The Spirits Business reported on Tuesday that Tullamore is cutting production to three out of its nine stills for approximately three months, according to the outlet. Three additional stills will be paused later in the year.
“There are a couple of machines closed down temporarily at this time of year,” said Councillor Declan Harvey at an April Municipal District Meeting according to the outlet. “It’s an ongoing thing; there are no job losses. Staff out there will get their increases and wages. They are hoping to expand this year again.”
Yet Sinn Féin Councillor for Tullamore Aoife Masterson appears to have different feelings. Masterson referred to the move as “a devastating blow that will result in immense stress and uncertainty for many.”
Tullamore’s recent cutbacks are just one aspect of a broader shift within the whiskey industry, and it’s by far not the first major Irish distillery to lower its production capacity. In March, Irish Distillers announced it would temporarily halt production and pick things back up in the summer. Irish Distillers is the major parent company behind Jameson Irish Whiskey.
“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,” an Irish Distillers Spokesperson said in a statement 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.”
It appears the situation with Tullamore and Irish Distillers are examples of major distilleries feeling the brunt of a challenging landscape.
A lot of spirits suppliers have been scaling back however they can, and unfortunately, smaller whiskey businesses have felt the brunt of the fallout. Diageo announced it would stop investing in independent fledgling brands through its Distill Ventures Accelerator in March, and The Spirits Business reported the move led to job losses. The loss of funding additionally led to smaller brands like Westward Whiskey filing for Chapter 11 Bankruptcy and having to restructure after parting ways with the spirits giant.
“I think Diageo is making decisions that they feel they need to make for their overall business, and I think it makes a lot of sense that they need to focus their attention and resources on their larger brands,” said Founder and CEO of Westward Whiskey Tom Mooney in an interview. “None of this surprised us, and we’ve done our best to manage this transition.”
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