Latest news with #Scarp
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.
Business Mayor
05-05-2025
- Business
- Business Mayor
Ireland must ease tax burden on start-ups to spur innovation and create jobs
US trade tariffs have exposed again the frailty of our economic model and the outsized impact of a small number of large multinational companies on Ireland's economic future. Already this year, it has been estimated that between 30 and 40 per cent of investments have been delayed. With the increasing geopolitical and economic volatility globally, there is an urgent need to rebalance our economy and ensure that ambitious Irish owner-manager and indigenous businesses can become drivers of overall economic growth. Now is the time for bold decisions that can reset the course of our economy. That starts with recognising the critical role that family-run businesses, high-potential start-ups, and small to mid-sized firms already play. Together, they employ two-thirds of Ireland's workforce and are the beating heart of local economies across the country. Supporting these businesses to scale up means tackling the range of persistent challenges they face – including high operating costs, challenges in deploying automation and AI, limited access to capital, and difficulty attracting skilled talent. Doing so can unlock their full potential and strengthen Ireland's ability to withstand future economic shocks. While discussions about US tariffs dominate, the reality is that these measures may only have a direct adverse impact on a limited number of larger companies. Meanwhile, thousands of SMEs – the true backbone of the Irish economy – continue to grapple with day-to-day pressures and rising costs. [ Hospitality lobby overplayed its hand on VAT reduction ] The Government has poured cold water on suggestions it would take direct action to alleviate some of these immediate pressures, notwithstanding the recent record corporation tax take. A comprehensive plan is now needed to enhance the growth potential of ambitious owner-manager businesses. Read More Could country's biggest private landlord be put up for sale? The 15-point competitiveness plan brought to Cabinet recently by Minister for Enterprise Peter Burke is an important step forward that could provide an initial blueprint for enhancing competitiveness and productivity within the domestic economy. Moving to action is now crucial. A prime example is the Government's recent decision to delay the reduction in VAT for the hospitality sector until January 2026. If the reduction is the right thing to do, delaying its introduction only prolongs the challenges faced by hotels, restaurants and cafes. In sectors such as hospitality, for example, further delays could contribute to the loss of another 500 restaurants or cafes before relief arrives. Some may have to turn to the Small Company Administrative Rescue Process (Scarp) to recover, while others will be overwhelmed and go into liquidation. As global volatility becomes the new normal, it's now time that Ireland puts indigenous businesses at the heart of its economic future. The time to act is now. Our future prosperity depends on the Government seizing the opportunities ahead and implementing bold, forward-thinking policies With the new Government developing enterprise strategy for the next decade, we must prioritise reforms and policy measures that support indigenous businesses. By doing so we can foster a more resilient and sustainable economy that can withstand international instability and disruption. Irish SMEs looking to scale up have long struggled to do so due to limited access to capital. The new enterprise strategy could unlock the barriers that are in place. One way to do so would be to use a small portion of pension fund savings to invest in indigenous firms. Read More Grab a Free Bottle of Coca-Cola Zero Sugar Using AR Firms that are able to overcome these barriers face real structural challenges in scaling globally. A key obstacle is the taxation burden. [ Trump tariffs: What 'dark and damaging scenarios' could economies face in Ireland and worldwide? ] Laying out a roadmap to reducing the rate of Capital Gains Tax to 20 per cent for Irish start-ups and scaling companies would ensure that indigenous firms scale up from this island and compete globally from here. A more balanced approach to taxation – one that incentivises risk-taking, innovation, and job creation within the real economy – should be a top priority. Many indigenous firms struggle to attract and retain skilled talent, particularly in sectors where multinationals offer significantly higher salaries and benefits. [ VAT cuts for restaurants were a bad idea last month. Why are they a good idea now? ] The latest Azets Barometer found that talent recruitment is the number two most pressing business challenge today. Government could introduce targeted measures such as enhanced tax credits for employee share options and building a stronger supply of skilled domestic talent. Developing an enterprise strategy that reflects the real economy and supports the needs of the vast majority of businesses within