In January of this year, a small-batch Irish whiskey broke records and became the world’s most expensive, raising $2.8 million at auction. One of just seven in existence, the single bottle is part of the Emerald Isle collection, a set of ultra-rare, triple distilled single malt whiskies released by the Craft Irish Whiskey Co., in partnership with Fabergé. Aged in cask for three decades, it edged past a previous record sale of Scotland’s ‘The Macallan Valerio Adami 1926’ and delivered a confident statement on the exciting future staring back at the Irish whiskey business.

Conceived by Jay Bradley and positioned on release as a celebration of the Seven Wonders of Ireland, the Emerald Isle collection is presented in a walnut wood cabinet alongside the world’s first Fabergé Celtic Egg and a Fabergé watch. They are joined by a carafe of Irish spring water, two Finn glasses, pure obsidian whiskey stones and a 24k gold water pipette. A humidor concealed within the box houses two Cohiba Gran Reserva VI cigars, while a gold-plated cigar cutter, a tasting log and a hip flask of The Emerald Isle’s rare whiskey complete the offering. Although unlikely to ever be opened, it represents the apex of luxury in the Irish whiskey trade.

Behind the flashy headline however lies a thirty year trajectory of industry expansion, increased quality and revenue growth. The last few decades have been a successful period for the category, with large scale investment in plant and brand underpinning year on year growth. According to data from the Distilled Spirits Council of the United States there were more than six million cases of Irish whiskey sold in the U.S. in 2022, while globally that figure touches almost 13 million cases.

It is true to say that much of the legwork in the numbers has been done by the Jameson’s brand, but since 2003, premium Irish whiskey has seen a growth of almost 1200% (to 2019), while the super premium category boasts growth of almost 3500% in the same period. New distilleries are opening every year and the number of brands with international representation and top end releases is multiplying fast. The cynic has a case when pointing out that progress is easy from a standing start, but it is perception that counts as we look towards the future. The view of Irish whiskey is changing fast and the foundations are now in place for the continued premiumization of a historic industry. Of course, to put this data into perspective, we must reflect a little on the recent history of the whiskey trade in Ireland.

A little bit of history

By the end of the 19th century Irish whiskey dominated the global liquor market. In London, two thirds of all whiskey sold was Irish. It is thought that 30 million gallons a year came out of Dublin alone. Nevertheless, world events were to conspire to reverse the form. Notable decline crystallised in 1919, when Ireland declared its independence. Access to the British Empire’s markets was instantly rescinded and Prohibition in America added further complications. By the time the ban on alcohol lifted in 1933, Scottish whisky had risen to prominence and Ireland’s whiskey industry was well and truly on the back foot.

Throughout the 1940s and in the aftermath of the Second World War, breweries and distilleries in Ireland started to close. By 1960 Dublin had lost most of its 30 licensed production sites and the economic landscape looked bleak. Carol Quinn, Head of Archives at Irish Distillers Pernod Ricard, boasts access to much of the historical material of the time. She points out that “the spirits trade was on its knees during this period. The 60s were probably the lowest point in recent history of the Irish whiskey industry. Export sales had all but collapsed.” In 1966 the last three remaining distillery businesses in the Republic of Ireland - John Power & Son, John Jameson & Son and the Cork Distilling Company - had little choice but merge to safeguard their future. They formed the Irish Distillers Group (IDG).

Quinn also notes, “these three firms were in competition for an increasingly small domestic market. They recognised if they stayed in competition, not only would they wipe each other out economically, but in doing so, would also wipe out over 200 years of distilling knowledge and experience.” With outdated equipment and the Dublin sites swamped by the development of the city, the decision was made to invest in a state-of-the-art distillery in Midleton, the site of the old Cork operations. In 1972 IDG acquired Bushmills in the north and in 1975 moved all production in the Republic down to County Cork. With hindsight, these choices marked a significant turning point. Quinn enthuses “when the new Midleton Distillery came on stream in 1975, you could say this was the first sign of green shoots for the Irish whiskey industry. The resurgence could be said to have begun.”

Things ticked along slowly. Ireland, at least, was happy to consume its own whiskey, providing a lifeline to the trade. During the 1980s things began to pick up again. The tough decisions taken in the previous decade began to bear fruit, especially in terms of quality. Quinn said “The new Midleton Distillery was producing to an exceptional standard. So much so that in 1984, Midleton Very Rare, an annual release widely regarded as the pinnacle of Irish Whiskey, was launched as a vote of confidence in the quality of the whiskey being produced.”

The industry recognised that the future depended on increasing export sales. The product was improving, but the required marketing and distribution hadn’t yet caught up. Irish Distilleries Ltd didn’t have the resources to move the category on globally. “Everything changed in 1988 when Irish Distillers merged with the French based company, Pernod Ricard. Almost overnight Irish whiskey had again an international distribution network. Thanks to the success of Jameson, the world once again began to take note of Irish whiskey.”

A new era in Irish Whiskey. What’s driving the boom?

