Ireland could grow drinks exports to €2bn

The Irish alcoholic drinks industry has the potential to increase exports to more than €2 billion over the next 15 years, however growth is being stymied by “double regulation” of the sector.

Drinks producers in Ireland could grow exports by €2bn over the next 15 years

The claims have been made by agri-food economist Ciaran Fitzgerald is his new newly launched report on the sector, commissioned by Alcohol Beverage Federation of Ireland (ABFI), titled Sustainable Growth of the Drinks Industry.

Fitzgerald claims that the Irish drinks industry has the potential to grow exports by 85% by 2030, creating an additional 13,000 domestic jobs.

Meeting the Government’s Foodwise 2025 targets would see the drinks industry grow exports by at least €700 million, creating an additional 7,210 additional jobs in the Irish economy. Meanwhile, if Irish whiskey producers manage to export 24m cases by 2030, the industry would grow by €2.2m and create an additional 13,390 jobs.

However, he adds that this potential expansion is being “compromised” by high taxation and increased compliance and regulatory costs.

Excise and VAT taxes in Ireland are the second highest in the EU and run at four times the average rate of tax on alcohol across the European Union.

Fitzgerald also claims that that the imposition of additional regulatory and compliance costs is “at odds” with the government’s “stated principals of better regulation” since the industry has made “significant efforts” to promote responsible drinking.

“This report has highlighted that significant export growth opportunities exists with the industry having the potential to grow exports by at least 85% and potentially to over €2 billion, creating and sustaining an additional 13,000 jobs, predominantly in rural Ireland,” said Ross MacMathuana, director of the Alcohol Beverage Federation of Ireland.

“If we are to realise these ambitions, we need to have a more consistent policy framework in place informed by evidence-based regulation.

“We welcome Ciaran’s input into the debate, and hope that it will encourage a more informed discussion on the drinks sector, its contribution to society and its regulation in this country.”