In January of this year, a small-batch Irish whiskey broke records and became the most expensive in the world, fetching a price of $2. 8 million at auction. The single bottle, one of seven bottles in existence, is part of the Emerald Isle Collection, a set of ultra-rare single malt, triple-distilled whiskeys, released through Craft Irish Whiskey Co. , in partnership with Fabergé. Aged in casks for three decades, it surpassed the previous sales record of Scotland’s ‘The Macallan Valerio Adami 1926’ and delivered a confident whisky. about the exciting future of the Irish whiskey business.
Designed by Jay Bradley and set at the time of its launch as the birthday party of the Seven Wonders of Ireland, the Emerald Isle collection is presented in a walnut wood box along with the world’s first Celtic Fabergé egg and a Fabergé watch. They are held together through a mug of Irish beer. spring water, two Finnish glasses, natural obsidian whiskey stones, and a 24-karat gold water pipette. A cellar hidden in the box houses two Cohiba Gran Reserva VI cigars, while a gold-plated cigar cutter, a tasting magazine and a flask of The Uncommon Emerald Isle Whiskey completes the offering. Although it is unlikely to ever open, it represents the pinnacle of luxury in the Irish whiskey trade.
However, this eye-catching headline hides a thirty-year track record of industry expansion, improved quality, and earnings growth. The last few decades have been a successful time for the category, with large-scale investments in factories and brands supporting year after year. According to data from the U. S. Alcoholic Beverage Council, the U. S. In the U. S. , more than six million units of Irish whiskey were sold in the U. S. in 2022. Globally, that figure rises to nearly thirteen million units.
It’s true that many of the studies on the numbers have been done through the Jameson’s brand, but since 2003, premium Irish whiskey has grown by almost 1200% (through 2019), while the super premium category is growing by almost 1200%. %. 3500% in the same period. Every year, new distilleries are opened and the number of brands with foreign representation and high-end versions multiplies. Cynics are right to point out that progress is simple from the start, but we believe that the issues when we look to the future. The vision of Irish whiskey is evolving and the groundwork is now laid for the further premiumization of a historic industry. Of course, to put this knowledge into perspective, we want to think a little bit about the recent history of whiskey. industry in Ireland.
By the end of the 19th century, Irish whiskey dominated the global market for alcoholic beverages. In London, two-thirds of all whiskey sold was Irish. An estimated 30 million gallons a year left Dublin alone. Occasions would conspire to oppose the form. A notable decline crystallized in 1919, when Ireland declared its independence. Access to the markets of the British Empire was eliminated without delay, and Prohibition in the United States added further complications. By the time alcohol prohibition was lifted in 1933, Scotch whiskey had gained prominence and the Irish whiskey industry was in decline.
Throughout the 1940s and after World War II, Irish breweries and distilleries began to close their doors. By 1960, Dublin had lost the maximum of its 30 approved production sites and the economic outlook looked bleak. Carol Quinn, head of archives at Irish Distillers Pernod Ricard claims to have access to much of the vintage clothing from the period. She claims that “the spirits business was on its knees at the time. “The 1960s were probably the lowest point in the recent history of the Irish whiskey industry. Export sales had virtually collapsed. In 1966, the last 3 distilleries in the Republic of Ireland – John Power
Quinn also notes, “These three corporations were competing for a smaller and smaller domestic market. They identified that if they continued to compete, they would not only economically wipe each other out, but in doing so, they would also erase more than two hundred years. “of accumulated wisdom and experience. With services in ruins and Dublin sites shattered by the city’s development, the resolve was made to invest in a distillery in Midleton, the site of Cork’s former operations. In 1972, IDG acquired Bushmills in the north and in 1975 all production from the Republic was moved to County Cork. In hindsight, those potential options mark a vital turning point. Quinn enthuses: “When the new Midleton distillery came online in 1975, it was arguably the first sign of green expansion of the Irish whiskey industry. It can simply be said that the resurgence has begun. “
Things were moving slowly. Ireland, at least, was content to consume its own whisky, which was a lifeline for trade. During the 1980s, things began to look up. The difficult decisions made over the past decade have started to pay off, especially in terms of quality. Quinn said, “The new Midleton Distillery sets exceptional standards. So much so that in 1984, Midleton Very Rare, an annual release widely regarded as the pinnacle of Irish whiskey, was presented as a vote of confidence in the quality of the whiskey produced.
The industry has identified that the long term depends on higher export sales. The product was improving, but the required marketing and distribution had not yet worked. Irish Distilleries Ltd did not have the resources to scale the category globally. “Everything was replaced in 1988 when Irish Distillers merged with the French company Pernod Ricard. Almost overnight, Irish whiskey once again had a foreign distribution network. Thanks to Jameson’s success, the world began to reclaim Irish whiskey.
