink Gin uses locally-foraged botanicals too. Both are produced from 100% Irish grain, drawing flavours from Rose
Master of Botanicals and Master Distiller combine to make an iconic gin with a bright, fresh flavour that provokes experimentation. While many other gin brands have a dominant flavour note that limits or restricts versatility, Bombay’s unique combination of botanicals works in combination with the vapour distillation method to create a complex gin where individual flavours can be accentuated depending on the bartender’s or consumer’s taste, mood, occasion or creativity. Secondly, Irish consumers love Bombay Sapphire! The brand has enjoyed continued success in this market and is one of the most oftenrequested brands by name in the premium gin category. 5. How has Bombay Sapphire answered the demand for gin over the past five years from Irish consumers? Bombay has paid close attention to global and local trends such as consumer willingness to pay more for premium products, the importance of discovery and innovation and of course convenience – drinks on demand without compromising quality or taste. Bombay has also identified that the RTD market has evolved and presents an opportunity to provide more sophisticated drinks for on-thego moments and occasions. Earlier this year we launched the Bombay Sapphire Gin & Tonic RTD. Essentially
petals, Lemon peel, Orange peel and Elderflower. Gin is one of Graham’s favourite tipples so he really wanted to put his own Norton-esque twist on one. The bottle shape and design of both have great stand-out. Distributed by Barry & Fitzwilliam, the gins speak for themselves!
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SERVING SUGGESTION: Graham Norton’s Own Irish Gin - enjoy with Indian Tonic Water, lashings of ice and fresh Lime to garnish. Graham Norton’s Own Irish Pink Gin enjoy with Indian Tonic Water, lashings of ice and Summer berries to garnish.
Hinch Distillery’s Eastern triumph
Hinch Distillery won the highest accolade for its Ninth Wave gin at the China Wine and Spirit Awards (alongside three other distinguished titles for its range of Irish whiskies), walking away with a globallyrecognised ‘Gin of the Year’ Trophy. This marked the first-ever Trophy win for the company. Recognition as a CWSA Trophy Winner is the highest honour in the biggest and most prestigious wine and spirits competition in Hong Kong and China, states Hinch. The 2020 medals rack up a lengthy list of awards bestowed upon Hinch distillery less than a year after its launch. >> this is the perfect gin and tonic you’d expect from a bartender, expertly mixed and ready to pour. We see huge potential in this high growth but extremely competitive category. From an on-trade perspective the brand has supported the trade with innovative POS items and educated and inspired bartenders through our Brand Advocacy Programme resulting in more interesting and creative cocktail options for consumers. 6. What’s the backstory to Bombay Sapphire? From the outset, the brand was on a mission to do things differently. Most gins at the time favoured traditional green glass but Bombay completely disrupted the category with the launch of the striking blue bottle. It quickly gained cult status around the world and is now considered a design classic. But as we know, the liquid inside the bottle has been key to the continued success of the brand. Unique to Bombay Sapphire, the brand has a Master of Botanicals responsible for working closely with farmers all around the world, supporting their development to form lasting relationships that give the brand direct access to the finest
hand-selected botanicals. This ensures a consistent, sustainable supply of high quality ingredients. Each of the exotic botanicals used is then inscribed on every bottle, alongside their country and region of origin 7. What’s Bombay Sapphire’s USP? The biggest USP for Bombay is the bright, fresh taste resulting from the vapour distillation process. To extract the truest flavour from the botanicals, Bombay has stepped away from convention. Whilst most other gin makers boil their botanicals, Bombay embraces a unique vapour infusion process – enabling us to create a completely unique gin expression. Bartenders have been quoted as saying it’s a cocktail cabinet in a bottle – if you want pink, add pomegranate, if you want a mule, add ginger beer and so on. 8. Is there anything we’ve not mentioned that you feel readers should know about the brand? I believe the brand home in Laverstoke in the UK is an amazing experience and well worth a visit. The building itself is an incredible architectural feat, built on the site of an historic paper mill. It’s definitely first on my list once we can resume travel again! n
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The awards follow on from over a dozen other wins in 2020 including Gold Medals for its Ninth Wave Gin brand at the World Gin Awards, Australian International Sprits Competition and the Canadian Alberta Beverage Awards, where again it was
awarded Best Gin in the competition, the first-ever non-Canadian gin to achieve this accolade. “Taking our first-ever trophy at CWSA 2020 makes the team very proud and is a highlight for us during what is a very surreal year for the trade,” said Dr Terry Cross OBE. To date distributors have been signed-up in over half of Hinch’s target countries including China, Taiwan, Hong Kong, Canada, the US, Japan, Russia, Poland, Czech Republic, Belgium, Holland, Spain, Italy, Australia, New Zealand, the UK and Ireland. For more information on Hinch Distillery log onto https:// hinchdistillery.com or follow us on https://twitter.com/hinchdistillery Facebook, Twitter & Instagram @HinchDistillery HashTags - #HinchDistillery #HinchWhiskey Facebook, Twitter & Instagram @NinthWaveGin Hashtags - #NinthWaveGin #NinthWaveIrishGin
Thin Gin
Multi-award-winning Thin Gin has seen exceptional online sales growth during the pandemic and continues to solidify its place as one of the best Irish gins to come out of the recent gin explosion. Winning numerous awards internationally for taste and quality, it’s the only Irish gin to have been recognised three years consecutively in the Irish Whiskey Awards Gin category, winning the overall ‘Best Irish Gin’ trophy in the inaugural year. Thin Gin, produced in small batches, has retained its place as the Irish gin choice for the more discerning gin drinker. It’s available in Australia, Germany, Denmark, Ireland and online. Thin Gin has a traditional Juniper
base, a layer of native Irish flavours and finishes with a burst of citrus. According to one expert reviewer in London this Summer Thin Gin’s “citrus dominates with vivacious acidity from nose to palate to finish. Bright, lively and fresh.” Not surprising then that Thin Gin holds a ‘Silver Outstanding’ IWSC Fever Tree Gin and Tonic award. The ‘Thin’ in the name Thin Gin refers to Isaac Thin, a gentleman gin enthusiast who lived in Waterford in the 1920s. Keeping a 100% Irish Signature Serve: 50mls Thin Gin, 125mls Poachers Premium Irish Tonic Slice of fresh Orange. Go to www.anchorspirits.ie for more information.
