At the end of last year I wrote a piece about Irish whiskey’s fortunes – good and bad – in 2024 and where the category was headed in 2025. The piece was published in American Distiller Magazine, but was edited for length. Here are the quotes from the people I spoke to in full.
Jennifer Nickerson, Tipperary Boutique Distillery
How has the last 12 months been for you – what are the challenges you have faced as a craft distiller, how have your costs been affected by the economic crisis? Are smaller distillers like yourselves better placed to survive the current crisis in whiskey sales?
“The past 12 months have been a time of both challenge and opportunity for Tipperary Boutique Distillery. As a craft distiller, we’ve had to navigate significant hurdles, particularly due to rising costs which have affected every area of our business, from raw materials like grain and glass to energy prices and transport. This has meant that our margins are being squeezed, which can be especially challenging in a sector like ours where we already face long maturation periods and high production costs. Inflation has certainly been a key factor influencing decisions, and we’ve had to adapt our strategy while ensuring that the quality of our whiskey remains uncompromised.
“As a smaller distillery, we’re certainly not immune to these pressures, but we do believe that our flexibility and focus on quality allow us to better navigate these turbulent times. We may not have the scale of larger producers, but we can be more nimble in adjusting to market shifts and responding to consumer demands. The direct relationship we maintain with our customers is a significant advantage, allowing us to create unique whiskies that speak to our customers’ specific needs. We actually have an exciting project coming later this year that should allow us to look at the needs of individual customers.”
What trends do you see coming in 2025 – both in terms of whiskey styles and consumer habits? What markets are you focussing on?
“In terms of trends for 2025, we see several exciting developments on the horizon. There is a rise in demand for sustainable practices, with more drinkers seeking out brands that emphasize eco-friendly production methods. We expect a continued shift with younger consumers leaning towards more eco-conscious choices such as ‘quality over quantity’ and more experienced consumers experimenting with different cask finishes and innovative aging techniques.
“We have just bottled some new exciting single malts which we have finished in Mezcal and Sake casks respectively. These are already causing an interested stir amongst some of our customers who are ‘in the know’!
“We’re also seeing a growing interest in Irish whiskey in Asian markets. We will continue to focus on growing our presence in these key markets while also nurturing the domestic market, which has shown tremendous support for our products.”
Is single pot still whiskey still a contender or has that moment passed? Will the reworking of the technical file affect you?
“We certainly believe that Single Pot Still remains a contender in the world of Irish whiskey. While the industry continues to evolve, and we have largely focussed on Single Malt whiskies, we continue to lay down some Single Pot Still each year as this remains one of the cornerstones of Irish whiskey heritage.
“The reworking of the technical file will certainly have implications for the industry, and we welcome any expansion of the category, particularly with regards to maintaining historical relevance. However, until the IWA publishes proposed wording, it is hard to discuss how individual companies will be affected.
“We would say that as a distillery which prides itself on producing traditional styles, we are well-positioned to embrace any changes that come our way, as long as it supports the long-term growth and sustainability of the category.
“Whilst there are undoubtedly challenges in the current economic climate, we believe that our approach of small-batch, premium production, with a focus on innovation and sustainability, positions Tipperary Boutique Distillery well for the future. We’re excited for 2025 and beyond, and we look forward to continuing to share our passion for Irish whiskey with the world.”
Pat Rigney, The Shed Distillery
How has the last 12 months been for The Shed – what are the challenges you have faced as a craft distiller, and how have your costs been affected by the economic crisis?
“The last 12 months (celebrating a decade of distilling on December 21st, 2024 at The Shed Distillery) have been challenging as inflation & high interest rates took their toll on consumer sentiment globally. Thankfully with the strength of appeal & affection for Drumshanbo Gunpowder Irish Gin across key markets we grew sales strongly in the 2nd half of 2024 with our strongest October – December on record. The decision to absorb input cost increases and not pass on to our consumers served us well throughout the year. The addition of Drumshanbo Gunpowder Irish Gin with Brazilian pineapple expression during 2024 was a huge success. Our Drumshanbo Single Pot Still Irish Whiskey had a record year of growth due to its authenticity & high quality being entirely distilled, matured & bottled in Drumshanbo at The Shed Distillery. The Marsala expression was particularly well received in 2024.”
