Competition and cost pressures hit export values of Irish spirits
Overall export volume in this sector also declined by 1.4% last year and, while Irish whiskey shipped almost 15m cases last year, the value of these exports plunged 14% to €875m. Picture: Artur Widak/NurPhoto
Ireland’s alcoholic drinks sector was hit by competition and weaker spending last year, as inflationary pressures weighed on consumers, according to an industry representative group.
Drinks Ireland | Spirits, an arm of lobby group Ibec, said the value of export sales fell to €1.3bn, diving 9% compared to the previous year, as prices somewhat stabilised amid cooling inflation.
However, some cost pressures on firms have continued to linger in a highly competitive market.
Drinks Ireland | Spirits director Aengus King said the Irish spirits sector delivered continues to be “confronted with challenging international markets”.
Overall export volume in this sector also declined by 1.4% last year and, while Irish whiskey shipped almost 15m cases last year, the value of these exports plunged 14% to €875m.
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Drinks Ireland | Spirits said that "a highly competitive global market and tough economic headwinds have complicated the market for drinks categories worldwide".
This follows a period of outperformance as, in 2022, the value of of Irish whiskey exports jumped to €1bn — up 25% on 2021 figures.
Drinks Ireland | Spirits urged the Government to avoid tariff barriers, protect the geographic indication status for Irish whiskey, Irish cream, and poitín across global markets, and increase investment from State agencies ahead of a looming election.
“As increased international competition and the cost of doing business are biting, we cannot afford to be complacent,” the chair of Drinks Ireland|Spirits and the founder of Rademon Estate Distillery in Down, David Boyd-Armstrong, said.
However, markets elsewhere are also witnessing downwards trends when it comes to spending on alcohol.
The Paris-based maker of Remy Martin Cognac, Remy shares have plummeted more than 50% over the past year as weaker demand in key markets such as the US and Asia led to a slump in half year sales.
For Ireland, the US continues to be the key export destination for Irish whiskey, accounting for more than one-in-three bottles of total global sales. Meanwhile, Poland has become a significant market with 16% growth last year.
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