15,000 jobs lost in Irish drinks industry

Over 15,000 jobs in the Irish drinks industry have been lost over the past 18 months due to falling consumption and lower consumer confidence.

A study by the Drinks Industry Group of Ireland (DIGI) revealed that there had been an 8.9% decline in the market in 2009.

DIGI chairman Kieran Tobin said the decline had been driven by the historically weak national economic situation and ongoing cross-border purchasing of alcohol.

Per capita consumption of alcohol has fallen 21% since the peak of the economic boom in 2001 and is now back to the pre-Celtic Tiger levels of 1995-96. Total employment in the industry now stands at 80,000 jobs.

Cider volumes fell by 5.9%, beer by 6.5%, wine by 6.9% and spirits by 18.5%. Bar sales volumes decreased by 11.1% while off-sales fell by 6%.

"As predicted, 2009 turned out to be an even poorer year than 2008 for drinks sales and consumption in Ireland, meaning that it was the worst year for our industry in living memory," said Tobin.

"The 8.9% decline came on top of a 5.9% fall in 2008. While some of this decline is attributable to the major increase in cross-border purchasing of alcohol that emerged in the last 18 months, even when this is factored-in there is still a substantial consumption decline of over 7% in 2009."

However, Tobin said there may be a ray of light. "Against this backdrop, it is difficult to be optimistic about the immediate prospects for the drinks industry.

"However, we believe that the recent Government decision to reduce excise by 20% in Budget 2010 was a crucial first step in building consumer confidence and repatriating revenue lost to Northern Ireland.

"There is clear evidence that the benefits of this reduction have been passed-on to consumers in order to provide a small boost to the drinks industry and the wider economy."