
Technically, Irish whiskey’s annus horribilis started in 2024. Around March last year there were whispers of a slowdown in the US – sales were softening, producers were shipping far less stock to the category’s promised land. The mood was still upbeat, but there was an air of caution in the industry that was unfamiliar to any of the dozens who joined the category in the preceding decade. By the latter half of the year, the clouds had spread, and in what was to become the first sign that this wasn’t just a vibe shift, Waterford Distillery went under in November. For all their beauty, their luxuriant financing, their global reach, Mark Reynier’s big bold vision for Irish whiskey slid into receivership, and was put up for sale, where it still languishes one year on. It was a warning to all – if they can fail, so can anyone.
In 2025 the Irish whiskey industry entered a pronounced period of contraction and structural recalibration after years of rapid expansion. The most significant factor was the re-imposition of a 15 % tariff on Irish whiskey exports to the United States in August 2025, a key market that accounted for millions of cases and hundreds of millions of euros in export value in prior years. The tariff increase suddenly made Irish whiskey less price-competitive in the US, prompting widespread concern among distillers and intensifying calls for the reinstatement of a “zero-for-zero” trade agreement to remove export duties. But with a combative US President who sought to push an America First agenda – one which he was elected on – imports were the enemy. Irish whiskey sold well in the US, aided by the commercial might of Irish Distillers and their decision to push Jameson as an embodiment of ‘Irishness’ as it was perceived in America – smooth, easy going, approachable, and a counterpoint to the occasionally snooty world of scotch. But the tariffs were not the only crisis hitting Irish whiskey.
The financial fragility of several craft and independent producers became starkly visible in the first half of the year. In late June 2025, Powerscourt Distillery formally entered receivership, unable to secure additional financing as its lender stance tightened amid broader industry strain. Company filings indicated reliance on a previous €25 million banking agreement, which under pressure became untenable without fresh capital, leaving the distillery struggling to meet its obligations and forcing a restructuring path through receivership.
Killarney Brewing & Distilling Company — active in both beer and whiskey — entered liquidation in July 2025 after an unsuccessful examinership, resulting in all 54 jobs being lost and its assets wound down. Their sizeable new build outside Fossa near Killarney cost €24 million to build. It is now for sale for €4.8 million.
Major producers adapted to the slowdown. Irish Distillers — the Pernod Ricard subsidiary behind Jameson, Redbreast and other core brands — announced a temporary pause in whiskey production at its historic Midleton Distillery beginning in April 2025, with operations resuming over the summer. The adjustment was described as a routine scheduling review but occurred amid similar global pauses in whisky production by other major spirits companies, reflecting a nervous approach to inventory build-up and uncertain near-term demand. The timing was suboptimal, as the production pause occurred against the backdrop of Midleton’s 200th anniversary celebrations.
Alongside this, the building of the new €250 million distillery project adjacent to the existing facility in Midleton, originally announced in September 2022, was slowed. The new distillery was intended to be one of the largest and most modern in Europe, carbon-neutral and capable of supporting future global demand for Irish whiskey, with up to 800 construction jobs and 100 permanent skilled roles once operational. Early planning and construction were expected to see the facility operational in 2025. However, by May 2025 it was reported that the opening had been pushed back to at least 2027, reflecting the impact of slower market conditions and company decisions to reallocate resources amid the broader industry slowdown. The timeline extension signified a shift from expansion to strategic pacing and risk mitigation by Irish Distillers as it balanced legacy production with evolving market realities.
Irish Distillers were not the only ones hitting pause. The new Roe & Co distillery in Dublin, owned and operated by Diageo at the rear of their vast Guinness complex, was silenced in June 2025, with no reopening in sight. The company described the move as a way “to optimise resources and support the sustainable future growth of our business”, indicating that the pause was intended as a measured response rather than a permanent closure. But production staff were let go. However, the tourism wing stayed open, and the company continued selling their own stock and their sourced Roe & Co whiskey, which they did not make, and they continued to hold PR events.
In May 2025, Dublin Liberties Distillery abruptly paused production and closed its visitor centre as part of a strategic response to weakening market conditions. The distillery’s UK-based parent, Quintessential Brands, which said the move was designed to “assess current market conditions” and better align operations with reduced demand and broader industry headwinds. Its Mill Street site had an annual production capacity of more than 700,000 litres of new make spirit, and in earlier years the brand expanded into over 40 export markets with a number of limited-edition releases and international partnerships. Industry analysts pointed to tariff-related export costs, inventory overhang, slowing orders from overseas distributors, and a broader slowdown in premium spirit sales as driving factors behind the decision to halt production. The pause was framed internally as temporary, but no firm timeline for resumption was provided at the time, leaving staff and local stakeholders uncertain about the distillery’s short-term future.
While there were high-profile collapses, in the background many were either cutting back production or simply switching off the stills. Dr John Teeling’s Great Northern Distillery significantly reduced its production output in response to weakened global demand and broader sector headwinds. The facility, founded in 2015 and known for supplying bulk spirit and contract-distilled whiskey to a wide range of brands, cut back malt whiskey production by around 70% compared with its previous output levels. Industry analysts and insiders noted that Great Northern’s cutback was not an isolated case but part of a wider industry correction. By mid-2025, reports suggested that up to 90% of Irish distilleries had either paused or reduced production in response to oversupply, rising inventories and cost pressures.
