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Irish whiskey industry launches fresh assault on Scotland's dominance Irish whiskey industry launches fresh assault on Sco tland's dominance
(about 3 hours later)
With Ireland restoring its economic sovereignty this weekend, it is a sign of emboldened economic confidence that the country is launching a fresh assault on Scotland's domination of the whiskey trade. With Ireland restoring its fiscal sovereignty this weekend, it is a sign of emboldened economic confidence that the country's whiskeys are launching a fresh assault on Scotland's domination of the trade.
In a bucolic corner of the County Kerry coastline, pub chain owner Oliver Hughes has opened one of only several independent whiskey distilleries in Ireland. In a bucolic corner of the County Kerry coastline, pub chain owner Oliver Hughes has opened one of a few independent whiskey distilleries in Ireland.
Hughes, who has weathered recession since the 2008 Celtic Tiger crash, hopes that his investment in a new whiskey will coincide with a general economic upturn and growth in export markets. Hughes, who has weathered the recession since the 2008 Celtic Tiger crash, hopes that his investment in a new whiskey will coincide with a general economic upturn and growth in export markets.
Irish GDP grew by 0.9% last year, but this was boosted by the output of multinationals that have significant operations in Ireland, including Intel, Facebook and Google. Once the takings of foreign firms and the interest paid to overseas investors are excluded, the measure is as much as €30bn (£25bn), or 18%, lower. Nurturing a home-grown whiskey industry is one way of trying to plug that gap. Irish GDP grew by 0.9% last year, but this was boosted by the output of multinationals with significant operations in Ireland, including Intel, Facebook and Google. Once the takings of foreign firms and the interest paid to overseas investors are excluded, the measure is as much as €30bn (£25bn), or 18%, lower. Nurturing a home-grown whiskey industry is one way of trying to plug that gap.
On a break from work inside the Dingle Distillery, Hughes says he has noticed an improvement in footfall and consumer spending in his Porterhouse pubs in Ireland. The chain, which brews its own beers, also includes Porterhouses in London's Covent Garden and Manhattan, New York. On a break from work at the Dingle Distillery, Hughes says he has noticed an improvement in footfall and consumer spending in his Porterhouse pubs in Ireland. The chain, which brews its own beers, also includes Porterhouses in London's Covent Garden and Manhattan, New York.
"Definitely in the last few months particularly Dublin has had a very vibrant tourist trade. Lots more tourists are coming through our doors and yes, there does seem to be a few more bob around the place in general from Irish punters too," he says, adding that last year's turnover for his Porterhouse Group was around €30m. "Definitely in the last few months, particularly Dublin has had a very vibrant tourist trade. Lots more tourists are coming through our doors and yes, there does seem to be a few more bob around the place in general from Irish punters too," he says, adding that last year's turnover for his Porterhouse Group was around €30m.
Inside the distillery, where casks include a special first edition set called "Dingle Founding Fathers", yours for more than €6,000, Hughes says it's time for Irish independent distillers to challenge Scotland's hegemony. Inside the distillery, where casks include a special first edition set called Dingle Founding Fathers, yours for more than €6,000, Hughes says it's time for Irish independent distillers to challenge Scotland's hegemony.
"It's a winner, an absolute winner. Of course it's a labour of love for me but so was creating Ireland's first micro brewery back in the early 70s. With the demand for Irish whiskey out there in the world this is a no-brainer. "It's a winner, an absolute winner. Of course, it's a labour of love for me but so was creating Ireland's first micro-brewery back in the early 1970s. With the demand for Irish whiskey out there in the world this is a no-brainer.
"The key markets are obviously America and the emerging ones like India and China. My personal view is that the big spirit brands such as Jameson, made by Irish Distillers, will grow into those markets but there will be space for the small, independent specialist distilleries like ourselves." "The key markets are obviously the US and the emerging ones like India and China. My personal view is that the big spirit brands such as Jameson, made by Irish Distillers, will grow into those markets, but there will be space for the small, independent specialist distilleries like ourselves."