Even though the Pernod Ricard era ushered in a well established distribution network for the Jamesons brand, it would still take another two decades for the category to make significant dents in consumer appreciation, and for the drinks industry to wake up to the opportunities unfolding. In 2005 Diageo took over Bushmills from Irish Distillers Pernod Ricard for £200m, but as recently as 2014 there were still only eight distilleries in Ireland. Two years later there were 17. Now there are more than 40, with a whole host of additional brands purchasing utilising their production capacity.

What was the trigger for a sudden surge in investment and extension of entrepreneurial interest in the category though? Jay Bradley, whose insight lead to the creation of The Emerald Isle and the positioning of the Craft Irish Whiskey Co. firmly in the ultra luxury space, says “I think people just started to notice the gap. If you ever looked behind a bar there would only be one Irish whiskey. There could be several bourbons and a dozen single malt Scotches, but only one Irish. That’s when it dawned on me, there was room for another Irish. The category was hugely under-represented”. With the vast Irish diaspora worldwide, introducing a second or third label on a bar wasn’t a difficult business decision.

When Teeling Whiskey set up their distillery in 2012 they saw a growing appetite for more choice, bigger flavours and new expressions of style. Stephen Teeling says “there had been little to no innovation in the Irish category but we saw an opportunity to bottle at higher strengths, utilise innovative cask maturation and challenge perceptions that Irish whiskey was one dimensional.”

Without any incentives or government support available, it was essentially the ability to spot the opportunity that fuelled a new wave of business owners to take a chance on the category. Teeling continues, “there is a new generation of whiskey drinkers re-discovering Irish whiskey after a 50 year period of one distillery making all of the whiskey available around the globe.” In just over 10 years the company has found distribution in 80 countries and are now widely considered the leaders in producing premium Irish whiskey in the heart of Dublin city.

Distilleries are clearly finding success in experimenting with everything from grain types and distillation processes to aging techniques, which means a broad range of flavors and styles for consumers. This diversity not only puts Irish whiskey back on the map at the top end of the market but also keeps it interesting for both enthusiasts and newcomers.

Stephen Halpin, National Advocacy & Engagement Manager at The Busker Irish Whiskey, says “the Irish distillery scene is more vibrant than ever. With over 40 distilleries now in play, there's a fantastic mix of tradition and innovation happening. It's a great time to explore Irish whiskey because there's something out there for every palate.” He believes that the standout features of Irish whiskey are its smooth approachability and the wide array of flavors. “It's smooth, sure, but that doesn't mean it's simple. Irish whiskey brings a whole spectrum of tastes to the table, from light floral and fruity notes to bold spicy, and tropical hints.” The fact we can now have broad conversations about terroir, cask types and subsequent complexity in Irish Whiskey shows how far it has progressed over the last 20 years.

Last year saw the continuation of sustained development with an impressive roster of new distillery openings. Bushmills expanded their capacity with the opening of the Causeway distillery, while Titanic opened up in Belfast and Ahascragh Distillery launched their zero energy emissions operation in Galway. This is accompanied by an expanded footprint of celebrity brands, the most notable of which is Liev Schriber’s (of Ray Donovan fame) Slainté which continued to gain listings across U.S. states.

A rising tide lifts all ships

The jump in distilleries evidently brings competition, but for Halpin, this is a welcome scenario. “It has pushed everyone to up their game. People are curious and keen to try new, quality spirits, and Irish whiskey offers just that. Plus, there's a growing appreciation for well-crafted drinks that tell a story and everyone knows the Irish are the best of all storytellers.” Sales of Irish whiskey may be slightly down over the last 12 months, reflective of a broader trend across the entire global drinks trade, but the fundamentals still look strong. Teeling says “there is a long term trend towards drinking less but better and I believe Irish whiskey is right in that sweet spot of offering premium liquid in a very approachable brown spirits segment.”

Bradley isn’t phased either. “You only need look at the number of new distilleries, and the quality for the whiskey now being made.” There is a feeling that a rising tide will lift all ships. Competition may be stronger, not to mention in the U.S. given the relentless interest in Bourbon, but the climate of entrepreneurial activity is helping to raise the bar on both product and marketing. Bradley believes the expansion of the industry at home is good for everyone. “Slowly but surely more tentacles go out into the world and slowly but surely the Irish category grows, so the more entrepreneurs the better, and for me, that entrepreneurial spirit is what’s forcing the growth in Irish Whiskey

U.S. contributing editor to Whisky Magazine, Eliza Wiesstuch, says “Ireland as a brand is very strong and thanks to the number of distilleries and the quality of whiskey now being made, particularly from the legacy distilleries, it has a lot going for it. Although the market is extremely competitive at a global level, the Irish whiskey category looks far more exciting for consumers than ever before.”

While the eye catching figures accompanying the auction of the Emerald Isle collection transcend a regular whiskey sale, its record price also a construct of brand partnership, luxury packaging, and charitable initiative, it delivers a symbolic statement. Irish Whiskey is well and truly back - and there’s more to come. Sláinte!

This article originally appeared here in Forbes