Overview: Hinch Distillery has been facing significant financial challenges, posting a £2.77 million loss for the year to June 2025. Despite its efforts to produce award-winning whiskey at a competitive price point, the company’s turnover dropped by around £1.8m to £3.2m and costs more than doubled from £1.1m to £2.5m.
The Full Story
Hinch Distillery has been running at a loss since 2020, with its latest annual loss coming during a challenging period for the island’s whiskey industry. Rising production costs, increased competition and tariff uncertainty in the US market have put pressure on many whiskey operations, leading some manufacturers to scale back or pause production.
Invest NI’s support included £1.9m toward the construction of the distillery as well as plant, machinery and equipment. However, despite this investment, Hinch Distillery has struggled to turn a profit. The company’s stock inventory dropped from £10.2m in 2024 to £9.2m last year.
Irish whiskey is considered one of the most capital-intensive and time-delayed business models in the drinks industry, with spirits produced by distilleries requiring at least three years’ maturation before becoming Irish whiskey. This extended production cycle has made it difficult for Hinch Distillery to maintain profitability despite its efforts.
Production & Profile
Hinch Distillery produces both Irish Whiskey and Gin, with the inaugural single malt whiskey releases launched last year being entirely produced in their Co Down distillery. The company sells sourced Irish whiskey alongside its own distillate and also produces Ninth Wave Gin.
The annual report revealed that Hinch has £21.9m falling due to creditors within one year, up from £12.9m the previous period. However, around £21.3m of this is owed to group undertakings, leaving the business with a significant deficit in its profit and loss account.
Brand & Industry History
Terry Cross (75) built his fortune by launching Delta Print and Packaging company in Belfast during the 1980s before selling it Finnish packaging giant Huhtamaki in 2016 for around £80m. Dr. Terry Cross re-entered the packaging world in 2023 with an investment of around £47m into new Belfast packaging firm Biopax.
Hinch Distillery’s financial struggles are a reflection of the broader challenges faced by Irish whiskey producers, who must contend with rising production costs and increased competition in a highly competitive market. Despite its efforts to establish itself as a reputable producer of award-winning whiskey at an affordable price point, Hinch has struggled to maintain profitability.
What This Means
The financial struggles of Hinch Distillery raise questions about the long-term sustainability of Irish whiskey production and whether companies can continue to invest in this capital-intensive industry. As one of Ireland’s leading producers, Hinch is a key player in shaping the country’s reputation for quality spirits.
Consumer Takeaway
The struggles faced by Hinch Distillery have significant implications for consumers, who may see reduced availability or increased prices of its products as a result. However, the company remains committed to producing high-quality whiskey and gin at competitive price points.
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