Introduction: Since its inception in 1978, Halewood Artisanal Spirits has charted an impressive journey from a small-scale distributor of table and fortified wines and producer of ready-to-drink beverages to becoming a prominent name in the burgeoning artisanal spirits sector.
In this exclusive interview with The Moodie Davitt Report Senior Reporter Ameesha Raizada, Halewood Artisanal Spirits Global Travel Retail Director Eamon Prunty discusses the company’s strategic evolution and the importance of product innovation in a fast-paced travel retail environment.
From a hopeful start-up in 1978 to a thriving near-£150 million (US$198 million) enterprise 46 years later, family-owned Halewood Artisanal Spirits is an almost archetypal example of an independent company made good.
The family-held business, established by the late John Halewood who passed in 2011, today operates seven distilleries and a brewery across the UK. And like so many good entrepreneurial narratives, the Halewood story continues plenty of plot twists and turns.
Arguably the most seminal development came in June 2015 with the appointment as CEO of Stewart Hainsworth, a veteran of the international spirits and tobacco busness.
Hainsworth boasted cross-sector, multi-geography experience as CEO International for Russian Standard Vodka; Chairman of Russian Alcohol Group (then Russia’s leading vodka producer) and Group Commercial Director and Executive Board Director at tobacco giant Gallaher Group until its US$15 billion acquisition by Japan Tobacco in 2007.
Hainsworth arrived armed not just with experience but with ideas. “Stewart came in with a vision for craft artisanal spirits,” observes Halewood Artisanal Spirits Global Travel Retail Director Eamon Prunty.
“Over the last seven to eight years, the company has divested itself of all its non-artisanal brands, focusing solely on premium offerings.”
This strategic shift has allowed Halewood to carve out a profitable and growing niche in a highly competitive category.
“It’s all about craft artisanal spirits at Halewood,” says Prunty, who joined the company in late 2016 following a 28-year career with Diageo (and its predecessors).
Halewood Artisanal Spirits’ portfolio, which spans three liquor categories – white spirits through gin & vodka, whisky, and rum & cream liqueurs – features renowned brands such as JJ Whitley, Whitley Neill Gin, Dead Man’s Fingers and Welsh single malt whisky Aber Falls.
Prunty emphasises the importance of constant innovation in creating that eclectic range. “All of our product development is done in-house, which is key. We don’t necessarily look at trends – instead, we ask ourselves where we can play differently and add value to the category.
“For example, we were pioneers of flavoured gin. We’ve since expanded into flavoured rum and ready-to-drink beverages such as canned cocktails for Dead Man’s Fingers, which appeal to festivalgoers and party enthusiasts.”
The company exports to 75 countries worldwide, its largest markets being North America, Europe, Australia and China.
Back to those plot twists. Halewood’s international expansion has not been without its challenges. The key to success in new markets, according to Prunty, lies in finding the right distribution partners.
“Getting the right route to market partner is crucial,” he notes. “We don’t have standalone businesses, so having the right distributor is key.”
One of the challenges Halewood faced in global markets was adapting to regional preferences. “For instance, while gin and rum have been successful in some regions, other markets, such as Asia, prefer whisky.”
“That’s part of the reason we have evolved. Our whisky strategy allows us to cater to different markets where gin or rum might not be as popular.”
He also identifies pricing as a perennial obstacle, citing Latin America where rum is inexpensive due to local production.
“With Dead Man’s Fingers, we can’t make it work for us in Latin America because rum is so cheap there,” says Prunty. “We have to account for that in our cost of goods, which makes it challenging to be competitive.”
A window to the world
Travel retail has become a hey and growing focus for Halewood, offering both a valuable sales channel in its own right and a high-profile global showcase.
Prunty describes travel retail as a “shop window” that allows consumers to discover their products in airports, where they have more time to browse and make purchasing decisions.
He says: “We are aggressive with consumer price promotions, selling brands at competitive prices. For example, a litre of Aber Falls is £19 (US$25) in travel retail, whereas at Tesco it’s around £33 (US$43.60). And the reason we have done that is because we see duty-free as a brand-building experience.
