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By Anthony Foley, Senior Lecturer in Economics, DCU Business School

This blog post examines the Brexit impact on the Irish drinks sector but I should start with some clarifying comments. I am convinced by economic analysis that a UK exit from the EU would have a negative economic impact on the global economy, the UK economy and the Irish economy. Ireland and the UK have very strong economic flows in imports, exports, travel and tourism, people and finance. There would also be particular political and social negatives for Ireland because of the Republic/Northern Ireland relationship and the possible termination of the long standing common labour market between Ireland and the UK. The scale of the negative economic effect will depend on the speed, certainty and content of the necessary new trade deal between the UK and the EU, and the UK and the rest of the world.

Very little campaign discussion and debate has taken place on the likely nature of a post exit relationship. Indeed there is not a common position within the Brexit Campaign on the desirable replacement of the existing trade relationship. In addition, there is the added complication that the majority of the UK Commons are against Brexit and that presumably the Commons would have to approve the new deal. Elements of a new deal might disappoint many who would have voted for Brexit. Despite my conviction that Brexit would have negative effects and the uncertainty associated with the post Brexit situation, I must declare that, if I was a voter in the UK referendum, I would vote for exit. This reflects political factors, notably a lack of desire on my part to have an ever closer political union (even though the reform deal allows the UK to “opt out” of ever closer union). I recognise that economic integration brings economic and social benefits and that a degree of political integration is needed to facilitate economic integration but I would prefer the political integration to be minimised and to focus more on inter-government agreements.

There has been much discussion and coverage of the overall economic impact of Brexit on Ireland but relatively little discussion of the impact on specific sectors. This note deals with Brexit and the Irish drinks industry. Brexit will have a negative impact on the Irish drinks industry. It will worsen conditions for trade with the UK. Depending on the details of a new, as of now unknown, trade relationship and agreement between the UK and the EU, new trade regulations and barriers will increase costs for both importers and exporters. This will be a particular problem for small drinks enterprises such as the new craft breweries and small distilleries which may target the UK as an initial export market because of its proximity and similarities. In addition, Sterling has already declined in value because of overall concerns with Brexit in the foreign exchange and financial markets and this will continue and accelerate if the UK votes to leave the EU.

A declining Sterling reduces the competitiveness of exports from Ireland to the UK and improves the competitiveness of imports from the UK. Consumers may benefit from the latter but Irish drinks producers competing on the domestic market will lose out. However, fluctuations in the exchange rate with Sterling are not a new phenomenon for the Irish drinks industry.  The drinks industry has a substantial volume of trade with the UK but the industry, notably in liqueurs and whiskey, has generated substantial export sales in non EU markets which do not have the much easier market access of the EU and EEA countries.

In addition, Brexit is expected to have, and is currently having, an immediate and short term negative impact on the level of UK economic activity which reduces the UK demand for imported products and services. A continuing long term negative overall economic effect on the UK economy is expected from Brexit but this is less certain and depends on how the UK uses its increased policy scope and freedom over the next few years and on the trade deal negotiated with the EU. There may also be a wider negative Brexit effect whereby the uncertainty raised by Brexit, for example, on the future maintenance of the EU, has a global negative economic effect resulting in lower growth and lower levels of economic activity. However, this can be minimised by a speedy determination of the new trade and economic relationship between the EU and the UK.

The Irish drinks industry generated exports of €1241.8 million in 2015, of which €314.4 million or 25% went to the United Kingdom. €224.8 million was sold to Britain and €89.6 million was sold to Northern Ireland. The largest national market for Irish drinks exports is the United States with €485.4 million or 39%. Britain is our second largest national market for drinks exports and Northern Ireland is our third largest. The UK market share of 25% for drinks exports compares to a UK share of 14% for total Irish merchandise exports. The drinks exports are more dependent on the UK market than overall exports. Individual drinks products such as soft drinks and cider are particularly reliant on the UK market, much more so than the average drinks situation, as referred to below.