Kinsale Gin takes 3 Golds at Bartender Spirits Awards
Kinsale Gin took Gold across three categories at the Bartender Spirits Awards in the US recently. This small-batch, premium Irish gin won Gin of The Year, Gin Producer of The Year and a Double Gold at the international awards. Kinsale Gin has been distilled with local botanicals and derives its flavour from the Kinsale countryside. The Bartender Spirits Awards aim to provide independent and honest reviews for brands looking to enter the US on-premise market. The judging panel comprises some of the most renowned names in the US bar industry, all with extensive expertise in the on-premise. “We really wanted a way to recognise those spirits that would be a great addition to any bar and that are completely on-trend in terms
of packaging and price,” said Sid Patel, Founder and Chief Executive of Awards organiser Beverage Trade Network, “Whether bartenders are looking to plug a very specific gap in their existing spirits inventory or construct an entirely new cocktail menu from scratch, what better advice could they get than from fellow bartenders? Kinsale Gin, owned by Cork’s Kinsale Spirit Company, was co-founded by Cork publican and entrepreneur Ernest Cantillon, Colin Ross and Tom O’Riordan - all current or ex-publicans who’ve spent their lives serving drink and building extensive experience in the hospitality and beverage sectors. The awards couldn’t have come at a better time for Kinsale Gin, explained Ernest who said, “We’ve just launched both Kinsale Gin and Red Earl in the US. These awards are based in San Francisco, so the US credibility and press are invaluable.” Kinsale Gin was one of seven Double Gold winners scoring 96 or more points.
Jackford’s IWSC Award success AT 2018’s Irish Whiskey Awards Jackford Irish Potato Gin received the Irish Gin Gold Medal where the gin was blind-tasted against 20
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others and it also achieved a Bronze in the International Wine & Spirit Competition 2018. This year it was awarded a Silver in the IWSC awards. Jackford was also presented with a Blas na hEireann Bronze Award in the White Spirits & Liqueurs category recently. Produced by Stafford Spirits, it’s a premium hand-crafted 41% ABV gin. The creamy, smooth potato base is complemented by the natural sweetness from the unique mix of botanicals, balanced to perfection with citrus, spicy and earthy notes. John Stafford recently appeared on South East Radio with Alan Corcoran discussing their recent international awards. On the Stafford family farm this is the cream of the crop, a new spirit from Ireland’s Ancient Southeast. Stafford Irish Spirits will be offering a corporate gifting service as well as personalised bottle labels to add the special touch this festive season. For more details: sales@staffordirishspirits.com Instagram: https: //www.instagram. com/jackfordirishgin Twitter: https: //twitter.com/ JackfordSpirits Facebook: https: //www.facebook. com/JackfordSpirits
Drumshanbo Gunpowder Irish Gin launches limited edition ceramic bottle
Drumshanbo Gunpowder Irish Gin, Ireland’s best-selling super-premium gin brand, has launched an exclusive new limited-edition ceramic bottle onto the Christmas market. An instant eye-catcher on shelf, it’s set to delight consumers both as a collectible and as an extremely special Christmas gift. The blue and white design is inspired by the ancient art of the Far East where PJ Rigney began his curious botanical journey that would
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From left: John Dillon & Pat Rigney at the new Shed Distillery Visitor Experience.
