25 Irish drinks companies participate at showcase event
The Minister for Agriculture Food and the Marine, Michael Creed T.D. and Bord Bia CEO, Tara McCarthy marked the success of Irish beverage exports to the US, which grew to over €500 million last year, at a trade showcase in Chicago. As part of a week-long trade mission to the US and Mexico, the event involved 25 Irish drinks exporters engaging with Binny's Beverage Depot, the largest drinks retailer in the Mid-West, and other on trade customers from the region.
Pictured is Brett Pontoni, Purchasing Director of Binny's Beverage Depot, the largest drinks retailer in Mid-West America, with the Minister for Agriculture Food and the Marine, Michael Creed T.D and Tara McCarthy, Bord Bia's CEO at a trade showcase in Chicago as part of a week-long trade mission to the US and Mexico
Minister Creed spoke about the importance of international markets in Ireland`s food and drink export strategy as Brexit negotiations began earlier this week, “The USA is the most important market for Irish alcohol beverages amounting to €514 million or over half our total food and beverage exports here. It is the destination for almost 45% of Irish whiskey, the fastest growing spirits brand globally with exports of 3.7m cases. The 2016 figure represents an increase of 8.5% on the previous year and an increase of 47% over the last 5 years. Ireland was a key player in the whiskey business of the US up to the early part of the last century and lost ground for a variety of reasons. I am determined that our new and impressive progress will endure.”
Bord Bia used the opportunity to inform US trade and retail customers how Ireland`s investment in consumer insight, routes to market and the Origin Green sustainability programme can deliver benefits for their business. Bord Bia CEO, Tara McCarthy said their consumer and market insight highlighted the US as a priority destination for Irish drinks given its size and appetite for new flavours. She said the breadth and depth of the Irish product range in Binny's Beverage Depot was proof of how far the industry had come in such a relatively short time period. “We have invested over 1,000 hours in research over the last three years to appreciate the evolving US consumer tastes. Bord Bia’s research identified three key areas of focus for Irish whiskey to ensure success namely native personality, maturity and flavour complexity. We have worked with over 20 Irish companies in the past three years to meet these demands through consumer insight and branding as well as market research and trade shows. Bord Bia has also partnered with these companies to get `feet on the street` in the US market through our talent development programmes. Bord Bia will continue to target key buyers with the aim of bringing 10 to our Marketplace trade event in 2018 to meet with Irish suppliers and provide them with guided itineraries to ensure that they feel the full impact of our sustainable production system.”
During a visit to Binny's Beverage Depot, the Minister and Tara McCarthy met with Brett Pontoni, the company’s Purchasing Director who is a keen supporter of the Ireland’s beverage industry having attended Bord Bia’s Marketplace event in 2015. Speaking about the growth of Irish whiskey in the US, Brett said, “I am delighted with the response of US consumers to the breadth and depth of Irish drinks we stock in Binny's Beverage Depot. New brands from Ireland are building an enthusiastic following by offering a new taste and are seen as different and independent. Bord Bia`s assistance to companies in telling their individual stories and providing resources on the ground is building on Ireland`s already renowned reputation for alcohol production. Being able to tell a story about sustainable production through the Origin Green programme, appeals to millennials, who are key to the future growth of the sector.”
Irish Beverages in the US
Bord Bia's relationships the Wine & Spirits Wholesalers of America (WSWA) has helped Irish companies identify and establish commercial partnerships with US importers and distributors. Irish whiskey posted the highest category growth rate in control states last year, at 14.6% according to Shankens Impact newsletter (May 2017). Ireland enjoys the privilege of being the only national exhibitor at the National Beverage Alcohol Control Association’s (NABCA) annual conference. Bord Bia hosts an Ireland stand at this event showcasing the current Irish newcomers each year and as a result of this exposure, again many of the same successful Irish brands are now stocked in the high value control states of Pennsylvania, Virginia, Michigan, Oregon, Ohio and North Carolina.
Bord Bia's Thinking House continues to research the sector of new opportunities as well as working with exporters on brand design to target specific markets and categories. The Future of Drinks (and whiskey) reports which it commissioned to assist in its research identified three key areas for Irish whiskey to focus on to ensure success; Native personality, Maturity Matters and Flavour Complexity. According to the International Wines & Spirits Record (IWSR), Irish whiskey is 'perceived as a trade-up' from other whiskies in the market. The IWSR Global Trends Report cites the range of new product launches and brand line extensions as having helped to encourage greater exploration of the category. Continued investment in new distilleries, trademarks changing hands and updates to packaging are all also contributing to the growth.
Ireland’s Beverage Industry
Exports of Irish drinks globally in 2016 achieved €1.4bn, an increase of 4% on 2015. This growth is largely due to the performance of Irish whiskey, the fastest growing spirit in the world. Irish whiskey has grown over 300% in the past decade. In 2016, 8.3m (9L) cases were exported representing an increase of more than 9% on 2015, and it is projected to grow to 24m cases by 2030. The number of distilleries has grown from two whiskey distilleries in 2010 to 11 currently in production with 5 more in build phase and a further 11 in varying stages of planning. From just 8 craft breweries in 2012, the category now numbers more than 90 brands, produced by 73 micro-breweries. Ireland had just a single gin offering in 2011, there are now 23 premium gin brands in production or planning. Irish gin is in its infancy, so young in fact, that our new distilleries are currently building their roots in the Irish market in preparation for their export efforts, and therefore barely visible on the radar. The premium gin market in the USA has grown from 2.1bn cases to 2.8bn cases since 2010, which represents an increase of 33%. This trend, driven largely by the increased popularity of cocktail bars, has not escaped Irish producers.