Glass half empty for whiskey industry
The industry collectively raised a glass to two more distilleries which received bad news over the weekend.
Powerscourt Distillery announced that it has entered receivership, with Interpath Advisory being appointed at the end of last week – the same firm as was appointed to Waterford Distillery in November 2024.
The Wicklow-based company behind the Fercullen whiskey label, is one of many brands whose stills went cold this year, initially with plans to restart production in June. But that was not to be.
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As of September 2024, the company stood in breach of its agreement with lenders PNC Bank – with which it agreed a
€25 million debt deal
in June 2023 – and its accounts noted it was dependent on the lender's support and a round of fundraising of €4.6 million by the end of March 2025.
Amid turbulent market conditions caused by US import tariffs, the brand was unable to secure the necessary funding. However, the fact that the process has already begun is understood to be positive for the business and the prospect of new investors. The business was struggling with working capital constraints but is thought to be viable long-term.
In the Liberties, it emerged that Diageo-owned distillery Roe & Co put an 'extended pause on distillation'.
In a statement to The Irish Times, a Diageo spokeswoman said the decision was made 'in order to optimise resources and support the sustainable future growth of our business'.
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It is understood that five employees due to be affected by Diageo's decision are in consultation with the company to be redeployed across the company where possible.
Where does that leave the Irish whiskey industry? There has been a lot of talk of industry resilience and riding out turbulent market conditions, but fundamentally, it seems that the glass-half-full view around the country is not well received by some of its lenders.
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