How much is the alcohol industry worth to Ireland’s economy?
It is worth over €1bn in exports, supports over 92,000 jobs and contributes over €2bn to the economy. There is substantial potential to increase alcohol exports and to diversify markets.
There is a renaissance in whiskey currently. Is this likely to continue?
Irish beverage exports rose 8% last year to €1.5bn, with Irish whiskey exports up 20% to €600m and Irish cream liqueur exports up 10% to €300m. Four years ago, Ireland had four whiskey distilleries. Today, it has 18 and there are 16 more in planning stage. Each distillery is an average investment of €20m. Additionally, there are now over 100 craft beer brands in the country.
How important are farmers to the production of beer and spirits?
Some 46,000 cows produce 316m litres of milk to make cream liquors. 46,000 apples are bought to make cider and 220,000t of barley or 15% of the national crop is used in the beer and spirit industry. The industry spends €400m on raw material ingredients every year.
Why do farmers only receive 5c from a pint today?
Thirty per cent of the price of a pint is tax. The drinks companies purchase inputs such as grain at market rates. They are committed to working with farmers in Ireland. Quality grain is critical to the process.
Is Brexit a challenge to growth?
Given that Ireland’s drinks industry operates on an all-island basis, a resolution to the issue of a trade border between Northern Ireland and Republic of Ireland is a top priority.
What impact has the advertising and labelling measures being proposed in the Public Health Bill?
The industry is also concerned about the unintended negative consequences from the advertising and labelling measures being proposed in the Public Health (Alcohol) Bill. Smaller producers are key to exports growth, and they need freedom to innovatively market and advertise their products in their home market prior to export.
Equally if as now proposed Irish whiskey, gin, beer and liqueurs must carry a cancer label, with one-third of the label as a health warning, when our competitors in the rest of the world do not, this will be hugely damaging to our international reputation and our ability to export. Tourism is a huge industry around distilleries today. For example, in the midlands 87,000 tourists visit Tullamore and Kilbeggan each year.
What makes Irish whiskey Irish?
There is a technical file that determines the distilling and manufacturing process for Irish whiskey. To label it Irish whiskey it must be distilled in Ireland and kept for three years and one day. While it does not cover inputs such as barley, nearly 100% of barley and malt that is used by our members is Irish in a typical year.
There is maize imported. The industry is looking at rye and heritage barley for new blends.
Title: Director, Alcohol and Beverage Association of Ireland
Beverage exports 2017: €1.5bn
Jobs supported: 92,000
Tonnes of grain purchased: 220,000t