SMWS owner suffers cask sales lag
The Artisanal Spirits Company (ASC) has indicated that revenue was flat in the first half of 2026 (H1), as growth from its brands was offset by lower trade cask sales.
The update relates to the six months ending 30 June 2026.
The group said revenue from the Scotch Malt Whisky Society (SMWS), Single Cask Nation (SCN), JG Thomson and Artisan Casks collectively increased by ‘high single digits’ when compared with H1 2025.
ASC said this growth was driven primarily by SCN and Artisan Casks, which launched in summer 2025.
The group attributed its lower trade cask sales to ‘phasing’, adding that it predicts its full-year results to be more heavily weighted to H2.
Sales completed in H1 carried a lower margin, reflecting the ‘profile of stock sold and softer cask-market conditions’. A similar margin profile is expected for H2.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) was maintained year on year, with ‘improved’ branded business performance and efficient cost control offsetting a lower trade cask contribution.
Net cash flow improved by around £1.5 million (US$2m) versus H1 2025. This was driven by revenue growth and cost control in the branded businesses. Lower spending on spirit and wood investment helped to offset weaker income from trade cask activity.
SMWS
Total SMWS sales grew ‘marginally’, with bottle sales in the US up by 10%. Australia also experienced ‘double-digit’ growth.
UK venues, UK online and China were relatively flat, while EU online declined by approximately 10%. The ASC cited a continuation of consumer caution and said it was continuing to control costs accordingly.
Global SMWS membership remained just under 40,000, around the same level as December 2025. However, this puts membership up by approximately 1,000 compared with June 2025.
It added that retention remained consistent at around 70%. New member recruitment increased by approximately 15% year-on-year, with particularly strong performance in China.
The ASC recently revealed membership grew by just over 20% in the first four months of 2026.
Outlook
The ASC board said it was ‘encouraged’ by the group’s strategic growth initiatives, particularly Artisan Casks, as well as SMWS and SCN in the US. It added that it is ‘confident’ in its full-year expectations.
CEO Andrew Dane said: “We are pleased with the progress made during the first half of 2026 from the key strategic areas we have been focusing on.
“Revenue from our branded businesses increased by high single digits, supported by strong performances from SCN and Artisan Casks, while membership growth, retention and recruitment trends remained encouraging across SMWS.
“Alongside continued cost efficiencies, this delivered improved profitability from our branded businesses and a meaningful improvement in cash flow.
“Looking ahead, we remain focused on delivering our expectations for the full year, through a combination of continued momentum on sales from our branded businesses and continuing to unlock significant value through trade cask sales.”
Related news
Irish whiskey to outpace Scotch in travel retail
