Welsh whisky producer Penderyn Distillery is experiencing a huge surge in popularity among Japanese consumers, with its single malt Welsh whisky emerging as the top Welsh protected food and beverage product in the country. This remarkable success comes as Penderyn secured geographical indication (GI) status for its whisky in Japan, marking a significant milestone for the Welsh whisky industry.
Stephen Davies, CEO of Penderyn Distillery, attributes this phenomenon partly to the Japanese love of rugby. “The Welsh rugby team is highly respected in Japan, and Penderyn has long been associated with Welsh Rugby. Our commemorative bottle ‘That Try’ is just one example of this connection,” Davies says.
The distillery’s growth in Asia has been nothing short of extraordinary. In 2024, Penderyn sold 10,000 cases across the Asia Pacific region, with Japan being a key market. This success is part of a broader trend of “unprecedented growth” across Asian markets, particularly in China and Taiwan.
Nicole Liu, Penderyn’s brand manager and ambassador for Asia, highlights the unique appeal of their products: “The Asian market has shown particular enthusiasm for our Dragon series, especially Penderyn Legend. Our distinctive use of Madeira casks sets us apart from the Sherry cask-finished whiskies common in the region”.
The recent GI status in Japan provides legal protection and authenticity for Welsh whisky exports, supporting Penderyn’s export strategy and helping to build awareness of their brand. This recognition is crucial in Japan, the world’s fourth-largest economy with 124 million consumers.
Davies emphasises the strategic importance of this achievement: “Japan is an important market for world-class single malt whisky, making it a key target market for Penderyn Single Malt Welsh Whisky. We have a great partner (Whisk-E), and together, we plan to build awareness and a reputation for our unique brand from Wales”.
The distillery’s success in Japan can be attributed to several factors. Penderyn’s Welsh heritage has proved particularly appealing, with recent research by Food & Drink Wales revealing that Welsh whisky enjoys 39% consumer awareness in Japan – surpassing all other Welsh produce categories.
The Welsh dragon, a symbol of quality comparable to the Union Jack in Japanese consumers’ minds, has become a powerful brand asset in the region.
Penderyn’s unique production methods, including the use of Faraday stills – a legacy of the late Dr. Jim Swan – have created a complex liquid profile that resonates strongly with discerning Asian consumers. This innovative approach sets Penderyn apart in a market dominated by Scotch whiskies.
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) has also played a role in Penderyn’s success, providing strategic advantages for Welsh exporters in Asian markets. This favourable trade condition has allowed Penderyn to capitalise on the growing demand for premium whiskies in Japan and the broader Asia Pacific region.
Looking ahead, Penderyn is well-positioned to benefit from the projected growth in the Asian whisky market. With whisky demand in China set to double over the next five years and the spirit projected to be the fastest-growing in the country, Penderyn’s unique Welsh heritage and innovative production methods give it a competitive edge.
Ian Chang, who is guiding Penderyn’s strategic expansion across Asia, notes: “Compared with UK, European or US markets, Asia Pacific is generally doing okay. After establishing strong positions in China, Taiwan, and Hong Kong, we’re now setting our sights on developments in South Korea and Southeast Asia”.
As Penderyn continues to expand its footprint in Asia, the distillery is poised to further capitalise on the growing enthusiasm for Welsh whisky. The combination of its unique heritage, innovative production techniques, and strategic market positioning has set the stage for continued success in Japan and beyond.
The Year of the Dragon in 2024 has proven particularly auspicious for Penderyn’s ‘Welsh dragon’, with the distillery’s Dragon series seeing a surge in popularity across Asian markets. This cultural connection, combined with the strong association with Welsh rugby, has created a perfect storm of factors driving Penderyn’s success in Japan.
As Welsh whisky continues to gain recognition on the global stage, Penderyn Distillery stands at the forefront, flying the flag for Wales in over 50 countries. With its recent triumphs in Japan and broader Asian markets, Penderyn is not just selling whisky – it’s sharing a taste of Welsh culture and craftsmanship with the world.