Welsh whisky giant Penderyn Distillery has seen sales of its single malt soar across the English channel.
The distiller reported a 32% year-on-year market growth in bottle sales in France.
It now exports around 40,000 bottles of whisky to the country every year - 10,000 more than in previous years.
“The plan is to increase to just over 50,000 in the next 12 months,” said chief executive Stephen Davies.
Penderyn exports to 45 countries around the world but France is its biggest export market, in part, because Wales is already familiar to French customers through international rugby.
“We’ve been brand building in France for a number of years, but over the last two or three years we’ve seen a real acceleration of growth. We employ a full-time brand ambassador there now, and do a lot of shows and events, and market visits to retailers,” said Mr Davies.
He added: “France is also one of the few countries around the world that really knows Wales through rugby and connections with Brittany,” he added.
While 70% of Penderyn Whisky is sold in the UK with major stockists including Tesco and Asda, in France, the company sells into independent shops via French whisky distributor La Maison du Whisky.
“We’re in around 1,000 of those shops across France now and that’s where Penderyn has been discovered,” said Mr Davies. “In a supermarket, nobody can tell you about the product on the shelf, but the opportunity to have our story told in independent French shops has been really important for us.”
He added: “One of the strengths of Penderyn is our story. The authenticity that comes from the way we make the whisky with our very unusual style of whisky still and our Welsh heritage.”
Now the distiller is capitalising on that market growth by releasing more special bottlings of its whisky that sit at the premium end of the market. Penderyn releases around four to five single casks a year in France priced between 100 to 120 euros a bottle.
It is also looking to exploit its popularity in France to drive market growth in other countries.
After France, Germany and the USA are growing export markets for the distiller, exporting around 30,000 bottles to each country.
“Germany is the other star market for us in Europe so we’re looking at a similar brand building strategy there,” said Mr Davies, adding that they are also working with American malt whisky specialists, Impex Beverages, to drive growth in the States.
Established in 2004, Penderyn Distillery has become one of Wales’ best-known brands with a turnover expected to reach £20m in 2022.
Earlier this month, the company was crowned Wales Business of the Year in Chambers Wales’ Wales Business Awards 2022.
The next challenge for the distiller is establishing itself as equals to the Scottish and Irish whisky giants, although Mr Davies says the brand and the Welsh whisky industry as a whole is in a better position than it was 20 years ago.
"We've built credibility. We're not seen as an outsider anymore especially amongst serious malt whisky drinkers around the world," he said.
"But there are the general drinkers who are not whisky aficionados and we want to reach those people. That’s the next big challenge. How do we set ourselves against the big Scottish brands, like Glenfiddich or Glenlivet, who are universally known?
"We've been in it for 21 years which, in malt whisky terms, makes us one of the younger brands on the block. When Penderyn started we were the only licence for distilleries in Wales but there's about 35 licences in Wales now for different kinds of spirits including probably half a dozen on whisky. The whole scene is changing and there are new players coming in. I think that all adds to the credibility of the Welsh whisky industry."
Penderyn has now teamed up with In the Welsh Distillery, Dà Mhìle Distillery, Coles Distillery and Aber Falls to apply for protected geographical status with the UK Government for single malt Welsh whisky.
The status protects and promotes named regional products that have reputation or noted characteristics specific to an area. If approved, single malt Welsh whisky would join other Welsh products such as Anglesey sea salt, Carmarthen ham, Welsh beef, Welsh lamb and traditional Welsh Caerphilly cheese.
“The status means there would be rules and regulations about how you make single malt Welsh whisky, for example, that it can only be made in Wales. We’re now at the point where it’s had ministerial approval and the status is now going out for public consultation,” said Mr Davies.
He added: “My hope is that by the end of this calendar year, we will have a protected geographical indicator for single malt Welsh whisky. The status would be significant for us and the industry, which again, adds more recognition and credibility for Welsh whisky.”
On the opening of Penderyn’s third distillery and visitor attraction in Swansea, Mr Davies said he hopes to open the site by March 1 2023.
“We’ve already bought out distillery equipment which will be installed with the prospect of opening early next year. I hope to be producing in January then open the site to visitors in time for St. David’s Day next year,” he said.
Located at the former Hafod-Morfa Copperworks near the Swansea.com stadium, the visitor centre will link to the site's historic rolling mill via a new walkway where the distillery will have a barrel store.
There are also plans for a shop, tasting bar, exhibition space, offices and VIP bar in the grade two listed building.
The distiller opened its second site in Llandudno last May, with its first distillery located in the Brecon Beacons.
“We’re taking a long term lease on [the Hafod-Morfa Copperworks] from the council,” said Mr Davies. “They’re doing some of the building and construction work, for which they have a Heritage Lottery Fund grant. That should be completed in the next month or two.”
Mr Davies hopes the Swansea site will get over 80,000 visitors a year due to its close proximity to the M4 and Swansea to London railway line.
In terms of production capacity, the Swansea site will produce the same amount of alcohol as its flagship Brecon distillery, doubling the brand’s output.
Mr Davies said: “We make 400,000 litres of pure alcohol in Brecon, and we’re going to be making the same amount of alcohol in Swansea. 400,000 litres is the equivalent of just over a million bottles a year.”
