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Independent Irish Whiskey brands face demise due to a lack of supply

Written by Robert McHugh, on 23rd Nov 2015. Posted in General

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Smaller Irish whiskey brands may face demise due to a lack of supply of mature whiskey.
 
This is according to a report prepared by Compecon for The Wild Geese Irish Whiskey. The report was commissioned to analyse the performance of the Irish whiskey industry and its potential to contribute to growth in the Irish economy through comparison with the Scotch Whiskey industry.

The report found a number of significant barriers to entry in to the Irish whiskey market inhibiting the growth of the industry as a whole. The report states that the creation of a bulk wholesale market, similar to that in Scotland, would remove some of the main obstacles facing new entrants. 
 
Specifically, unlike the Scotch Whisky industry, Ireland lacks a functioning wholesale whiskey market, resulting in new entrant uncertainty in supply and cost. There are only four distilleries in Ireland currently producing mature whiskey while Scotland has 115 working distilleries with 30 new ones under construction, highlighting the benefits of a functioning wholesale whiskey market.
 
Scotch whisky exports in 2014 were in excess of €5 billion, compared to Irish whiskey exports of €350 million.
 
Andre Levy, Chairman and Co-Founder with his wife, Mairade (nee Kelly) of The Wild Geese Irish Whiskey commented, "While we have a broad customer base both nationally and internationally, built up since 2002, this report describes the challenges that we as an independent Irish whiskey brand, face day-to-day.

"Issues such as the 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 factors 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." 
 
Source: www.businessworld.ie

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