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INSIDER




              Penderyn Whisky grows travel retail business through appeal to single
              malt consumers




                  Penderyn Whisky has made significant
              progress in global travel retail since the
              pandemic ended as more consumers
              demand something different and more
              retailers find space on-shelf for a non-
              Scotch whisky, Simon Roffe, Director
              of Business Development at The Welsh
              Whisky Company Limited, tells TMI.
                  “It has been a challenging time for
              a small brand with limited resources, but
              what has impressed me is the enthusiasm
              for people to look for something a little
              bit different,” says Roffe, who joined the
              fast-growing spirits company in Wales
              in June 2020 after his most recent role as
              Managing Director, Global Travel Retail at
              Halewood Wines & Spirits.
                  “In numbers terms, in 2023 we were
              about 80% up on 2022 in the travel retail
              business and we are five times bigger than   Penderyn Whisky has had particular success in travel retail with activations
              we were pre-pandemic.                 such as this in Birmingham International Airport last March.
                  “I look at where the business was in
              2019 before I joined and where are we   Latin America as a result of the TFWA   “The challenge would be to focus
              now in distribution, number of doors, and   show, to grow on the success of its travel   our strategy on following the consumer
              volume. In volume we are five times bigger   retail doors in North America.  who is relevant to us for domestic and
              than we were. We have also increased the   “We are just about to launch   international markets. We look at Europe,
              number of doors dramatically by focusing   domestically in Brazil. We are in Uruguay   Asia, UK, and North America, plus markets
              on some critical elements instead of a   and now Argentina. We are just going   where there is an emerging consumer for
              scatter gun approach.”             live with London Supply with Penderyn   single malt whisky. That means that we are
                                                 Patagonia after they saw it on-stand in   not necessarily chasing the standard doors
              Travel retail success in Europe and   Cannes. We are working with DFS in JFK,   of the bigger players.”
              the Americas                       SFO, and LAX. We are listed with nine   Penderyn whisky sits in the world
                  Penderyn has had particular success   border operators already, which gives us   whisky category, which Roffe says is one
              in the travel retail markets both closer to its   visibility for the Canadian market.”  of the fastest growing elements of the
              Welsh home and internationally.                                      whisky business.
                  “In the UK travel retail market we are   Long-term vision drives expansion  “We are appealing to a new generation
              pretty well positioned in airports, cruise,   Roffe says the global travel retail   of consumer who is looking to move away
              and ferries,” says Roffe.          strategy is linked to the company’s   from the generic bigger brands. World
                  “Our business with cruise retail with   international plan.      whisky is small, but it is fast-growing in
              Harding+ has grown phenomenally over   “We have a long-term vision that   domestic markets and travel retail. Some
              the past year. We started on two ships and   half of our business will be international   retailers fail to see that and fail to give
              now we are on 27. And it comes because   and half will be UK-based within the next   space to innovation not just in whisky but
              they are prepared to put on shelf something   five years. At the moment it is about 70%   in other categories. And they fail to move
              a little bit different from what people   UK-based and 30% international. Duty free   quickly enough,” says Roffe.
              will see in the domestic market. We can   makes up around 2% of the total business.”  Roffe admits that the challenge for
              influence them through better training,   Despite the latest success, Penderyn   most duty free operators is that their
              through experiences. We have not done it   continues to face challenges from retailers   shelves aren’t big enough, but Penderyn
              quite yet, but there is an ambition to put   who have been resistant to a small whisky   has a good track record where there are
              distillery cask experiences onto cruise   from Wales.                pockets of single malt consumers.
              ships. We can even do limited editions or   “We must be able to convince retailers   “We have shown that we are happy to
              special bottlings for a minimum of sixty   to create space, awareness, and knowledge   invest. We believe that the business should
              bottles with a personalized label.”  for the consumer who is looking for   have a little more openness to innovation to
                  Penderyn has added new listings in   something different,” says Roffe.  world whisky.”




               Summit of the Americas  April 2024                           80



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       IAADFS 2024 Interior Final.indd   80                                                                       4/1/2024   10:32:50 AM
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