Killarney Brewing and Distilling Company to cease operations
Huge doubts about its viability had been raised in recent mo nths because of increased running costs, global trading uncertainty, and consequences arising from the pandemic.
More than 50 people work at the company's two Co Kerry sites in Killarney and Fossa, and the company supplies drinks to many pubs and hotels in surrounding areas.
James Anderson, a partner at Deloitte Ireland, was appointed as interim examiner to KBD in April when the company filed a petition with the High Court after a potential merger with a US partner fell through. Entering examinership was seen as the most viable path to secure its future. It gave the business protection from creditors and a 100-day window for an examiner to put together a rescue package.
Ultimately these efforts have been unsuccessful. A spokesman for the examiner said it would not be appropriate to comment at this time.
KBD, which has strong US links, started trading in 2015, opening a taproom in Killarney. It expanded in 2022, opening the brewery and visitors' centre in Fossa, on the outskirts of the town.
This was funded with about €12m capital raised from investors in 2020. It was hoped the new plant would attract more than 100,000 visitors per year. However, the expansion coincided with the pandemic, and then higher costs for raw materials, supply chain disruption, delays opening the Fossa plant, and global economic uncertainty over tariffs.
Last year the company launched a plan to raise up to €7m in funding, but Companies Registration Office filings this year showed it fell well short of this target, raising about €3.5m – mainly via US-based investors.
KBD's most recently filed accounts show the business recorded losses of €1.6m in 2022, and €513,000 in 2021. This was despite sales doubling in 2022, hitting €2m and up from €850,000 a year earlier.
There is huge uncertainty in the Irish drinks sector due to the imposition of US tariffs on EU imported goods, currently standing at 10pc. Guinness brewers Diageo confirmed last month it has stopped distilling its Roe and Co whiskey.
Jameson producer Irish Distillers announced in March that production at Midleton, Co Cork, would pause from April until the summer. Bushmills and Tullamore Dew also reduced production earlier this year.
The tariff, in place since April, has made Irish whiskey less competitive against its American rivals on the US market. The threat of an even higher tariff – with Mr Trump suggesting a 30pc levy could be applied from August 1 – has contributed to the decision by up to 90pc of Irish whiskey makers to pause distilling for now.
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