July 27, 2026: Blast at Montebello distillery and other news
Sombre news from Guadeloupe, tariffs relief (but duties burden) for Scotch, Irish consumption trends, tequila in Australia, sales and bids, tea and more...
The Spirits Post is an international press review about the spirits industry brought to you by Eugenia Torelli, an Italian spirits journalist and judge. If this newsletter was forwarded to you by a friend, you can subscribe here to receive it directly in your inbox:
Hello everyone!
I am back with the news after receiving some very sad updates from the Caribbean. I am opening this press review with details of the boiler explosion at the Montebello distillery, which occurred last Friday morning.
After this sombre start, we will move to the UK for the latest on the Scotch industry—from the removal of US tariffs (let’s hope it lasts) to a significant report on excise duties by the Scotch Whisky Association. We will then take a look at Ireland’s changing alcohol consumption trends and Tequila’s rise in the Australian market.
Following that, are updates from the corporate sphere involving Brown-Forman and Sazerac, alongside news of Grenada’s Renegade Rum Distillery (which is slightly older, but too important to leave out).
Finally, we have some reading material concerning tea.
Help yourself to a look at what is happening across the world of spirits.
Guadeloupe
Blast at Montebello distillery claims two lives
A boiler explosion at the Montebello distillery in Petit-Bourg, Guadeloupe, on 24 July killed one worker and injured four others, two of them critically. One of the critically injured has since passed away, bringing the death toll to two. A criminal investigation for involuntary homicide has been opened. Founded in 1930, Montebello is one of Guadeloupe’s oldest distilleries and was in full production at the time.
Read the coverage in La 1ère:
Explosion de la chaudière de la distillerie de Montebello : un second décès à déplorer
UK
Scotch industry breathes a sigh of relief as US tariffs are removed
The US scrapped its 10% tariff on Scotch whisky on 24 July, restoring zero-for-zero trade with its most valuable Scotch market. The move follows a May visit by King Charles and Queen Camilla, which Trump credited with securing the change. Pernod Ricard’s Nodjame Fouad welcomed the decision and urged similar relief for Irish whiskey, Champagne, and Cognac. The US Scotch market was worth £933 million last year, according to Swa figures.
Read Jessica Broadbent’s article for Global Drinks Intel:
Scotch industry breathes sigh of relief as US tariff removed
Swa presses Treasury for a Scotch duty freeze
The Scotch Whisky Association is campaigning for a multi-year freeze on UK excise duty, warning that a 14% cumulative rise since November 2023 has failed to deliver the Treasury’s forecast revenue. Duty receipts came in £676 million below the Obr’s 2023 projection. The Swa also highlighted lingering uncertainty over US tariffs and long lead times before the benefits of a UK-India free trade agreement materialise, while noting that the sector supports 66,000 UK jobs.
Read the update on the Scotch Whisky Association’s website:
Ireland
Irish alcohol consumption falls further, now level with EU average
Alcohol consumption per Irish adult fell by 2.1% last year to 9.30 litres of pure alcohol, marking a 35.6% drop since peaking in 2001, according to Digi’s latest report by economist Anthony Foley. Ireland now sits just below the average of the 17 EU countries plus the UK tracked by the Oecd, effectively ending its status as a high-consumption outlier.
Beer remains the most popular drink with a 42.1% market share despite a volume decline, while wine grew to 29.4%, more than doubling since 2000. Spirits held steady at 22.4%. Digi is using these figures to lobby for a 10% excise cut in Budget 2027, arguing that Irish drinkers already face some of the highest alcohol taxes in the EU, which is squeezing pubs and small hospitality businesses.
You can read the press release from Digi here:
Alcohol consumption in Ireland continues to fall, with 36% reduction over 25 years
For a deeper look into the figures, you can access the latest report on their website:
Australia
Tequila keeps climbing in Australia as the category matures
Tequila and agave spirits remain a pocket of growth in Australia’s otherwise declining spirits market, with Statista forecasting 1.9% annual growth through to 2029, reaching over $530 million in value. Consumer research shows just 26% now associate tequila primarily with party shots, as cocktails and mixers take over.
Meanwhile, the Iwsr notes global pricing pressures and an approaching agave supply glut that is expected to ease costs within three to five years, while pointing out that tequila’s growth epicentre is increasingly shifting beyond the US and Mexico to markets like India, West Africa, and Japan.
More details in Cody Profaca’s article for Drinks Trade:
Acquisitions market
Brown-Forman rebuffs fresh Sazerac takeover approach
Brown-Forman’s board has rejected a new unsolicited takeover offer from Sazerac, deeming it “not actionable.” Wolf Pen Branch, the group of Brown family members holding the majority of Class A shares, stated that the proposal did not align with their vision for the company’s future. Sazerac, owned by the Goldring family and home to brands such as Southern Comfort and Fireball, previously offered $32 a share in cash back in May, valuing Brown-Forman at roughly $15 billion; that bid was also turned down.
This renewed approach follows the collapse of merger talks between Brown-Forman and Pernod Ricard in April, and comes shortly after Brown-Forman announced CEO Lawson Whiting’s planned retirement, which analysts suggest may have prompted Sazerac’s timing.
The news was reported by Reuters:
Brown-Forman board says Sazerac unsolicited proposal not actionable
Grenada’s farm-to-bottle rum pioneer hits the market
Grenada’s Renegade Rum Distillery, founded by whisky entrepreneur Mark Reynier, has been put up for sale via Ey-Parthenon Caribbean. Built on a strict ‘farm-to-bottle’ model with full traceability, it sources its sugarcane from 12 neighbouring farms.
Melita Kiely’s wrote about it for The Spirits Business:
The Spirits Business has also published a sponsored promotional piece featuring an interview between Melita Kiely and Maria Daniel, managing partner at Ey-Parthenon Caribbean. You can find it here, in case you’d like to have a look:
Community first: why Renegade is more than an acquisition opportunity
Something to read
Tea brews up as beverage alcohol’s next big flavour opportunity
The Iwsr flags tea as a versatile flavour platform spanning hard tea, matcha RTDs, and tea-infused spirits. US hard tea volumes have grown at a 22% compound annual growth rate (CAGR) since 2021, while mate is proving popular in Brazil and Switzerland, and green tea has established itself as a common Scotch mixer in China.
Read Helen Jagger’s article for the IWSR:
Time for tea: how a global flavour trend can boost beverage alcohol
That’s all for today. I will do my best to post again as soon as possible.
Cheers, 🍹