Irish whiskey growth in US boost for Northern Irish distillers
Irish whiskey sales in the US grew by 12.8 percent last year to over £800 million, according the Distilled Spirits Council (DSC). The growth, announced by the US Distilled Spirits Council, is further good news for Northern Ireland's rapidly developing whiskey industry in terms of opportunities in one of the world's biggest marketplace for spirits.
Industry trade body DSC describes Irish whiskey as among the most important drivers of growth in the sale of spirits across the US, now the biggest single market for whiskey and other premium spirits.
Two Northern Ireland whiskey distillers, Old Bushmills of county Antrim and The Quiet Man from Derry, already have strong presences in the US. Old Bushmills, the world's oldest whiskey distillery, has been established there for many years and is the region's biggest seller.
Old Bushmills is distributed by New York's Proximo and is owned by Mexico Tequila distiller Jose Cuervo. The Quiet Man has a successful distributor there, Luxco of St Louis, Missouri, and has been engaged in a major marketing campaign across the country.
Whiskey is also being distilled by Echlinville Distiller, where Dunville single malts and blended are produced, and Rademon Craft Distillery, home to the successful Shortcross Gin, both in county Down. Rademon is planning to launch a new single malt. A new distillery is also planned in Newry, also located in county Down.
Sales of Irish Whiskey in the US topped other spirits such as American Whiskey and Tequila and are on target to hit £1 billion within the next few years.
DSC released the data in its annual economic briefing showing record spirits sales and volumes in addition to continued market share gains against beer in 2017.
Spirits gained market share versus beer with sales rising to 36.6 percent of the total beverage alcohol market. It is the eighth straight year of market share gains.
"The spirits sector had a banner year in 2017, driven by consumer confidence in the US economy, product innovations that adult consumers want, and a fascination with premiumisation across categories," says council president and CEO Kraig Naasz. "The U.S. distilled spirits market is the second most valuable in the world, and we continue to promote consumer-friendly policies that expand responsible access to spirits."
DSC chief economist David Ozgo pointed to the strongest growth in high-end premium and super premium products across most categories. The revenue for those price points increased 7.1 percent and 6.1 percent, respectively, and by 7.3 percent and 4.9 percent for volume.
"Adult consumers, particularly millennials, continue to gravitate toward high-end and super premium spirits products," adds Ozgo. "Companies are creating excitement in the marketplace with new products and new technologies to interact with spirits customers."