Cooley glass half full?

WHILE IRISH whiskey sales worldwide continue to soar, local producer Cooley Distillery “marked time” in 2009 as bulk sales declined.

Its annual report, which landed on my desk yesterday, shows that revenues declined by 25 per cent last year to just over €14 million.

Profits were flat at €3.3 million. The better bottom line performance was due to an increase in premium sales, which resulted in higher margins.

Cooley founder and entrepreneur John Teeling told me yesterday that profits in 2010 would be down.

“We have increased our branded sales and increased our aged branded sales so the margins would be up,” he told me, “but we are struggling still with bulk sales.

“We’ve also big cost increases this year in electricity and grain, so profits will be down. We’ll struggle to reach €3 million this year.”

Cooley has also expanded its workforce to 88, which has resulted in increased labour costs.

“We have a much bigger marketing team and a new general manager,” Teeling said. “We needed to beef up the management team and those costs will come in this year.”

Cooley has reinvested its profits from the past couple of years into upgrading its facilities in Louth and Kilbeggan, spending €6 million.

“We won’t have any significant capex for the next couple of years. We have great facilities now.”

Cooley has yet to pay a dividend in 23 years, so what odds on a payout in the next few years?

“There’s always potential,” Teeling added, not committing himself, but with his son Jack now running the show, the decision might not be his to make.

Is the serial entrepreneur planning to retire?

“No, but I’m 65 in January,” he said, “it was time to get new blood in. That’s what gives you hope.”