The Copeland Distillery’s Post

Transcript

As always. So President Trump we've been talking about all morning. He's announced that the UK is gonna face this tariff of 10% for imports, while the EU, as we've just been hearing, is facing a 20% levy. We've been asking local businesses how they're feeling this morning. Is the rate more or less than they feared and could it perhaps bring some advantages? Well, our reporter Lindsay Telford is at the Copeland Distillery in Donaghadee. And Lindsay, one of the things that's been discussed is, well, you know, Scottish whiskey, maybe Northern Irish whiskey, 10%. Levy Irish whiskey from the Republic 20% Is this good news? Morning, Sarah. Yes, well, of course one of our big exports in Northern Ireland is of course whiskey. And so it makes sense that I've come to Copeland Distillery and Donica Day this morning and I'm here with Commercial Director Mark Prentice and we're watching is all the distilleries machinery starts to whirl into action. Mark, you and I spoke briefly yesterday ahead of last night's announcement and of course about 10% of your exports go to. The US, we talked about the uncertainty and degree of nervousness, nervousness among businesses. How are you feeling, Mark Prentice this morning, now that we know there's going to be this 10% tariff applying to Northern Irish businesses? We've been working in the in the United States for the last couple of years and we're we currently have distribution and about 14-15 different states. Look, the US spirits market is a really difficult market to navigate because every state has its own tax and regime, it has its own regulatory regime. And quite frankly this just makes working in the US and selling in the US that, that bit more difficult. Of course, we're going to face this 10% tariff in Northern Ireland, but South of the border, they'll be hit with the 20%. So does that in any way present some sort of an opportunity to you when it comes to exporting your whiskey as well as your, your, your vodka, your gin, your rum as well? Yeah. I mean, look, I suppose the question is whether or not this is a stable tariff regime because we've seen some tariffs being imposed then taken away by by the presidency in the US I mean, I think for us, the question is around competitiveness and whether or not we can get to a price. Point in the US for our gin, for our Roman, for our whiskey that actually allows consumers to continue to to buy that product. Clearly, if there's a tariff differential between distilleries in the north of Ireland and those in the South, then that might give us some opportunities. But I think we're in a watch and see mode at the minute. And if there are opportunities then obviously we'll we'll take those. But you know, quite frankly, the instability is causing this. Just to think again about the sort of investments that we would make either in people or in price in the United States. And we're talking, Mark, about exports now, but there could be these potential retaliatory tariffs that are imposed and and we could well see some divergence because we have this special arrangement in Northern Ireland. What how might that affect you? What challenges could that potentially bring to your doorstep? It's a very many of our raw materials from the US with the exception actually of, of, of bourbon barrels that are mainly used for the, the, the maturation of whiskey. I think the question is what happens more globally. And look, that uncertainty actually is feeding into sources of capital and sources of finance for people like ourselves. You know, we were told very suddenly late in the day on Wednesday that UK Export Finance would no longer be providing loans to organizations like us. And those are fundamental for us to be able to. Get behind our export markets. So I think the the overall uncertainty, we need to just understand how that's going to play out. But I mean for us, there may be reduced opportunities in the US, but we're already starting to pivot towards Asian market, Central Asia and other opportunities that we can sell our whiskey, rum and engine. Thank you so much, Mark, Prentice, Willick, Sarah. Continued uncertainty for this distillery here in Donaghadee and not just from a US point of view, but. Around what the global effect of these tariffs might be. Thanks so much, Lindsey. 10th Telford for us live in Donnie Kazee.