Page 80 - IAADFS Summit of the Americas 2024 Special Edition

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.”

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