What trends do you see coming in 2025 – both in terms of whiskey styles and consumer habits? What markets are you focussing on?
“The consumer in 2025 will be seeking value in their purchase of Gin & Whiskey brands. Brands with an authentic story that is honest & with a twist will do well. Overpriced brands, celeb brands or brands with a weak back story may come under pressure as consumers reset their preferences for quality, excitement & value. We believe we are well placed to take advantage of this trend.”
How concerned are you about potential tariffs on Irish spirits under the Trump presidency?
“The irony of potential tariffs is the EU and the US are each other’s largest export markets when it comes to spirits and therefore it is in neither sides’ interest to see tariff escalation. Spirits from both sides of the Atlantic have enjoyed and benefited from tariff-free trade for several decades & we hope this continues well into the future. The spirits category has many products that have distinctive regional identity, with many EU & US spirits protected by geographical indications and distinctive product status such as Irish Whiskey & Bourbon. These products are not commodities, nor can they be produced elsewhere so it would make no sense.”
Michael McKay, Achill Island Distillery
How has the last 12 months been for you – what are the challenges you have faced as a craft distiller, how have your costs been affected by the economic crisis?
Are smaller distillers like yourselves better placed to survive the current crisis in whiskey sales?
“An unprecedented increase to the cost of production (Barrels Malt and Energy) in 2024 was a challenging period to negotiate. But this was a universal problem for all distilleries.
Malt and barrel prices, while still high are showing signs of coming down in 2025 which is welcome. Having been in the Industry for over ten years we were in the fortunate position of having mature stock to lean on. If we were just starting out as a craft Distillery during this volatile period things would have been a lot more difficult to sustain.
“Outside of the cost increases, 2024 was great year for the Distillery in terms of brand development & sales. We released over 13 new products across our Achill Island Distillers & IrishAmerican range. Single Malt Whiskeys, Single Pot Still Whiskey Vodka, Gin & Poitín.
“Sales – while the fanfare around Irish Whiskey has calmed somewhat and the appetite for high priced craft releases has softened, we had our best year in sales in 2024.
We began export of our Achill Island line of products into Europe and started airport sales in Ireland. The Distillery established a new partnership with the Waldemar Behn Group in 2024 which brought our IrishAmerican range of products to travel retail on a global scale.
The tourism trade, given our location has been a massive plus and we are seeing sales recover back to pre-Covid levels this year on Achill Island.”
What trends do you see coming in 2025 – both in terms of whiskey styles and consumer habits? What markets are you focussing on?
How are your peated products received given the perception that Irish is unpeated?
“We expect to see the continued emergence of Pot Still Irish Whiskey in 2025. This style has gained increased recognition over the last few years & with more distilleries contributing, the choice is is expanding. I think consumers will be more price sensitive and it will be age statements that will encourage people to spend on premium whiskeys.
“I believe the popularity of Peated Irish Whiskey is increasing all the time. We started a Single Malt peated expression at cask strength as a small side project to see how it would go and it’s quickly become one of our best sellers. Our Cask Strength Peated Irish whiskey has ”a romantic smell and feels like Ireland in a bottle” to quote one customer.
“In 2025 we are focusing on international travel retail our USA Market and also the Asian market. We will be releasing our Founder’s Reserve IrishAmerican 21 Year old Single Malt in the next few months. This is the 2nd instalment of our Founders Reserve series. Named after our Founder and Father John McKay, all the whiskeys from this Series are from his personal collection of vintage Whiskey casks. This 21 year old Single Malt is aged in Bourbon casks for 21 years and finished in Olorosso Sherry, bottled at 47% abv.
“We have also been developing a new brand for the USA market over the last couple of years – San Patricios. This is an exciting new concept we launched in Boston Jan 2024.
San Patricios is a seven year old Single Malt Irish Whiskey finished in Tequila and Mezcal Casks and bottled at 50% abv. Inspired by the 200 Irish Volunteers who fought for Mexico in the Mexican-American war of 1846-48 known as the San Patricios. These 2 nations are joining forces once again in this remarkably smooth Irish Whiskey with a Latin influence.
