Irish whiskey aims to regain world crown
In the 19th century, Ireland produced 60 per cent of the world’s whiskey – but has lost that crown to Scotland. Now it has started the long march to win it back, in Hong Kong and around the world.
At the HK Trade Development Council Wine and Spirits Fair 2024 from October 7 to December 6, the Irish Whiskey Association (IWA) and four leading Irish distilleries are showcasing some of their best offerings.
One is Clonakilty Single Pot Still Irish Whiskey, which has won two global awards. It is triple-distilled and matured on the Atlantic coast in Clonakilty, County Cork.
The Hong Kong and Asian markets have suddenly become more attractive with the announcement last month by Chief Executive John Lee of a cut in its spirits tax from 100 per cent to just 10 per cent, to stimulate tourism and generate revenue.
The 100 per cent tax remains on a bottle up to HK$200. But, for that portion of the price above HK$200, the tax is only 10 per cent. That means enormous savings on high-end, high-quality spirits, including whisky and baijiu.
The Asian whisky market is estimated at US$33.8 billion. For the Scotch Whisky Association, the Asia-Pacific is the largest regional market, especially China, Singapore and Taiwan.
“The Irish whiskey sector is seeing a global resurgence with increasing exports and ongoing investment,” said Padraig Seif, president of the Irish Chamber of Commerce in Hong Kong.
One of the exhibitors at the Hong Kong event is Lough Ree Distillery. “We are here to find more distribution partners, including importers and wholesales in Hong Kong, mainland China and other nearby markets,” said CEO Peter Clancy. “We gave established connections with six potential partners in Asia, including China, Vietnam, Japan and Indonesia.”
According to Irish government figures, the country’s drinks exports in 2023 were €1.8 billion (US$1.97bn), including exports of whiskey of €875 million (US$959m). In 2022, the value of Irish whiskey exports exceeded €1.0 billion for the first time. The main markets were the U.S., EU, UK, Nigeria, Poland, Singapore and South Korea.
The most famous Irish brand is Jameson, one of the top three international whiskey brands. Simon Fay, business-acceleration director at Irish Distillers, said that Asia was the fastest growing export market.
“Historically, demand for our exceptional whiskeys has come from traditional Irish whiskey markets in the US and Europe, but we are now seeing year-on-year increases in sales to Asian markets as Asian whiskey consumers look to expand their spirits collections,” he said.
Mark Reynier, CEO and founder of Waterford Distillery, said consumers would gravitate to brands that were transparent about their distilling practices.
“Irish whiskey can capitalise on demand for innovation and premiumisation. In France, for example, we have found a receptive audience for those seeking high-provenance, global single malts, as opposed to more-of-the-same cask finishes from Scotland, and have seen growth despite the harder trading conditions. Irish whiskey has the potential, as a category, to offer far more product diversity than Scotch whisky, and will continue to do so if it can break out from historical quality and ‘cheapness’ perceptions,” he said.
Irish whiskey is one of the oldest spirits in Europe, with distillation since the sixth century.
In 1324, the Red Book of Ossory was written by the then bishop, Richard Ladrede, and published in the medieval city of Kilkenny. The Red Book holds the earliest recorded recipe for distilling Aqua Vitae, used for medicinal purposes as the Black Death ravaged Europe. The 'water of life' is known as whiskey today. In Gaelic, it was called “Uisce Beatha”, which became “whisky” in English.
By the 19th century, Ireland was supplying 60 per cent of world demand, mostly due to access to overseas markets of the British Empire. To differentiate it from other whiskies, the Irish producers added the “e” to show the traditional pot still distillation method they used. Between 1823 and 1900, whiskey output in Ireland increased fourfold.
But, in the early 20th century, Prohibition in the U.S., natural disasters and geopolitical tensions caused a decline in exports. A trade war with Britain after Independence in 1922 cut off the British and Commonwealth markets. This enabled Scotch to overtake Irish whiskey as the number one exporter.
Today the country is home to nearly 50 distilleries, up from two in 1966, north and south, selling to more than 120 markets worldwide.
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