IN FINE SPIRITS
Sales are down, but distilleries are rallying with a festival this month
WHEN Gwynedd’s Frongoch whisky distillery finally closed in 1910, it brought the curtain down on the Welsh spirits industry for almost a century.
But in a country that gave the world Evan Williams Bourbon, Matthews Southern Comfort and, less directly, Jack Daniel’s bourbon, this sorry state of affairs could not last forever.
In the late 1990s, distillers crept back into the market.
And, when smaller stills were once again permitted in 2009, it fuelled an explosion in artisanal activity.
Very quickly, Welsh whiskys, gins and liqueurs became renowned for their quality, and sales took off.
In 2023, spirits production in Wales turned over £241million, helping to make drinks the fourth biggest food sector in Wales.
Yet this year it’s a very different story: across the sector there’s been as much gnashing as there is mashing.
Sean Williams, a whisky aficionado and writer from Caernarfon, is hoping to reverse this trend through the inaugural Wales Distilled Festival, to be held in St Asaph on April 13.
Macro trends are largely to blame for the sales dip, with the cost-of-living crisis biting deep and alcohol-free drinks on the rise.
Since the turn of the year, producers across Wales have been feeling the pinch, he said.
“In the past month I’ve spoken to 52 distillery or spirit bottlers,” said Sean.
“Forty of them have told me of a drop in sales of at least 30% in this quarter compared to last year.
“Producers hoped this was just in January, but the trend has continued through February and into March.
“One retailer is down nearly £1,000 a month since December, based on last year’s sales.”
An early-year dip, following the festive bonanza, is an annual certainty.
The emergence of Dry January allied to New Year fitness commitments has further added to traditional sticky starts.
Sales usually recover, but so far this year it’s not happening.
Five years ago Neil Pilkington and wife Suphunsa set up SPC Gins, a craft distillery, and opened The Spirit of Anglesey store in Beaumaris.
Later they launched a ginmaking experience in which customers create and distil their own bespoke gins using small copper stills.
It’s been a word-of-mouth success: all 50 of its Tripadvisor reviews are five-starred, customers enjoying the couple’s expertise while creating something unique.
One reviewer likened the experience to visiting “an apothecary from Harry Potter, where the walls are lined with unicorn horns and phoenix feathers”.
So far this year, however, the distillery side of the business has hit a wall.
“Since Christmas, things have not been as good as they were,” said Neil.
“In the first two months of 2024, sales are down 18%-19% compared with the same period in 2023.
“Something is happening, whether it’s the recession, the cost-of-living crisis or a combination of factors.
“The footfall is not the same, and that’s having an impact on sales.
“I know that other distillers are saying the same.”
SPC Gins distills mainly for inhouse sales, as well as showcasing spirits from around Wales, the UK and globally.
“Its first product, Bangkok Tuk-tuk Gin, was inspired by Suphunsa’s mixologist father, and it’s continued to be a bestseller, partly thanks to promotions via the Thai tourism authorities.
Easter is traditionally a good time, when the caravan parks start filling up again, and Neil and Suphunsa will hope the poor start to 2024 was just a blip.
Bucking the trend is the growth in rum sales as customers look for something different – a change from the latest botantical.
Anglesey Rum Co, part of Llanfairpwll Distillery, recently won its 10th award since launching in 2021.
Has the gin market simply reached saturation?
“I don’t think the bubble has burst,” said Neil. “But the market is slowing.”
As small craft producers rely on direct sales to turn a profit, reaching a large enough audience is always a challenge.
Sean Williams suspects a tourism dip, especially in North Wales, is partly to blame, but says the squeeze on household expenditure is the underlying cause.
“Goods and services deemed to be luxury items are the first to be cut back on,” he said.
The start of the year is also a time when people reassess their drinking habits.
At the same time, lifestyle consumption habits have fuelled a rise in zero-alcohol drinks products that are eating into market share.
Sean believes the artisan spirits sector can use these trends to its advantage.
“We are encouraging responsible drinking habits with a lessis-more approach, where people opt for quality by choosing small craft distilleries and producers rather than mass-produced global brands,” he said.
Next month the spotlight will fall firmly on the country’s craft producers at the first Wales Distilled Festival.
On April 13, some 30 spirits distillers will converge on the Faenol Fawr Country Hotel, St Asaph, to showcase their gin, vodka, rum, whisky, liqueurs, mead and more.
Making news at the festival will be the launch of the first Welsh whisky since Aber Falls released a single malt in May 2021.
Ceredigion-based distillery In The Welsh Wind quickly sold out its inaugural release of 30-litre casks and will begin selling limited edition bottles at the St Asaph event.
“The craft distillery is owned by husband and wife team Alex Jungmayr and Ellen Wakelam,” said Sean.
“They have been breaking with whisky norms and distilling a non-malted green grain whisky for the last three years.
“The new whisky is eagerly anticipated!”
Attractions at the festival include street food vendors and two cocktail bars serving up bespoke drinks using Welsh spirits.
Live music will also play a big part, with contributions from Anglesey Indie-rock band Fleur De Llys and Caernarfon’s Cor Dre, a contemporary mixed choir.
Another will come from a young Welsh harpist called Emily whose set will include the likes of Coldplay, Labrinth and the Beatles.
As well as smaller producers, some of the bigger players will be exhibiting too, such as Penderyn and Aber Falls.
Visitors will have the chance to assess them all and vote for their favourites in what’s being billed as the “only drinks awards in Wales voted for by the public”. Category winners will receive their awards at a black-tie dinner on October 5.
Sean said: “With the vast array of craft distilling in Wales, we wanted to showcase this amazing industry in one event covering all types of Welsh spirits. Wales is at the forefront of the craft spirits market in the UK with over 60 producers spread throughout the country.
“April’s festival will be a landmark event and a fantastic opportunity for people to taste the amazing drinks being made in Wales.”
■ Wales Distilled Festival 2024 is at Faenol Fawr Country Hotel, St Asaph, on Saturday, April 13, noon-6pm. Tickets cost £25 and only available in advance. For more information, and to get tickets, visit the festival website.