Within three years of his first casks maturing, Hughes says he will hope to roll out between 150,000 to 200,000 cases of 12 bottles a year. On top of the whiskey, the Dingle Distillery is already producing its own branded vodka and gin. Within three years of his first casks maturing, Hughes says he will hope to roll out between 150,000 to 200,000 cases of 12 bottles a year.
Enterprise Ireland, the body which promotes indigenous small-to-medium Irish businesses around the world, predicts Irish whiskey sales will double over the next five years. . On top of the whiskey, the Dingle Distillery is already producing its own branded vodka and gin.
Ed Mooney, Enterprise Ireland's head of beverages, says there is a "whiskey renaissance" in terms of new distilleries opening over the next few years across the Republic. Enterprise Ireland, the body that promotes indigenous small-to-medium Irish businesses around the world, predicts Irish whiskey sales will double over the next five years.
"The investments going on in Dingle and in other distilleries like one aimed for Shane Castle are highly significant in terms of creating subsidiary jobs and the expenditure put into them. The jobs projections over the next five years years would be an increase in direct work in the distilleries from 800 employees to up to 1,400," Mooney said. Ed Mooney, Enterprise Ireland's head of beverages, says there is a "whiskey renaissance" in terms of new distilleries opening over the next few years across the republic.
"The investments going on in Dingle and in other distilleries like one aimed for Shane Castle are highly significant in terms of creating subsidiary jobs and the expenditure put into them.
"The jobs projections over the next five years would be an increase in direct work in the distilleries from 800 employees to up to 1,400," Mooney said.
When Irish prime minister Enda Kenny opened up a new production plant for Irish Distillers earlier this year in Middleton, County Cork, he was presented with a bottle of Jameson from 1992. The taoiseach promised that he would open it up and enjoy a tipple on the day Ireland exited the IMF-EU bailout.When Irish prime minister Enda Kenny opened up a new production plant for Irish Distillers earlier this year in Middleton, County Cork, he was presented with a bottle of Jameson from 1992. The taoiseach promised that he would open it up and enjoy a tipple on the day Ireland exited the IMF-EU bailout.
Kenny will have to wait another three years to sample a drop of Dingle Distillery's brand. Meanwhile inside his Kerry-based distillery, where the grain used in the stills is recycled as cattle feed for a local farm, Hughes is optimistic not only about his own investment but the overall economy. Kenny will have to wait another three years to sample a drop of Dingle Distillery's brand. Meanwhile inside his Kerry-based distillery, where the grain used in the stills is recycled as cattle feed for a local farm, Hughes is optimistic not only about his own investment but about the overall economy.
"Anyone who goes into business is an optimist. I remember a few months ago my wife saying to me in exasperation: 'Oliver in your life the glass is always half full!' To which I replied 'Not only is it half full but I have actually ordered another glass'." "Anyone who goes into business is an optimist. I remember a few months ago my wife saying to me in exasperation, 'Oliver, in your life the glass is always half full.' To which I replied, 'Not only is it half full but I have actually ordered another glass.'"
A short history of Irish whiskeyA short history of Irish whiskey
• The international popularity of Irish whiskey declined after the 17th century when, unlike the Scots, Irish distillers failed to modernise their stills.• The international popularity of Irish whiskey declined after the 17th century when, unlike the Scots, Irish distillers failed to modernise their stills.
• The Irish version suffered another blow in the 1920s when bootleggers labelled their illicit drink "Irish whiskey"
• US soldiers who arrived in Britain and Northern Ireland when America entered the second world war in 1941 sampled the delights of Scotch and were cut off from consuming Irish whiskey as the Republic was neutral• US soldiers who arrived in Britain and Northern Ireland when America entered the second world war in 1941 sampled the delights of Scotch and were cut off from consuming Irish whiskey as the Republic was neutral
• The formerly state-owned Cooley Distillery near the border with Northern Ireland was soldin 2012 to American whiskey giant Jim Beam. Its successful sale by then owner John Teeling has prompted renewed interest and venture capitalist investment in new small distilleries across the Republic.• The formerly state-owned Cooley Distillery near the border with Northern Ireland was soldin 2012 to American whiskey giant Jim Beam. Its successful sale by then owner John Teeling has prompted renewed interest and venture capitalist investment in new small distilleries across the Republic.
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