Mary Sadlier: 'Just like that, we had to find a lot of money before the ship docked'

Coole Swan CEO Mary Sadlier says the firm has dealt with Brexit, port strikes, and covid — so they will scenario-plan under the US tariffs every day until that stock is in the US

Mon, 14 Apr, 2025 - 02:00

Mary Sadlier

There’s understandable concern in the industry at present, but not all brands are bracing for a downturn. At Coole Swan, we see it differently as we have been here before.

We woke up one morning in October 2019 to hear the news that the US administration was introducing a 25% tariff on Irish cream liqueur with immediate effect.

We had a shipment of Coole Swan on the water, so just like that, we had to find a lot of money — $80,000 — before the ship docked. We had 48 hours. We didn’t have that kind of money in the bank, but we did it.

To this day, I am not sure how, but we did

Since then, we’ve dealt with soft Brexit, hard Brexit, US port strikes, new alcohol regulations, and covid — and we always come out stronger.

Now, there is a 90-day halt on the proposed 20% tariff, though a 10% tariff still applies. We’ll ship again in September in time for Christmas, and we will scenario-plan every day until that stock is safely in the US.

Yes, it’s hard — but nothing we haven’t handled before. We don’t panic.

We’ve navigated challenges before, and we’ll do it again

It’s no secret that the cost of the tariffs will have to be passed onto the American consumer in the same way that duty is passed on.

Yes, tariffs will increase the cost of a bottle of Coole Swan — but we don’t see this resulting in lost sales.

Our American customers won’t disappear — they buy Coole Swan because of the quality. That’s what’s important here: We produce a very high-quality liquid.

If an equivalent product were made in the US to the same standard, it would cost the consumer twice the price of Coole Swan.

So yes, it’s hard. Costs keep rising and the pressure never stops, but we’ll work with our partners and our customers to minimise the impact without ever compromising what’s in the bottle.

It’s teamwork that makes the dream work — and tariffs don’t change that.

So what’s the real impact?

The real impact on tariffs for us isn’t sales, it’s in working capital, admin, time and resources. Tariffs mean more paperwork, cash tied up for longer, and a need to be razor-sharp operationally.

But creatively, commercially, and culturally, we’re in a strong place

Timings may be a challenge, too, as they were in 2019. It’s about working with the distributor in the market to manage the price changes through and sell through the old stock, but it’s not impossible. Tariffs might slow down some businesses, but for Coole Swan, this is just another chapter in a growth story that’s just getting started.

From disruption comes innovation

In business, you have to expect problems and ask the right questions of the right people to get them solved, rather than flap and panic.

Take our situation during the 2019 tariffs: Nobody has a spare $80,000 in the bank but, instead of asking “how are we going to pay this?”, we asked the right questions.

It’s tariffs round two, and we’re all in the same boat — but instead of seeing obstacles, we need to see opportunities.

It’s in the most challenging times where the magic happens. Open heart surgery was born out of makeshift field hospitals in the world wars — it’s about adapting to survive.

Coole Swan’s sales data shows that younger 25- to 40-year-old customers significantly contributed to its 55% growth in Ireland in 2024.

A premium liquid made with single malt Irish whiskey, real Belgian white chocolate, and fresh Irish dairy cream, Coole Swan is set to top 2024’s growth this year — thanks to continued premium market growth, coupled with strategic campaigns designed to drive trial and education.