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SMWS owner invests in US

The Artisanal Spirits Company (ASC), owner of Scotch Malt Whisky Society (SMWS), expects 2024 revenue to be flat and will invest £500,000 (US$634,500) in its US operations.

SMWS
Membership at SMWS now totals 42,000 people

ASC, which also owns Single Cask Nation and JG Thomson, provided a trading update for 2024 and its outlook for 2025 and 2026.

For the 2024 full year, ASC estimates its sales to be broadly flat compared to the previous 12 months (£23.5 million/US$29.8m).

The group said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) remains on track to deliver £1m (US$1.27m) for the 2024 full year. It also marks an approximate £1.5m (US$1.9m) improvement on 2023.

ASC has also completed its buyout of a 25% stake in the SMWS Japan division, which it now fully owns.

The company expects to deliver profitable growth in the 2025 full year and to be in a ‘significantly improved’ net debt position.

EBITDA for 2025 is expected to now be at least £1.5m (US$1.9m) and is predicted to double in the following year.

Total SMWS membership has increased by 5% to 42,000 compared to June 2024, led by ‘significant growth’ in the UK.

Andrew Dane, CEO of ASC, said: “Our ambition remains to create a high-quality, highly profitable and cash generative, premium global business and we are making good progress on that journey with a creditable performance against a backdrop of uncertain trading conditions prevailing in certain markets.

“We are pleased to have increased membership to around 42,000 whisky enthusiasts and continue to demonstrate the strength of our pioneering model through growing revenue diversification, product innovation, evolution of our cask programme and efficient cost management.”

Furthermore, the company’s net debt peaked at £27m (US$34m) in June 2024 (backed by whisky assets worth approximately £100m/US$127m) with its balance now starting to decrease.

Dane said the group’s strategy of investing in whisky stock “continues to generate substantial value”.

“With ASC now only needing to acquire stock on a replenishment basis, this continues to increase the positive future cash profile of the business which is encouraging,” he continued.

“We exit FY24 on track for a strong set of results and on track to deliver further profitable growth in FY25 and beyond.” 

US investment           

ASC said its new investment in SWMS in the US will give the company full control of the subsidiary from 1 January 2025. All marketing and operations workers in the market will become part of the ASC team from the start of the year.

ASC believes the move would provide it with an ‘enhanced platform’ to grow its membership and profit in the ‘largest ultra-premium whisky market’ in the world.

The investment “further augments the exciting opportunity for ASC to deliver profitable growth in this key market”, Dane added.

The investment in the US will also lead to net savings in the 2025 financial year.

At the start of 2024, ASC acquired US-based independent bottler Single Cask Nation.

According to ASC’s CEO, the purchase is part of the company’s goal to “take greater advantage of the sizeable and growing American whiskey market”.

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