Whiskey, gin and vodka sales down.

MILLIONS of euro in tax and duty are being lost to the Exchequer as shoppers head to Northern Ireland to make savings of €5 a bottle on spirits, it emerged yesterday.

Sales of whiskey and other spirits have fallen by 21% so far this year as a result of the negative impact of the 42% increase in excise duty imposed by Finance Minister Charlie McCreevy in December’s Budget.

Ireland largest spirit maker, Irish Distillers, has already scaled back whiskey production to take account of the fall in sales, the company confirmed last night.

Irish Distillers parent Pernod Ricard’s joint managing director Richard Burrows said sales of their Irish whiskey brands, Cork Dry Gin and Huzzar vodka were all down 11% this year.

Mr Burrows said the problem for the State is that shoppers are voting with their feet in areas close to the Border to buy products cheaper in Northern Ireland.

“This is costing the Government millions, shoppers can make savings of €5 a bottle by crossing the Border,” he said.

However, Mr Burrows said the continued growth in Jameson’s sales around the world was excellent news for the company’s largest Irish distillery in

Midleton, Co Cork where it is produced.

And the continued expansion of Bailey’s, manufactured by rival’s Diageo, is also good news for Irish Distillers.

Mr Burrows would not comment on the company’s relationship with Diageo but Irish Distillers are the biggest suppliers of Irish whiskey to the manufacturers of the world’s best selling cream liqueur.

Yesterday, Pernod Ricard SA, the world’s third- biggest liquor company, said first-half profit climbed 4.7% and raised its full-year profit target as savings from the purchase of Seagram

Co brands made up for stagnant demand in France.

Full-year profits should rise 15% instead of the 10% previously predicted. Operating profit fell 4.3% to €283 million.

Nathalie Pelras, who helps manage about $660m at Richelieu Finance in Paris, said: “The focus on wine and spirits is bearing fruit. They’ve followed the right strategy.”

Sales dropped 0.5% to €1.5 billion. In France, which accounts for about 18% of total revenue, sales declined 3.7%.