Cutbacks in production at big Offaly distillery

WHISKEY production is to cease at Tullamore Distillery for up to three months this year amid challenging conditions internationally for the Tullamore D.E.W. brand.

Local sources indicated this week that three of the nine stills at the distillery in Clonminch will initially pause production, followed by another three for a further three months.

The Tullamore Tribune has been told the decision to suspend distillation was taken before US President Donald Trump's announcement of a 20% tariff on goods imports from the European Union.

Tullamore D.E.W. is the second best selling Irish whiskey globally after Jameson but says it is number one in a number of markets, including some European countries.

Industry observers have been speaking about a potential glut of whiskey supply worldwide since last year, along with concern about tariffs imposed by the US.

Irish whiskey being sold in America has been placed at a disadvantage compared to Scotch because the UK is subject to a 10% tariff.

Tullamore D.E.W. is owned by Scottish spirits producer William Grant & Sons, known for brands such as Glenfiddich scotch and Hendrick's gin.

After purchasing the Tullamore D.E.W. brand in 2010 William Grant & Sons opened a new distillery in Tullamore in 2014 and has been expanding it for the last 10 years.

There are an estimated 55,000 casks of whiskey maturing in up to 12 warehouses on the 60-acre Tullamore site but local sources have said construction work on further warehousing has also been stopped.

About 100 people work at Tullamore D.E.W. but because many are employed in the bottling plant rather than production and distillation, the impact of this year's decisions on worker numbers might be limited.

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According to its latest accounts, William Grant & Sons Irish Manufacturing Ltd, the Tullamore-based arm of the group, made after-tax profits of €3.277 million for the year ending 2023, up from €3.121 million the previous year.

Turnover jumped from €34.465 million to €49.044 million. There were 96 employees and the total wage bill was just over €5 million.

The financial statements for 2023 valued casks at €38.9 million but work in progress was worth €139.752 million.

The financial statements also refer to assets under construction worth €3.748 million.

Other than confirming that three of the stills at Tullamore Distillery will initially pause production, William Grant & Sons had no comment to make when contacted by the Tullamore Tribune.