Whisky Business: City AM’s monthly look at the world of whisky.
Today, Scotland is the world’s go-to destination for whisky, but back in the 19th century, Irish whisky (the ‘e’ in Irish whiskey wasn’t universal until the latter half of the 1990s), not Scotch, dominated the global market.
By the late 1800s, Irish distillers had the capacity to produce 5m gallons of whisky a year, 70 per cent of the world market. The largest Scottish distiller at the time, Glenlivet, could only produce 200,000 gallons.
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Over the next 100 years, several factors helped Scottish distillers capture an increasing share of the market. The Scots discovered it was cheaper to produce whisky by blending single malts with much cheaper grain whiskys, which helped broaden the drink’s appeal.
Then, the perfect storm of prohibition in the US, Irish independence, the First World War, and government backing helped the Scottish distillers overtake their Irish cousins.
The decline was so severe that by 1975 just two distilleries were still operating in Ireland. One of these was Irish Distillers. Formed in 1966 via the merger of John Jameson, Powers, and the Cork Distilleries Company, two of the sector’s most storied names, in 1988, it was acquired by Pernod Ricard.
A new beginning
Pernod’s entry into the market, coupled with the opening of the Cooley Distillery in 1987, the first new independent distillery in Ireland in over 100 years, is widely thought to be the turning point in the country’s fortunes as a major player in the world of whisky.
The main difference between Scotch whisky and Irish whiskey is the distillation process. Scotch whisky is distilled twice, while Irish whiskey undergoes triple distillation. The extra step can give a lighter drink, which typically has a smoother flavour. Some Scottish distilleries have also adopted this triple-distilled approach.
Normally, Scotch whisky is made from malted barley or a combination of malted barley and other grains, such as wheat or corn, whereas Irish whiskey can be made from any combination of cereal grains.
Scotch whisky can also be heavily peated, whereas Irish whiskey uses little or no peat. Scotch must mature in oak for at least three years.
A benchmark year
Last year was a benchmark year for the Irish whiskey industry. Irish trade development agency Bord Bia’s Export Performance and Prospects Report 2024-2025 pegged the total value of exports at €1bn. Exports hit this benchmark for the first time in 2022 but experienced a sudden slump in 2022.
Exports to the US (approximately 40 per cent of the category) rose by 11 per cent, while shipments to Canada grew by around 29 per cent. Other markets, including South Africa, Japan and Australia all recorded growth of 20 per cent or more, albeit from a small base.
However, against this backdrop, clouds are starting to form over the sector. Donald Trump’s global trade war could upend both the Scotch and Irish whisky markets, and consumer demand seems to be waning in the face of economic uncertainty and inflation.
There’s been a wave of distillery pauses in the past few months. In the first week of March, Pernod Ricard announced that its Irish whiskey arm would halt production at Midleton Distillery in County Cork from April until summer as part of a “routine, periodic review” into production schedules.
Diageo and Brown-Forman have also paused production at their distilleries this year. Diageo paused output at one of its Kentucky distilleries and Brown-Forman mothballed its Scotch distillery Glenglassaugh earlier this year. All have cited increased productivity as the reason behind the pauses, but the stoppages have only led to speculation about the state of the industry.
Still, when it comes to tourism, the interest in Irish whiskey is booming. There are now more than 30 distillery and brewery visitor-experience centres in Ireland.
Trade body the Irish Whiskey Association (IWA) revealed that Ireland’s whiskey distilleries (members of the IWA) welcomed 817,466 tourists from June 2023 to June 2024 – a rise of 18 per cent on the previous 12 months, with each tourist spending an average of €42.57.
Despite the building clouds, it’s fair to say there’s lots to be excited about in the world of Irish whiskey.
Three whiskeys for St. Patrick’s Day
The blended one
Dunville’s 1808 Blended Irish Whiskey £36.50
A modern, blended Irish whiskey from Northern Irish distillery Dunville’s, 1808 is a bold combination of grain, malt and pot still whiskey. It has a fruity, spicy character with aromas of creamy vanilla, crunchy apples, pears, lemon curd and lemon zest.
The wild card
Method & Madness Hickory Wood Finish £99.95
Single Pot Still Irish Whiskey aged in ex-bourbon and ex-sherry casks is finished in hickory wood casks. This gives the whiskey a delicious nose of soft smoke, cured meats and honeycomb and cacao nibs, salted caramel and smoked almonds on the palate.
The complex one
Powers Small Batch 2005 £195
This limited-edition 17-year-old Powers Irish whiskey was drawn from five refill bourbon barrels laid down in 2005 to create a light and spirit-led whiskey with finesse and character. This exclusive from The Whisky Exchange provides soft fruits and delicate spices.