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.
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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.