over 60 countries across the world including every US state, Australia, Hong Kong, Russia, South Africa and the majority of European countries. Every drop of Drumshanbo Gunpowder Irish Gin, Drumshanbo Single Pot Still Irish Whiskey and other ‘The Shed Distillery’ brands are slowdistilled by hand, hand-bottled, sealed and labelled by the team at The Shed Distillery. Web: thesheddistillery.com
Opihr Gin in the can
inspire the creation of Drumshanbo Gunpowder Irish Gin. Every drop is slow-distilled by hand with oriental botanicals and gunpowder tea, hand-labelled and sealed by the team at The Shed Distillery of PJ Rigney in Drumshanbo, County Leitrim. The Shed has also announced further jobs at the Leitrim distillery with the opening of The Shed Distillery Visitor Experience and Jackalope Cafe which invites visitors on a journey into the Inner Sanctum of the whiskey distillery and a ‘voyage to the Far East’ to discover gunpowder tea. Drumshanbo Gunpowder Irish Gin, launched in Summer 2016, is now in
Opihr Gin, the original oriental spiced gin, has launched a new format for its RTD range, unveiling a duo of G&T cans this month. The new cans pair Opihr’s popular spiced London Dry Gin with a quality tonic offering two flavour twists: Gin & Tonic with a Dash of Ginger and Gin & Tonic with a Twist of Orange (both 250ml/ABV 6.5%). Responding to increased consumer demand for adventurous flavours Opihr has made its RTD range more widely available to shoppers through the introduction of this new convenient format. The RTD category has seen sales up 26% on the same four-week period last year. As consumers increasingly seek out premium G&T options to enjoy as they venture outdoors, Opihr feels confident its new RTD duo will prove a hit with consumers. The launch will be supported by an integrated marketing campaign, including in-store, digital, PR and social media activity, all aimed at raising awareness of the RTD cans amongst consumers and driving demand. For more information contact Quintessential Brands by e-mailing lisa. doyle@quintessentialbrands.com. n
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When it’s part of a cocktail. With one or two notable exceptions brands originally destined for the shots market are happily finding themselves an integral part of cocktail culture. So how does this leave the shorts market itself? We look at the health of the shots market in our Industry Report.
October 2020 | DRINKS INDUSTRY IRELAND
When is a shot not a shot?
S
hots, once primarily regarded as a nightclubbing order, began to move out of this limited segment of the drinks trade some time ago. Where once considered nothing less than a nightclub staple, being both portable and able to be downed quickly, in today’s pub the shot has come to badge the group gettogether at the start or end of an evening. Sometimes both. Thus, nightclubs apart, shots have tended to feature in bars and at music festivals where the target demographic tends to hang out. A valuable high margin product, shots can also be considered for the food occasion in pubs where they might be offered as an aperitif or digestif. Irish bars such as Cissie Young’s in Cork have found shots sales to be “very good” according to Tom Lynch there. “The young crowd drink a lot of shorts,” he says, “The women especially!” Jagermeister has resurfaced at the bar after being dormant for a while, he adds. “Jager was dead last year, I thought” says Tom, “but we can’t cope with the demand for Jager at the moment - it’s huge.” Tia Maria too has been prominent in the sales figures at Cissie Young’s. “We might not sell a bottle of it a
month and then we’ll get three orders in for it as part of a Baby Guinness or other cocktail,” he says. Tom believes that the shots are selling so well because of the (preLevel Three) pub closing times. “Either that or perhaps the customers are getting into shots themselves.” But perhaps the most prolific use of shots can be found in today’s cocktail market. Increasingly shots are finding themselves a constituent part of the cocktail culture, becoming a core ingredient in many cocktails. Today shots can be found as an active ingredient in a variety of cocktails such as the Kamikaze, the Jagerbomb, the B52 or the Slippery Nipple.
Vaccari Sambucca
Vaccari Sambuca has two skus in the range: Vaccari Sambuca White and Vaccari Sambuca Nero - both triple anise Sambuca made with Mediterranean Aniseed, Fennel and a very rare Chinese Star Aniseed grown in South China and North Vietnam. Vaccari Sambuca White is a unique selection of premium ingredients combined to create this triple anise sambuca including essential oils from a wide range of botanicals. This can be thinned with water or can be drunk as a flambé after chewing two coffee beans. >>
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October 2020 | DRINKS INDUSTRY IRELAND
mixed into cocktails. Santa Marta Limoncello is made from simple ingredients but requires complex blending to make an interesting, fresh and balanced liqueur at only 25% ABV. The only ingredients are Lemon juice, Lemon infusion (100% Lemon peel), neutral spirits, sugar and water. Distributed by MCM Spirits. For trade enquiries: 071-9852434.
Cocalero
Vaccari Sambuca Nero’s signature deep blue almost inky-black appearance is made by blending Vaccari Sambuca with the best Elderbush berries. Suggested serve is Vaccari Sambuca Nero poured over ice. Distributed by Barry & Fitzwilliam Vaccari Sambuca’s range of supremely smooth and premium liquors honours the true independent spirit of Arturo Vaccari, creator of the famous Galliano brand. Both are distilled using methods from the 19th Century Italian tradition resulting in a premium spirit filled with passion, warmth and depth of flavour.