Drinks imports were €785.1 million in 2015 of which the UK provided €305.8 million or 39%. The UK provided 27% of our total imports resulting in drinks imports being more UK focused than overall imports. Britain provided €273.3 million in drinks imports and Northern Ireland €32.5 million. Britain is by far, the largest source of drinks imports followed by France with €89.2 million. By contrast, the USA provided only €18.2 million in imports compared to the UK €305.8 million. The UK imports include products produced in the UK and products produced elsewhere but distributed from the UK.  Adding imports and exports, Irish drinks international trade was €2026.9 million in 2015, of which the UK accounted for €620.2 million or 30.6%.

The sectoral drinks export dependence on the UK/British market is shown in the table  below. There are very substantial differences between different beverage types with consequent different levels of Brexit-related impact.

UK role in individual Irish exports of beverages 2015

beverageExports € million Exports to UK € millionUK share %
Soft drinks132.4107.881.4
Cider56.940.2 (Britain only)70.7
Beer282.9121.643.0
Whiskey443.919.1 (Britain only)4.3
Other spirits (mainly liqueurs)313.213.5 (Britain only)4.3

Source.  CSO Trade Statistics

Soft drinks exports are very reliant on the UK market and hence are particularly vulnerable to the negative effects of Brexit. 81.4% of soft drinks exports are sold on the UK market. The same is true of cider, 70.7% of cider exports are sold in the British market. Beer has a much lower but still high share of its exports sold in the UK market, 43%.

The situation is completely different for whiskey and liqueurs. Whiskey has been the drinks export growth story of the past few years but the UK has contributed little to it. Of €443.9 million in whiskey exports, only €19.1 million or 4.3% is sold in the British market. 65% of Ireland’s whiskey exports are sold in markets outside the EU. The USA on its own accounts for €233.7 million or 52.6% of total whiskey exports compared to the British 4.3% share. In the liqueurs category Britain accounts for only 4.3% of exports, the same as whiskey. Non-EU markets absorb 78.4% of Irelands liqueur exports compared to Britain’s 4.3% share. The USA absorbs €163.8 million or 52.3% of total Irish liqueur exports.

Within the drinks export sector soft drinks and cider are very exposed to the UK market, beer is also significantly exposed to the UK but whiskey and liqueurs have a small degree of exposure to the British market.

On the import side, soft drinks accounted for €248.9 million of which Britain supplied €173.0 million or 69.5%. There was €233.0 million of wine imports (excluding sparkling wine) of which Britain supplied €14.6 million or 6.3%. Britain supplied €33.6 million of beer imports or 24.2% of the total of €138.7 million. Whiskey imports were only €15.6 million of which Britain supplied €6.4 million or 41.0%. Imports of other spirits and liqueurs amounted to €59.9 million of which Britain supplied €16.2 million and Northern Ireland €23.8 million. The UK share was 66.8%.

Overall, the British or UK sourced drinks imports were soft drinks €173.0 million, beer €33.6 million, whiskey €6.4 million, liqueurs €40.0 million and wine €14.6 million. The increased competitiveness advantage of UK drinks imports into Ireland will be most felt by domestic producers of soft drinks and, to a lesser extent, beer producers.

It is definite, in my opinion, that the short term and current economic impact of Brexit will be negative for Ireland and the drinks industry, and indeed negative for the UK economy. There will be lower UK economic activity, Sterling is declining relative to the euro which reduces Irish trade competitiveness and trade costs and regulation cost will be higher. However, a weaker Sterling improves UK export competitiveness. It is less certain that the longer term performance of the UK economy under Brexit will be definitely worse than if the UK stays in the EU. Much will depend on how the UK government uses its increased policy discretion.  The Brexit campaign has been relatively quiet on what it would do with the increased policy independence.  The scale of the negative impact will depend on the speed and detail of the new UK/EU trade and economic relationship but it is very likely that a reasonable new trade deal will be done with a low impact on trade transaction costs. While some Irish drinks enterprises and sectors will be significantly hit by the direct and indirect effects of Brexit, others such as whiskey, have very limited direct exposure to the UK economy.