it is needed now more than ever. Ireland is at an economic crossroads. While foreign direct investment has played a vital role in our success story, we must now take decisive steps to pivot Ireland's economy and focus on unleashing the potential of indigenous businesses. There is no better opportunity to reshape our economic model and create a more resilient and sustainable economy, powered by thriving domestic enterprise. Read More Corporation tax D-Day looms over State's budgetary arithmetic The time to act is now. Our future prosperity depends on the Government seizing the opportunities ahead and implementing bold, forward-thinking policies as part of the upcoming enterprise strategy. The choices we make today will shape Ireland's economic landscape for decades to come. We must get them right. Neil Hughes is chief executive of Azets Ireland
Irish Times
05-05-2025
- Business
- Irish Times
Ireland must ease tax burden on start-ups to spur innovation and create jobs
US trade tariffs have exposed again the frailty of our economic model and the outsized impact of a small number of large multinational companies on Ireland's economic future. Already this year, it has been estimated that between 30 and 40 per cent of investments have been delayed. With the increasing geopolitical and economic volatility globally, there is an urgent need to rebalance our economy and ensure that ambitious Irish owner-manager and indigenous businesses can become drivers of overall economic growth. Now is the time for bold decisions that can reset the course of our economy. READ MORE That starts with recognising the critical role that family-run businesses, high-potential start-ups, and small to mid-sized firms already play. Together, they employ two-thirds of Ireland's workforce and are the beating heart of local economies across the country. Supporting these businesses to scale up means tackling the range of persistent challenges they face – including high operating costs, challenges in deploying automation and AI, limited access to capital, and difficulty attracting skilled talent. Doing so can unlock their full potential and strengthen Ireland's ability to withstand future economic shocks. While discussions about US tariffs dominate, the reality is that these measures may only have a direct adverse impact on a limited number of larger companies. Meanwhile, thousands of SMEs – the true backbone of the Irish economy – continue to grapple with day-to-day pressures and rising costs. [ Hospitality lobby overplayed its hand on VAT reduction Opens in new window ] The Government has poured cold water on suggestions it would take direct action to alleviate some of these immediate pressures, notwithstanding the recent record corporation tax take. A comprehensive plan is now needed to enhance the growth potential of ambitious owner-manager businesses. The 15-point competitiveness plan brought to Cabinet recently by Minister for Enterprise Peter Burke is an important step forward that could provide an initial blueprint for enhancing competitiveness and productivity within the domestic economy. Moving to action is now crucial. A prime example is the Government's recent decision to delay the reduction in VAT for the hospitality sector until January 2026. If the reduction is the right thing to do, delaying its introduction only prolongs the challenges faced by hotels, restaurants and cafes. In sectors such as hospitality, for example, further delays could contribute to the loss of another 500 restaurants or cafes before relief arrives. Some may have to turn to the Small Company Administrative Rescue Process (Scarp) to recover, while others will be overwhelmed and go into liquidation. As global volatility becomes the new normal, it's now time that Ireland puts indigenous businesses at the heart of its economic future. The time to act is now. Our future prosperity depends on the Government seizing the opportunities ahead and implementing bold, forward-thinking policies With the new Government developing enterprise strategy for the next decade, we must prioritise reforms and policy measures that support indigenous businesses. By doing so we can foster a more resilient and sustainable economy that can withstand international instability and disruption. Irish SMEs looking to scale up have long struggled to do so due to limited access to capital. The new enterprise strategy could unlock the barriers that are in place. One way to do so would be to use a small portion of pension fund savings to invest in indigenous firms. Firms that are able to overcome these barriers face real structural challenges in scaling globally. A key obstacle is the taxation burden. [ Trump tariffs: What 'dark and damaging scenarios' could economies face in Ireland and worldwide? Opens in new window ] Laying out a roadmap to reducing the rate of Capital Gains Tax to 20 per cent for Irish start-ups and scaling companies would ensure that indigenous firms scale up from this island and compete globally from here. A more balanced approach to taxation – one that incentivises risk-taking, innovation, and job creation within the real economy – should be a top priority. Many indigenous firms struggle to attract and retain skilled talent, particularly in sectors where multinationals offer significantly higher salaries and benefits. [ VAT cuts for restaurants were a bad idea last month. Why are they a good idea now? Opens in new window ] The latest Azets Barometer found that talent recruitment is the number two most pressing business challenge today. Government could introduce targeted measures such as enhanced tax credits for employee share options and building a stronger supply of skilled domestic talent. Developing an enterprise strategy that reflects the real economy and supports the needs of the vast majority of businesses within it is needed now more than ever. Ireland is at an economic crossroads. While foreign direct investment has played a vital role in our success story, we must now take decisive steps to pivot Ireland's economy and focus on unleashing the potential of indigenous businesses. There is no better opportunity to reshape our economic model and create a more resilient and sustainable economy, powered by thriving domestic enterprise. The time to act is now. Our future prosperity depends on the Government seizing the opportunities ahead and implementing bold, forward-thinking policies as part of the upcoming enterprise strategy. The choices we make today will shape Ireland's economic landscape for decades to come. We must get them right. Neil Hughes is chief executive of Azets Ireland
Irish Times
29-04-2025
- Business
- Irish Times
‘There is hope': Rescue plan approved for Waterford's Blackwater Distillery
'Hopefully, this will be a positive end to the story for everyone', said the co-founder of Blackwater Distillery after a rescue plan was approved following a meeting of the company's creditors with a process adviser at the start of April. Nearly 95 per cent of the company's unsecured debt was written off, a sum of more than €500,000, and extended the repayment periods of other debts, stabilising the Waterford -based whiskey and gin distillery. The company had originally looked to trade through its debts, but that plan was disrupted by the 'oncoming headwinds' of uncertainty in the Irish drinks market caused by US tariffs and the impact of the cost-of-living crisis. 'We also had just got through Covid, Ukraine and the huge effect they had on our supply lines and on the costs of raw materials – prices went up and up and up,' said Peter Mulryan, co-founder and chief executive of Blackwater Distillery. READ MORE 'You come to a point where you go: 'Right, well it doesn't look like trading through this is going to be an option, so, what are our options?' That's where Scarp came in.' The Small Company Administrative Rescue Process (Scarp) is a rescue mechanism for smaller Irish businesses. With just 10 employees and a turnover far below the maximum annual turnover of €12 million, Blackwater Distillery qualified for the process and were found to have a viable business model. The distillery was founded in 2014. 'For the first five or six years the market was pretty buoyant because the gin industry was booming,' Mr Mulryan said. During this time, the company looked to expand into the whiskey industry. Unlike gin, which has a short production time, getting whiskey to market can take 'at least three years but usually four or five or six years'. 'We were moving from being a predominantly gin company to being a predominantly whiskey company, pretty much at the same time as the gin market softened,' he said, noting that cash flows from the company's gin businesses ended up being below its projections. Mr Mulryan explained that the business became 'weighed down by the burden of debt' as it tried to trade its way out of trouble, eventually that was no longer possible. 'Every month, more and more was going out the door to service debt and it got to a point where it became unsustainable.' A process adviser was appointed, Joe Walsh Accountants, and a rescue plan was put in place for the business following a majority vote of its creditors at the start of April. 'The company's unsecured debt was largely written off,' the distillery's chief executive said, explaining the sum was about €500,000 – 'mostly bank debts'. Mr Mulryan said entering the process 'is not something anyone wants to do', noting he and his co-founder Caroline Senior are planning to 'rebuild the relationships' with the businesses that had to take write-offs. Looking forward, Mr Mulryan noted the difficulties facing the drinks industry in Ireland, pointing to the receivership at the nearby Waterford Distillery in November and the recent examinership at Killarney Brewing and Distilling Company. The difficulties are even impacting the larger players in the industry too, he said, with 'many of the big multinational distilleries' stopping production temporarily. 'So that gives you a sense of just how uncertain the future is.' Despite the unpredictable market, Peter Mulryan is 'absolutely hopeful' that his business can thrive again. 'There's plenty of good news for us, and plenty of challenges – but there are always challenges in business!'
