'Our ambitions are beyond Irish whiskey'

The first Irishman to lead Irish Distillers in a decade must face Brexit, new regulations - and Conor McGregor, writes Michael Cogley

Conor McQuaid, chief executive of Irish Distillers. Photo: Fergal Phillips

Conor McQuaid missed out on Irish Distillers' much-desired graduate programme more than 20 years ago. It doesn't bother him too much now, however, as he sits in the board room of the company's Fox and Geese bottling plant in Clondalkin, Co Dublin, as the first Irishman to lead the company in a decade.

Back then, getting into the programme was a rare opportunity - but the intake has grown from just 10 in the 1990s to more than 100 this year.

The Dundalk native, who took over as chief executive from Jean Christophe Coutures in July, explains that the recent explosion in the popularity of Irish whiskey is only the beginning of a huge opportunity.

He says that the spirit, which was once bootlegged through America and targeted towards heavy drinkers, now aims to appeal more widely to those who enjoy an occasional drink.

"The number of new distilleries that are opening and entering the category is increasing the consumer offer and the consumer opportunity to become accustomed or become acquainted with Irish whiskey," he says. "All of that has got to be positive for a category that, quite frankly, was on its knees 20 years ago."

At the top of the sales tree is Jameson, the world's biggest-selling Irish whiskey, which shipped 7.3 million cases over the last 12 months.

Innovation in flavouring, and the way in which it's stored and distilled, has lead to the creation of the Caskmates brand, which moved 300,000 cases last year.

McQuaid believes innovations such as this will help whet the appetite of a new type of whiskey drinker.

"Our business is based not on getting a small number of consumers to drink more, it's getting a larger number of consumers to drink on an infrequent basis potentially," he says.

"My point being, a healthy quantity as part of a balanced diet. So, that's where our opportunity is. It's not about getting more liquid down an individual's throat, it's giving opportunities for more consumers to come into the brand and see it as a relevant choice when they wish to have a drink."

The DCU graduate, who has spent more than 20 years in the industry, has seen trends evolve in the market over time.

Although he didn't get into the graduate programme, his interest in the industry saw him join Goldenvale, a Northern Irish cream liqueur company, in the 1990s.

He went on to join Pernod Ricard in 1998 with responsibility for Portugal, Spain, Italy, Greece and Cyprus. McQuaid describes it as a "dream job" for someone in their 20s.

Irish Distillers has also witnessed changes in the market, which has become crowded with new entrants in recent times. Nationwide there were four distilleries in 2013, now there are 18 with many more planned. The sizeable investment across the entire spectrum of the industry, McQuaid says, helps the company in the long run - as long as standards are maintained.

"Keeping the quality standard up is in our interests, opening the doors and playing that sort of big brother role to those new entrants as they come in is something that we're passionate about doing," McQuaid says.

"It's not something that we just dreamt up in the last few days and I honestly still believe that a rising tide will lift all boats. As it stands at the moment, Jameson has a head start. Our ambitions are beyond Irish whiskey and I think many of the entrants coming into the category will stay within that Irish whiskey context."

The range of new entrants into the market is vast with drinks giant Diageo moving to introduce Roe & Co last year. Among the most notable entrants is Proper Number 12, which is headed up by MMA star Conor McGregor, a man who has repeatedly put the boot into Jameson to generate some traction for his new spirit.

The Irish Distillers chief executive says that McGregor's barbs are a compliment to the brand, and its dominance of the market.

"At the end of the day he's a showman with 26 million Instagram followers, he has a particular persona and he has a particular proposition that he's going to convey back on his brand. But I think Jameson has weathered many storms over the years, from world wars to prohibition, and it's still standing," McQuaid says.

"We'll take on all competitors and we'll do so in good grace and we'll do it in our own inimitable style. And I wish him well. If it brings new people into the Irish whiskey category, and from there we've got a greater pool to draw upon and to compete for, then fantastic. I wouldn't get into the ring with him, but I'll certainly get into a challenge in the world of whiskey without question."

McQuaid is happy to praise the work of his competitors, and says that there are a number of brands doing interesting things, but none that he is losing sleep over. Some of those that have caught his interest may be subject to an offer in the not too distant future.

"There are Irish brands that we are keeping an eye on, definitely," he says. "I mean the sweet spot is to try and catch them before they've really caught on, otherwise they become very expensive. So the sweet spot is there somewhere."