“We do a lot of activations and get liquid on the lips. For us, travel retail isn’t just about airport shops. We also do well on airlines like EasyJet, TUI Airways and British Airways, as well as in the cruise channel.”
Success in the channel, however, requires a tailored approach. Prunty notes: “If you look at our travel retail strategy, part of it is looking where we do very well domestically.
“The other part of our strategy is working with leading retailers such as Gebr. Heinemann, Aer Rianta International and Avolta.
“For example, in Portugal, when Aer Rianta picked up the concession, they wanted to include all of our brands because they had seen how well we performed in Ireland and Cyprus.”
When asked what a successful partnership in the channel looks like, Prunty replies: “Travel retail is difficult to crack for new brands. Retailers need to have faith – it’s not all about the multinational brands.
“If you go to London Heathrow Airport Terminal 5, 90% of the brands are from the big five spirit companies,” he observes, saving praise though for World Duty Free owner Avolta which he describes as “a bit different in this, they see room for UK brands and local businesses”.
As reported, the company recently introduced Aber Falls to UK travel retail in partnership with Avolta, supported by sampling activities and promotional activations.
The ‘proudly Welsh’ whisky is now available at London Heathrow, London Gatwick, Cardiff, Bristol, Manchester, Birmingham and London Stansted airports.
Prunty remarks: “Aber Falls has huge potential in travel retail. Apart from its great taste and competitive price, it’s different, with a good story to tell. It is sure to attract whisky lovers and newcomers to the category through its quality and Welsh heritage.”
The brand exemplifies Halewood’s commitment to authenticity and local sourcing. Located in North Wales, Aber Falls is the first distillery in the region for over 100 years.
Aber Falls Single Malt Welsh Whisky secured a gold at The Drinks Business & Spirits Business Spring Tasting 2022. In the same year, it won a silver at the World Whiskies Awards, 2022 London Spirits Competition and World-Spirits Award.
The return of Welsh whisky
Aber Falls Distillery General Manager Carole Jones told The Moodie Davitt Report about the importance of the distillery’s location in the brand’s identity: “We’re just three kilometres from the Aber Falls waterfall and we use water from the waterfall to craft our whisky.”
The distillery also emphasises sustainability, using Welsh barley and recycling waste products to benefit local agriculture. “Our whisky is a very sustainable product,” she says.
“The draft from the whisky production goes to a local farm to feed cattle, and the effluent is turned into biomass fertilizer.
“We also hold a monthly artisanal market at the distillery where Welsh artisans can come and sell their wares. We work closely with the local food and drink businesses and stock their products in our shop.”
As the spirits industry continues to evolve, Halewood strives to remain ahead of the curve by catering to emerging consumer trends.
Prunty notes that price sensitivity and a desire for innovation are two major dynamics shaping the market. “People are becoming more price conscious due to the cost-of-living crisis,” he says.
“Post-COVID, many people are drinking at home rather than going out, which has changed buying patterns.
“They’re also looking for something different, which is where our innovation comes in.” Halewood’s product offerings reflect this, with no and low-alcohol options being developed to meet changing consumer preferences.
Aber Falls has positioned itself as a whisky brand that appeals to younger consumers thanks to its lighter, sweeter flavour profile. “Our target audience is 25+,” Prunty says. “Aber Falls is quite sweet and fruity because we use four different types of casks: sherry, birch, oak and bourbon.”
The brand’s appeal extends beyond the UK, with Aber Falls exporting to 40 countries across Europe, China and Canada. Breaking into the US is a future goal.
“Welsh whisky as a category is in its infancy,” Jones adds. “But it’s growing, and we’re excited to be a part of that.”
Looking ahead, Halewood is focused on expanding its whisky portfolio and exploring new markets. “All markets are of interest to us because we have such a diverse portfolio that can cater to different segments.
“We work very fast, and the reason we can do that is because everything is done in-house. We produce, bottle, distribute, market, and sell – we’re a one-stop shop.” And as Halewood’s remarkable success testifies, plenty of consumers are stopping to shop. ✈
