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SMWS owner updates partnership in Malaysia
The Artisanal Spirits Company, owner of membership organisation the Scotch Malt Whisky Society (SMWS), has increased its credit facility to £21.5 million (US$26.1m) and secured a new partner in Malaysia.
The Artisanal Spirits Company (ASC) has extended its agreement with RBS bank to increase its revolving credit facility to £21.5m, up from £18.5m (US$22.5m) and extend the loan until 19 December 2025.
The ASC said the funds provide the firm with additional flexibility to expand and grow its business, including membership, investing in the group’s brand and whisky stocks, and boosting its global reach.
David Ridley, managing director of the ASC, said: “The successful increase in the banking facility is testament to the strength of ASC’s consistent strategic delivery and extensive asset base of unique and appreciating whiskies and other spirits.
“The extended facility provides us with further firepower to continue to grow our membership base both in the UK and internationally, to launch the group’s American whiskey proposition in H1 next year and to continue to invest in further spirit stock for ageing, underpinning ASC’s future growth.”
Furthermore, the ASC is moving its operations in Malaysia to its new partner, Drinks Alliance.
The deal provides a new route to market in the region and further strengthens the ASC’s geographic footprint in Southeast Asia, the company said.
Malaysia is the 12th-largest market for ultra-premium single malt Scotch whisky by value. It was estimated to be worth US$102m in 2021, up by 49% compared to 2020, according to IWSR figures cited by ASC.
The move follows the company’s recent entry into South Korea through a franchise agreement.
Ridley added: “We will continue to execute against our growth strategy to deliver a doubling of sales between 2020 and 2024 in a disciplined and measured way with expansion evidenced by our international partnership agreements in territories such as Malaysia announced today and in South Korea in November, two of the fastest-growing whisky markets in the world.”
The SMWS owner saw revenue climb by a quarter in the first six months of 2022, led by ‘significant growth’ in the UK, Europe and China.
The ASC will provide an update on trading for the 2022 financial full year on, or around 23 January 2023.