Drinks Ireland welcomes deferral of new labelling requirements
Drinks Ireland, the Ibec sector organisation representing alcohol drinks manufacturers, has welcomed the government decision to defer additional labelling requirements on drinks producers operating in the Irish market.
This labelling legislation, which was being introduced as a unilateral national measure, rather than an EU harmonised approach, would have increased packaging and labelling costs by some 35%, says Drinks Ireland
They said that this decision provides much-needed relief for these companies, both small and large, allowing our exporters to focus their resources and efforts on market diversification and, ultimately, the survival of their businesses.
“Government must address competitiveness and the business cost base.
“Ibec members are currently contending with major trade uncertainty, new tariffs on products entering its most important export market, the US, and threats of further tariff escalation.
In these uncertain times, companies must be as competitive as possible to survive in international markets. This means tackling regulatory burden and reducing costs for producers.”
While Ibec is export-focused, it says it needs a strong, competitive domestic marketplace.
“This labelling legislation, which was being introduced as a unilateral national measure, rather than an EU harmonised approach, would have increased packaging and labelling costs by some 35%.
Drinks Ireland welcomes the two-year deferral of this national legislation and fully agrees with comments by An Taoiseach and Government Ministers that such product labelling requirements should really be pursued at an EU level to maintain the integrity of the EU Single Market and avoid additional costs on Irish businesses versus our competitors.
This year has proved difficult for Ireland’s drinks sector. A number of businesses have ceased operations or entered some form of administration, largely due to new tariffs and the ongoing trade uncertainty.
Production operations, in particular for Irish Whiskey, have also been significantly curtailed so far this year.
Ibec is extremely concerned by the current EU-US trade tensions and very much aware that this Irish labelling legislation has recently been cited by the US Administration as a non-tariff trade barrier.
“There has been some public commentary that the now-deferred changes would not impact on exports, as they apply only to product in the domestic market. Such commentary is misguided, and disingenuous.
“Every business survives only if costs can be borne across all aspects of production – costs are not siloed.
“The introduction of supplementary requirements uniquely for the Irish market would have placed additional pressure on all companies operating here, and this would of course be more pronounced for SMEs.
“Pushing through this unilateral change would have resulted in some businesses forgoing the Irish market, would have driven up the price of doing business for all drinks producers and would have impacted on the cost and choice for consumers. Ibec welcome this deferral decision.”
There has also been a marked societal change in alcohol consumption in Ireland and a clear trend towards moderation.
Alcohol consumption in Ireland saw a further 4.5% fall in 2024 and per capita consumption had declined by more than one-third over that last two decades, Ibec notes.
“The next few months will not be without its challenges for the Irish drinks sector. A 10% tariff in our most important market, the USA. The threat of an increase in this tariff hangs over all sectors with an export focus, such as Irish drinks.,” the group said.
