The export value of Irish spirits dropped 9.3% in 2023 in 120 global countries to €1.32bn ($1.44bn), new data shows.
Findings collected by Eurostat together with the Drinks Ireland trade body indicate this is the first time global export values have declined since 2020 when they slumped 15.9% to €1.26bn.
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The drop, Drinks Ireland said in its 2023 report, is linked to “higher inflation driving higher interest rates leading to weaker consumer spending, and businesses being more careful on the amount of stock they hold.
“We cannot afford to be complacent about growth in the spirits export sector. While still robust, Irish spirits needs support and promotion to continue its positive trajectory.”
Commenting on the findings, Aengus King, director at the spirits division of Drinks Ireland said: “The spirits sector in Ireland is strong and outward-looking, and despite a tough 2023, remains optimistic for the future.”
When it came to imports, the value of US bourbon and whiskey to Ireland saw a significant 55.8% jump to €5.3bn, according to Eurostat figures.
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By GlobalDataIn 2018, EU tariffs of 25% were applied to US whiskey and bourbon imports as a result of US duty being applied to European steel and aluminium goods.
In July 2021, the duty was increased to 50%, but temporarily postponed later that year in return for increased quotes on EU aluminium and steel products from 1 January 2022.
Drinks Ireland said: “It remains to be seen if this can be satisfactorily resolved or extend the current suspension of tariffs for a further period. However, failure to see a resolution to this dispute would raise fears of seeing the reintroduction of EU tariffs on American Whiskey and Bourbon imports in 2025.”
According to figures from the national Revenue Commissioners in the report, spirits held the largest share of excise duty paid in Ireland's alcohol industry in 2023, at 32.6%, a 2.3% decrease on the year prior.
The country booked the third highest spirits excise rates in the EU in 2023, Spirits Europe findings show, at €4,257 per hectolitre of alcohol.
