Suntory, the Japanese drinks conglomerate, has announced plans to move the bottling operations of three of its prominent Irish whiskey brands—Kilbeggan, Tyrconnell, and Connemara—away from its Cooley Distillery in Ireland. The bottles of these well-known brands will now be produced in Scotland and Spain, a shift that has raised questions about the future of the distillery and its workforce.
The Shift in Bottling Operations
The decision to relocate bottling operations outside of Ireland was communicated to Cooley Distillery staff in October 2024. Although final plans are still under discussion, the move is a significant change for the distillery, which has been a key player in the Irish whiskey market. According to newly filed accounts, Suntory confirmed the relocation of bottling for these brands, stating that the total financial impact of the change cannot be fully assessed until consultations with employees are concluded.
Suntory, which owns several major spirits brands globally, has yet to determine the exact timing and scope of the move, though the relocation will undoubtedly have a considerable effect on the distillery’s workforce and operations in the region.
Declining Financials at Cooley Distillery
Cooley Distillery has experienced a drop in turnover in recent years. For the year ending 2024, turnover at the facility fell by 4.5%, amounting to €19.1 million, while pre-tax profits dropped by a concerning 23%, standing at €1.1 million. These declines have raised concerns about the distillery’s future, and while Suntory has not provided details about the move’s financial impact, the shift in bottling operations signals a reevaluation of production costs and distribution strategies.
The decline in profits follows broader challenges faced by Suntory’s Irish whiskey operations, including the suspension of shipments to Russia in March 2022. This move severely impacted Kilbeggan sales, as Russia was previously a key market for the brand.
Strategic Moves to Spain and Scotland
Suntory has made it clear that it intends to move the bottling of its Irish whiskey brands to facilities in Spain and Scotland. This shift makes sense given the company’s extensive operations in these countries.
- Scotland: Suntory owns several well-known Scotch whisky brands, including Bowmore and Laphroaig. By utilizing its existing infrastructure in Scotland, Suntory can benefit from efficiencies in production while expanding its portfolio in both Irish and Scotch whisky markets.
- Spain: Spain serves as a key strategic hub for Suntory, especially considering its international headquarters are located there. The country is also home to Suntory’s DYC distillery in Segovia, which produces a variety of spirits, including Larios gin and Whisky DYC. Moving bottling operations to Spain allows Suntory to streamline its production while taking advantage of its local presence in the Spanish market.
The relocation to these locations will likely help Suntory further consolidate its operations in Europe, taking advantage of economies of scale and closer proximity to key markets.
A Historic Shift for Cooley Distillery
Cooley Distillery, a well-known name in the Irish whiskey industry, was originally purchased by Beam Global from entrepreneur John Teeling in 2011 for €71 million. In 2014, Beam was acquired by Suntory, cementing the Japanese company’s foothold in the Irish whiskey sector.
The decision to move bottling operations out of Ireland is a significant shift for the distillery, which has been a vital part of Ireland’s whiskey heritage. While the distillery will continue to produce whiskey, it appears that its bottling operations will now be less centralized within Ireland.
What’s Next for Cooley Distillery?
With the news of bottling operations being relocated to Spain and Scotland, there are many questions about the future of Cooley Distillery and its workforce. As Suntory finalizes the details of this move, it is expected that the company will continue to prioritize operational efficiency and align its production with global demand for its products.
While some jobs may be at risk due to the shift in bottling locations, Suntory’s presence in Scotland and Spain may create new opportunities within the company’s broader European operations. The full impact on Cooley’s workforce remains to be seen, as further consultations with employees are expected to take place in the coming months.
