Peter Marshall (PM): Simon, welcome back to TRunblocked.com. Let’s get straight into it. How would you describe the general state of the global spirits market?
Simon Roffe (SR): Hi Peter and thanks for the opportunity to share the latest news from the “Home of Welsh Whisky”. 2024 has been quite a challenging start and, pulling no punches, we’ve seen various levels of performance.
Overall, the Penderyn business ended 2023 in a robust state and our core brands are in line with expectations. There are bright spots, but it’s fair to say the global market is challenged by a variety of ongoing circumstances which I think most spirits brand owners would be in agreement with.
First, there are of course the geo-political issues in a number of regions such as Ukraine, the Middle East and indeed some Latin American markets and these have impacted on plans and continue to cause market delays, suppress demand etc.
Then the wider economic downturn has seen many markets suffering from high levels of inflation and quite often an impact on the long term trend towards premiumisation. From our perspective this is clear but also we haven’t seen consumers deterred from buying the special items and our Icons of Wales limited editions, for example, continue to prosper. The reaction to Penderyn Patagonia, only launched last September, has been simply amazing and the message is: “buy it while stocks last”.