The Times reported on Sunday that Irish Distillers, the parent company behind Jameson and some of the biggest names in Irish whiskey, is temporarily halting production. The move on behalf of Irish Distillers points to worrying signs of a global slowdown within the beverage industry at large.
“The distillery will temporarily pause production in early April and will recommence in the summer to support the sustainable global growth of its portfolio of Irish whiskeys,” a spokesperson for Irish Distillers said according to Global Drinks-Intel. “We remain fully committed to the production of Irish whiskey at Midleton Distillery and have communicated this adjustment to our staff, suppliers, customers and contractors to enable forward business planning.”
In addition to the production pause, the Pernod Ricard-owned brand shared it was rolling back the deadline on a major £250 million ($325 million) expansion project for a new distillery. The Times reported that the facilities were initially expected to be completed and fully operational in 2025. Irish Distillers claimed its new project would bring approximately 100 jobs to the area, yet that all appears to be on pause — for now.
Despite the shifting deadline, Irish Distillers shared with The Times it was “absolutely committed” to completing the distillery and providing “sustainable global growth” to its portfolio, which is a robust one indeed. In addition to marquee whiskey brands like Jameson, Irish Distillers is the parent company behind Redbreast, Midleton Very Rare, Spot Whiskeys and Method and Madness.
How Whiskey Brands are Adjusting to an Industry Slowdown
Tariffs, shifting consumer preferences, the rise of sober curiosity and a potential recession looming on the horizon have forced many major spirits brands like Irish Distillers to reassess their priorities.
In early March, the Drinks Report announced that Diageo would pause barrel filling at its facility in Lebanon, Kentucky until June. The facility is a part of the production process for Bulleit Bourbon. Yet the major spirits supplier shared that such an initiative was fairly routine, and the goal was to promote efficiency.
“During this time, some of our employees will support work at our Shelbyville facility while the remaining group of employees will work on strategic projects, conduct trainings to continue building capabilities and maintenance processes to position our sites for a successful start of our next fiscal year.”
Though large brands like Irish Distillers and Diageo have chosen to scale back, others have not been so lucky.
In November, The Irish Times broke the news that Waterford Whisky filed for bankruptcy. The critically-acclaimed Irish whiskey brand was founded by spirits veteran, Mark Reynier. Reynier brought Bruichladdich distillery back to life in 2001 and founded Renegade Rum. Reynier shared that a series of financial pressures due to high costs of living in a post-pandemic world were to blame for Waterford’s financial woes, according to Whisky Magazine.
“The market is brutal right now,” Reynier said according to Whisky Magazine. “Established players can afford to flood the market with cheap whisky to hit targets, but that breaks it for everyone else. Smaller players like us are left to pick up the pieces.”
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