Midlands/East Regional Irish Whiskey Tourism Strategy May 2017 1
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY EXECUTIVE SUMMARY In 2013, there were four distilleries in operation and five visitor centres on the island. Now there are 16 working distilleries, with another 15 with planning permission and many more projects at various stages of planning. Distilleries are planned for 20 counties across Ireland, including: Antrim, Carlow, Clare, Cork, Derry, Donegal, Down, Dublin, Kerry, Kilkenny, Leitrim, Louth, Mayo, Meath, Offaly, Sligo, Tipperary, Waterford, Westmeath and Wicklow With national and local government support, Irish whiskey tourism has the potential to grow from 653,277 visitors per annum to 1.9 million visitors by 2025, spending an estimated 1.3 billion. 2
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY The growing success of Irish whiskey internationally and an outstanding whiskey visitor performance to date means Ireland has the potential to compete with Scotland and Kentucky to become the world s number one whiskey tourism destination. Irish whiskey distilleries attract premium international tourists. One quarter of visitors to Irish distilleries are American Ireland s highest spending tourists. Irish distilleries also attract significant numbers of German, British, French and other international visitors from its biggest export markets. Irish whiskey tourism is growing significantly faster than total overseas tourism in Ireland, increasing by two thirds since 2010. Irish whiskey acts as a premium global tourism ambassador for Ireland. It is sold in 135 markets around the world, encouraging tourists from these countries to visit Ireland. RECOMMENDATIONS Support the growth of Irish whiskey distilleries and visitor centres Create an Irish whiskey trail and tourism infrastructure around distilleries Develop an all island whiskey tourism product Develop an embassy network of hotels, restaurants and pubs 3
INTRODUCTION The Irish whiskey industry is experiencing a renaissance. Global sales have increased by over 300% in the last ten years and have been growing by double-digits since the mid- 1990s. Exports of Irish whiskey are anticipated to double to 12 million 9 litre cases by 2020 and double again to 24 million 9 litre cases by 2030 with production capacity tripling. Over 1 billion will be invested in Irish whiskey distillery projects between 2010 and 2025. In 2013, there were four distilleries and five visitor centres on the island: that number is now 16 working distilleries with another 15 with planning permission and many more projects at various stages of planning. These distilleries will reach across 20 counties and the majority will have visitor centres to meet the demand of Irish whiskey tourists. With such vast growth, comes the need to understand how the Irish whiskey tourism offering can be best positioned. If the full potential of the industry is realised, Irish whiskey tourism should triple from 653,277 visitors per year to upwards of 1.9 million visitors, spending an estimated 1.3 billion during their stay in Ireland. To realise this potential requires a concerted and collaborative effort by industry, government and its agencies across the island of Ireland to put in place strong support systems and foundations to ensure that Ireland can offer a distinctive Whiskey tourism product with global appeal. Scotland and Kentucky in the USA provide excellent examples of how traditionally less visited regions have developed strong whiskey-related tourism products. This shows the potential opportunity for rural Ireland 4
1.9 million tourists are expected to pass through the doors of Irish whiskey distilleries by 2025 to benefit from the development of Irish whiskey tourism. This report s main objective is to create a shared vision for Irish whiskey tourism which builds on the strong fundamentals already in place and articulates how all stakeholders can best work together to drive the development of an Irish whiskey tourism product of which Ireland can be proud. For example, it is critical that the strategy called for in this report integrates with and supports existing highly successful tourist initiatives such as Ireland s Ancient East and the Wild Atlantic Way inviting tourists on these trails to experience Irish whiskey and its heritage. In doing so, this report recommends an ambitious yet achievable vision for Ireland to be the world leader in whiskey tourism by 2030. Achieving this vision will require focus in four key action areas: 1. Support the growth of Irish whiskey distilleries and visitor centres 2. Develop an all island whiskey tourism product driven by government agencies 3. Create an Irish whiskey trail and tourism infrastructure around distilleries 4. Develop an embassy network of hotels, restaurants and pubs This report seeks to complement the Irish Whiskey Association s Vision for Irish Whiskey strategy, released in 2015. 5
IRISH WHISKEY TOURISM FORECAST According to the Irish Whiskey Association member survey, Irish whiskey tourism has the potential to triple within the next ten years. 1.9 million tourists are expected to pass through the doors of Irish whiskey distilleries by 2025, spending 1.3 billion over the course of their stay. In order to achieve these ambitious but achievable targets, full implementation of an Irish whiskey tourism strategy is required. Table 1. Tourist Visits to whiskey visitor centres 1 2015 2020 2025 1 Tourist Visits to whiskey visitor centres 653,227 1.39 million 1.94 million 2 Whiskey visitor total spend during visit to Ireland 449.6 million 962.9 million 1.337 billion 3 Direct employment in Irish whiskey tourism 160 421 582 4 turnover from tourism 18.9 million 45.8 million 69.7 million 1 Irish Whiskey Association (IWA), Member Survey, June 2016. Spending is calculated on CSO average spend by nationality and the proportion of whiskey tourists by nationality. Central Statistics Office TMA09: Overseas Trips (incl. Expenditure) to Ireland by Area of Residence, Year and Statistic 6
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY DISTILLERIES IN THE MIDLANDS AND EAST WILL SUPPORT APPROXIMATELY 286 JOBS As visitor numbers increase so too will the number of people directly and indirectly employed by the Irish whiskey tourism industry. If the projections of the survey are realised, the number of people directly employed in the tourism parts of Irish whiskey distilleries is expected to triple in coming years, growing from 160 to 582 direct employees by 2025. distilleries estimating that they will generate revenues of approximately 70 million from the tourism element of their business by 2025. 2 The growth of Irish whiskey sales abroad will continue to draw increasing volumes of tourists to Irish distilleries, but if the sector is to reach its full potential it needs to be supported by a dedicated joined up Irish whiskey tourism strategy. The Irish whiskey tourism industry is potentially very lucrative with DISTILLERIES IN THE MIDLANDS & EAST COULD ATTRACT 158,000 VISITORS A YEAR 7
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY DISTILLERIES IN THE MIDLANDS AND EAST ATTRACT INTERNATIONAL TOURISTS FROM THE US, GERMANY, FRANCE, UK Four actions to achieve our vision towns and villages across Ireland while solidifying Irish whiskey s reputation as a premium product. 1. SUPPORT THE GROWTH OF IRISH WHISKEY DISTILLERIES AND VISITOR CENTRES However, government support is essential to ensure that Irish distilleries remain competitive and maximise export and tourism potential. High excise duties for instance mean that Irish whiskey costs more to buy in Ireland than it does abroad, deterring tourists from purchasing whiskey during their trip to Ireland. A bottle of Irish whiskey that costs 42 in Ireland costs just 27 to buy in the United States. Supporting the development of distilleries and their visitor centres will not only help to preserve an ancient craft and restore Ireland s standing in the whiskey world but it will create jobs, generate revenue and attract large numbers of tourists to towns and villages across Ireland. Ireland must capitalise on the growing success and popularity of Irish whiskey abroad by supporting the development of world-class distilleries. This will create jobs, generate revenue and attract large numbers of tourists to Proposals to further restrict spirits advertising in Ireland will likewise make it more difficult for new and 8
emerging distilleries to establish their brand and market visitor centres. Restrictive licensing laws also make it difficult for distilleries to sell their products on site and are a major financial burden for smaller distilleries. 2. DEVELOP AN ALL ISLAND WHISKEY TOURISM PRODUCT The island of Ireland is the only place in the world where Irish whiskey can be legally produced. The ancient craft is a unique part of our shared history and culture, drawing the North and South together. A dedicated all island whiskey tourism offering will draw even more tourists to distilleries across the island and ensure that smaller and new distilleries benefit from the growing success of Irish whiskey abroad. The Kentucky Bourbon Trail encourages people to spend multiple days in the region exploring distilleries and engaging in wider-tourist activities. In Scotland, Scotch distilleries are a major tourism attraction with one in five tourists visiting a distillery. 3. CREATE AN IRISH WHISKEY TRAIL AND TOURISM INFRASTRUCTURE AROUND DISTILLERIES An Irish whiskey trail will showcase the best the industry and our island has to offer, encouraging tourists to visit our world class distilleries. The trail will connect new and existing distilleries around Ireland, making it easier for tourists to visit numerous distilleries. It will encourage tourists and whiskey enthusiasts to broaden their knowledge of Ireland s whiskey heritage and travel the island experiencing new and rare whiskeys. Distilleries act as an anchor in local communities, attracting large volumes of tourists who try other local experiences. The Irish whiskey trail will encourage tourists to spend more time in distillery towns and help to create tourism clusters around each distillery. Bourbon and Scotch distilleries attract more than 2.6 million tourists every year showing that tourists are willing to build entire programmes around visiting distilleries if the infrastructure and incentives are there to encourage it. 4. DEVELOP AN EMBASSY NETWORK OF HOTELS, RESTAURANTS AND PUBS A hospitality embassy network connected to the Irish whiskey trail will make it easier for visitors to undertake specialist whiskey tours, while extending the benefits of whiskey tourism to local businesses. The embassy network will benefit hotels, restaurants and pubs in distillery towns, helping to drive hundreds of thousands of additional tourists through their doors. 9
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY IRELAND S MIDLANDS AND EAST HAS FOUR DISTILLERIES IN OPERATION, SOON THERE WILL BE SIX Cooley Great Northern Tullamore Kilbeggan Slane Boann REGIONAL SNAPSHOT MIDLANDS/EAST international visitors to the Midlands and East bringing vital revenue and jobs to the region. The Irish whiskey revolution is gathering pace in the Midlands and Eastern regions of the country. Recognising the potential for whiskey and tourism, Tullamore D.E.W Old Bonded Warehouse and Kilbeggan have already opened visitor centres attracting 104,000 tourists every year. Slane will open its visitor centre in August 2017 and Boann in Drogheda will open its visitor centre in 2018, both of whom expect to attract thousands of visitors. Great Northern and Cooley do not currently have plans for a whiskey tourism offering, but both distilleries play an important role in Ireland s whiskey heritage. Until recently there were just two distilleries in operation in this part of the country. There are now four Irish whiskey distilleries in production and soon there will be six spread across counties Louth, Meath, Offaly and Westmeath. As well as producing Irish whiskey, these distilleries are positioning themselves as key tourist attractions and expect to draw thousands of 10
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY Cooley Great Northern Kilbeggan Boann Slane Tullamore DISTILLERIES of the MIDLANDS AND EAST Boann, Co Meath Boann distillery is based in the heart of the Boyne Valley. The 20 million Drogheda based facility includes a whiskey distillery, a craft brewery and a taproom. will include a 120 seater restaurant, a whiskey bar, a private event space and a gift shop. Boann s visitor centre is due to open in 2018. The centre will host distillery and brewery tours, and The distillery is expected to create 80 jobs in the local area and visitor centre is expected to have a wider impact on employment in the hospitality sector in the local community. Last winter, Boann unveiled its debut range of Irish whiskey called The Whistler, which consists of two 7 Year single malts and a 10 year single malt. The whiskeys are aged in bourbon barrels before being transferred to hand selected Oloroso sherry casks for the last two years. 11
Cooley, Co Louth Cooley is nestled in the foothills of the Cooley Mountains and is one of Ireland s longest standing distilleries. Built by the State in 1939, it went on to become Ireland s first independent distillery, focusing on developing a range of Irish whiskey brands for export. In 2012, Beam Inc, the 4th largest spirits company in the world, purchased Cooley, securing the future of distilling and jobs in Cooley. Beam Inc invested 3 million in upgrading the Cooley and Kilbeggan distilleries. This investment has continued at approximately 2 million per year since 2012. In 2014, Beam Inc was acquired by the Japanese family owned corporation, Suntory Holdings. Since then, Cooley is owned by its subsidiary, Beam Suntory. Cooley has experienced exceptional growth in recent years and it is expected that it will grow an additional 10% in the coming year. Although Cooley does not have a visitor centre at present it has contributed to employment in the region and is responsible for supporting 42 direct jobs. The distillery produces a variety of Irish whiskeys including malt, grain and peated malt whiskey. At present 95% of Cooley s whiskies are exported abroad helping to grow Irish whiskey s international fan base. 12
Great Northern, Co Louth Great Northern (GND) is distilling in Dundalk since mid-2015. The distillery has a large visitor centre which has yet to be opened to the public. Set on the site of the former Harper Brewery, the distillery already employs 27 people in the local area. Formed by the Teeling family and partners, it comprises two large distilleries one pot still making malt and the other column distillery making grain whiskey. The first Irish whiskey will be ready for sale in September next year. GND is laying down 1,000 barrels of new make spirit every 5 days. The distilleries produce the full range of Irish Whiskey including Grain, Double Distilled Malt, Triple Distilled Malt and Pot Still. 13
Kilbeggan, Co Westmeath Dating back to 1757 the Kilbeggan is the oldest licensed distillery in Ireland. Kilbeggan is now owned by Cooley. Situated on the River Brosna, the distillery attracted 67,000 tourists in 2016 and it expects to draw even more tourists to the region in the future. Tours of the distillery are available to visitors, and it also has a shop and bar on site to allow tourists to sample the whiskeys. During the tour visitors discover how Irish whiskey was made in decades past and it gives tourists an insight into the families that owned the distillery in the past and the importance of local community to the distillery. Kilbeggan is particularly popular with tourists from the US and Germany. Many of these tourists are whiskey enthusiasts, travelling around Ireland visiting different distilleries. The distillery attracts tourists year round and helps to support 15 jobs in the local community. The company creates many Irish whiskeys including blended, single malt, single grain, peated and malt. It exports worldwide helping to attract international tourists. 14
Slane, Co Meath Slane is located on the grounds of Slane, the ancestral home to the Conyngham family since 1703. This project at Ireland s historic Slane is the first new distillery to be built outside of the US by iconic American drinks company Brown-Forman who count Jack Daniel s and Woodford Reserve in their portfolio. Slane is contained within the 18th Century stable yards of the castle and will open to the public in August 2017. It will offer a range of different tiered guided tours and includes two whiskey bars and a retail offering. The distillery is working in close partnership with Slane to create combined tours for visitors. Tying in with the distillery opening, Slane is also launching the Gandon Room Restaurant and Browne s Bar which will serve local and seasonal food and drink. Between the distillery and the castle, this will create jobs for over 30 full time employees. Slane will produce Pot Still, Grain and Malt whiskeys and has recently launched its first product: Slane Irish Whiskey - a Triple Casked blend using Virgin American Oak, Seasoned and Oloroso Sherry casks. 15
The Tullamore D.E.W. Old Bonded Warehouse and the Tullamore, Co Offaly The Tullamore D.E.W. Old Bonded Warehouse is Tullamore D.E.W. s visitor experience located on the banks of the Grand Canal in the town of Tullamore. With a range of three unique whiskey tours to choose from, the Old Bonded Warehouse attracts thousands of visitors from around the world every year to visit the home of Tullamore D.E.W. and to share in the brand s heritage. Visitors can also enjoy dishes of imagination and flair, combining the finest local ingredients with a warm and atmospheric eating experience at The Bond restaurant. Named the Best Whiskey Tourism Innovation 2015 by The Sunday Business Post, the Tullamore D.E.W. Old Bonded Warehouse welcomes over 38,000 guests annually from around the globe. One in four visitors are from the US and it is also hugely popular with tourists from Germany, France and the UK. Tullamore D.E.W. is an integral part of the community employing 92 people in Tullamore, Co. Offaly. It also works in partnership with the local hospitality industry to maximise the region s tourism offering. The Tullamore is currently undergoing a 25 million expansion plan which will see the opening of a grain distillery and a new bottling facility in 2017. Tullamore D.E.W. is the world s second largest Irish whiskey brand producing Irish pot still, Irish malt and Irish grain whiskeys with global sales of more than 12 million bottles annually. 16
MIDLANDS/EAST REGIONAL IRISH WHISKEY TOURISM STRATEGY 17
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Irish Whiskey Association, 84/86 Lower Baggot Street, Dublin 2. www.irishwhiskeyassociation.ie