Irish Distillers' focus now resides on more premium products, hence the sale of Paddy to Sazerac back in 2016. While it no longer forms part of the company's portfolio, it still has a long-term perpetual supply agreement with the brand.

"Paddy is a fantastic brand. It's going in with unique propositions, it's got a great heritage and history going back to the 1700s," he says.

"We sold it because we couldn't exploit the opportunity and we've got to fight for our investment from Pernod Ricard and it was clear that we couldn't give Paddy the time, care and attention that was necessary to make it a success."

The company is investing heavily in its Irish operations, with more than €150m being poured into its sites in Cork and Dublin. Almost €130m of this will be invested into its Midleton distillery.

"It's a huge sign of faith and it's a huge endorsement of just what has been achieved by the team in Irish Distillers for so many years, you know," he says. "It's 29 years of growth. Consider the fact that we joined Pernod Ricard in 1988 - I think we had one year at the early stages, at the very start, where it wasn't growing, but everything else from there is on one very solid trajectory. So let's hope it continues."

Midleton, Green Spot and Jameson, will be among the many brands in Ireland that will be forced to put cancer warnings on their bottles as a result of the Public Alcohol Health Bill, which was passed through the Dail earlier in the month.

McQuaid confirmed that this meant the company will have to produce Irish-specific labels for the bottles it sells here, a small, but notable, logistical headache.

"I think the science and a lot of the noise around the science has been poorly articulated and poorly interpreted," he says. "And if you look at the WHO classification of the carcinogenic impact of alcohol, it is in the same classification as processed meat, as the contraception pill and we have been singled out unfairly in my mind in terms of what's being proposed within the legislation."

McQuaid says the cancer labelling was one part of the bill that had a lot of good aspects. The legislation, backed by Health Minister Simon Harris, also includes minimum unit pricing limits, the segregation of alcohol from other products in retail outlets, and restrictions on advertising.

"I am very disappointed that the minister has put forward and supported the addition of cancer warning labels on brands, iconic brands of Irish whiskey," he says.

"It's just unfortunate that the discussion and the conversation got hijacked in that way and got very much focused on cancer warnings. These are iconic products of Ireland. They are quality products that we are putting on the international marketplace."

He says Brexit will also pose complex labelling concerns for the company. Much of the company's secondary packaging comes from outside of the state as well as a number of dry goods and ingredients used in the production process.

"The UK is within our top six markets," he says. "And at the moment it's heading towards 300,000 cases. So, on a similar level to Ireland. Again it's a challenge for us to ensure that we've got enough stock there is there is any disruption. But we're pretty clear that we can solve that one in advance of any issues."

McQuaid's wife and three sons remain in Paris, due to school reasons, but will join him in Dublin within the year. He admits that his pursuit of senior positions in the drinks industry has had a bigger impact on his life than he would have liked.

"I would argue in retrospect probably a disproportion of my life has been travelling across the world time away from home, time away from friends and family, difficulty in maintaining friendships as a consequence because you can't commit to a sports club or you can't commit to a tee time or a golf game with buddies and stuff," he says.

"So there's been an element of that. But the counterpoint is the experiences that I've had the opportunities to be part of as the brand is growing and places we visited and nights out that we've had. It's been pretty special from that point of view."

McQuaid recalls numerous nights out, including conventions on an island off the south of France owned by the Ricard family, but says staff must be able to "operate" the following day. Something he expects of today's graduates.

CURRICULUM VITAE

Name: Conor McQuaid

Age: 50

Position: Chief executive, Irish Distillers

Lives: Dublin

Education: International marketing and languages, Dublin City University

Previous experience: EVP global business development, Pernod Ricard. Managing director for South Africa, Pernod Ricard

Family: Wife Elaine, three sons

Pastimes: Golf, Netflix, football

Favourite movie: GoodFellas

BUSINESS LESSONS

What is the best advice you have received?

Take the most from each experience as managing your career is a marathon not a sprint.

What are your thoughts on the drinks industry now?

I believe the that the drinks industry is one of the most creative and dynamic you could hope to work in. It brings people together to enjoy sociable moments in a world which desperately needs more genuine human interactions.

What do you look for in new graduates?

Open minded, curious and personally driven. For me, this translates into a person who is willing to learn and grow in the business.