Just over a decade ago, there were only four distilleries making whiskey in Ireland: Bushmills (in Northern Ireland), Midleton, Dingle, and Cooley. Now there are nearly 50, an impressive level of growth especially considering the global dominance of major brands like Jameson. But late last week came some sad news for one of these distilleries: Waterford Whisky announced that is going into receivership, and will very likely be closing for good in the coming weeks.
Waterford, which stubbornly spelled its whisky without an “e” even in Ireland, was founded by businessman Mark Reynier. Reynier has been an opinionated and passionate presence in the spirits industry over the years, starting with his revival of Bruichladdich on the Scottish island of Islay in 2000. He focused on the concept of terroir in whisky, using specific barley varietals grown on single farms to make a portion of the single malt distilled there. Remy Cointreau acquired the distillery in 2012, and Reynier moved east into Irish whiskey after purchasing a former Guinness brewery in 2014 to open Waterford (he also later founded Renegade Rum in Grenada).
At this new distillery, he continued to champion the cause of terroir, highlighting scientific studies that the distillery team conducted to prove the concept. It wasn’t just about barley, however—in addition to single farm releases, Waterford eschewed the practice of barrel finishing in the belief that it’s often used to hide flaws in the whisky, instead maturing its young single malts entirely in various casks before blending. The distillery also focused on biodynamic and sustainable farming practices, maintaining that these too affect the flavor of a whisky.
Whether or not you were a fan of Waterford, the world of Irish whiskey was better off for its existence, as the distillery was truly doing something unique in this still growing category that is built upon classic blends and pot still whiskeys. But last Wednesday, The Irish Times reported that the distillery had failed to raise a new round of funding and would be calling in receivers to take control of the business. According to that story, the most likely outcome in the next few weeks will either be a sale of all of the distillery’s assets, or perhaps a new buyer for the business stepping in (although that seems less likely).
Today, Whisky Magazine published an interview with Reynier, and he had some thoughts about what went wrong. “Rising energy costs, inflation, and interest rate hikes didn’t just hit consumers; they hit us,” he told the publication. “Interest payments became crippling. Our sales weren’t covering them. And in a young brand, you’re always playing catch-up—you don’t have the reserves of an established player.” While acknowledging the challenges that the market current poses, he also expressed a willingness to carry on and some hope that this ship could be righted, although distillation is currently paused. “The story isn’t over,” he said. “Waterford’s whisky has proven something no one else has—terroir matters. And those values— authenticity, transparency, quality—are timeless. I’ll fight to see them through.”
