‘We Don’t Worry About Tariffs Anymore’: Irish Whiskey Distillery Most Concerned With US Inflation

(Photo: Jay West/The Daily Pour)

An Irish whiskey distillery says its U.S. sales have jumped more than 36% after it lowered prices in response to tariff uncertainty and cautious consumer spending, but the company now sees inflation as a bigger challenge.

Clonakilty Distillery, based in West Cork, Ireland, cut prices on some of its products after the tariff threats surrounding Irish whiskey made it more difficult to sell bottles at higher price points in the United States, founder Michael Scully told the Business Post.

“We acted fast,” Scully said, according to the outlet. “We got feedback from the market and found that US customers were paying more attention to their wallets and holding back on discretionary spending.”

Clonakilty subsequently moved its Galley Head Irish Whiskey to a price point of about $30 in the U.S. Scully told the Business Post that the lower-priced offering has become its biggest winner.

The distillery also reduced costs, including by lowering the weight of the glass used for its bottles. Scully said Clonakilty’s ownership of its whiskey and control over more of its supply chain also helped the company absorb some of the additional costs.

Clonakilty grows some of its own barley in West Cork, which is then transported to its nearby distillery.

The strategy appears to have helped the company gain traction in the U.S. According to the Business Post, Clonakilty’s total U.S. sales have increased by more than 36%.

Its Galley Head whiskey has performed particularly well, with U.S. depletions — the number of cases sold out of the company’s U.S. inventory to distributors and retailers — rising 113% year over year. Shipments from Ireland to the U.S. increased 33% over the same period.

Across Clonakilty’s U.S. portfolio, on-premise sales have increased 106%, while off-premise sales have risen 28%, according to the Business Post. Growth has been concentrated in markets including Massachusetts, Florida and Oregon.

The company now plans to expand its offerings in Illinois while focusing on growing its presence in markets where it is already seeing strong demand.

Scully said the company is no longer as concerned about U.S. tariffs as it is about inflation and its potential effect on consumer spending.

“We don’t worry about tariffs anymore, we care about inflation,” he told the Business Post.

The comments come after a turbulent period for Irish whiskey producers. Tariff threats targeting imports into the United States had raised concerns across the industry, with the U.S. representing a major export market for Irish whiskey.

Clonakilty’s experience has been somewhat different from some smaller distilleries that reduced or paused production during the difficult period. Scully said the company continued distilling, despite recording a €1.55 million loss in 2024.

He attributed the loss in part to the company’s decision to continue production during the past 18 months.

“A lot of smaller distilleries had to pause production last year, but we kept going,” Scully told the Business Post. “Thankfully, we are seeing positive results of that in the US.”

Clonakilty was founded in 2016 and opened its distillery and visitor center in 2019 following an initial €10 million investment. The company employs 32 people and announced another €3 million investment last year that included expanding its warehouse capacity.

In addition to Galley Head, Clonakilty produces its Single Pot Still whiskey range as well as Minke Irish gin and vodka.

The distillery currently exports to more than a dozen European countries, along with markets including Japan, South Korea, Nigeria and South Africa. Its first shipments to China are expected to arrive shortly, while the company is also looking toward India following the European Union’s trade agreement with the country.

Clonakilty is targeting total sales of €4.5 million in 2026, with Scully forecasting that figure will rise to €5.5 million in 2027.

Scully told the Business Post that China and India could become major markets for the company over the next year, alongside the United States.

“We have momentum, but it’s difficult to get comfortable in such a challenging market,” he said.