Irish whiskey sales to US ‘could outstrip Scotch this decade’

The remarkable rise coincided with crippling 25% tariffs introduced by the US Government on Scotch as part of a bitter trade war retaliation against EU subsidies given to aircraft maker Airbus.

It has also led the Irish Whiskey Association to claim sales could soon outstrip Scotch for the first time since the days of Prohibition.

While Irish sales are still far below combined sales for Scotch blended whisky and single malt which total $2.59bn, the product’s growth in the US market has soared in recent years, with revenue booming from $74m in 2003 to £1.1bn in 2019, an increase of 1335.5%.

In the year following the imposition of 25% Scotch tariff in 2019, its imports plummeted by 37%, while a decade of steady increases for Irish whiskey sales have seen its sales to the US soar by 97%.

Irish Whiskey Association director William Lavelle said: “With more supply coming available of age-statement, super-premium brands – from both established and newer distilleries – it is clear that Irish whiskey is going to be an increasingly competitive player in the higher-end whiskey market, taking on Scotch single malts

“Irish whiskey sales in the US have been and continue to grow a much faster rate than the growth being experienced by all Scotch. On the basis of these trends, sales of Irish whiskey could overtake sales of all Scotch in the US in the current decade.”

Prohibition took effect in America in January 1920, when the production, importation, transportation and sale of alcoholic beverages was outlawed for the next 13 years.

However, the rule had little impact on Scotch whisky exports, which declined by just 3% during Prohibition as producers found new ways of ‘spiriting’ their product across the US border.

By the time Prohibition had ended, the United States accounted for more than 60% of Scotch whisky’s overseas market.