Irish Whiskey Faces Tougher Landscape, But Marketers Remain Bullish

Total Irish whiskey depletions in the U.S. declined last year for only the second time in two decades—slipping 8% to 5.1 million cases—weighed down by volume decreases for nine of the 10 largest brands. The category was down a further 6% in control states through the first half of this year. Still, interest remains strong, evidenced by the continuing entry of brands to the market, with the vast majority at super-premium price points. Nearly 90% of Irish whiskey brands in the U.S. are priced at least $25 a 750-ml. bottle at retail, and the sector’s average price tag is exceeded by only three other spirits—Cognac, Scotch whisky, and Tequila—according to Impact Databank.

Pernod Ricard’s Jameson continues to dominate Irish whiskey, and its 9.6% decrease last year factored heavily in the category’s overall decline. At 3.9 million cases, however, Jameson remains about 400,000 cases above its pre-pandemic volume, and Pernod continues to back the brand aggressively, including with its “Must be a Jameson” push that debuted last fall.

Earlier this year, Pernod Ricard North America chairman and CEO Conor McQuaid noted that Jameson still has room for growth in various U.S. markets. “We look at the markets like Florida and Texas as two markets in which we still believe there’s huge headroom for growth as we continue to recruit into the brand,” he told analysts. At the higher end, Pernod’s Redbreast single pot still Irish whiskey recently released Missouri Oak, a limited edition retailing at $199 a bottle.

Second-ranked Tullamore Dew from William Grant & Sons likewise slipped in the U.S. last year. The brand extended with a Honey liqueur in February, which it says is helping to attract new consumers. “After seeing incredible success in Europe for three years, it is off to a fast start in North America after just a few months,” says Paul Coffey, senior brand manager, adding that the company expects the Honey offshoot to account for 10% of Tullamore Dew sales by the end of the year.

Proximo’s Proper No. Twelve was the exception last year, rising 12% to sit right behind Tullamore Dew in volume terms. Proximo also counts Bushmills in its Irish whiskey stable. “Consumers are showing interest in premium brands and higher aged releases with rare cask types, demonstrating that Irish whiskey is following the overall trend of premiumization and innovation,” says Lander Otegui, senior vice president of marketing at Proximo Spirits.

Bushmills, which is above 1 million cases globally, opened a new Causeway Distillery last year dedicated to single malt production. The new facility, located adjacent to the Old Bushmills Distillery, is part of Proximo’s £60 million (US$74.6m) investment in Irish single malt distilling and maturation. “The new facility is set to more than double single malt production over the next couple of years,” Otegui says. “Bushmills will continue to spearhead the growth of the single malt category for years to come.”—Kevin Barry

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