Businessman John Teeling’s Great Northern Distillery is joining with Chinese brewing giant Tsingtao to sell Irish whiskey into one of the globe’s fastest growing drinks markets.
The distiller’s shift to the east follows a period in which Ireland’s national drink has grappled with squeezed consumer spending, tariffs and other challenges in the US, one of its main export destinations.
In a deal announced on Thursday, Great Northern will provide Tsingtao Brewery with whiskeys ranging from three to 21 years’ old which the brewer will distribute through its network.
Irish whiskey will suit a growing taste for spirits among Chinese consumers, particularly young people who set many of the country’s trends, Teeling argues.
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“I believe it’s a good fit,” he says. “Chinese, Indian and Japanese tastes are sweet, and young people want sweet.”
“We have good whiskey and Tsingtao has unrivalled distribution, they are a beer company and they are in every nook and cranny.”
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Based close to Shanghai, the Chinese giant sold almost 7.7 billion litres of beer last year, earning revenues of €4 billion and €574 million in profits. The company is in 120 countries and regions, including the Republic.
Great Northern Distillery has been seeking a partner in China for several years while Tsingtao wants to enter the spirits market.
“I have believed for some time that there is a big future in Asia,” says Teeling, who chair’s the distillery business, which his family owns.
US President Donald Trump’s tariffs and the collapse of Republic National Distributing Company, used by distillers, have made life tougher in the US for the industry, according to Teeling.
Consequently independent distillers have cut back in recent years, following a renaissance in Irish whiskey that began earlier this century.
Great Northern will not have to invest to supply its new partner, as it has both the stock and capacity needed.
The Co Louth distillery produces grain and malt whiskey normally sold under its customer’s own brands. Tsingtao will label and market the whiskey in China.
Labelling and branding will include the drink’s origin, says Teeling, who notes that Chinese rules in this area are similar to those of the European Union, whose regulations protect the geographic origins of spirits, including Irish whiskey.
Speaking at a formal announcement of the deal on Thursday, Teeling dubbed it a “tremendous opportunity” to participate in the next growth market for whiskey.
“Over the coming years, perhaps one billion people across Asia will join the middle class,” he told guest including Zhao Xiyuan, Chinese ambassador to Ireland and Zhiwei Cai, chairman, Tsingtao Royalcask Liquor.
“As incomes rise, consumers increasingly seek premium international products and experiences, and Irish whiskey is exceptionally well placed to meet that demand.”