A unique 7 year old Single Malt Irish Whiskey aged in Bourbon, Tequila and Mezcal Casks. Finished in the finest Anejo Tequila & Mezcal casks from the regions of Jalisco and Oaxaca Mexico. The perfect marriage of Tequila and Whiskey. San Patricios is a full bodied Single Malt Irish Whiskey, sweet cinnamon Bourbon notes. Developing herbal Agave flavours & balanced with a delicate smokey Mezcal finish.”
With your focus on America are you concerned about the possibility of tariffs under a Trump presidency?
“Yes it is a concern, but the last time there was tariffs imposed Irish Whiskey was lucky enough to dodge the bullet. Hopefully it is the same this time.”
Morgan Ging, Ballykeefe Farm Distillery
How has the last 12 months been for Ballykeefe, has the distillery been protected from the cost of living/cost of distilling crisis by virtue of being a farm distillery, or has that made it harder?
“The past year has been a year of expansion to new markets particularly the USA. We have invested considerable time and resources building relationships in the on and off trade with our phenomenal partner MISA imports. The old adage of the necessity to get “liquid on the lips” of as many as possible is starting to show results, as more and more people get to taste the “Wow factor” of our field to glass spirits. Being an on farm distillery we have been protected from many inflation costs on inputs such as cost of barley, however we have not been spared the soaring increase in energy costs of gas and electricity. Being a small family business, we are spared many of the costs of the big corporates and to protect our value for money reputation in the market place we have not raised pricing to our customers, preferring to cut marketing budgets and rely on awards and word of mouth and social media instead. Economically it is a tough time for all families and as farmers we have a lot of practice in surviving the lean years, as our grandmother so often said “live horse and you will get grass”.”
Where do you see the next 12 months taking the Irish whiskey category as a whole and Ballykeefe in particular – what trends are you keeping an eye on, if any?
“We feel very lucky to be part of the Irish Whiskey category which has been on an impressive growth trajectory and which the experts predict will continue. We take nothing for granted for ourselves, we are on a long journey with modest resources to build our brand in a very competitive marketplace. But we knew this from the outset and have remained faithful to our original vision of creating whiskies that add value to the category, not just in ultra-premium quality, but also as a uniquely 100% field to glass family farm distillery. We see a clear trend where many consumers are not only looking for a great tasting whiskey, but are also focused on the source of the ingredients, environmental credentials and the degree of craft involved in the production. At Ballykeefe we love what we do, therefore we enter 2025 with a lot of excitement and anticipation. One of the most exciting and visible changes this year will be our first branding refresh to better communicate our story though the labels on our bottles. We also eagerly anticipate another very busy year of visitors to our distillery, building a network of new friends from across the globe is most definitely one of the highlights of being in this business.”
Comment from the Irish Whiskey Association
How has the last 12 months been for IWA members?
“We were heartened to see the recent Bord Bia report which saw the export value of Irish Whiskey recover well in 2024. That said, there are significant headwinds for all Irish Whiskey producers at home and abroad. Our membership still has to contend with inflation, increase in the cost-of-living and cost-of-business, supply chain pressures and changes in consumer preferences and behaviour. Irish Whiskey is a high-quality, premium product and our increase in export value is testament to the hard work and innovation of our Irish Whiskey companies. Looking to 2025, we need to ensure government support and continued investment in state agencies, along with facilitating a business and policy environment conducive to growth to copper-fasten the achievements our sector has made.”
What is the current status with the technical file and any planned edits – how will these change the way Irish whiskey is made?
“In terms of the Technical File, the Irish Whiskey Association is among the stakeholders currently in consultation with the Department of Agriculture regarding the proposed edits to the File. It is envisaged that these changes will be referred for public consultation this year, which will inform the Department’s consideration of the matter. The main proposal is to expand the definition of Pot Still Irish Whiskey to allow for higher levels of oats, wheat or rye to be used which will greatly enhance the Pot Still category by broadening the potential grains’ taste profile and allowing more of a unique Irish Pot Still selling point. This will also align the current definition with the true history of Pot Still Irish Whiskey.”
Triple Distilled Communications 