When you order a pint at your local, how seriously do you consider the purchase? Do you order your old reliable, or look for something more bespoke?

According to Bord Bia’s Craft Beer and Cider Report (September 2023), as of mid-2023, there were an estimated 79 independent Irish breweries in operation. That’s a lot of new local beers to try.

The report listed opportunities within the craft beer sector, but challenges, too. As any regular imbiber of craft beer will know, these challenges have already seen the closure of some popular breweries. Still, Michael Jacob, drinks sector manager at Bord Bia says there is every reason to be positive about the future of craft beer in Ireland.

“The Craft Beer and Cider Report for 2023 highlighted the positive growth within both craft sectors, which we were really pleased to see,” he says. “We will continue to support our client companies in the growth of the sector, both nationally and internationally. For us, it’s also fantastic to see the increased focus on sustainability across producers.”

How it all started

From around the early 2000s, craft beer gained popularity across North America, mainland Europe, Australia and New Zealand. It was only a matter of time before it came to Ireland. When it did arrive, roughly 10 years later, it came with a rush of creativity and innovation.

“I remember in [my native] Australia, craft beer trends developed slowly and we had about ten years where people were just drinking IPAs [India Pale Ales],” says Cam Wallace, co-owner of Eight Degrees Brewing Company in Mitchelstown, Co Cork. “In Ireland, the craft beer trends evolved so quickly that we were making experimental barrel aged beers very early on.”

Cam Wallace is co-owner of Eight Degrees Brewing Company

Cam and business partner Scott Baigent (originally from New Zealand) were excited to bring their vision of craft beer to Ireland when they launched Eight Degrees in 2010. At that time, there were just a few other craft breweries in the country and the possibilities seemed endless.

“You could almost see the road ahead,” Cam says. “I thought, ‘We’re going to be at the cutting edge of this.’ No one [in Ireland, at that time] had really done IPAs before.”

The pair studied beer-making in Berlin. The German tradition of brewing aligned with their own ethos: using untreated water (they chose their location in Mitchelstown specifically for its soft water), the best ingredients and natural processes. With funding from LEADER, a rural development grant and loans from their local AIB branch, the pair saw a solid amount of success as a result of their initial investment.

“I think we were a bit naïve too,” says Scott, “but we were just so lucky that we were in the right place at the right time. The demand for craft beer just shot forward. We got logistics figured out so we could do next-day nationwide delivery, so we had a lot of the infrastructure figured out early on.”

There comes a time for every small business to make a decision: either stay small or go for growth. Cam and Scott continued to invest in their business. They purchased a second-hand Kaspar Schultz Brewhouse (the crème de la crème of brewery equipment) and were 80% complete with their upgrades when they received an unexpected offer from Irish Distillers.

“They had been making whiskey in beer seasoned barrels,” Scott recalls. “[Meanwhile], the two of us were building probably the largest craft brewery in the country and were starting to think, ‘We have all this capacity; how are we going to fill it?’ They made us an offer to buy the brewery and we took it.”

As part of the sale contract, Cam and Scott agreed to stay on at Eight Degrees for two years. In the end, they stayed for four years – partly because of the pandemic, but also because they loved the work.

“We were really enjoying brewing beer and doing a lot of interesting side projects with them,” says Cam.

“We had proper listings in all the multiples and the brewery was really scaling up. We were doing beer for them by the tank-load and they completed the brewery [upgrade].”

Making a comeback

The pair eventually left Eight Degrees and for 18 months pursued other projects – but the brewery was never far from their minds. Earlier this year, they made the headlines with the news that they would be buying the brewery back.

“We were ready to move on in a completely different industry, but the longer we were away, the more we were missing the brewery,” Scott says.

“I was missing those deep technical aspects of brewing. We were missing our team who had been with us through thick and thin. We became aware that Irish Distillers were trying to sell the brewery and we made an offer out of the blue.”

Eight Degrees beer is made with untreated water, high quality ingredients and low intervention; making it as natural a product as possible. \ Donal O' Leary

To Cam and Scott, the move reinforces their belief that craft beer in Ireland has a strong future.

“It’s a tough time for craft beer,” Scott says. “The period of inflation that we all suffered through has hit breweries hard. But we believe that craft beer will always be relevant.

“We certainly felt like we had unfinished business when we sold; we had built the brewery of our dreams but didn’t really get to use it. Time out of the industry allowed us gain a bit more perspective on its potential.”

The Eight Degrees story has a happy ending: Cam, Scott and their team are once again hitting the ground running. However, 16 other craft breweries have permanently shut their doors, merged or were acquired between 2018 and 2023.

According to the Bord Bia report, there has been a domestic slowdown in craft beer consumption despite the relative growth of the industry. Combine this with competition for tap space in bars and pubs and you can understand why craft breweries are feeling the pressure.

Compared to pre-2017 levels, domestic sales of craft beer only increased on average by 2.6% per year, while export sales increased to 14.6%. This means the vast majority of our increased production was sold via the export market.

Claire Dalton, Brandcraft.ie, Dungarvan, Co Waterford. \ Donal O' Leary

Dungarvan Brewing Company

Claire Dalton previously co-owned Dungarvan Brewing Company with her husband, brother and sister-in-law. Inspired by the tradition of having a local brewery in every big town, they founded it in 2010. They focused on bottle-conditioned, classic brews with their own added twist, like their Copper Coast Red Ale and Helvick Gold Blonde Ale.

This past year, Claire joined the craft brewers in Ireland who have handed over their brewery keys. Dungarvan Brewing Company continues, but under new ownership. Claire says they have brought new energy to the business while keeping all of their employees.

“They’re keeping the brand and they’re keeping it in Dungarvan, so that’s brilliant,” she says. “You still feel the pride when you see it on tap or in shops.”

Even before the pandemic hit, Claire says they were discussing the future of the brewery. Some of the initial four founders had already stepped away, and in Claire’s words, “there was a lot of uncertainty.” During the pandemic, they scaled back and were producing at a lower level.

“In 2022, we took our first break after all the lockdowns,” she says. “Being away gave me a bit of perspective. We decided, as a group, to seek potential buyers for the brewery.”

When Dungarvan Brewing Company first launched, massive growth was expected for Irish craft beer. While it did take off, it also never gained those projected figures on which many craft breweries based their investments.

“At the time, we were all figuring out what to do,” says Claire. “The market was so young and there was a lot of growth in the initial few years. In 2016, we were going to make a big investment, but we put the brakes on and said, ‘Let’s hold back,’ as there were so many new entrants.

“In retrospect, I’m so glad we did that. The consumption levels of craft beer never really reached the levels it did in other countries.”

While Claire is taking time out, she remains passionate about craft beer and the industry she and other Irish craft brewers have essentially built from scratch.

“I have a healthy optimism,” she says. “I love seeing new beers come out. I’ll always be interested in what’s going on, and I see the RDS Craft Beer Festival is back this year, so I’m mad to get up just to meet with people again. It was always a nice community, and it’s a fun industry.”