![\"Roe](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/5EBT2YNJU624SOXU7I6E4OFBYM.jpg\")
Roe & Co Distillery, James\u2019s Street, Dublin 8 <\/p>\nOver the past fifteen years, Irish whiskey has been one of this country\u2019s most remarkable export success stories. Once a proud but fading tradition, the 2010s marked a series of distilleries opening their doors, riding a wave of renewed interest in heritage spirits and the romance of Ireland\u2019s distilling history. <\/p>\n
Roaring back after decades of decline, the sector grew from just four working distilleries on the island in 2010 to more than 50 by the end of 2024. But even as long-established names reinvented and new, modern brands were founded, the sector became increasingly reliant on the US market and access to its high-income consumers. <\/p>\n
In the past year, that meteoric rise has shown real signs of strain, just as scores of new brands brought their aged spirits to market in the hopes of getting vital income following the expensive, three-year ageing process. <\/p>\n
Described by the grandfather of Irish whiskey, John Teeling, as a \u201cmarket correction\u201d, it came at the wrong time for many distilleries established in the lead-up to the pandemic, whose businesses needed a return from their production and the accompanying cash injection. <\/p>\n
Irish whiskey was once the apple of the eye of the North American market, accounting for nearly two-thirds of whiskey sales in the United States during the 1800s. That market share dropped to single digits in the late 20th century, and Ireland\u2019s dark offering became the little brother to Scotch, a word that became synonymous with whiskey in the US. <\/p>\n
The resurgence of Ireland\u2019s whiskey sector has been on the back of a symbiotic relationship with US consumers, with exports doubling over the past decade. Data from Bord Bia show that the US market accounts for more than 40 per cent of all Irish whiskey exports, or about \u20ac420 million of the whiskey sector\u2019s \u20ac1 billion in global exports and an even greater share of its premium exports. <\/p>\n
An explosion of new distilleries joined the train, but, in a streak of closures, examinerships, and receiverships started by Waterford Distillery this past November, suddenly the bottom\u202fseemed to have fallen out of the market. <\/p>\n
What happened? Stronger-than-expected levels of alcohol consumption during the pandemic led to retailers stocking up in the expectation that the level of consumption would continue. <\/p>\n
As has been much discussed and covered, following the pandemic, consumer behaviour shifted, with alcohol consumption dropping and orders back along the chain to producers began to dry up in 2024. <\/p>\n
With interest rates rising, the cost of building up war chests of whiskey left distilleries in trouble. The uncertainty around US tariffs exacerbated these market conditions, and after an anticipatory surge in stock, demand has dried up. <\/p>\n
\u201cIt was a convergence of several factors,\u201d says whiskey branding expert and managing director of Sh\u00edoch Consultancy Sabine Sheehan, adding \u201cinflation, cost-of-living pressures, and a shift in consumer preferences affecting premium spirit sales\u201d to the list of factors. <\/p>\n
Waterford Distillery was the first to fall, but by May, as many as 90 per cent of whiskey distilleries had paused or reduced production. Since then, several companies have resumed production, but many more stills may have stayed cold. <\/p>\n
Roe & Co Distillery, James\u2019s Street, Dublin 8 <\/p>\n
Powerscourt Distillery, the business behind the Fercullen Whiskey brand, along with \u20ac35 million worth of whiskey, have been put up for sale after rising debts led to a receiver being installed. The same weekend, Diageo-owned distillery Roe & Co put an \u201cextended pause on distillation\u201d. <\/p>\n
Killarney Brewing & Distilling Company, which produced beer and gin as well as whiskey, was the next to go. Debts amassed over the Kerry-based business, and after failing to secure necessary investment, it entered liquidation in July. <\/p>\n
Perhaps a metaphor for the sector generally, Waterford\u2019s Blackwater Distillery \u2013 which made headlines by entering the Small Company Administrative Rescue Process \u2013 weathered the storm and has been given a new lease of life. <\/p>\n
\u201cThe real problem is that whiskey is a futures business,\u201d said co-founder and chief executive of the distillery Peter Mulryan. \u201cYou\u2019re laying down stock now, which you can\u2019t sell for five to 10 years.\u201d <\/p>\n
This makes distilleries \u201cproblematic in terms of cash\u201d and the timing of the market shift for many businesses was the most significant issue. \u201cYou\u2019re at a point where you\u2019re looking for cash, but the industry is going through an issue. You just had Covid, you just had Ukraine, you just had all these incredible increases in your costs,\u201d says Mulryan, explaining the difficult situation many whiskey makers found themselves in. \u201cWe\u2019re not the only ones who\u2019ve been caught [by it].\u201d <\/p>\n
The industry experienced an influx of venture capital cash \u2013 \u201cwhen Jameson started doing mega bucks\u201d \u2013 with businesses projecting \u201chockey stick growth\u201d. <\/p>\n
