Two former directors of R & A Bailey have introduced a new Irish vodka brand and hope to generate up to £5 million in annual sales within the next four years.

As directors of a new company, Boru Vodka Company, they have formed a partnership with Carbery Distillers from Ballineen, Co Cork and Terra Manufacturing from Balieboro, Co Cavan to create the new brand, Boru.

Carbery are distilling the whiskey and providing some of the equity for the project, while the bottling is being done by Terra Manufacturing. The two former Bailey's directors, Mr Pat Rigney and Mr David Whelan, say there is a gap in the spirits market for a new Irish vodka brand.

They claim vodka sales in the Republic are growing at 20 per cent a year and the new product can capture a significant portion of these sales. At present the market is dominated by two brands, Smirnoff, distributed in the Republic by Gilbeys, and Hussar, distributed by Irish Distillers.

A contract worth $800,000 has been agreed with the US company, Shaw Ross, to distribute the brand in the United States.

Mr Phelan said he expects to be shipping Boru to Britain in November and agreements are already in place in Germany with various duty-free outlets in Europe. All the Irish multiples have agreed to stock the new brand.

To date £1 million has been invested in the product with the same amount due to be spent over the next year, much of it on marketing. Comans Wholesale has been appointed as national distributor for the brand in the Republic.

"There has not been a new Irish vodka brand for some time and we believe Boru can be popular at home and in export markets, although we realise this is a risky business," said Mr Phelan.

"Unlike our largest competitors, we do not have large overheads, so we can be competitive and offer a quality brand at the same time," he added. There will be three varieties of the brand sold - Boru Original, Boru Strong and the Boru Trinity pack, which will include three bottles.