Gunpowder Irish Gin reports multimillion euro drop in profits
Financial filings from PJ Rigney Distillery and International Brands Ltd., the parent company behind the Leitrim-based Shed Distillery, show revenues declined by 6% to €17.27 million in the 12 months ending last September.
The company, which makes Gunpowder Irish Gin, said it delivered a strong performance during a challenging year marked by inflation and market volatility.
Employment at the company rose slightly to 85, with staff costs increasing from €2.43 million to €2.72 million. Directors' pay remained unchanged at €150,000.
The company posted a post-tax profit of €2.43 million after incurring a corporation tax charge of €386,550, with total accumulated profits standing at €17.7 million.
Cash reserves also grew from €4.95 million to €5.68 million over the year.
However, a significant threat now hangs over one of the company's most valuable markets.
The US, which accounts for 35% of Drumshanbo's sales, could soon impose tariffs of up to 200% on European spirits as part of a wider EU-US trade dispute.
Pat Rigney, founder of the Shed Distillery, warned that such tariffs could effectively shut Irish spirits out of the American market.
"The impact of the potential tariffs would be fairly dramatic," he said, adding that even a 50% tariff would severely hurt transatlantic trade.
Rigney urged the Irish Government and European Commission to act swiftly to prevent damage to the sector.
'The government should really deal with this as a matter of urgency in the next 48 to 76 hours,' he told RTÉ News, expressing frustration at the inclusion of US bourbon on the EU's retaliatory tariff list, which he believes puts local distillers at risk.
In the meantime, the company continues to expand its domestic operations.
The Shed Distillery Experience, which completed its first full financial year in 2024, has been deemed a success by the company.
The visitor attraction in Drumshanbo has become a big part of the brand's identity and tourism strategy.
Producing nearly 2 million bottles annually, the Shed Distillery's portfolio includes the flagship Gunpowder Irish Gin, Drumshanbo Single Pot Still Irish Whiskey and Sausage Tree Pure Irish Vodka.
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