Sales of Irish whiskey forecast to outsell rivals in overseas markets

SALES of Irish whiskey are expected to grow faster than any of its competitors in overseas spirits markets, according to projections by global vintners body International Wine & Spirit Record.

The report also predicts increased demand for Scotch whisky, but signals stronger anticipated growth for Irish whiskey. Overall, ISWR predicts volume and value gains, with the category gaining 100m cases over the next five years.

Cathryn Hargan of Bord Bia’s Consumer Foods Division notes: “Irish whiskey in particular is forecast to achieve the highest growth rate in the sector. Most of the growth in both whiskey and whisky is likely to come from the Indian market as whisk(e)y is a status symbol and its popularity is likely to improve as the country’s wealth increases.”

Other global markets identified for growth in whiskey are Mexico and France while Brazil, China and USA are likely to be among the top spirits growth markets. Canadean also predict growth in the spirits business, driven by a strong performance in China and India.

Companies wishing to increase the private label segment of their business will be interested to read that according to global market research company Euromonitor International’s latest findings, private label offerings in alcoholic drinks accounted for only 2% of global total volume share in 2010.

“Companies appear to be failing to take advantage of the current economic slump and unlike other FMCG industries; the drinks sector hasn’t penetrated this segment to a large extent in markets outside of Western Europe,” says Cathryn Hargan. “However, as consumers grapple with austerity measures, private label could see increased opportunities for business in this largely untapped segment.”

These global reports are largely in line with Bord Bia’s report on the Irish food sector, Performance & Prospects, which projects that Irish beverage exports in 2011 will outperform even the gains that were made during 2010, with sales of other beverages making gains along similar lines to whiskey.

Overall, Irish beverage exports are estimated to have increased by 12% in 2010, rising to €1.19bn overall. The strongest performing categories were whiskey, cream liqueur and beer. Cider exports improved as the year progressed, with a strong performance in Britain, combined with increased sales to North America, Australia and Spain all helping to grow trade.

As Bord Bia chief executive, Aidan Cotter, explains: “Generally, the prospects for beverage exports remain positive for 2011, with stronger demand likely to be maintained while emerging markets continue to increase purchases of Irish beverages.

“However, the sector faces challenges in the form of higher dairy and other raw material prices, and the likely abolishment of intermediary excise tax relating to wine-based cream liqueurs, which will substantially raise retail prices.”