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Feature
Route cause: the whiskey distillers boosting Irish tourism
The increasing popularity of Irish whiskey has led distilleries and tourism authorities to create visitor centres and itineraries to help guide tourists around the country’s diverse spirits offerings.
*This feature was originally published in the September 2024 issue of The Spirits Business magazine.
The Emerald Isle has welcomed a number of firsts in recent months, including the country’s first whiskey hotel and the world’s first Irish whiskey cruise. The nation’s distillers are hoping to attract more whiskey fans from overseas by investing in their tourism offering, from shiny new visitor centres to enticing accommodation.
There are now more than 30 distillery and brewery visitor-experience centres in Ireland, which together attracted close to 2.4 million domestic and foreign visitors in 2023, according to Drinks Ireland.
Visitor figures to the country’s distilleries are yet to return to the high of one million in 2019, but the number has risen year on year. Trade body the Irish Whiskey Association (IWA) revealed that Ireland’s whiskey distilleries (members of the IWA) welcomed 817,466 tourists from June 2023 to June 2024 – a rise of 18% on the previous 12 months.
Furthermore, the average spending of distillery visitors has increased (€42.57/US$47), and the age profile of visitors is now far younger, with a greater gender balance, the IWA reports.
“Interest continues to grow, with a more-than-20% increase in online searches for ‘Irish whiskey tours’ from markets such as the US, Germany, and Great Britain year over year in 2024,” says Alice Mansergh, CEO of Tourism Ireland. In this time, visitors to whiskey distilleries came from countries including the US, the UK, Germany, France, Ireland and Canada, with a rise reported in visitors from Eastern Europe, and South and East Asia.
Visitor ‘passport’
Several years ago, the IWA set up the Irish Whiskey 360 website, which provides information on distilleries across the country. The trade body also runs a ‘passport’ scheme, whereby visitors can collect stamps for each distillery they visit. “It might sound like a gimmick, but visitors genuinely do love it, and that’s great,” says IWA director Eoin Ó Catháin, who explains that the organisation has learned from Kentucky, which has its own Bourbon Trail. This year, the IWA has stepped up its efforts by working with Tourism Ireland on a campaign to promote the country’s whiskey tourism in 14 markets.
Ó Catháin expects visitor figures to return to the one million mark in the future. “The attitude towards whiskey tourism has changed and evolved in a positive way,” he says, adding that the story of Irish whiskey and its heritage is attracting more interest from consumers.
As the profile of visitors becomes increasingly international, distilleries are responding to this by offering their tours in a number of different languages, Ó Cáthain adds. Irish whiskey producer Teeling is among the distilleries to do this, offering an international-language audio app guide in French, German, Spanish, Italian, Dutch and Mandarin. The Dublin-based distillery attracted 130,000 visitors last year, with 40% of tourists coming from the US. The next-biggest markets are France, Germany, Ireland, and the UK. Being based in the Irish capital is beneficial to the distillery as it works with local hotels and bus tours to drive footfall. However, on the production side, the city location can be a limitation in increasing whiskey output, says Lisa Jameson, Teeling’s brand home general manager. The distillery has improved its visitor experience in recent years, adding street art to its exhibition area from a local artist. There has also been a renovation of the bar area, where drinkers are shown how to make serves such as the classic Irish Coffee, which is sweetened with a stout syrup. Jameson is hoping to grow Teeling’s visitor numbers by 5% this year, and to reach the top five on TripAdvisor’s list of things to do in the city (currently it’s at number 10).
Irish Distillers, which operates the Jameson Bow Street experience in Dublin and the Midleton Distillery in County Cork, is “on track to welcome just under half a million visitors” in 2024, according to Greg Hughes, managing director, brand homes and education at Irish Distillers.
The Midleton Distillery Experience recently underwent an extensive redevelopment, reopening in 2023. The state-of-the-art tourist destination offers whiskey tours, tastings, and experiences, as well as an immersive auditorium, whiskey tasting and cocktail-making rooms, modern retail facilities and café.
“Reflective of broader category growth and premiumisation, we are seeing significant growth in spend on high value, limited edition and collectable releases in our shops, both on site at our visitor experiences in Dublin and Cork and online via our e-commerce site, Midleton Distillery Collection,” Hughes adds. Irish whiskey brand McConnell’s is in a similar position to Teeling and Jameson in terms of its city-centre location in Belfast. The £12 million (US$14.9m) distillery and visitor centre was opened this year on the site of the former Crumlin Road Gaol jail. It was the second distillery to open in Northern Ireland’s capital in the past year, following Titanic Distillers in August 2023, which became the first working whiskey distillery in Belfast in almost 90 years.
The new site for McConnell’s is expected to attract 100,000 visitors each year, and produce 500,000 litres of pure alcohol annually. John Kelly, CEO of brand owner Belfast Distillery Company, says: “Belfast, as a city, is really developing very well. We’ve been through difficult years that are long behind us now, but Belfast is becoming a weekend tourist destination. Belfast actually has the largest cruise ship dock on the island of Ireland. So we get lots of visitors coming to Belfast.”
Kelly says the distillery chose the city-centre location to help promote tourism in Belfast. Just over 60 miles from Northern Ireland’s capital is the town of Limavady, where local Darryl McNally is building a distillery for his Limavady whiskey brand. He’s also behind the renovation of The Londonderry Arms Hotel in County Antrim, which is being transformed into the country’s first Irish whiskey-themed hotel, with a £1.75 million (US$2.25m) investment. The plan is to open the site by Easter 2025. Situated on the Causeway Coastal route between Belfast and the Giant’s Causeway, the hotel is a popular stopover for visitors and tourists, with almost 30% coming from the US and Canada. The area is also known for being a popular filming location for TV show Game of Thrones. The hotel will be home to a retail Whiskey Chamber, offering up to 400 bottles of whiskey and other related merchandise.