\u201cI have seen that so often in so many whiskey prospectuses that I\u2019ve been holding my head in my hands for about five years. Whiskey does not do that. <\/p>\n
\u201cYou had a lot of money pumping into the industry, inflating everything like a big f**king balloon which was eventually going to go pop, and that is what is happening now,\u201d he said. \u201cThe industry will be fine, but there will be casualties because the industry has been awash with too much cash looking for a soft, easy return.\u201d <\/p>\n
Confirmation of US import tariffs was seen as a relief by many in the sector, finally giving certainty in the cost of exports, but the tariff is still a significant barrier. <\/p>\n
\u201cWe\u2019re now faced with a 15 per cent tariff. That\u2019s the first time since 1997 that Irish whiskey has faced a tariff when exporting to the US,\u201d says director of the Irish Whiskey Association Eoin \u00d3 Cath\u00e1in. <\/p>\n
\u201cEfforts are ongoing to resolve this issue and go back to the zero-for-zero agreement which we enjoyed from 1997 to 2024, so that this will be seen just as a blip in the future.\u201d <\/p>\n
Whiskey brands are \u201cproving their resilience\u201d, says \u00d3 Cath\u00e1in. \u201cWe are seeing our sales grow in a number of markets all over the world \u2013 not just in the EU \u2013 but also in places like Canada and Australia, as well as further afield in the likes of India, Japan and South Africa.\u201d <\/p>\n
Despite the dire picture painted of the industry, distillers remain positive, with tariffs the catalyst to enter new markets. <\/p>\n
![\"Fionn](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/3MZ3BWNOYFAAXFWTZENJURFC6Y.jpg\")
Co-founder of Element Irish Whiskey Fionn Cox. Photograph: Chris Bellew\/Fennell <\/p>\n
\u201cThe future looks good. Irish whiskey has been the fastest-growing spirits category over the past 10 years,\u201d says Fionn Cox of Element Whiskey. \u201cBut by the very nature of it being a physical, alcoholic product, it was probably not sustainable to see that level of growth [forever]. It is more of a market correction than a decline.\u201d <\/p>\n
As a private label client of John Teeling\u2019s Great Northern Distillery, Element has been largely insulated from the input cost crisis. Still, Cox\u2019s business hasn\u2019t felt the impacts of tariffs due to a strategic move of targeting emerging markets in Africa. <\/p>\n
\u201cThe world is a big place,\u201d he says, pointing to the year-on-year growth approaching 50 per cent his business has seen in Nigeria, as well as opportunities for Irish whiskey in India. By targeting these markets, Cox believes distilleries can \u201cride the blip\u201d in the market. <\/p>\n
He has seen an influx of brands attempting to enter growing African markets, but the man atop the fourth-largest Irish whiskey brand in Nigeria warns, \u201cthere are some challenges\u201d in developing a presence in the country. <\/p>\n
The size of the Irish whiskey market globally leaves \u201cgreat scope for growth\u201d, he says, describing it as \u201ctiny\u201d in comparison to scotch and bourbon. <\/p>\n
The recent loss of some premium whiskey brands creates an opportunity, Cox says. \u201cThe beautiful facilities, someone will come in to buy those, and you\u2019ll see them back with a new wave of life.\u201d <\/p>\n
The message from the sector is that there is light at the end of the tunnel, that whether this is a blip, market turbulence, a shift, or a correction, it is temporary. <\/p>\n
\u201cMany experts believe that the US slowdown is due to temporary overstocking and not an actual collapse in consumer interest,\u201d says Sheehan, but she says her main advice to brands is diversification into new sectors that \u201cseem hungry\u201d for Irish whiskey. <\/p>\n
\u201cThis is a moment for reflection, not retreat,\u201d she says. \u201cIrish whiskey has weathered storms much bigger than this before and has emerged stronger. I believe that will happen again.\u201d <\/p>\n
For Mulryan, it is vital that Irish whiskey\u2019s struggles are put in context. <\/p>\n
\u201cThere is a gin company going bust in the UK all the time, there are whiskey projects in Scotland stalling, and [there are] English distilleries closing too \u2026 it is now almost a pandemic of closures across the States. <\/p>\n
\u201cThere is a general malaise in this sector across the world,\u201d he adds. \u201cIt is cyclical. It has happened before, and it will happen again.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"Over the past fifteen years, Irish whiskey has been one of this country\u2019s most remarkable export success stories.…\n","protected":false},"author":2,"featured_media":75538,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[79,18,19,17,49063],"class_list":{"0":"post-75537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-eire","10":"tag-ie","11":"tag-ireland","12":"tag-top1000"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/75537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=75537"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/75537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/75538"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=75537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=75537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=75537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}