Apart from the export/import issues discussed above, Ireland and the drinks industry will have a strong interest in the details of new arrangements for border/customs control, tariffs, regulations, labour mobility, work visas, security and foreign investment. Unfortunately, Ireland will not negotiate this new relationship with the UK. It will be done by the EU as a whole and, while Ireland will have an input, the eventual agreement will reflect the overall EU position. Ireland engages in high volumes of trade with countries outside the EU; the drinks industry has established substantial sectoral markets outside the EU. Membership of the EU is not a necessary condition to develop drinks exports but clearly, the lower the trade barriers the easier is the task. Brexit is not equivalent to termination of economic relations. Brexit will not result in isolation of the UK economy. There will be a new trade relationship between the UK and the EU, as there is a trade relationship between the EU and other economies in the global economy.  The negative economic impact of a Brexit can be minimised and kept low by a speedy agreement on the “new” relationship.

Anthony Foley is Senior Lecturer in Economics in DCU Business School, and lectures on the Executive MBA Programme.

The Nissan Generation Next programme is designed to support ambitious Irish people, from whatever walk of life, who have the drive and determination to become tomorrow’s leaders. DCU Business School graduates Shane Carthy (BBS 2014, MSc Business Strategy 2015) and Ryan Scott (BBS 2014) have been named as finalists in this years edition.

Shane Carthy

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Shane has battled adversity to become a club All-Ireland winning footballer and an integral part of the Dublin Senior Football team. His sporting goal is to win an All-Ireland title with Dublin and his business goal is to help Ireland reach its renewable energy targets by 2020 through the introduction of sustainable and innovative energy solutions.

Vote for Shane here

Ryan Scott

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Ryan is one of the founders of DropChef, who make cooking dinner easier by delivering all the ingredients to cook a healthy dinner, along with an easy-to-follow recipe, straight to your door. Each ingredient is pre-measured, saving you time, money and eliminating your food waste.

Vote for Ryan here

Voting closes on the 28th of June and you can vote once every 24hours.

 

Chartered Accountants Ireland will be hosting a Chartered Careers Open Evening in their Dublin HQ, 47-49 Pearse Street on Thursday 16 June, from 6.00-7.00pm.

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This event is for anyone interested in becoming a Chartered Accountant and would like to know more. If you would like to attend, you can register here, or simply sign in on arrival. This free event will feature guest speakers and a Q&A session.
If you have any further questions you can email or call Chartered Accountants Ireland on: 1890 28 29 28 (ROI) / 028 9043 5840 (NI).

Innovations in the technology, food, science and digital spheres dominate the 2016 UStart Student Accelerator Programme announced at DCU Ryan Academy. Ten student start-up companies were successful in their application to win a place on the prestigious UStart Student Accelerator Programme which runs from May 25th to October 5th. The programme, which provides mentoring, expertise and support to student start-ups enables start-ups to progress from concept stage to market prototype.

A number of DCU Business School students secured a place on the programme for 2016:

Effector: Karl O’Brien (MInT 2017), Darren O’Reilly

Effector is a digital marketing agency that helps businesses make an impact online through website development and social media marketing.

PopUp: Cormac Kelly (MInT 2016), Sophia Ellis (MInT 2016)

Pop-Up is a service which connects Irish SMEs who are seeking short-term rental agreements with property owners in possession of suitable vacant commercial/office premises.

WhyBuy.ie: Sean Molony (BBS 2016), Conor Duffy (BBS 2016), Gareth Jordan (BBS 2016), Ciaran McNamara (BBS 2016), Rashad Al Harazy (BBS 2016).

WhyBuy.ie is an online classifieds website for short term rentals of outdoor/sporting items. This service aims to provide an online platform which facilitates consumer to consumer rental transactions.

