Jameson Leads A U.S. Groundswell For Irish Whiskey

Long overshadowed by its Scottish neighbor, the Irish whiskey category continues to post eye-catching growth numbers, and key spirits players across the U.S. market are taking note—and getting into the action. The U.S. is by far the largest global market for Irish whiskey—accounting for 40% of worldwide volume.

Irish whiskey depletions jumped by 18% to nearly 3 million cases in the U.S. last year, according to Impact Databank, with Pernod Ricard’s Jameson remaining the undisputed leader.

Jameson leapt by 21% to 2.4 million cases last year in the U.S., where it commands an 81% volume share of the Irish whiskey category. About 45% of Jameson’s global volume is derived from the U.S. market, and Pernod has been actively innovating with new releases to stoke further progress.

“Last year, we launched Jameson Caskmates (aged in craft beer barrels), which has been very well received,” says Sona Bajaria, vice president, high end Irish whiskey, Pernod Ricard USA. “Caskmates ($30) is riding the craft beer trend. And earlier this year we launched Jameson Cooper’s Croze ($70), which is at the higher end of the category.” Pernod tells SND it’s seeing a positive initial response from Cooper’s Croze, which is matured in virgin American oak, seasoned Bourbon and Iberian sherry barrels.

This May, Pernod moved to streamline its expansive Irish whiskey portfolio with the divestment of the Paddy brand to Sazerac. Paddy slipped by 14.6% in the U.S. last year, largely because of the decline in its flavor range, which has lost about half of its volume since debuting a few years ago.

The U.S. category’s second-ranked brand, Bushmills, experienced a 3% volume drop last year to 223,000 cases, but owner Casa Cuervo is laying plans for growth. Late last year it announced a $45 million expansion project at Bushmills’ distillery in County Antrim that will double production capacity.

Meanwhile, third-ranked Tullamore Dew—owned by William Grant & Sons—shot ahead 26.4% last year. Tullamore has been busy on the innovation front, with September’s launch of a Single Malt 14-year-old ($70) and Single Malt 18-year-old ($110). Beam Suntory’s 2 Gingers ($20), which the drinks giant acquired in 2012, was also on the rise last year, growing 5% to nearly 60,000 cases.

U.S. - Top Five Irish Whiskey Brands (thousands of nine-liter case depletions)
Brand	Importer	2014	2015	Percent Change1
Jameson2	Pernod Ricard USA	2,006	2,427	21.0%
Bushmills	Proximo Spirits	230	223	-3.0%
Tullamore Dew	William Grant & Sons USA	147	185	26.4%
2 Gingers	Beam Suntory	55	58	5.0%
Paddy3	Sazerac Co.	32	28	-14.6%
Total Top Five4		2,469	2,920	18.3%
1 based on unrounded data 2 2015 includes Caskmates 3 acquired from Pernod Ricard in May 2016 4 addition of columns may not agree due to rounding Source: IMPACT DATABANK

News Briefs:

•Guarachi Wine Partners has partnered with Italy’s Cielo e Terra to extend the Nobilissima wine range in the U.S. Slated to roll out this January, Nobilissima’s new Prosecco DOC and DOCG Chianti will be available nationwide, retailing at $13 and $15 a 750-ml. bottle, respectively. They join Nobilissima’s existing Pinot Grigio, sourced from the Delle Venezie IGT. Along with Nobilissima, Guarachi Wine Partners markets the Aila, Bodega Norton, Castillo de Monseran, Montes and Santa Ema brands, among others.

•Former Winebow COO Scott Ades has been named president of importer Dalla Terra Winery Direct. He replaces Dave Holt, who will become president emeritus of the company. Napa-based Dalla Terra, with a portfolio focused on Italy, has a business model that it says allows producers to skip the national importer level and sell directly to U.S. distributors.

•Deutsch Family Wine & Spirits has appointed James MacPhail associate winemaker on The Calling brand, its Sonoma County project in partnership with sportscaster Jim Nantz. MacPhail, founder of Sonoma’s MacPhail Wines (owned by Hess Family Wine Estates since 2011), will work with The Calling winemaker Dan Goldfield to further develop the brand’s single vineyard program. The Calling ($30-$65), which sells around 25,000 cases annually, features a Chardonnay and Pinot Noir from the Russian River Valley, a Pinot Noir from the Sonoma Coast and a Cabernet from the Alexander Valley.

Craft Brewing and Distilling News:

•Boston Beer’s Angry Orchard brand has collaborated with Vermont’s Eden Specialty Cider for the release of a new offering, Understood in Motion 01. The new release was pressed from Vermont apples and fermented at Eden’s cidery. It’s a still, semi-sweet cider aged in Calvados barrels for about six months. Understood in Motion 01 (8% abv) is the first entry in a series of collaborative ciders from Angry Orchard, and is available in limited release for about $25 a 750-ml. bottle. The leading cider brand in the U.S., Angry Orchard was up 3% to 15 million cases last year, according to Impact Databank, but declined in the first nine months of 2016.

•Chicago’s Forbidden Root Brewery has linked with Cavalier Distributing to enter Ohio and Florida. Starting this week, Forbidden Root’s core lineup—which includes Money On My Rind witbier, Sublime Ginger wheat and Wildflower Pale Ale—will launch across Ohio bars, restaurants and retail shops. Cavalier will extend the range into Florida by early 2017. Ohio and Florida are joining Illinois, Rhode Island and Massachusetts in the Forbidden Root footprint. Established earlier this year, Forbidden Root specializes in “botanic beer,” inspired by historical recipes and featuring ingredients such as ginger, juniper and elderflower.

•Saint Paul, Minnesota-based Summit Brewing is rolling out an English-style Barleywine Ale as the fourth and final entry in its 30th Anniversary Series. The new beer is brewed with pale malt from Shakopee, Minnesota’s Rahr Malting Co., caramel malt from Chilton, Wisconsin’s Briess Malting and crystal malt from Scotland’s Simpsons Malting Co. Horizon, Equinox, Fuggle and Cascade hops round out the brew, which is fermented and conditioned with a blend of English and Scottish yeast strains. The limited-release Barleywine Ale (11.5% abv) is available in four-packs of 12-ounce bottles and on draft. Summit Brewing’s lineup is currently available in 14 states.

Recently in the News:

• Empire Excoriates Breakthru Offer, Calling It An “Outrageous Publicity Stunt”
• Breakthru Makes Offer For Empire Amid Controversy
• Beam Suntory Chairman Denies Discord With Suntory Holdings As Integration Continues