POR FAVOR MAS INFORMACION NO
Wholesale Irish Whiskey: Supporting Economic Growth
Comepcon reports for The Wild Geese Irish Whiskey company that small Irish Whiskey brands might experience serious supply shortages without establishing a wholesale market for a bulk Irish whiskey. They also reported significant barriers to entry for companies entering the Irish whiskey market which can be addressed through bulk wholesale.
The findings were based on the analysis of the performance of the industry for Irish Whiskey and its ability to contribute to the economy of Ireland compared to the Scotch whisky industry.
The Main Points for the Report
- In terms of exports, Scotch whisky has exported over $5.3 billion in 2014; while Irish whisky exported only $372 billion.
- Unlike the Scotch whisky industry, Ireland don’t have a functioning market for wholesale whisky; thereby, creating doubts in costs and supply from new entrants.
- The wholesale market for whiskeys in Scotland has encouraged the growth of the industry, having about 5,000 blended whiskeys and hundreds of malts. This enabled entrants to create their own brands.
- In Ireland, there are only 4 distilleries that produce mature whiskeys; while in Scotland, they have about 115 operational distilleries, with 30 new facilities that are still under construction.
- There are several barriers to entry in Irish whiskey industry, such as the mandatory 3-year maturation period before products are sold.
- Currently, there are several companies that created Irish whisky brands; however, they were undermined due to the lack of supply of mature whiskeys.
- The creation of a wholesale market for Irish whiskeys would be a very effective way of promoting new exports from Irish whiskey companies.
- Having more whiskey brands might yield significant benefits in Ireland’s economy in terms of employment, production, and exports.
According to the Director of Compecon, Pat Massey, their analysis shows the fundamental challenges that the smaller Irish whiskey brands are facing in Ireland recently. Although there is an increase in demand for it, at home and abroad, potential small companies at large are stifled due to the lack of adequate support measures from the industry.
He added that the wholesale market is crucial for SMEs to be successful at the early stage of business; it is essential for the entire industry as well. According to the Irish Whiskey Association, it should be deemed possible to enter the whiskey market without having to build distilleries.
The Chairman and Co-Founder of The Wild Geese Irish Whiskey, Andre Levy, said, “Issues such as high cost of market entry, the presence of larger established market players, controlling supply and the difficulty in accessing a long-term and competitive mature whiskey supply. These are prohibitive to new market entrants and threaten existing brands looking to survive, grow sustainably and share in the category they played a part in growing.”
Levy also calls for the Irish Government to support the immediate establishment for wholesale market of Irish Whiskeys; adding that they believe that the Government has an essential role in supporting the SME sector as they continue to work to help economic growth.
The Irish Whiskey Association, on the other hand, says that properly functioning internal wholesale market is essential to encourage new entrants, decrease the risk of business models, as well as to encourage a more efficient use of capacity.
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