Jägermeister, Jägermeister Scharf & the Jägermeister Coolpack
Jägermeister is made with the highestgrade herbs, blossoms, roots and fruits from around the globe - 56 herbs & spices crafted into four distinct macerates and combined together. Working towards ensuring the perfect serve globally - which sits at a cool -18°C - the herbal liqueur can be enjoyed as an ice-cold shot or
A valuable high margin product, shots can also be considered for the food occasion in pubs where they might be offered as an aperitif or digestif.
you can take your customers’ taste buds on an unforgettable journey by trying a Berlin Mule cocktail, a gutsy combination of Jägermeister, Ginger beer, Lime and Cucumber over ice which really shows the versatility and mixability of Jägermeister. Jägermeister Scharf translates to “hot” or “spicy” in German. A new expression of the herbal liqueur, it’s made with the same 56 botanicals but has added Ginger and Galangal for an extra kick. A newly-crafted taste for spicy lovers, this has nothing added, yet is still different. As Jägermeister is best served at -18°C the Coolpack, an additional type of innovative packaging for Jägermeister, acts like a freezer pack. It doesn’t change what’s inside, but this latest design innovation is stackable, compact and portable. Never lose your cool, with Jägermeister Coolpack. Distributed by Barry & Fitzwilliam.
Santa Marta
Santa Marta, a range of high quality Italian liqueurs, is made by the experts at the Francoli Distillery in Piedmont, Northern Italy. The attractive, vibrant design shouts from the shelves whilst each and every sip recalls the charm of Italy according to Santa Marta’s distributors here MCM Spirits. These liqueurs can be enjoyed neat, on the rocks, straight from the fridge, or
Cocalero is a premium botanical spirit inspired by South American flavours and culture. Distilled with natural botanicals, the name comes from the traditional coca leaf farmers in the Andes who’ve cultivated the coca leaf for its medicinal properties since the time of the Incas. Cocalero has experienced unprecedented growth internationally, finding phenomenal success in the Asian markets and in particular Japan where it’s now the number one imported premium liqueur brand. Now it’s making waves across Europe and the US as a mid-strength shot with universal appeal. Cocalero Clásico is the Signature product in the collection, the highest-selling in the range. It uses a specialised steam distillation process pioneered by the perfume industry to extract the complex flavour of the coca leaf and essential oils from the delicate blend of botanicals and herbs. With an herbaceous aroma of Juniper and citrus and notes of Ginger, Lavender and a hint of Capsicum Chilli, the flavours strike a rare balance of depth and smoothness with a subtle sweetness on the palate. A versatile spirit, the Cocalero Signature Serve is perfect as a chilled shot or as a ‘CocaBomb’ but its unique flavour offers the perfect twist on classic cocktail recipes including Margaritas, Mojitos and Sours. Cocalero is distributed by Intrepid Spirits and available through Celtic Whiskey Shop. n
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Liqueurs have become an integral part of the everevolving Irish cocktail culture. The fourthlargest-selling spirit after vodka, whisky and gin here, our Industry Report looks at the liqueur market through the lens of the cocktail.
Liqueurs offering a cocktail of possibilities L
iqueurs have often been overlooked as part of the spirits category. But with sales of 203,000 cases here last year, liqueurs enjoyed fourth place status after vodka on 791,000 cases, Irish whiskey on 590,000 cases and Gin on 340,000 cases according to IWSR figures. The IWSR breaks Irish cream liqueurs out at 90,000 cases from the liqueur category. Across the water in the UK sales of liqueurs hit their highest-ever level last year with some 3.6 million cases sold as consumers there splashed out £1.3 billion to help them experiment with new cocktails and expand their drinks repertoire. This 4% rise in sales last year followed a “trendsetting 2018” according to the Wine & Spirits Trade Association which stated that some 1.5 million cases of cream liqueur were sold there in 2019 with the on-trade responsible for selling over 833,000 cases of non-cream liqueurs. Liqueurs and cocktails also topped
the list of groceries that witnessed the biggest increase in volumes purchased over the past 25 years in the UK according to a YouGov poll there last September. Since 1993 the purchase of liqueurs and cocktails there has risen by 300% with the change in consumer trends, rising from two units per week to nine in 2018. Here, pubs continue to expand their cocktail menus and bartenders continue to innovate and create new cocktails using liqueurs. And why not? After all, liqueurs help make colourful cocktails, perfect for Instagramming.
Irish cream liqueurs
“Irish cream liqueur continues to sell and grow, driven by innovation and creativity in the sector,” said the Head of ibec’s Drinks Ireland|Spirits Vincent McGovern last year, “The product is a firm favourite during the Christmas period which we expect to see again this year. New flavours and ways in
which to enjoy Irish cream liqueur have ensured that consumers are turning to the product throughout the year on different occasions, proving it’s not just a spirit for the Festive period and helping it on its road to growth. There are now numerous producers and brand owners located across Ireland creating an array of different Irish cream liqueur drinks.”