Tap: Daniel O’Farrell (MInT 2016), Saoirse Allen (MInT 2016), Stephen McSweeney (MInT 2016), Ógie Laoire (MInT 2016)

Tap is an NFC and GPS enabled wristband that allows users to connect with each other at networking and business events.

Hitch: Oisín Hoy (Global Business – Spain 2018), Luke Scales(DCU B.Eng 2015), Shane Carter (BBS 2018)

Hitch connects commuters with drivers who are undertaking the same journey, saving money and time for the commuters and cutting costs for the drivers.

Huddl: Brian O’Rourke (BBS 2014), Sean Byrne, Alan Farrelly

Huddl is an award-winning social transportation network that allows commuters to crowd source their commute.

Slapp: Shane Carter (BBS 2018), Connor Bradshaw (DCU Multimedia 2017)

Slapp is a time-management app aimed at students. Our mission is to make time management easier for students, while empowering marketers with powerful marketing data.

Squeazy Eazy Science: Matthew Hewston (MInT 2019), Fergus Munday (DCU Science Education 2020)

Squeazy Eazy Science is an educational toy company all about making science fun and easy. It is a fun addictive science based challenge.

Click here to learn more about UStart & DCU Ryan Academy

DCU Business School MSDM (Masters in Digital Marketing) students recently went on the programme’s annual India trip. Read their third blog about their visit to Wipro:

On our last day in Bangalore, we got the opportunity to visit the Wipro headquarters in Bangalore India. We were greeted at the gate by two graduates who had recently started working with there. We were brought into a conference room and had various talks from different people in the different sectors of the company such as marketing, IT, management and HR. It was really great to gain some insights into the marketing that is performed by Wipro.

Worldwide, Wipro employs over 170,000 people. Between the two campuses in Bangalore over 20,000 people are employed. The campus itself was extremely impressive. It had a number of restaurants, a gym, many different offices, a swimming pool and also. a butterfly garden where he said that they encourage their employees to go for a short time each day to reflect and relax Our guide brought us on a tour and described the working environment to us. The campus is open 24-hours a day with a rotation of employees working at various times throughout the day.

Shortly after our tour of the campus we were brought to was the ‘Technovation Centre’. This is where they develop and test their newest innovations. They first talked us through the process, then showed us some of the innovations they had been working on. They work a lot with virtual reality, sensor control, and advancing technology to make business easier. The first innovation we looked at was a floor map that was controlled by hand sensors. You could scroll through a map of a mall, search for products you wanted for example, clothes, household items etc. and select them, they then popped up as an image which you could select then it would take you to the relevant store and show you a map based on where in the mall you currently where.

The next innovation we were shown was virtual reality glasses. Two members of DCU MSDM got the chance to try them out. The setting was a store where you could select items to put in your basket then bring to the checkout. They are working with stores to develop a virtual world of the store and enable customers to shop like this in the future. The next innovation we were shown was a phone app that allowed you to scan the content of a box and project a 3D image of the contents so you could see actually size and dimensions.

After the technovation centre, we went back to the first conference centre where they had kindly put on a high tea for us. It was great and we got the opportunity to get to know the recent graduates. Over all the industry visit to Wipro was a fantastic trip that gave us the opportunity to learn about Wipro as a business and was also a great opportunity to network.

MSDM Wipro Bangalore

Click here to learn more about carrying out a postgraduate degree in DCU Business School.

The DCU Executive MBA is a two-year part-time programme that is widely recognised as the degree of choice for rising executives with ambitions to be Senior Managers/CEOs, whatever their specialist backgrounds. Here are ten reasons why it may be the programme for you:

1. Accredited and internationally recognised

DCU’s Executive MBA is accredited by the Association of MBAs (AMBA), which assesses the quality of MBA programmes worldwide. You will graduate with an internationally recognised and accredited qualification. DCU Business School is also one of only two schools in Ireland with AACSB accreditation – placing it in the top 5% worldwide.

2. Adding Value to Practice

MBA participants, along with other assignments, will conduct a strategic consultancy project, which integrates the knowledge, skills and values of the programme and provides an opportunity for to deliver real value to your organisation.

