AU Vodka founders say Trump tariffs would only speed up US plans

The threat of new US tariffs could cast a shadow over the expansion plans of a Welsh vodka brand. Au, based in Swansea, has quickly become one of the UK’s fastest-growing companies, with its gold bottles and endorsements from celebrities such as Jake Paul and Ronaldinho. The £200 million company, which employs around 100 people in South Wales, was founded by alumni Charlie Morgan and Jackson Quinn.

However, Mr. Quinn has indicated that if President Trump imposes new import tariffs, they will accelerate plans to produce vodka in the US to supply the American market, rather than exporting from the UK. President Trump has already announced a series of new trade tariffs and hinted that the EU could be next in line. He has said that the UK has been "naughty" but these issues "can be sorted out".

Morgan and Quinn, who initially plotted the company's trajectory on a fast-food napkin, are now attempting to conquer the US market. They have already established an office in Atlanta, Georgia, and Mr. Quinn has stated that they will have to "go back to basics" and be "as disruptive as possible". Breaking into the US drinks market is notoriously difficult, with established brands dominating bar and supermarket shelves, and the ongoing threat of tariffs could further dampen their ambitions.

Last year, UK spirits exports to the US performed poorly, with both whisky and gin trade down. Vodka trade is smaller, while the Food and Drink Federation reported a surge in the amount of vodka imported into the UK from the US. Currently, the majority of vodka sales flow from the US across the Atlantic, but Au's founders hope to reverse this trend. "America is a massive market for us," said Mr. Quinn, stating they need to be as "disruptive" and "different" as possible.

Mr. Quinn stated that vodka currently "travels from the UK to the US, but the long-term plan is to produce Au vodka within the US". He believes "any increase in tariffs will only accelerate our existing plans" to bottle their American product on the other side of the Atlantic. In addition, the founders have opened a new headquarters in an industrial area of their hometown, Swansea. They have transformed an unassuming office block into a car park filled with gold cars, and a nine-hole mini-golf course with gold obstacles and golf balls. They will also offer tours and sell vodka on-site.

While it feels like a shrine to their masculine gold ambitions, they are keen to stay focused on how it all began. "Remember we were sitting in McDonalds just writing (the plan) on a napkin," said Mr. Quinn. He recalled that the idea was that "if everything went well, plain sailing, we would do £3 million in sales, which for us would have been massive". "But 12 months later, I think we did £38.4 million," he added. Mr. Quinn said it was a "crazy, crazy twelve months".

Mr. Morgan said the gold theme and marketing blitz only tell half the story of the drink's success. "That only gets people to try it once," he said. "The next and most important part is, is the liquid good? If the liquid is not good, then people won't come back for a second, third and fourth time." Celebrity endorsements have helped the vodka brand grow from a start-up to a viral trend. YouTube star Jake Paul was paid £200,000 to display a temporary tattoo of an Au bottle on his body, followed by dozens of people taking up the company's offer of £250 for their own permanent tattoo.

Leveraging athletes, musicians, and influencers who can market the product has been key to the brand's success, which was also encouraged by former Radio 1 presenter and international DJ Charlie Sloth. He invested in the company after seeing their early success and has now moved to Swansea to help run the business. "For me, this is just the start," said Sloth. "We've jumped over the first two hurdles with great panache and grace. I feel like now it's time for the big test, which we're in the midst of, and that's America." Sloth said, "As a British brand and a Welsh brand, I feel like we're going to be the first to do this, and I'm super confident about it".

Mr. Morgan said social media has been the brand's "super power", helping the vodka become a mainstream drink in Ibiza bars and the wider holiday drinks market. But Mr. Morgan's goals are much further reaching. "If you ask a target market consumer in America, a 25-year-old, would they know Au? Probably not yet," he said. "So there are so many more people who don't know about us. I think we've still got the drive to try and conquer the world a bit more."