Ireland Loses a National Treasure : French Now Control Emerald Isle’s Whiskey Industry

Pub conversations in Dublin, where people are fond of their drink and free with their opinions, are likely to be spiced with some regret these days.

Ireland’s whiskey industry, the world’s original, is now owned by the French.

Losing its treasures to outsiders--principally the conquering Vikings and English--is no new experience for this small island nation.

Today, with liquor industries around the world tending to consolidate, and with Ireland a member of the European Community, losing a major industry to an EC partner is perhaps inevitable.

But it hurts all the same.

Irish Distillers Group PLC, which makes all the world’s Irish whiskey and calls itself “the spirit of Ireland,” was won on Nov. 24 by the French liquor company Pernod Ricard SA after a six-month battle with a hostile bidder, Grand Metropolitan PLC, a British liquor company.

Gains Come to Mind

The news is by no means all bad: Analysts say a fair price is being paid for Irish Distillers’ shares; its 1,100 employees’ jobs are assured, and the future looks brighter for its brands, which include Jameson, Paddy and Bushmills.

But over a neat measure of Irish whiskey or a pint of dark, frothy Guinness at O’Donoghue’s--arguably Dublin’s most famous pub--it’s the losses, not the gains, that come to mind.

“I would obviously be disappointed when a company based in Ireland becomes owned by someone other than Irish people,” said Mary McEvoy, echoing the sentiments of several customers, shouted over lively Irish music.

McEvoy, a mental health worker, is reticent about her age, but not about her preferred whiskey: Bushmills.

“Irish whiskey is one of the most traditional products that this country exports,” said Frank Fell, chief executive of the Licensed Vintners’ Assn. “We were anxious to maintain the integrity of Irish spirits. The main problem we were concerned with was that the company would be broken up.”

The issue was important enough for the government to step in and ensure that Pernod Ricard did not alter the Irish whiskey industry, which is a monopoly, or sell off brands without official approval.

Irish Distillers sought out Pernod Ricard as a friendly bidder to fend off Grand Met, which offered $499 million. Pernod Ricard’s offer was lower, at $442 million, but it promised to safeguard jobs and develop brands, while Grand Met said it intended to dispose of at least one brand.

Grand Met threw in the towel after several regulatory and court rulings in Pernod Ricard’s favor, but it retains a stake in Irish Distillers limited by the government to 30%.

Plenty of Support

The battle for Irish Distillers has been a headline-making event, and very stressful for the company’s workers.

“Certainly everybody had views about it. But the overwhelming feeling we got was of support,” said Irish Distillers Managing Director Richard Burrows.

So, is Irish whiskey still Irish?

“I don’t think people will feel any different,” Burrows said. “With Pernod Ricard’s support, we’ll be able to go on with the development of our brands. I think it’s a good thing for the Irish industry.”

But Burrows, in an interview at the company’s Dublin headquarters, conceded: “I do have a twinge of regret that Irish Distillers is not remaining an independent Irish company. There is a lot of heredity and tradition.”

The secret of perfume distillation reached Ireland in the 6th Century, and monks soon figured out how to use it for making whiskey.

Irish Distillers’ origins date to 1608, when Old Bushmills, which claims to be the world’s oldest distillery, was licensed in northern County Antrim.

In 1966, John Power & Son merged with John Jameson and Cork Distillers. Bushmills joined the group in the 1970s, creating the monopoly.

Irish Distillers suffered in the 1980s from the abstinence trend, and profits have been hurt by attempts to expand sales abroad.

But sales now are growing here and overseas, Burrows said. In the six months ended March 31, the company produced a 40% year-to-year gain in net profit to $9.8 million on an 8% gain in revenue to $197 million.

75 Million Cases of Scotch

With 1.635 million standard cases in the year ended Sept. 30, 1987, Irish whiskey captured 36% of the spirits market in Ireland, and imported whiskeys accounted for 12%. Irish whiskey sales outside Ireland came to nearly 1 million cases.

The Scotch whiskey industry shipped 75 million cases in 1987.

Regrets aside, the overwhelming emotion at the company is relief that the suspense is over and that the friendly bidder prevailed.

“I just feel the best people won,” said Rachel O’Donnell, 25, a receptionist at Irish Distillers’ largest bottling plant, in Clondalkin, outside Dublin.

Said Burrows: “There will be continuity, but certainly there will be certain changes.”

In the meantime, nothing is going to interfere with Irishman Willie Doyle’s plans.

“I’ll still have my Paddy,” Doyle said as he stepped off to his favorite pub. Yes, O’Donoghue’s. And yes, his eyes were smiling.