3. Leadership Development & Career Management Programme

MBA participants pursue a programme of action-based projects and workshops over 2 years. Self-assessments, and team and facilitator feedback develop self-awareness of own leadership competencies, facilitates targeting development opportunities, deepens emotional intelligence and enhances competence to think and act as a leader and people manager.

4. Enterprise Engagement

The DCU Executive MBA programme embodies the key values of the University’s strategy in its emphasis on enterprise and translation of knowledge into practice. The Enterprise Engagement module includes visits to a number of companies with strong growth strategies. The visits are supported by lectures and our Executive Speaker Series on issues relating to globalisation, sustainability and strategic growth.

5. International Exposure

MBA participants will broaden their perspective and focus upon global organisations on the International Study Week. In recent years, participants have attended lectures on leadership, global strategy and innovation at Harvard, Boston University and Stanford University. Visits to San Francisco, Silicon Valley, and Boston included meetings with start-ups, incubators and multinational organisations focused on innovation, entrepreneurship, leadership, strategy and new technologies.

6. Small class sizes

We believe that an interactive and participative learning environment is best achieved in small classes

7. Academically Rigorous

The MBA teaching faculty are leaders in their field, with many publishing in leading international journals and presenting at international conferences. DCU Business School research priorities emphasise equally the creation of new knowledge (discipline-based scholarship) and the application, transfer and interpretation of knowledge to improve management practice and teaching (contributions to practice).

8. A holistic approach to learning

We adopt three approaches to learning:

  • A focus on knowledge, where participants engage in class-based lectures and workshops
  • A focus on leadership skills, working in a hands-on team-based environment and assess and develop their own leadership competencies
  • A focus on action, engaging in projects applying lessons learnt back into practice
9. Alumni Network

When you join the DCU Executive MBA programme, you will join a global network of almost DCU 16,000 DCU Business School graduates, including 1,000 MBA’s. The DCU Business School Alumni group is a vibrant and active community with many of the graduates participating in events and activities throughout the year. These include:

  • Business Breakfast Briefings
  • Alumni Networking Evenings and Social Events
  • Alumni Careers Day

DCU Business School values its Alumni and appreciates the contribution that they make to the life of the School by their involvement with various initiatives. We also want to be a life-long resource and partner to our Alumni throughout their careers.

10. Employment and Career Prospects

DCU Executive MBA graduates are highly sought after in the jobs market, with many going on to pursue senior management roles in organisations both at home and abroad. Recent graduates are now working in roles such as Client Manager, Construction Director, Enterprise Architect, Financial Controller, Managing Director, Product Manager Sales Director, Senior Software Engineer, and Technical Programme Manager.

Interested in learning more about our Executive MBA programme? Download our brochure here

Every year DCU is required by the Higher Education Authority (HEA) to conduct a survey among recent graduates on their employment status, up to a year after graduation. The survey is called the HEA First Destination Return. It is used to report on graduate employability and to help us develop and improve our services to students. We are asking everyone who recently completed a course at DCU in 2015 to take part in the survey to find out what they have gone on to do.

The survey takes about 3 minutes to complete. We are asking everyone to complete the survey, even if you continued to study at DCU, or if the course you completed was a course you did whilst working (e.g part-time course). If you do not complete the online survey, we will telephone you to follow up. Please contact us if you want to specify a time and date to be called.

You will need your DCU Student Number to complete the survey. Please note that the information you give is confidential and will only be used in the preparation of statistics.

Click here for the survey

To say thanks for your participation, you will be entered into a draw for a €200 One for All Voucher, or one of 5 DCU hoodies.

If you have any questions regarding the survey, please email the DCU Careers Service at careers@dcu.ie

Although you may have now completed your course, DCU Careers Service is still available to you. If you would like help finding employment opportunities and developing your career plan, please contact careers@dcu.ie.

