Irish whiskey demand grows globally, but supply chain issues hurt industry: Report

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The demand for Irish whiskeys has grown internationally, but the industry is being adversely affected due to the long-standing issue of supply chain delays, as per the Irish Whiskey Global Report 2022.

A record 14 million cases of Irish whiskey were sold around the world in 2021, an increase of 21 percent compared to 2020, industry body Drinks Ireland said in a press release issued on October 26, citing the report.

Russia and Ukraine cumulatively accounted for seven percent of all Irish whiskey sales in 2021, leaving a likely negative impact on global sales in 2022, it noted.

India, Nigeria and China have been identified as emerging markets to watch for future export growth, the release added.

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Supply chain issues hit output

Around 92 percent of Irish whiskey producers, who were surveyed in the report, said supply chain delays "negatively impacted on their recent production output and will likely impact future production output".

Two-thirds of respondents strongly agreed that increased delays in the delivery of materials had resulted in delays to the launch of new products, Drinks Ireland said.

"Seventy-eight percent of producers have switched suppliers to secure a more sustainable or resilient supply chain," it noted.

Increases in malt prices, energy and general business costs and delays in international shipping are "among the most serious supply chain concerns identified by industry", the release further said.

William Lavelle, Director of the Irish Whiskey Association, which prepared the report, said Irish whiskey exports will "grow again strongly in 2022".

“However, Irish whiskey is facing many serious international trade and supply chain challenges, and the fact is that not all brands will grow this year. It is notable that the reported supply chain difficulties are being experienced equally by both large and small producers, and it is likely that the serious impacts will be felt hardest by SME producers," Lavelle added.