Bols Liqueurs - a global relaunch with natural botanicals
Lucas Bols has announced the global relaunch of Bols Liqueurs, the world’s number one liqueur range. All its recipes are now crafted with natural botanicals to enrich their flavour and quality in creating unique-tasting cocktails. Research confirms that 70% of consumers prefer cocktails made with the new Bols Liqueurs over competitive brands. These concepts encourage bartenders and consumers to use >>
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Bols Liqueurs as the main base for cocktails, creating drinks with less alcohol, less calories and a natural taste. This fits perfectly with the consumer preferences of today to drink less but better. Bols Liqueurs with natural botanicals became available globally earlier this year. To boost the relaunch, new trendsetting drink concepts have been introduced via a revolutionary cocktail gallery, scannable on the bottle. Distributed by Barry & Fitzwilliam, Bols is the first cocktail brand to launch a QR code on the bottle to make all these drinks and other cocktail recipes easily accessible. Scan it to enter the Bols Cocktail Gallery. This online portal contains cocktail tutorials which vary from easy-to-make low alcohol mixes to professional complex cocktails. The bottle has been updated with a new look. The new logo on the label is inspired by the Amsterdam calligraphy and centuries-old Bols logos, also aligning the look and feel with the Bols Genever range. The world’s first cocktail brand in 1575 now has a footprint in over 110 countries, playing a leading role in the development of the global cocktail market. The Bols range of over 40 flavours has always been known for its real fruit, herbal and spice flavours. This put Bols in the world’s Top 10 most trending and best-sold liqueur brands. “We want to inspire bartenders and consumers to create great cocktails,” says Sandie van Doorne, Creative & Communications Director at Lucas Bols, “Consumers around the world are increasingly conscious of their alcohol consumption and health. With our new Bols Liqueurs crafted with natural botanicals, we offer them a great base for high quality & tasteful cocktails which contain less alcohol and less calories.”
October 2020 | DRINKS INDUSTRY IRELAND
Disaronno
Disaronno is an Amaretto made in Saronno, Italy, where the original ‘secret formula’ remains unchanged since 1525. Amber in colour with an infusion of Apricot kernel oil with absolute alcohol, burnt sugar and the pure essence of 17 selected herbs and fruits, Disaronno is sold in an oblong glass decanter designed by a craftsman from Murano. It doesn’t contain any Almonds or other nuts and is popularly served on the rocks, enjoying true style status as the world’s favourite Italian liqueur. With over 100 perfect mixes, the brand and fan base continue to grow. Disaronno Sour, one of the favourites at the moment, is a refreshing drink blending the distinctive notes of Disaronno with the scent of freshlysqueezed Lemons. It’s easy to make: 50ml Disaronno, 25ml fresh Lemon juice, 5ml Sugar Syrup and egg-white. Shake all ingredients with ice and serve with garnish of Lemon for a beautiful cocktail.
The latest addition to the Disaronno Family is Disaronno Velvet. With a refreshingly smooth texture this cream liqueur is best enjoyed over ice. Velvet has lower ABV than the classic Disaronno at 17%. Incredibly smooth, it masterfully and harmoniously mixes the distinctive imprint of Disaronno Originale to leave its mark with velvety notes. The iconic bottle shape with the ‘square cap’ also has a new image with a very elegant, contemporary total white look. If you fancy a Velvet cocktail try a twist on a Martini - the Velvet White Espresso Martini. Ingredients: 50ml Disaronno Velvet, 25ml Tia Maria, 25ml Vodka. Garnish: Chocolate flakes or coffee beans. Shake and strain ingredients over ice. For more Disaronno cocktail ideas check out Diasronno.com. Distributed by Barry & Fitzwilliam.
Tia Maria’s aesthetic makeover
Tia Maria dates back to the mid-17th Century when a beautiful young Spanish aristocrat fled the turmoil that colonial war brought to the island of Jamaica. Her maid saved one family treasure, a small jewellery box with black pearl earrings and an ancient manuscript with the recipe for a mysterious liqueur. The recipe was named after the courageous woman Tia Maria and it lay dormant for many years before being rediscovered in the 1940s by Dr Kenneth Leigh Evans who began to produce and market it. A sweet liqueur with a strong coffee character and a complex aromatic structure Tia Maria has been a
I N DUSTRY REPORT
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favourite for coffee cocktail lovers the world over and was used in the very first Espresso Martini recipe over 40 years ago. Tia Maria has three significant elements: Tia Maria Coffee provides the distinctive roasted, full-bodied rich taste. Madagascar Vanilla provides a pronounced but delicate fragrant back note. Jamaican Rum gives body, depth and structure. Tia Maria has had an aesthetic makeover this year starting from the bottle. The harmonious new shape with soft clean lines forms a profile making a perfect match with the new graphic label where bold red strokes capture the brand’s dynamic energy. Ever true to its message — ‘One of a Kind’ — Tia Maria also highlights its uniqueness through the label. Same great taste - new look! The Espresso Martini is just one of many cocktails that can be made using Tia Maria. Other favourites include the Tia Mint Americano, the Tia Iced Popcorn Frappe or the Tia Cappuccino. Distributed by Barry & Fitzwilliam Tia Maria is made using cold brew
coffee with Jamaican coffee beans from the blue mountains of Jamaica. It can also be enjoyed over ice with tonic water and a slice of citrus (Lemon or Grapefruit). The Jaffacake - a 50:50 split of Tia Maria and Cointreau creates a one ofa-kind combined shot. Check out TiaMaria.com for more cocktail inspiration. Distributed by Barry & Fitzwilliam.
