Distiller shrugs off smoke ban effects

Irish Distillers, the maker of well-known whiskeys such as Jameson and Powers, does not expect the forthcoming smoking ban to affect sales of its products in pubs.

Mr Richard Burrows, joint managing director of Pernod Ricard, which owns Irish Distillers and has a 45 per cent share of the Republic's spirit market, expressed sympathy with publicans who see the smoking ban as a potential drain on their revenues, remarking that he would probably feel the same way in their position.

He said Pernod was not anticipating a significant fall-off in its own Irish sales as a result of the anti-smoking legislation however, suggesting that it would not affect spirit intake.

Mr Burrows said he was in favour of legislation that would allow for smoke-free areas within bars, but held back from giving his blessing to total exclusion of smokers from pubs. "A full ban seems to be somewhat draconian if publicans can provide genuine smoke-free areas."

Mr Burrows acknowledged, however, that the creation of non-smoking sections may be unworkable in smaller Irish pubs. He said a complete ban may be acceptable in such circumstances.

He added that he understood the reasoning behind the ban.

"I think it has been established that there is a direct link between the consumption of tobacco and disease," said Mr Burrows.

Sales of spirits in the Republic dropped by 21 per cent over the first half of this year, largely as the result of higher excise duties on the products.

Mr Burrows said sales within Irish Distillers, which fell by 10 per cent over the same period, had held up well in a difficult market.

As well as a stable of whiskey brands, Irish Distillers also markets Huzzar Vodka and Cork Dry Gin in the Republic.

Mr Burrows renewed his call for a reversal of the excise measures contained within last December's Budget, which saw an additional 20 cents levied on each measure of spirits sold.

He believes excise should be charged according to alcohol content within a given product rather than being levied arbitrarily.

Earlier this year, Irish Distillers blamed the excise system for a decision to scale back production at its Midleton plant in Co Cork. Mr Burrows said further reduction in the plant's capacity was not expected.

He was speaking as Pernod Ricard, the world's third-biggest spirits group, beat market expectations by raising net profit by almost 4 per cent to €167 million over the first half.

The performance was boosted by lower taxes and a resurgence in two key brands: Chivas Regal scotch and Martell cognac. Pernod Ricard does not break out profit figures for its Irish divisions.