Although the Pernod Ricard era ushered in a well-established distribution network for the Jamesons brand, it would take another two decades for the category to have a significant effect on customer appreciation and for the beverage industry to become aware of it. the opportunities that lie ahead. In 2005, Diageo bought Bushmills from Irish distillers Pernod Ricard for £200 million, but in 2014 there were still only 8 distilleries in Ireland. Two years later, there were 17, and today there are more than 40. with a large number of additional brands buying using their production capacity.
But what was the cause of the sudden increase in investment and the expansion of entrepreneurs’ interest in this category?Jay Bradley, whose vision led to the creation of The Emerald Isle and the positioning of Craft Irish Whiskey Co. “I think other people are starting to realize the gap. If you ever looked at a bar, there would only be an Irish whiskey. There may only be several bourbons and a dozen single malt Scotch whiskeys, but only one Irish. That’s when I realized there was room for some. “Another Irishman. The category was very underrepresented. ” With the large Irish diaspora around the world, introducing a second or third label in a bar was not a complicated business decision.
When Teeling Whiskey established their distillery in 2012, they saw a growing appetite for more options, better flavors, and new flavor expressions. Stephen Teeling says: “There has been little to no innovation in the Irish category, but we saw an opportunity to bottle in the upper dwellings, it uses state-of-the-art cask maturation and challenges the perception that Irish whiskey is one-dimensional. “
Without incentives or governments, it was necessarily the ability to spot the opportunity that prompted a new wave of business owners to check their luck in this category. Teeling continues, “There is a new generation of whiskey drinkers who are rediscovering Irish Whiskey after 50 years of a single distillery brewing all the whiskey available worldwide. In just over 10 years, the company has distributed in 80 countries and is now widely regarded as the leader in the production of premium Irish whiskey in central Dublin. city.
Obviously, distilleries manage to experiment with everything from grain types and distillation processes to aging techniques, which means a wide diversity of flavors and styles for consumers. Not only does this diversity put Irish whiskey back on the high-end map of the market, but it also helps to keep it attractive to enthusiasts and newcomers alike.
Stephen Halpin, National Director of Promotion and Engagement at The Busker Irish Whiskey, said: “The Irish distillery scene is more colourful than ever. With more than 40 distilleries in operation lately, there’s a mix of culture and innovation. It’s time to look at Irish whiskey because there’s something for everyone. He believes that the notable characteristics of Irish whiskey are its ease of technique and its wide diversity of flavors. “It’s fluid, of course, but that doesn’t mean it’s simple. Irish whiskey brings a diversity of flavors to the table, from smooth floral and fruity notes to ambitious tropical and highly spicy notes. The fact that we can now have wide-ranging conversations about terroir, cask types, and the resulting complexity in Irish whiskey shows just how far it has come. come in the last 20 years.
Last year saw a steady and continued progression with an impressive list of new distillery openings. Bushmills has increased capacity with the opening of the Causeway Distillery, while Titanic opened in Belfast and the Ahascragh Distillery introduced its zero-energy operation in Galway. an expanded footprint of celebrity brands, the most notable of which is Liev Schriber’s Slainté (of Ray Donovan fame), which has continued to earn listings in each and every U. S. state. U. S.
The distillery boom clearly creates competition, but for Halpin it’s a welcome scenario. “He’s led everyone to improve their game. People are curious and eager to try new quality spirits, and that’s exactly what Irish whiskey delivers. “, there is a growing appreciation for well-prepared drinks that tell a story and everyone knows that the Irish are the most productive of all storytellers. Irish whiskey sales are likely to decline over the past 12 months, reflecting a broader trend across the beverage world. However, the basics still look solid. Teeling says, “There’s a long-term trend toward lower but higher consumption and I think Irish whiskey is precisely in that ideal position by providing a premium liquid in a highly available brown spirits segment. “
Bradley isn’t in sync either. ” Just take a look at the number of new distilleries and the quality of whisky being produced lately. “There’s a sense that an emerging tide will lift all boats. Competition would possibly be stronger, not to mention the U. S. Continued interest in Bourbon, but the climate of business activity is helping to raise the bar in terms of products and marketing. Bradley believes that expanding the industry in the country is a win-win situation. “Slowly, but now, more and more tentacles are spreading around the world and slowly, but at present the Irish category is growing, so the more marketers, the better and, for me, that entrepreneurial spirit is what drives the expansion of Irish whiskey.
Eliza Wiesstuch, American editor of Whisky Magazine, says: “Ireland as a logo is very strong and thanks to the number of distilleries and the quality of the whisky that is made lately, specifically from classic distilleries, it has a lot to offer. As the market is incredibly competitive globally, the Irish whiskey category is proving to be much more attractive to consumers than ever before.
While the eye-catching numbers accompanying the Emerald Isle Collection auction go beyond a normal whiskey sale, its record-breaking value is also the result of a partnership with the logo, luxury packaging and charity initiative, but it offers a symbolic statement. and, indeed, back, and there’s so much more to come. Sláinte!