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St-Germain
St-Germain, an all-natural, artisanal French liqueur, has notes of tropical fruits, grapefruit and pear with a hint of honeysuckle. The world’s first hand-crafted liqueur is made from 100% fresh handselected elderflower blossoms picked once a year during a four- to six-week period in late Spring when at their peak level of flavour and aroma.
Cointreau the original triple sec Spirit lovers, both past and present, recognise Cointreau as a core building block in premium cocktail creation. Cointreau, the cornerstone of more than 350 internationally-renowned cocktails such as the Margarita, Sidecar and Cosmopolitan, enhances your cocktails with its perfect balance. Check out Cointreau.com for a selection of cocktail recipes. A masterpiece crafted through the unique distillation of all-natural sweet and bitter Orange peels results in a crystal-clear liqueur that strikes the perfect balance between sweetness and freshness. The finest Orange peels have been selected by Master Distiller Carole Quinton for over 30 years to create the definitive Orange liqueur. Cointreau Blood Orange, a line extension to Cointreau, marks a bold variation of the recipe. It makes use of blood Oranges from Corsica along with the peels of the sweet and bitter Orange found in traditional Cointreau. The blood Oranges are harvested when the peels are packed with the highest concentration of oils, resulting in rich expressive citrus notes all the way through. The perfect balance between sweet, bitter and blood Orange peels, Cointreau Blood Orange is like tasting a ripe fruit, a new taste experience, both tangy and rich in aromas. Cointreau is distributed by Barry & Fitzwilliam.
Once picked the flowers are swiftly macerated with an eau de vie and pure cane sugar to maximise freshness and enhance the fruit-driven character of the elderflower. A low sugar content, roughly half that of other liqueurs, provides St-Germain with a balance of subtle yet complex flavours. Extremely versatile, St-Germain adds character to many cocktails and mixes well with a variety of base spirits including tequila, gin, vodka, whiskey, Scotch, rum, pisco, wine and especially Champagne.
The perfect St-Germain Cocktail
The perfect apéritif calls for two parts Brut Champagne, one-and-a-half parts StGermain, two parts sparkling water and a Lemon twist. Fill a tall Collins glass with ice. Add Champagne first, then St-Germain, then Club Soda. n
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October 2020 | DRINKS INDUSTRY IRELAND
8 Hinch wins Double Gold, Gold and Silver for whiskeys
3 CWSA medals for Hinch Alongside winning the highest accolade for its Ninth Wave gin at the China Wine and Spirit Awards NI’s Hinch Distillery took away three other distinguished titles for its range of Irish whiskies recently including Double Gold for its 10 Year-Old Sherry Finish, Gold for its Five Year-Old Double Wood and Silver for its Peated Single Malt. Samples from Hinch Distillery underwent the unique ‘CWSA Triple Blind Tasting Method’ that the CWSA organisation has fine-tuned over 20 seasons and for which it is highly regarded. It’s known as one of the strictest blind-tasting standards in the sector,
beckoning award applications from some of the world’s most celebrated brands. “The Chinese wine and spirits market has grown massively in recent years and with China’s economy growing on average 7-8% each year, it shows no signs of slowing down any time soon,” explained Hinch Distillery’s Chairman Dr Terry Cross OBE. To date distributors have been signedup in over half of Hinch’s target countries including China, Taiwan, Hong Kong,
Canada, the US, Japan, Russia, Poland, Czech Republic, Belgium, Holland, Spain, Italy, Australia, New Zealand, the UK and Ireland. The distillery, which distils at its site just outside Belfast, is set to officially open this month with public tours due in 2021. Both the distillery and visitor centre are located between Ballynahinch and Belfast. For more information on Hinch Distillery log onto https:// hinchdistillery.com or follow us on https://twitter.com/hinchdistillery
8 New Orange variant in response to consumer demand
Martini Fiero - significant early signs of success with Irish consumers Martini vermouth has launched a new Orange variant, Martini Fiero, in response to consumer demands for bold-flavoured, brightly coloured drinks. ‘Fiero’ means ‘proud’, ‘intense’ and ‘bold’ in Italian, reflecting the flavourful character of this particular vermouth. At 14.9% ABV it’s made by blending white wines, Spanish Oranges grown in Murcia and botanicals Artemisia Absinthium and Artemisia Pontica. The drink’s zesty bittersweet Orange flavour has been crafted to pair
specifically with tonic water. The 50/50 serve answers a growing consumer appetite for longer, more refreshing ways to enjoy vermouth as part of the modern Aperitivo occasion. Martini Master Blender Beppe Musso added, “We also worked hard to ensure the intense flavours of our white wine and citrus core would come through when the tonic is added”.
Martini Fiero has already shown significant early signs of success with Irish consumers.
A modern vermouth with a distinctive bittersweet Orange flavour that comes to life when paired with tonic, Martini Fiero has already shown significant early signs of success with Irish consumers as the brand taps into new consumer occasions and trends.
8 AM Design can help restore character to existing licensed premises with comfort and atmosphere in mind
Retain the best with AM Design With the need for pubs to diversify their offering, many licensed premises have stores and back yards ideally suited for rejuvenation leading to complementary related businesses in the tourism sector, for commercial use or as office space. “Unlock their potential,” urges Angie Murphy, Founder of AM Design, “Adapting and developing new areas behind old traditional worn front bars is a key element to the continued success of many town and country pubs. “Often spaces can benefit from a replan. Sprawling extensions can be re-imagined for functions, dining or music or opened as outdoor areas,” she added. “Often an existing furniture layout can be redesigned to function better in
today’s market. “We’re encouraged by the success of many of our projects that took that little extra effort and bit of ingenuity,” she continued, “The benefits can last for years and reflect well on an annual turnover. “Retaining the best of our old buildings, has huge benefits. “Knocking buildings unnecessarily because they don’t fit into a pricing category is so often regrettable; with it goes the future benefits of its character. We delve deeper and come up with ways of retaining and exposing the character of old buildings in a new and sustainable way. “It’s refreshing to see the interest
in our older buildings with recent TV restoration programmes.” AM Design can help restore character to an existing licensed premises with comfort and atmosphere in mind, she says. For more information contact: AM Design W: www.amdesign.ie E: info@amdesign.ie T: +353 1 286 4135
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8 Dublin Northside brewery becomes latest Guaranteed Irish member
Guaranteed Irish for Hope Beer Hope Beer has gained the Guaranteed Irish membership symbol. Founded in 2015 Hope Beer brews a range of premium craft beers and became a Guaranteed Irish member following approval by the organisation’s appraising committee. Guaranteed Irish, a not-for-profit organisation, represents over 1,200 home-grown and international businesses operating in Ireland and has been promoting business here since 1974. “Being part of such an established
From left: Des McSwiggan, Co-Founder & Head of Sales at Hope Beer, with Wim De Jongh, Co-Founder & Managing Director.
and well-respected organisation that champions Irish businesses and jobs is important to us,” said the Co-Founder and Managing Director of Hope Wim De Jongh, “More than ever it’s important to local communities and to the National Economy that people continue to shop and buy local.” Hope Beer brews a range of premium craft beers, canned, bottled and kegged at Howth Junction in North Dublin.
8 Drinks suppliers and publicans launch #OpeningTime campaign
Drinks Ireland launches #Openingtime campaign Pubs, the lifeblood of many communities across Ireland, should not become political footballs in the fight against Covid-19 and should be allowed stay open as Ireland learns to live with Covid-19 over the coming weeks and months, believes Drinks Ireland. The ibec body recently launched a new campaign, #OpeningTime, supported by the Licensed Vintners Association and the Vintners Federation of Ireland, calling on the Government to ensure that ‘wet’ pubs are allowed re-open in a safe and sustainable manner in order to preserve jobs, local economies and “these vital social outlets in the community which have been closed for over six months”. It’s estimated that before the shortlived 21st of September reopening of wet pubs outside the capital, 3,500 pubs across Ireland had remained closed, 60% of all pubs. And with these pubs having had to close again, the sector cannot afford any further false starts, pointed out Drinks Ireland.
#OpeningTime The #OpeningTime campaign was activated across social media and highlights how pubs are regulated environments and responsible businesses. It illustrates how they play their part in maintaining strict Covid-19 measures as had already been seen in the vast majority of food pubs that had opened prior to Level Three. The campaign also emphasises the huge investment, time and effort that goes into re-opening pubs by both the
Pubs should not become political footballs in the coming months as the country learns to live with Covid-19, believes Padraig Cribben.
publicans and the drinks suppliers. Brewing is a costly and timeconsuming process and suppliers had started to work with publicans all over the country to supply product for the re-opening, delivering kegs ahead of the last September 21st date. Drinks suppliers also worked with pubs to clean beer lines in advance of re-opening. The campaign also emphasises how the safe and sustainable reopening of pubs is important not only for publicans and the drinks industry but for Ireland’s economy. Ireland’s hospitality industry purchases approximately €1 billion from domestic food and drink suppliers every year and is vital for providing employment opportunities for young people as well as regional and rural development. It can play a crucial role in the economic
recovery from Covid-19 as it did during the recovery from the last economic crisis, when it accounted for one in every seven jobs created. “While managing Covid-19 and people’s health should continue to be a top priority, we must be able to do this in a way that does not decimate an entire industry and allows the economy to function alongside Covid-19,” said Drinks Industry Ireland Director Patricia Callan, who called on the Government to avoid this ‘stop and start’ approach to reopening pubs, “This would be bad for businesses and also bad for our economy and society. “As a result of previous ‘false starts’ beer was brewed and delivered, beer lines were cleaned and subsequently breweries had to do a massive keg uplift as the pubs then couldn’t re-open.” LVA Chief Executive Donall O’Keeffe added, “It’s time for a safe and sustainable #OpeningTime. Where outbreaks do occur, in pubs or indeed other businesses, they should be managed as opposed to resulting in any blanket decisions to shut down an industry”. VFI Chief Executive Padraig Cribben agreed, stating, “They should not become political footballs in the coming months as the country learns to live with Covid-19. These businesses are vital from an employment and economic pointof-view and also as a social outlet for people across the country. This is particularly true in rural Ireland.” n
