A drinking challenge knocking out one European in Welsh town (8)

I believe the answer is:
aberdare
'welsh town' is the definition.
(I've seen this before)
'a drinking challenge' is the wordplay.
'drinking' becomes 'ber' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'challenge' becomes 'dare ' (dare is a kind of challenge).
'a'+'ber'+'dare'='ABERDARE'
'knocking out one european in' acts as a link.
I am not very happy about this link. Some or all of it may be part of another bit of the clue.
Can you help me to learn more?
(Other definitions for aberdare that I've seen before include "town in South Wales ..." , "Welsh (former coal-mining) town" .)
