Latest news with #DrinksIreland
Agriland
19-05-2025
- Business
- Agriland
Irish Whiskey Association: Spirits sector ‘uniquely exposed' to tariffs
The Irish Whiskey Association, together with Drinks Ireland, has warned that the Irish and EU spirits sectors remain uniquely exposed, should no resolution of EU – US trade tensions be found. The organisations have recommended an immediate removal of all tariffs on EU and US spirits, allowing a return to the tariff-free environment in which the sector has 'found such success'. According to the Irish Whiskey Association, 95% of Irish whiskey is exported, and exports to the US are worth around €420 million per annum. Overall drinks exports from Ireland to the US total €865 million every year. The Irish Whiskey Association believes that the 10% US tariff on Irish whiskey is already costing Irish drinks producers thousands of euro every week. It said: 'This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required. 'The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country,' the association explained. Irish whiskey Both Drinks Ireland and the Irish Whiskey Association are encouraged by the fact that the European Commission has consistently sought to negotiate a deal and has engaged in discussions with their US counterparts in 'good faith'. The groups said: 'Irish whiskey, cream and poitín producers appreciate the consultation and communication both the European Commission and the Irish government has engaged in with affected sectors. '(We) hope that a satisfactory conclusion of these negotiations can be reached, as this would benefit all spirits drinks producers in Ireland.' 'A tariff-free environment has worked and will work best for the spirits sector. The spirits sector in both the USA and the EU remain interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk,' they added. According to the Irish Whiskey Association, there are further threats which may impact on the competitiveness of the Irish drinks sector. It claims that Ireland is the primary importer of US casks in the EU, and that ex-bourbon and ex-American whiskey casks are an integral component of Irish whiskey.
Irish Times
14-05-2025
- Business
- Irish Times
Irish drinks sector ‘uniquely exposed' if EU fails to get tariffs lifted
Ireland's spirits sector will be 'uniquely exposed' if the European Union (EU) fails to secure a deal on tariffs with the US, two prominent drinks industry groups have warned. The Irish Whiskey Association and Drinks Ireland said the current 10 per cent tariff on US drink imports from Europe is costing Irish drinks producers thousands of euro every week. 'This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required,' they said. 'The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country,' they said. READ MORE Irish drinks exports to the US are worth around €865 million a year while the US is the biggest export market for Irish whiskey. The Irish Whiskey Association says nearly 4.7 million, nine-litre cases of Irish whiskey were sold in the US in 2003. While the industry here is led by brands such as Jameson in the Republic and Bushmills in Northern Ireland, there are more than 40 distilleries now scattered across the island. Both drinks groups want an immediate removal of all tariffs on EU and US spirits, 'allowing a return to the tariff-free environment in which the spirits sector found such success'. 'From the introduction of zero-for-zero tariffs in 1997 until 2018 with the steel/aluminium dispute, the value of the spirits sector on both sides of the Atlantic experienced a growth of 450 per cent,' they said. 'The spirits sector in both the USA and the EU remain interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk,' they said.
Irish Independent
11-05-2025
- Business
- Irish Independent
‘Since January 20, the world has changed' – Distilleries pause production as uncertainty grows amid US tariff tensions
Pat Rigney, who co-founded Drumshanbo Gin-producer The Shed Distillery alongside his wife, Denise, said many of the country's distilleries were going through a tough time with most distilleries temporarily halting production. Pauses were happening across the industry, he added, hitting large and small distilleries alike. 'I think since January 20, the world has changed with the new US administration,' he said. 'That was then but now we are in a different world, a very uncertain world. 'I'm not sure if you are aware, but the vast majority of distilling in Ireland has paused at the moment due to the challenges.' Rigney, who chairs the industry group Drinks Ireland, added that The Shed had not stopped production. On the pauses, Rigney noted there would be downstream effects for others, highlighting that Irish grain growers, pallet manufacturers, and trucking firms could take a hit. While Rigney said he can't answer on behalf of the distilleries pausing production, he believes uncertainty caused by US tariffs brought these actions forward. He also noted 'heightened levels of competition' from other categories, like tequila and cognac, playing a role. Irish alcohol producers are currently subject to a 10pc levy on sales in the US, its largest export market. However, this is due to increase to 20pc should EU and US negotiators fail to strike a trade deal. Last week the European Commission re-tabled proposals to hit US bourbon whiskey sold to EU states with tariffs. Such a move could spark a furious response from Trump leading to greater levies for Irish alcohol firms selling to America. Woes in the whiskey sector have even led to insolvencies. Rigney called for the Government not to take the industry for granted. Several prominent Irish distilleries have reportedly paused or cut back production in recent months. ADVERTISEMENT Learn more In March, Jameson-producer Irish Distillers said it was pausing production at Midleton Distillery in Co Cork from April until summer. The country's largest whiskey business said it was 'adjusting its production schedule for a routine, periodic review'. Bushmills had also reduced production saying it was aligning its 'whiskey stocks with anticipated demand trends.' Last November, Waterford Whiskey entered receivership after failing to raise fresh funding. The receivership was extended in March due to it being a 'challenging' time to find a buyer. In February, Blackwater Distillery entered the Small Company Administrative Rescue Process (Scarp), a rescue mechanism for smaller Irish businesses. A rescue plan was approved last month following a meeting of the company's creditors. The Shed boss Rigney was speaking after the business behind his distillery, PJ Rigney Distillery & International Brands, released results for the year ended September 30, 2024. Profit fell to €2.43m, down almost €870,300. Rigney said this was due to increased investment and heightened costs, which had not been passed on to consumers. The business had sales of over €17.27m and depletions – a measure of the number of cases sold to retailers by a distributor – had increased, he added.
