FDBusiness.com

Warning About Irish Whiskey Renaissance

 Breaking News
  • Greene King Being Sold For £2.7 Billion CK Asset, which is one of the largest property developers in Hong Kong and an international investment group, has made a recommended £2.7 billion cash offer for Greene King, the UK’s leading integrated brewer and pub retailer operating over 2,700 pubs, restaurants and hotels across England, Wales and Scotland. Including debt, the enterprise value of [...]...
  • The Hershey Company Takes Minority Stake in Irish Snacking Brand The Hershey Company, the US-based food group, has made a minority investment in Fulfil Holdings, the owner of the snacking brand FULFIL. Headquartered in Dublin, Ireland, FULFIL has rapidly grown since its inception, now outselling many traditional chocolate snack bar brands in the UK and Ireland and named a top 50 consumer brand in Ireland. Brian [...]...
  • UK Restaurant Numbers Drop Again as Consumer Tastes Shift Britain’s restaurant numbers have fallen for the sixth quarter in a row, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals. Independent operators have borne the brunt of the closures with group-owned restaurants proving more resilient despite some major brand failures. The quarterly survey of the country’s supply of licensed premises reports a 3.4% drop in [...]...
  • Molson Coors Commits to Reduce Plastics in Packaging Molson Coors in the UK and Ireland is removing the plastic packaging from its Carling and Coors Light brands, as part of new global packaging goals. The brewer will remove the plastic film wrap from large multipacks by the end of March 2020, replacing the plastic wrap with 100% recyclable fully enclosed carton board. By [...]...
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...

Warning About Irish Whiskey Renaissance

Warning About Irish Whiskey Renaissance
September 10
21:41 2014

The global Irish whiskey market is expected to expand from 7.5 million cases in 2013 to 24 million cases by 2013 and 21 new distilleries are currently either being planned or considered. However, Irish whiskey entrepreneur John Teeling (pictured) has warned that the vast bulk of these envisaged new ventures will struggle to make money.

John Teeling has been successful in building from scratch an international Irish whiskey business, having founded Cooley Distillery in 1985 before selling the company to US spirits group Beam (now part of Suntory of Japan) for $95 million in 2011. John Teeling’s latest business venture, Irish Whiskey Company, is now planning to spend Eur35 million over the next four years transforming the Great Northern Brewery site in Dundalk into a distillery.

Irish whiskey is a very attractive market with regions such as Asia offering huge potential as consumer incomes increase. On the downside, Irish whiskey has to mature for at least four and half years. This demands high working capital to distill the spirit and to buy the maturation casks and invest in warehouse storage capacity. Economies of scale are also crucial, which will put small distilleries at a serious disadvantage.

In addition to the high barriers to entry in the form of capital costs, “Irish whiskey is also a marketing and brand intensive business,” he cautions. A further challenge is the difficult route to market with the large spirits giants dominant, necessitating the need for smaller players to seek out partnerships to gain distribution.

“If you survive, you can do really well,” he says, pointing out that a tonne of grain costs Eur400 and after “adding water, time and air, you can sell it for Eur3,600.”

John Teeling was speaking at the ‘Innovation for Sustainable Growth’ Conference and Exhibition held on Wednesday, September 10th at the Aviva Stadium in Dublin.

While the surge of interest in Irish whiskey distilling is understandable, it remains a challenging business. “I think you will see a lot of fallen angels,” he remarked. “I think a lot of money will be lost.”

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements