Written answers

Tuesday, 26 January 2016

Department of Agriculture, Food and the Marine

Industrial Development

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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167. To ask the Minister for Agriculture, Food and the Marine the measures he has taken to promote new entrants to the Irish whiskey sector; and if he will make a statement on the matter. [2766/16]

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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173. To ask the Minister for Agriculture, Food and the Marine his views on the recent economic analysis on the Irish whiskey sector by Dr. Pat Massey which emphasises the need for the establishment of a wholesale whiskey market; and if he will make a statement on the matter. [2757/16]

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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176. To ask the Minister for Agriculture, Food and the Marine if the Irish whiskey industry is utilising its full capacity; and if he will make a statement on the matter. [2765/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 167, 173 and 176 together.

The Irish Whiskey industry is expanding rapidly to meet worldwide demand as Irish whiskey is currently the fastest growing spirit internationally. In 2015 exports recorded double digit growth to reach an estimated €410 million in value. In volume terms exports are likely to rise from 7 million cases in 2014 to 12 million cases by 2020 and 24 million cases by 2030.

In order to meet the international demand for Irish Whiskey there has been significant investment since 2011 both in expansion of existing facilities and development of new distilleries. The number of distilleries has increased from four to twelve and further projects are at planning stage. As whiskey must, in accordance with EU and national law, be matured in wood for a minimum of three years, release of additional capacity on to the market will take time and the product of distillation in 2016 and 2017 will come on the market close to 2020.

I am aware of the recent report by Dr. Pat Massey on the Irish Whiskey sector and the recommendation regarding the development of a wholesale whiskey market, which would allow for the development of Irish Whiskey brands by businesses which do not themselves have distilling capacity. Indeed this was also a recommendation in the Vision for Irish Whiskey published by IBEC and presented to the High Level Implementation Committee for Food Harvest 2020, which I chaired. I accept that there would be merit in the establishment of such a market. I would encourage distillers to consider such a development over time, particularly where it would help to meet the development goals for the sector set out in FoodWise 2025. However I do not have the power to compel Irish distilling companies to set aside a portion of their production for a wholesale market.

Irish whiskey is a recognised EU Geographical Indication and my Department has promoted its inclusion in international bilateral agreements between the European Union and third countries. Bord Bia has actively promoted and supported companies, including new entrants to the sector, with market and consumer insight, branding, international trade shows, Marketplace and routes to market. Enterprise Ireland has funded 5 new entrants in the whiskey sector, not all of which are operational just yet. Enterprise Ireland continues to liaise with its client companies in the sector regarding any support that it can offer within its remit to assist the companies to develop their businesses and create employment in the sector.

I am heartened by the developments in the Irish Whiskey sector since I became Minister for Agriculture, Food and the Marine in 2011 and I with my Department will continue to do all we can to ensure that the world wide demand for Irish Whiskey is met to the fullest extent possible to the benefit of the industry and the Irish economy generally.

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