Soon you will have finally graduated with your bachelor degree. The world is your oyster so what next? What is your next move?  Why not explore the possibility of studying an international one year postgraduate degree in Ireland? How will this enhance your international career and what are the opportunities for employment in Ireland afterwards?

Reasons to stay in Ireland after your postgraduate studies

The Irish Third Level Graduate Scheme

As a US student who has successfully obtained a postgraduate degree in Ireland, you have the right to extend your stay in Ireland for 12 months for the purpose of seeking employment and applying for a green card or work permit.

You will be allowed to remain in Ireland to work for up to 40 hours a week under student visa arrangements and apply for further permission to remain in the Ireland under green card or work permit arrangements.

You are also entitled to return to Higher education after availing of the Graduate Scheme if you re-enter at a higher level and can finish the new course within the 7 year limit on studies for non-EEA students. The Irish Council for International Students is also an excellent website for further information on this scheme.

Ireland is a top global export platform for Corporate America

Ireland is a top global export platform for Corporate America according to a report called The Transatlantic Economy 2016 for the American Chamber of Commerce to the EU.

In the report it states that the transatlantic economy between the US and Europe generates $5.5 trillion dollars in total commercial sales a year and employs up to 15 million people on both sides of the Atlantic. It is the largest and wealthiest market in the world accounting for 35% of the world GDP in terms of purchasing power.

As regards US company exports from Ireland, the report highlights that between 2000 and 2013 exports have increased fivefold to $244 billion. This is four times larger than the equivalent exports from China and 3.5 times larger than Mexico.

Therefore, living in Ireland is a great opportunity for US students to live and work.

Ireland – Home away from home

Ireland is the only English speaking country in the Eurozone and it remains a preferred location for young Europeans; in 2013 alone over 55k Europeans came to work in Ireland according to IDA Ireland. Over half a million Irish residents speak a foreign language other than English or Irish. Therefore, it is a great opportunity for US students to be live and work in a multicultural society within an English speaking European country.

If you are thinking about studying a postgraduate business degree in Ireland and would like more information on the points highlighted in this article, download our free ebook on postgraduate studies in Ireland here.

For more information on carrying out a postgraduate degree in DCU Business School click here.

EF327 High Technology Entrepreneurship students from the MInT and MWB programmes recently pitched their final business plan ideas to a panel of industry representatives.

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The EF327 Module introduces students to the theory and practice of entrepreneurship in the context of high technology venture creation. This is a practical module where students will form business teams and gain first hand experience of the creativity, leadership, planning, and team management skills involved in initiating and developing a new venture.

Industry panel members included Geraldine Lavin (Lecturer in High-Technology Entrepreneurship, DCU ), Laura Clifford, (Commercialisation Support Officer, DCU), James Kelliher (Digital Portal Manager, Electric Ireland) Andrea Linehan, (Commercial Director, Grid Finance) and Paddy Quinlan (Accelerators Coordinator, DCU Ryan Academy).

The panel selected the following as the ideas to receive awards:

  • Most Scalable Idea Award – DropTour
  • Best Customer Validation Award – Stash
  • Best Use of Digital Technology Award, sponsored by Electric Ireland – Tap Networking
  • Best Video to Secure Peer to Peer Funding Award, sponsored by GridFinance – SMDJ Technologies (FRANC)
  • Highly Commendable Award – CMeNow

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For more information on Marketing, Innovation and Technology in DCU Business School click here.

Give yourself the competitive advantage with DCU Business School. If you want to take your career to the next level, DCU Business School has the part-time postgraduate programme to help you realise your full potential. Part-time study is a very efficient way of raising and updating your skills while keeping your foot firmly in the professional world.

Our part time programmes are tailored for those who want to continue working while studying and usually involve committing a number of afternoons or evenings each week to attend classes or lectures. Undertaking a part-time postgraduate course can be of great benefit to personal and professional development as well as for career progression.

We are currently accepting applications for September 2016 via the Postgraduate Applications Centre (www.pac.ie/dcu) for the following part-time postgraduate programmes:

For details on our full-time postgraduate programmes, please click here.