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C LO S I N G TIM E
October 2020 | DRINKS INDUSTRY IRELAND
The Great Liberties Whiskey Fire In June 1875, a huge whiskey warehouse By this time the huge fire of burning Corporation depot nearby. Captain Ingram in Dublin’s Liberties area went on fire. flowing whiskey was pouring out of the ordered it to be delivered to the scene of The streets ran with burning whiskey and doors & windows of the warehouse, making the fire fast. pandemonium ensued. An online event its incendiary way from Ardee Street down The warehouse was also surrounded by exploring ‘The Great Liberties Whiskey the hill towards Mill Street. tanneries who soaked their animal hides in Fire’ took place last month as part of the The burning liquid flowed into every a pungent mixture of dog faeces, urine and Dublin Festival of History 2020 line-up. corner and laneway. animal brains (don’t try this at home). Las Fallon, a retired Dublin The resulting waste sludge was firefighter, historian and author, also called for as was the human told the story of a forgotten piece of waste from the nearby abodes that Dublin history and of the fire, the ran into ‘ash pits’ regularly collected destruction and mayhem it caused as by the Corporation. well as the novel method used to put That seemed to do the trick and it out. the burning spirits soaked into this The warehouse was indeed organic dam, thus stopping the flow. massive – the biggest in Dublin - and What the smell around the place was the seat of the biggest fire in must have been like on the night one Dublin of the 19th Century. can only imagine but despite the fact It was owned by Lawrence Malone that nobody died from the fire itself, who bought a premises in the there were fatalities. Coombe’s Ardee Street in Dublin’s The crowd that had gathered to Liberties area. watch the ‘entertainment’ wasted It housed 1,800 ‘puncheons’ – no time in collecting the mixture of larger than a hogshead – of whiskey, unseasoned faecally-contaminated The crowd that had gathered to watch the all of which equated to 570,000 litres alcohol immersed in tannery sludge, ‘entertainment’ wasted no time in collecting the of spirits, up to 5,000 barrels in total mixture of unseasoned faecally-contaminated alcohol lashing into the whiskey with hastily in the premises, comprising port, gathered pots, pans, boots and even immersed in tannery sludge, lashing into the whiskey with hastily gathered pots, pans, boots and even hats. hats. brandy and other spirits. Behind the locked doors rested Those without these got down on various whiskey brands such as Powers, The quandary for Captain Ingram was their hands and knees to lap it up. John Jameson and James Jameson as well how could the liquid blaze be tackled? He In all, 14 died of alcohol poisoning or as whiskeys from smaller distilleries such as realised straight away that he had to block simply poisoning considering the matrix on DWD and Greenmount. Brandies too were up the drains and sewers to prevent the offer that night. stored there. tributary of fire reaching the adjacent River Las has written three books on the In all some €6 million-worth of spirits Poddle – and to prevent the city exploding history of the Dublin Fire Brigade and would be lost that night alongside the 40 as the flames met with the methane gas in taken part in documentaries with RTE, houses that also burned down while others the city’s sewers. TG4, BBC and others on the 1916 Rising, were severely damaged by the fires. He tried digging up the streets in front of the Civil War, the Belfast Blitz and other The first anyone knew of the the fire but that didn’t work. subjects. conflagration was when blue flames – What he needed was an absorbent Apart from Las’s book, The Great Liberties imagine the flame from the brandy on a material to soak up the burning whiskey Whiskey Fire:Dublin`s forgotten calamity of Christmas pudding - burst through the roof and dam the ‘fuel’ until it burned out. 1875 (available in Teelings Distillery nearby of the building. Then he’d a foul brainwave. and the Irish Whiskey Museum or from Dublin’s three year-old Fire Brigade, led With horses providing all of the city’s from www.kilmainhamtales.ie) a podcast by a Captain James Robert Ingram, was transportation needs, there would be no is also available, part of the Three Castles soon on the scene. shortage of dung collected and kept at the Burning podcast series.
Licensed wisdom
a collection of notable quotes
“People are desperate to get back into bars, restaurants and hospitality spaces… as much as we’ve tried to recreate things at home, you can’t recreate that experience.” – Paul Wainwright, Director of Harrison Asia-Pacific, at a CGA Atlantic Club webinar on ‘Redefining the Out of Home Experience’. “Living with Covid-19? We’re being dominated by it” – LVA Vice Chairman Noel Anderson in the Business Post.
“Mondays are typically quiet in the pub trade but the novelty of reopening has seen a busy trade in some parts of the country. We’ll have to wait until after the weekend to get a proper feel for how customers are responding.” – VFI’s Padraig Cribben on the first couple of days’ trade for ‘wet’ pubs on reopening. “It’s simply unsustainable in my view that the Government is pocketing around a third of the price of the average drink in excise and VAT receipts at a time when the majority of businesses are at least 50% down on their revenues.” - The new Chair of the Drinks Industry Group of Ireland Liam Read. n
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Brian O’Sullivan Garavogue Bar, Sligo