Despite being hit by a triple whammy of US tariffs, a weak dollar and higher input costs flowing from war in the Middle East, the Leitrim-based maker of Drumshanbo Gunpowder Irish Gin continues to grow and invest in the business.
“We’ve had tariffs in the US, a weak dollar and rising input costs from the war and there is also a shift towards value and a softness in consumption. There are lots of challenges but there are opportunities, too,” says Pat Rigney, who founded the business with his wife Denise Rigney just more than a decade ago.
The family (their daughter Róisín also works in the distillery) has doubled down on their investment to win market share and exploit weaknesses among some rivals in the gin and whiskey markets.
They recently completed a €2 million investment in their whiskey distillery, which has doubled capacity, and they are also distilling rum now.
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A similar sum has been spent on their visitor centre in Drumshambo, boosting capacity for tours and giving it the ability to host conferences and events.
“It’s a lot of money, but we’re getting great value out of it. We get about 100,000 coming to it [the visitor centre], the majority coming to do the tour. It’s a real, working distillery, it’s not a makey-up place.”
They’ve also just launched their first 10-year old single pot still Irish whiskey, a limited edition of 3,000 bottles that has been “mostly” pre-sold to distributors, Rigney says.
In addition, the distillery has mostly held back from pushing through price increases, in a bid to increase volumes and win market share.
“I don’t believe the consumer is prepared to pay more at the moment and that’s a problem,” says Rigney, who has worked in the drinks industry since 1982, including roles at C&C, Baileys and Boru Vodka.
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“There are pockets of growth in the market and certainly single pot still, where we’re focused, is a healthy area within Irish whiskey and whiskey generally.”
He says the launch of its 10-year-old whiskey demonstrates that the distillery has the “wherewithal to take the time and deliver quality whiskey. We didn’t source whiskey from third parties; we stayed the course with our own. It’s a big moment for us.”
The 10-year-old whiskey has a price tag of about €89 a bottle. “It’s premium but not ridiculously premium, so it’s accessible. Consumers are looking for accessible pricing on spirits generally.”
The Leitrim distillery has largely been able to fund its expansion from its own resources.
Latest accounts for PJ Rigney Distillery & International Brands Ltd show that revenue and profits were marginally ahead in the year to September 2025, a good performance given the uncertain external backdrop in relation to US tariffs and other issues affecting demand for spirits globally.
Turnover rose to just under €18 million in the period, up from €17.3 million a year earlier. Its after-tax profit for the year was just shy of €2.5 million, up from €2.43 million in the previous 12 months.
The company closed out the year with accumulated profits of €20.2 million, a healthy figure for an independent spirits producer.
Rigney says last year saw it become a strong number-four player in the premium category for gin in the United States, with the company eyeing a move up to the number-three slot in 2026.
“The brand is performing well. We’ve grown our distribution and footprint in the US. Our importer is a great partner,” he says.
“The Drumshanbo brand has good momentum at the moment and we need to keep that even when things are difficult.”
Last year, of course, was a turbulent one for the spirits industry, given Donald Trump’s many U-turns on tariffs. A trade deal with the EU was agreed last year, setting a tariff of 15 per cent, before the US supreme court recently ruled that Trump had exceeded his powers with his Liberation Day tariffs a year ago. The tariff is 10 per cent and the Irish distiller is sharing the financial pain on that with its distributor over there.
“Our volume was up, but the value was flat. And our revenue would have been up a lot more if it hadn’t been for the weak dollar. The weakness of the dollar ... at one stage it was 20 per cent, it’s back now to 14-15 per cent, so it’s actually a bigger impact than the tariffs, but it doesn’t get talked about a lot.
“If you take the two together, it’s quite a double whammy. What we’re going for now is growth and market share. We’re seeing brands leaving the market; that’s an opportunity for us, not just in the US but elsewhere.
“We have to innovate, we have to keep things fresh, we have to keep things exciting and stay very close to our markets.”
The war in the Middle East, he says, has brought “more hassle, more costs, particularly on gas, inputs supply chain”.
On an annualised basis, these costs would amount to between “€500,000 and €1 million on costs”, depending on where it all lands at the end of the year, primarily on fuel inputs and transportation.
“Not all of that is carried by us, but a significant proportion is,” he says, citing how its trading partners will bear some of the financial burden.
“It’s very difficult to put a price increase through at the moment because the consumer is not willing to pay more.”
Rigney is sanguine about current trading conditions, arguing that the family is prepared to play the long game to win market share.
“Because we are a family business and not on the stock market, we can take a longer view. If we can get an advantage by holding our price and get more volume and market share, that’s what we will do.”
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To date, the family have reinvested the company’s profits back into the distillery, and not taken a dividend for themselves.
“The plan is that the next generation of the family will run the business. It’s a different mindset and the more we can invest in the brand and innovation and doing things properly for us, that’s the real dividend,” he says.
“Our brand is strong, [we] have a following, we have distributors with influence in their markets, we have great partnerships, and they like the way we do things.
“You’ve got to be in the market, spending time with your customers, you’ve got to be innovating, you’ve got to be front-facing, you’ve got to respond to opportunities. It’s not for the faint-hearted.”
