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Is 2024 the Year of the Welsh Dragon for whisky in Asia?
Welsh distillery Penderyn has seen sales of its Legend series, sporting a Welsh dragon on the label, skyrocket in Asian markets. Eloise Feilden finds out about the whisky maker’s plans for further growth.
Whsky demand in China, already the fourth-largest whisky market by value in the world, is set to double in size over the next five years. Euromonitor predicts that whisky will be the fastest growing spirit in the People’s Republic in the coming years, spiking 88% between 2023 and 2026. Predicted growth in China reflects a growing demand across the wider Asia Pacific region.
Scotch is set to drive category growth in Asia, but one Welsh distillery is also tapping into rising demand.
Penderyn Distillery, headquartered in the Brecon Beacons, has been present in Asian markets including Taiwan and Japan for more than five years.
The distillery sees Asia as a more stable growth market than Europe and the US, where economic challenges continue to eat into consumer spending. Ian Chang, who is guiding Penderyn’s strategic expansion across Asia, says “in comparison with the UK, European or US markets, Asia Pacific in general is doing ok”.
Penderyn is already seeing unprecedented growth this year in certain markets. Taiwan is leading the charge, and the distillery has increased sales in the country from 5,000 a year to close to 50,000 in 2024 alone. Madeira Finish expressions — including Penderyn Legend and Penderyn Madeira Finish — have contributed most to strengthening sales.
According to the Chinese Lunar Calendar, 2024 is the Year of the Dragon — an event which has likely boosted sales for Penderyn’s whiskies, which depict a Welsh dragon on the label. Nicole Liu, Penderyn’s brand manager and ambassador for Asia, explains: “The Asian market has shown particular enthusiasm for our Dragon series, especially Penderyn Legend.”
The Welsh whisky distillery is also present in Japan, China Duty Free and the Philippines, and sells 10,000 cases of whisky across the whole Asia Pacific region.
Penderyn is keen to capitalise on the path that Scotch has paved in Asian markets. Stephen Davies, CEO of Penderyn Distillery, tells db: “We have been present in markets like Taiwan and Japan for more than 5 years. We selected them because they are well known as strong markets for Scotch whisky and consequently single malts as well.”
Liu argues that Penderyn also has a “unique selling proposition” in the form of its Madeira casks, “setting us apart from the sherry cask-finished whiskies common in the region”, she says.
Looking ahead, Penderyn plans to capitalise on favourable trade conditions, including the UK-Japan Comprehensive Economic Partnership Agreement (CEPA), which provides strategic advantages for Welsh exporters in Asian markets, the company said.
It also has its sights set on Southeast Asia over the next two to three years. Chang says: “After establishing strong positions in China, Taiwan, and Hong Kong, we’re now setting our sights on developments in South Korea and Southeast Asia.”
Davies adds: “We see South East Asia as premium markets in which we plan to build the Penderyn brand and educate consumers about Welsh single malts and our flagship Madeira finished whiskies in particular.”
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