Whiskey: The Irish comeback

IT IS fitting, considering the myths and legends of the Emerald Isle, that Irish whiskey can be aptly described as a 'sleeping giant'.

While this giant has roared and rampaged in the US and other markets, here he has long lain dormant in the on-trade. However, major players are questioning whether the giant is about to wake. Changing consumer tastes, plus marketing muscle, could provide a shot of adrenaline into his broad arms.

It is strange to think that Ireland, a nation renowned for the craic of drinking, has only three operational distilleries, with only one of them - Bushmills - open to visitors. In the mid-1970s, there were only two, and there were worries of a mono-poly, with Irish Distillers owning both of them.

However, the market was finally shaken when Pernod Ricard acquired Irish Distillers (owner of Jameson) in 1988, and then stirred when Diageo bought Bushmills from Pernod in 2005. This has kick-started the sector.

In the US and other notable countries including Spain and South Africa, the giant is now a bit of a bad boy rapper, having gained a fashionable 'bling' reputation. The Irish whiskey market in America has doubled over the last seven years, and is growing at 20 per cent a year.

In the UK, however, faced with stiff competition from scotch and bourbon, Irish whiskey has somehow missed out. Compared to their promotion of other varieties, Pernod and Diageo were accused of neglecting the Irish.

That is, until the recent arrival of new marketing campaigns that Jameson and Bushmills say will imbue the sector with new impetus. In September, Bushmills got a new-look label and £500,000 marketing investment. Meanwhile, Pernod's 'Beyond the Obvious' TV campaign for Jameson is ongoing and it has driven a Jameson & Ginger mix in a bid to attract younger drinkers.

Will this be enough to rouse the giant? As John Teeling, chairman of independent Irish-owned distillery Cooley, says: "This is a sector that is doing nothing [in the UK]. You've got to ask why is it that?"

Pernod's and Diageo's marketing campaigns are both designed to appeal to drinkers in their 20s and 30s. John sees this as coming into line with America. There, he says, branded specialist whiskey is perceived by young people as a fashionable drink.

Tough to crack

However, he says "the UK market has been much tougher to crack". Here, whiskey is generally the preserve of older drinkers. He believes that the signs are good from Pernod's activities in the markets it has so far prioritised. "I would put the bulk of Irish whiskey's movement down to Pernod. It has developed Jameson into a world-class brand," he says.

"The French introduced flair in packaging, and good marketing. They removed Jameson from its association with Irish coffee and faux-Irish pubs, and sold it as a mainstream premium whiskey."

Candice Burton, Bushmills senior brand manager, says Diageo had been biding its time since acquiring Bushmills. "We have built a brand architecture since buying it - the trademark, the packaging. We are firing on all cylinders now," she says.

It is basing the campaign around what it believes are the category's key selling points. These are its associations with masculinity, provenance, sociability, true Irishness and smoothness.

Sara Jolly, Jameson's marketing manger, has held back from the UK relative to the US because of "the strong role played by scotch". She is confident, though, in the power of its latest advertising.

According to John, the reason for Pernod's reluctance to push Irish whiskey in the UK is the attitude of large retail chains - pubcos and supermarkets. "Tesco is superb, but it sells on price. Its strategy has been to discount, based around St Patrick's Day and Father's Day promotions. Pernod and Diageo would not do this anywhere else in the world, where they promote it as a premium product."

Candice disputes this claim, saying: "Whiskey is certainly a category that is offering strong margins. It is priced well above other spirits."

She points out that even in supermarkets renowned for selling spirits as a loss leader, Bushmills Original usually sells at £14.99 and Bushmills Black Bush at £17.99.

With all this in mind, the future may be looking bright for Irish whiskey. After a period of dormancy, the major brands are finally having their say, and whiskey could be relaunched as a fashionable spirit to line up on the back-bar alongside the premium vodkas and bourbons of this world.

John says he had been predicting for some time that it was a case of when and not if Pernod and Diageo would turn their advertising might towards Irish whiskey in the UK. "They are realising there is a massive market here among younger drinkers."