Vision for Irish whiskey

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Whiskey worldwide is a growing sector with a worldwide export market. In the ten years to 2012 trade in whiskey worldwide grew from €3.4 billion per annum to nearly €8 billion in value. Although countries such as Canada and the US have major domestic whiskey production industries the export sector is dominated by Scotch which exports over €5 billion a year of whiskey, a quarter of the UK’s food and drinks exports. Irish whiskey exports on the other hand represent only about 4% of this total world export market. Despite this, Ireland is the fourth largest exporter of whiskey in the world, the third largest net exporter worldwide and the second largest exporter in the EU. Irish whiskey in the past decade has proven adept at not only keeping up with growth in world trade in whiskey but also in increasing its export share. It may be tempting to infer from these statistics that the value of Irish whiskey trade is growing simply because trade in world whiskey is growing. However, this is not the case. Using the data from 2002 to 2013 we can decompose the contributions to the growth in Irish whiskey exports since 2002 into the effect of growth in world whiskey trade and the contribution of growth in Irish whiskey’s share of the market. This is done by comparing actual growth in Irish whiskey exports to what Irish whiskey exports would have been had their market share remained unchanged and world trade had grown as normal. This analysis shows that growth in world trade accounted for about 55% of Irish export growth while an increase in the Irish share of world whiskey growth accounted for about 45%. Irish share in world whiskey €BN % 9.0 4.0 8.0 3.5 7.0 6.0 5.0 4.0 3.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3.0 2.5 2.0 1.5 World (€bn), Ihs Share %, rhs 16
Markets for Irish whiskey When it comes to the destination of Irish whiskey exports it is clear that the EU (43%) and US (45.5%) markets dominate. Within the EU Latvia (10%) is the largest export destination (as a re-sale destination for Russia and the Baltic countries) just ahead of Germany (7.4%), France (6.4%) and the UK (4.9%). Internationally Irish whiskey sells into 77 different markets with the five major markets into which Ireland exports whiskey (France, UK, Germany, Russia, US) accounting for almost three-quarters of these exports. By comparison our main European competitor Scotch is being sold into 174 countries while also having a significant export differential into established markets. This, however, represents both a challenge and opportunity for Irish whiskey to expand its brand in established and lucrative markets during the coming years. Irish whiskey export markets 2% 2% 5% 7% 15% 6% 2% 5% 10% 46% AUSTRALIA CANADA GERMANY FRANCE UNITED KINGDOM RUSSIA & BALTICS UNITED STATES SOUTH AFRICA OTHER EU OTHER 17
Page 1 and 2: Vision for Irish whiskey A strategy
Page 3 and 4: Foreword for the strategic vision f
Page 5 and 6: Contents About the Irish Whiskey As
Page 7 and 8: Welcome The Irish whiskey sector is
Page 9 and 10: Executive summary Irish whiskey has
Page 11 and 12: In 2014, more than 6.7 million 9-li
Page 13 and 14: The Association has identified five
Page 15 and 16: Economic impact and ambition for th
Page 17: Exports of Irish whiskey Exports fr
Page 21 and 22: Table 1: Export differentials Scotc
Page 23 and 24: Investment over the period 2010 to
Page 25 and 26: Pillar 1: Adequately resourced infr
Page 27 and 28: Availability of skilled graduates I
Page 29 and 30: next ten years as whiskey stocks ar
Page 31 and 32: Pillar 2: Category integrity and pr
Page 33 and 34: 31
Page 35 and 36: Pillar 3: Sustainable supply and de
Page 37 and 38: Case study: The evolution of Irish
Page 39 and 40: Case study: Building a successful I
Page 41 and 42: Pillar 4: Vibrant tourism offering
Page 43 and 44: Pillar 5: Strong home market • Go
Page 45 and 46: Case study: The importance of ‘Br
Page 47 and 48: Appendix 1: A short history A short
Page 49 and 50: Notes 47
Page 52: Irish Whiskey Association, 84/86 Lo

Vision for Irish whiskey

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