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Penderyn Distillery plans to triple production of its single malt whisky and boost export sales after securing £900,000 in finance from its bank.

The distillery, which is based at the foot of the Brecon Beacons and is Wales’ only whisky producer, is building three new stills to increase production from 150,000 bottles of its single malt whisky a year to between 400,000 and 500,000.

The company sells 20% of its product overseas, compared to around 80% for Scottish distilleries, but wants to grow that to 40% by expanding sales in Europe, North America and Asia.

Founded in 1998, the Penderyn Distillery began distilling in 2000 and now has 30 employees and a turnover of £4m. Its first Penderyn single malt whisky was launched by Prince Charles in 2004 and sold out on the first day.

In addition to its range of whiskies, which are stocked by major retailers including Waitrose, Sainsburys, Asda, Morrisons and Tesco, the company also produces vodka, gin and a cream liquor.

The Penderyn Distillery says the investment to expand production capacity could potentially double turnover within five to seven years, which is the length of time it takes to produce the new whisky because of the ageing process.

Managing director Stephen Davies said: “The growth of the business has been constrained by a lack of production capacity, rather than a lack of demand, so this investment will help us to propel the company forward.

"We have established a strong brand and business and we are now at the stage where we want to capitalise on that and look for expansion. Whisky is a competitive marketplace but we are fully confident we can increase sales both and home and abroad.”

He added: “Although we are the only Welsh whisky producer with a product on sale, we differentiate ourselves from Scottish and Irish whisky producers on taste and production process. Our whisky is produced using Brecon Beacon spring water, matured in old Bourbon casks from Buffalo Trace in Kentucky and finished in Madeira barrels, which gives it a very distinctive taste.”

Penderyn Distillery secured the finance from HSBC’s South West Wales commercial team in a deal led by senior international commercial manager Darren Baugh.

Steve Yorke, HSBC South West Wales area commercial director, added: “The Penderyn Distillery has enjoyed great success since it produced its first single malt nine years ago and we are pleased to support the business in this latest stage of its growth.

"The company revived Welsh whisky making and is taking its product across the globe, helping to promote Wales and its quality of product.”