Extra.ie
21-04-2025
- Business
- Extra.ie
Warnings on alcohol to be the first casualty of tariff war
Tobacco-style health warnings on alcoholic drinks are poised to be the first casualty of the US tariff war as the Government battles to protect the Irish industry. When the warnings were originally announced two years ago by then-Health Minister Stephen Donnelly, the move was feted as a 'world first'. However, a change in the world market caused by Donald Trump has prompted a sharp U-turn. It is now understood that the warnings will not feature on drinks being exported to the US, although the labels could yet apply to bottles and cans sold within Ireland. U.S. President Donald Trump. Pic:Political unease over what is now being termed a 'draconian' policy has been sparked by the battle the whiskey and indigenous drinks industry faces, with up to four distilleries at risk of closure, and one expert saying the alcohol sector is at a precipice. In an indication of the pressure the industry faces, Drinks Ireland chairman Pat Rigney – founder of Drumshanbo Gunpowder Irish Gin – said that 'already 90% of Irish production has stopped and that is down to concerns about tariffs'. He warned: 'The industry is at a precipice. This is a challenging moment, especially for fledgling distilleries who need to return to a zero-tariffs regime.' Warning that 'it takes decades to build a brand', Mr Rigney also cautioned of serious side-effects for the struggling American tourist market. He said: 'The four great brands we have are music, literature, Kerrygold, but the really powerful brand is Irish-distilled alcohol. Americans consume the product and want to visit the country that produces it.' Pic: Getty Images In an attempt to make life easier for distillers, the Government is now believed to be moving towards plans to reverse Mr Donnelly's labels. A senior source said: 'It is an example of controlling that which we can control. We can't tell Europe or America what to do over tariffs, but we can make life easier for distillers in this way.' The move to put comprehensive warnings on alcohol products was universally welcomed in 2023. But as the domestic brewing industry struggles to survive the uncertain world of tariff wars, political support for the decision has melted away. One Cabinet minister said: 'There is a big push to pull back on this. Donnelly got this in the back door when no one was looking. It is madness.' They said that a major concern is that the proposals were turning Ireland 'into a European outlier'. Stephen Donnelly. Pic: Alan Rowlette/ They added: 'A couple of other countries have a labelling regime, but we are draco-nian outliers in this regard.' One source said: 'It is doing us significant harm. It is constantly being raised by other European countries at international meetings. In a classic case of the law of unintended consequences, it is hitting the American trade very hard. 'America hates excessive labelling, and the Irish proposals do not go down well with American purchasers. 'Technically, countries such as France label their products, but, typically, the French provide so little information that the Americans have to add further information.' One minister warned: 'The small distilling industry is now a critical employer and in the social fabric of small rural communities. We had four distilleries and now we have 40 and we intend to keep them alive.' Martin Heydon. Pic: Gareth Chaney/Collins Speaking in the wake of Agriculture Minister Martin Heydon's recent trip to America, one source said: 'Relations with America on agricultural issues are warm. They are, despite tariffs, very interested in bilateral trade. There are all sorts of intriguing markets there. America sells over € 100 million in bourbon casks to Europe. They only use casks once. They don't want to lose trade like that.' Commenting on the Donnelly proposals, the source said: 'They're madness. We are utterly conscious of and have a real track record in reducing drink use in Ireland and promoting responsible consumption, but the drink export sector needs support, not rolls of red tape.' The proposals, when signed into law, were described as the 'world's most comprehensive alcohol labelling regulations'. The labels would include: a warning informing the public of the danger of alcohol use; a warning outlining the danger of alcohol use when pregnant; a warning informing the public of the direct link between alcohol and cancers; the quantity in grams of alcohol and calorie content within in the bottle or can; and details of an independent website providing health information in relation to alcohol use. Alcohol warning labels are already present in many other countries, including Australia, Brazil, South Korea, France, Mexico, Russia, South Africa, Taiwan and the US. Pic: Getty Images However, health sources noted that those warnings included 'substantially less detailed and varied information than those that we will see in Ireland'. Though the law was passed in 2023, a three-year lead-in time until May 2026 was built into the legislation to give businesses significant time to prepare for the change. Commenting on the proposal, one Government source warned: 'Labelling used to be a matter for the Trade Department, but it was moved to Health. If this had been kept away from the Department of Health, we would have been fine, but once it goes to Health, it's in the hands of a bunch of zealots that will only be happy with total prohibition.' The issue is being prioritised by Agriculture Minister Mr Heydon, but a U-turn was publicly raised by Finance Minister Paschal Donohoe, who warned that the introduction of the health warning labels would have to be 'carefully examined again'. In 2024, the Irish drinks industry saw its export value rise by 19% to just over €2.1 billion. Professor Frank Murray, chairman of Alcohol Action Ireland, which campaigns against unsafe drinking, has said the labelling has nothing to do with tariffs and will have no impact on the export of alcohol as it only applies to products sold in Ireland. Government sources insist, though, that there is an international dimension and that 'interventions like this are likely to work better with all EU states working together'. One Health Source remarked that 'if there is a view across the EU that there is a need for further research and for Europe to move in unison on such a complex issue, we would be supportive of such a decision'. However, it is believed Health Minister Jennifer Carroll MacNeill is amenable to a more cautious approach. One minister said: 'There won't be a pushback if we hit the pause button. It is a Donnelly legacy, so credibility levels are not high.'
