Penderyn signs multi-million-pound China deal

Welsh whisky producer Penderyn Distillery has signed a multi-million-pound distribution deal to pursue its ambitions in China.

The deal was struck with Hong Kong distributor Port Union and its mainland China subsidiary, Yantai Hongyu Liquor Co.

The partnership marks the first time Penderyn has secured a deal in China. The company said it would be supported by Ian Chang, ex-head distiller and blender at Kavalan in Taiwan.

Penderyn expects China to become its biggest export partner in the next three years.

The company noted that Asia is the fastest-growing region for single malt whisky, and is forecast to grow by a compound annual growth rate of 5.25% to reach US$2.6 billion by 2026, according to Market Data Forecast.

Stephen Davies, CEO of Penderyn Distillery, said: “We are pleased to be making significant progress building our brand in Asia, and in China and Taiwan in particular.

“We see a lot of discerning and premium malt whisky drinkers in both these markets.”

Penderyn’s sales are up by 32% year on year in France, the company’s biggest export market at present. The producer attributed this to its close collaborations with Welsh rugby.

In August, Penderyn revealed plans to open a third distillery in Swansea, Wales.

Plus, the producer released Yma O Hyd, the 10th bottling in the Icons of Wales series.