If there was self reflection in the industry, it wasn’t immediately apparent. In preceding years, anyone who suggested that the growth in the category – either by number of distilleries or the explosion of non-distilling producer brands – was unsustainable was deemed something of a Cassandra. The good times, we were told, would continue forever. But forever came to an end this year, so the industry scrambled to reframe this as a long overdue ‘market correction’. Cold comfort to anyone who invested in what now appeared to be an overheated category – either in a distillery such as Nephin which never got finished, or one of the others now languishing in various states of sale, or in flipping bottles they now struggled to sell in an equally cold auction market, or in bulk whiskey via the hard-sell boiler rooms that pushed pallets of casks onto people with no clue what they were getting themselves into. A lot of money poured into the category in the last ten years, and not all of it will be seen again.
This is not all the result of the hubris of the industry – a cost of living crisis, an energy crisis, war on the edge of Europe, a shuddering of the old order and rise in identity politics in our largest market, all helped rattle the bones of the category, and none of these could be helped. But the Irish whiskey category is more exposed than other more mature drinks categories – Scotland has been through this ringer several times over the centuries, Cognac the same. In Ireland we had a lot of heavily financed new distilleries still very much in the early stages of developing their brand, their voice, and their routes to market. Those who had the courage to set up a distillery and actually make something had to compete with often weak brands that offered the same sourced stock as all the rest. A common theme among small producers is that getting shelf space is hard enough without these bland, inconsequential brands backed by speculators in it for a quick buck. We simply have too much white label whiskey – the technical file set a high bar for building a distillery and making whiskey, but there is really no obstacle to setting up a brand, no matter how tepid it is. While the right number of distilleries for the category could be debated, we have too many brands, but in the current climate it is the former that will fall and not the latter.
These closures, receiverships, production pauses and investment delays played out alongside broader industry data published in late 2025. The Irish Whiskey Global Trade Report showed that while 2024 had reached a historic high of 16.15 million cases sold globally, the outlook for 2025 and beyond was clouded by export costs, inventory adjustment and slowing growth trajectories outside core markets.
By the end of 2025, the narrative within Irish whiskey has shifted. What only a few years earlier had been an era of almost unbounded growth — marked by new distillery openings, record exports and intense speculative investment — has become a period of consolidation and recalibration. Market attention has increasingly turned toward financial discipline, export diversification, and navigation of trade policy headwinds as the industry seeks a more sustainable footing after a turbulent year.
You will encounter all manner of theory around why some distilleries have now fallen – all had particular weaknesses but chief amongst them was they started big and wanted to be bigger – none of these were small operations getting ready to scale; all carried significant amounts of debt to service and when sales slowed, the weight became too much. There is no point in victim blaming or cherry picking an aspect of any of them and saying this is why this happened, they were all just the wrong size. If they were smaller they could pull down the shutters and ride the storm, if they were larger they would have a parent firm that could sustain them.
As we depart 2025, three impressive Irish distilleries – Killarney, Powerscourt, and Waterford – are for sale along with all their stock and there is no sign of buyers. In our promised land of America, Jim Beam just announced they are closing their main distillery for the year. People are drinking less. The world is changing. Irish whiskey isn’t doomed, and is facing the same challenges as other spirits sectors – but we are more vulnerable than more developed categories.
2026 will hopefully end better than it starts, but now in the quiet time we need to consider where the category goes from here – it will be leaner, and hopefully meaner, offering better value to consumers – IDL clearly already got that particular memo, as their limited edition Redbreast 15 and Green Spot 10 retailed at €130 and €80 respectively, the kind of pricing which we had not seen from Midleton in some time. IDL also sold off the Castle Brands portfolio which they had acquired in August 2019 for a remarkable US$223 million (a cash offer of $1.27 per share). In July 2025 they offloaded the brands – including Knappogue Castle and Clontarf whiskeys – to a small startup. The price was not disclosed.
Looking ahead to 2026, nothing is certain. Since Waterford’s fall in late 2024, not much is – they had financing, incredible branding, a great backstory, and a liquid that was rapidly improving.
But this does not mean the category is doomed, or even that it will go back to where it was with three producers and not much else. We are better off now, even with all the strife, than we were 15 years ago. There may be a little bloating and some resulting contractions but the right level will be reached. If America changes its mind on tariffs and Russia bids farewell to arms, we could be back in black before the end of 2026. Failing that, Nigeria and India both hold promise, and IDL in particular are pummelling the UK market with their sponsorship of the English Football League. In late August, Irish Distillers reported a 2 % increase in global net sales for the 2025 financial year ending 30 June 2025, across its Irish whiskey portfolio, demonstrating resilience in the face of a challenging global economic environment. Jameson was a key driver of this performance, posting 3% net sales growth globally and delivering double-digit increases in markets across Asia (including India, Japan and South-East Asia), Africa (notably Nigeria) and Latin America (such as Brazil and Mexico).
So the machine rumbles on, and if you need to comfort yourself further, pay heed to the rate of distillery closures in the US where the decline is being felt far harder than here. So this isn’t just an us problem; and while the industry talks up resilience, it needs to see this as a time to reflect on where it goes in 2026. Consumers want the usual – authenticity, quality, good stories – but they need value to bring them back. Offering that while managing large amounts of debt is where the challenge lies now for producers.