McNally would like to see the Irish Whiskey Trail “opened up to cover more of the north of Ireland”, besides Bushmills and Sliabh Liag Distillers.
With visitor centres, it can be difficult to turn a profit, says McNally. “You’re showcasing your whiskey, and people come along, but it’s very difficult to put a price on the experience that person has,” he says. “You’re lucky if you break even.”
McNally believes the potential for Irish whiskey to grow its presence globally relies on markets such as Asia. “There’s more and more traction into Japan, Taiwan, China. The story of Irish whiskey outside of the US is only really beginning, in my opinion, and I’ve been in whiskey 26 years. So I think the whole growth of Irish whiskey will be very much driven by Asia and the Middle East.”
One challenge facing distilleries is the lack of public transport to sites located in more rural locations, says Ó Cáthain. “We’re trying to talk with some bus and tour companies to see if they can provide a service, which I think is definitely needed, especially in rural areas.” He also cites the cost-of-living as a challenge in Ireland, and a lack of accommodation, which “cuts off the opportunity to entertain consumers at whiskey distilleries”.
He adds: “We need to continue working with all of our partners in the wider tourism sector to improve that.”
Gerry Ginty, chairman of the Tourism Committee for the IWA, and chief operating officer at County Wicklow’s Powerscourt Distillery, also notes the importance of Tourism Ireland’s “long tourism strategy”, which encourages visitors to “stay longer and spend more in the regions, making Irish whiskey tourism both sustainable and enriching for our guests”.
However, he notes that “evolving consumer expectations, particularly around sustainability and responsible drinking” are ongoing challenges.
“With over a third of visitors choosing not to sample whiskey on site, it’s essential that our distilleries remain appealing and accessible to a diverse audience,” he continues.
“A multifaceted approach is essential for the growth of Irish whiskey tourism. Investment in infrastructure, especially in rural areas where many distilleries are located, is crucial for enhancing accessibility and the visitor experience.”
Hughes at Irish Distillers adds: “Despite its growth and success, the Irish whiskey category is still relatively small, and while awareness can be a challenge for some markets, it also represents a great opportunity to unlock future growth in new markets around the world. We’re excited to see what the future holds for Irish whiskey tourism.”
Irish whiskey’s potential in China
A market that has typically skewed to Scotch, Cognac and baijiu, Chinese drinkers are also showing a penchant for Irish whiskey. While it hasn’t broken into the top-five markets for Irish whiskey as of 2023, the value of the country’s exports to China has rocketed by 247% in the past five years (representing a total of €4,029,293 [US$4.3 million] in 2023), according to Bord Bia’s Export Performance & Prospects Index.
This year the Irish Whiskey Association headed to China on an EU trade mission to look into the opportunities for growth for the category.
Brands such as Redbreast, Teeling, and Dingle showcased their products at the EU pavilion at the Anuga Select China trade fair, an international food and beverage exhibition held in Shenzhen, southern China, held during the trade mission.
IWA director Eoin Ó Catháin says there are around 20 to 30 Irish whiskey brands in the market, adding that the category is “very pleasing to the Chinese palate”. He says the Chinese market is “vast, and can be difficult to navigate”, and highlighted its emphasis on e-commerce and social media. “It was useful to go over there and get an insight into how it works and share the knowledge with our membership to try and see what opportunities we have going forward.”
How do you see the Irish whiskey market evolving in the next few years?
Zak Oganian – founder and CEO, Origen X
“The market will continue to perform strongly for the foreseeable future, but it will begin consolidating. The timeframe will solely depend on the depth of the pockets of many small-ish players that entered the segment, what their burn rate is, and where they will draw the line. There has been a clear revival of the Irish segment from around 2000 or so, seeing a serious explosion from 2012 to 2014. In the next five years we will start to see visible consolidation in the category, and it will be interesting to see how many existing Irish whiskey brands survive. Your cost of goods, hence margin, are paramount, joined with image and USP to leverage the right price structure, to be able to uphold reinvestment.”
Andrew Floor – chief marketing officer, Intrepid Spirits
“A continued increase in the appreciation of Irish whiskey will continue to evolve the category beyond the standard legacy brands that have defined it – and kept it anchored – for so long. Premiumisation will continue as consumers discover the joys of a plethora of independent brands that are working hard at continuously pushing the traditional boundaries and conventions that have held back Irish whiskey for so long, providing consumers with a cornucopia of delicious options. Greater consumer interest and willingness to spend will drive expanded ranges both on- and off-premise, giving those same independents – the drivers and elevators of the category – more time in the sun, creating a virtuous circle that will fuel continued category value growth.
Ryan McFarland – chief commercial and strategy officer, Drinksology Kirker Greer
“All indicators suggest the Irish whiskey market will grow rapidly in the coming years, driven by increasing global demand for scale brands, alongside innovation in premium, craft and more unique offerings. Markets where Scotch whisky has long dominated are becoming more interested in what Ireland has to offer – with both distributors and consumers in Asia and North America in particular becoming increasingly engaged. My feeling is that just being Irish won’t be good enough in the long run – developing brands with unique liquid propositions, brand authenticity and an ability to connect with future consumers will be the key to not only immediate growth, but sustainable long-term success.”
What are your goals for your brand in the coming year?
Richard Lombard-Chibnall – owner/founder, The Molly Malone Whiskey Co
“To build on current sales/distribution with specific focus on Ireland and North America. Develop new opportunities in Africa, South America, Europe, and Australasia. To assist with the above we are launching an online portal to help develop export markets, as well as B2B and B2C. We are currently looking to add a new SKU to the Molly Malone whiskey portfolio, and ensure the security of whiskey stock.”
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