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Irish Whiskey Sees Opportunity As American Whiskey Faces Challenges


Irish Whiskey Sees Opportunity As American Whiskey Faces Challenges

Forbes contributors publish independent expert analyses and insights.

The American whiskey industry has faced tough times recently, with large players announcing cutbacks. Major producer Brown-Forman recently laid off employees, and MGP, a key distiller, has scaled down production this year. Meanwhile, a new report from the Distilled Spirits Council shows that the category suffered a 1.8% revenue decline from 2023 to 2024.

Across the Atlantic, however, the outlook is more positive. The same report showed that Irish whiskey sales in the U.S. were up by 1.8%, making it the fourth fastest-growing spirit by revenue. Another DSC report shows "high-end premium" and "super-premium" Irish whiskey have grown 816% and 1,874% since 2003.

For Irish distiller The Muff Liquor Company, this momentum presents an opportunity to expand into the U.S. market. Based in the town of Muff in County Donegal, the distillery officially launched in the U.S. in February, with products available in 31 states.

"My first American order was roughly 30,000 cases," said president and founder of The Muff, Laura Bonner, in a Zoom interview. "That was nearly my global sales for last year."

While The Muff also produces gin and vodka -- the former considered their "hero product" for the rest of the world -- Bonner said that Irish whiskey holds a unique appeal for American consumers.

"Over the years, looking at Irish as a brand itself, we're associated with heritage, craft production, and really good products," she said. "I think it resonates really well with Americans, the Irishness -- and we produce really good whiskey."

Another player in the Irish whiskey expansion is Boann Distillery, based roughly 30 miles outside Dublin in County Meath. Boann has sold Irish whiskey in the U.S. since 2020 under their imprint The Whistler. This year, the company introduced a premium line of single pot still whiskeys fully under the Boann name, a process that took more time than they might have liked.

"America is kind of slow to get stuff moving," said cofounder Peter Cooney via Zoom. "You have all those rules and regulations with the Alcohol and Tobacco Tax and Trade Bureau, and it's busy -- everyone's there, everyone wants to be there, and it's hard to get shelf space."

To navigate these challenges, Boann has adopted a focused strategy.

"We're specifically focusing on 10 key states," Cooney said. "We're at a higher price point, so we really need to meet the right consumer."

Newcomers like The Muff and Boann are positioning themselves as premium craft alternatives to category giants like Jameson, which commanded over 70% of Irish whiskey sales in 2023, according to a Shanken's Impact Databank report. The Muff emphasizes its potato-based spirits heritage, while Boann leverages the single pot still expressions and custom cask programs to differentiate.

Looking ahead, Cooney sees two major opportunities for Irish whiskey in the U.S.: a knowledgeable consumer base and potential tariff advantages.

"Americans, they just love whiskey," Cooney said, "and more importantly, they understand what a mash bill is."

On the trade front, Irish whiskey may become party to the reinstatement of European Union tariffs on American bourbon. These tariffs were originally imposed in retaliation for U.S. steel and aluminum tariffs during the first Trump administration, but were suspended in 2021. They are now set to return on March 31 at an increased 50% rate unless the original tariff issue is resolved, which seems improbable given the larger state of trade negotiations. There are also lingering U.S. and EU tariffs on distilled spirits and wines that may reinstate themselves in July 2026 as a result of an international dispute between Boeing and Airbus in 2021.

As the tit-for-tat continues to escalate, Cooney said that it'll certainly cause issues -- but he's also hoping that Irish whiskey might fly under the radar, as the category did in the previous bout.

"The last time we were faced with these, the tariffs were done in a broad-brush fashion, and Irish whiskey was not part of that broad brush. The tariff was on U.K. single malt -- Northern Ireland was affected, but the Republic of Ireland wasn't," Cooney said.

"Will that broad brush stroke happen again and will Ireland get off lightly? That's a massive opportunity for us."

As American spirits consumption continues its shift toward premium and craft offerings, Irish whiskey appears poised to capitalize on both market dynamics and potential policy advantages in a way that could permanently alter its standing in the U.S. spirits hierarchy.

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