Irish whiskey demand outstrips supply

Irish whiskey may be the fastest growing spirits category in the world right now but stocks are already short, says the chairman of the Irish Whiskey Association (IWA).

The Teeling Whiskey Company opened its brand new distillery in Dublin earlier this year

In 2013, there were just four Irish whiskey distilleries in operation, but by the end of this year that number will have doubled to eight, and is forecast to reach at least 12 by the end of 2016.

Consumers are demonstrating a burgeoning thirst for the category, guzzling 59.5 million nine-litre cases in 2014 according to figures from Euromonitor – a leap from 55.2m the previous year.

However, much like the shortage experienced by Bourbon producers over the last couple of years, Bernard Walsh, chairman of the IWA, has admitted that supplies of Irish whiskey are tight.

“Unfortunately, there is not enough whiskey in Ireland to satisfy global demand and the same is true here at Walsh Whiskey,” Walsh, who is also managing director of the Walsh Whiskey Distillery, told The Spirits Business earlier this year.

“Of course, with the building of our new Walsh Whiskey Distillery at Royal Oak we expect new stocks to come on the market from 2019. This will greatly ease our stock situation.

“It’s in no one’s interest for Irish whiskey to go through another boom and bust.”

The IWA was founded in 2014 to support the rapid expansion of the Irish whiskey category and in May this year, the body unveiled a “Vision for Irish Whiskey” to increase the global market share of the sector by 300% by 2030.

Despite honest confessions regarding Irish whiskey stocks, there is resounding confidence among producers that such ambitious targets are achievable.

“I think these figures are aggressive but achievable,” explained Jack Teeling, founder of The Teeling Whiskey Company.

“However, I don’t necessarily feel that the category will develop in a straight linear growth path, but we will continue to outperform all other categories of whiskies due to our small size and the lack of segmentation within the category over the medium term.”

For a detailed look into the Irish whiskey category, see the October issue of The Spirits Business magazine.