Acquisition of US based Single Cask Nation

Artisanal Spirits Company PLC (The)

04 January 2024

 

4 January 2024

The Artisanal Spirits Company plc

("The Artisanal Spirits Company", "ASC")

The Artisanal Spirits Company acquires US based Single Cask Nation & provides trading update

ASC further augments its brand portfolio offering exceptional single-cask and limited-edition whiskies

The Artisanal Spirits Company (AIM: ART), the creator of outstanding, one-of-a-kind whisky and experiences around the world, and owner of The Scotch Malt Whisky Society ("SMWS"), is pleased to announce that it has acquired the trade and assets of US-based business, Single Cask Nation, effective 3 January 2024. 

Strategic highlights

·      Strategically the acquisition is well aligned with our stated ambition to further grow our presence in the US and, in particular, to take greater advantage of the sizable and growing American Whiskey market.

·      Founded in 2011 by Jason Johnstone-Yellin and Joshua Hatton, Single Cask Nation is an independent bottling brand which sources, curates and bottles rare single-cask and limited-edition whiskies and other spirits for sale both online and through specialty on- and off-premise accounts in the US and other key international markets.

·      Jason Johnstone-Yellin and Joshua Hatton will remain with the company and continue to lead the business from their offices in the US and will be supported by whisky industry veteran Steve Hawley, current President of the American Single Malt Whiskey Commission and former VP Global Marketing for Westland Distillery in Seattle, who has also joined the ASC team to help grow and expand its business in the US.

·      We are acquiring a US business that is both complementary and incremental to our existing business. SMWS will continue to focus on delivering outstanding Scotch Malt whisky, while SCN will develop a greater focus on American Whiskey.  This will not only give consumers something which they seek, namely interesting, unique, curated, exquisitely crafted whisky, but also allows us to incubate and trial new product propositions in a very low cost/low risk way with the scope to expand in due course, whilst accelerating our US operations.

·      Today, Single Cask Nation has an audience of over 10,000 whisky drinkers globally, with the US being the largest market for the business. Single Cask Nation's Purpose and Proposition are also strongly aligned with those of ASC.

·      Acquisition of SCN builds on ASC's already globally diversified footprint, and secures a greater presence in the world's largest premium whisky market.

Transaction details

·      ASC has acquired 100% of the assets and global operations of Single Cask Nation.

·      The consideration is being structured by way of an up front committed payment, with the potential for a larger earn out of up to $500,000 payable dependent on future key performance criteria being met in 2024 and 2025.

·      Consideration funded entirely from the Company's existing debt facilities.

·      The acquisition is expected to be EPS accretive in the first full year of ownership.

·      Helps ASC to achieve stated ambition of creating a high quality, highly profitable and cash generative, premium global business.

Trading update

·      Full year results for 2023 remain in line with guidance issued on 8^th December 2023.

Andrew Dane, CEO of The Artisanal Spirits Company, commented:

"We are thrilled to welcome Single Cask Nation to the Artisanal Spirits Company, alongside the Scotch Malt Whisky Society and J.G. Thomson. This acquisition aligns with our ambition to selectively expand the portfolio in the significant and growing US market, while staying true to our core values of captivating a global community of whisky adventurers with rare and exceptional bottlings.

"The addition of Single Cask Nation will further our mission to create a highly profitable and cash generative premium global business. This is also very much an investment in Jason and Joshua themselves who have cultivated a global following and stellar reputation as thought leaders in the world of whisky. Together with Steve they will bring a tremendous wealth of knowledge, experience and passion to our business and we're looking forward to welcoming them and their followers into the wider Group."

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

For further enquiries:

The Artisanal Spirits Company plc Andrew Dane, Chief Executive Officer Billy McCarter, Chief Financial Officer	via Instinctif PR
Liberum Capital Limited (Nominated Adviser and Broker) Edward Thomas Dru Danford John More	Tel: [phone]
Instinctif Partners (Financial PR) Justine Warren Matthew Smallwood Joe Quinlan	Tel: [phone]

Notes to Editors:

About The Artisanal Spirits Company

ASC's purpose is to captivate a global community of whisky adventurers, creating and selling outstanding, one-of-a-kind whisky and experiences around the world with an ambition to create a high quality, highly profitable and cash generative, premium global business.

Based in Edinburgh, ASC owns The Scotch Malt Whisky Society (SMWS), Single Cask Nation (SCN) and J.G. Thomson (JGT), as well as operating a cask storage, bottling and logistics facility in Scotland. Owning over 17,000 casks primarily comprising Single Malt Scotch Whisky, ASC's stock includes outstanding whisky (and other spirits) from 150 different distilleries across 20 countries which is sold both as individual bottles and whole casks.

Established in 1983, SMWS currently has a growing worldwide membership of over 40,000 paying members. With an established global presence in c.30 countries, SMWS operates a direct-to-consumer model (90% of revenue) primarily through e-commerce, in addition to four member rooms in the UK. SMWS provides members with inspiring experiences, content and exclusive access to a vast and unique range of outstanding, expertly curated, single cask Scotch malt whiskies.

In January 2024, ASC acquired SCN which sources, curates and bottles single-cask whiskies and other spirits selling both online and via traditional retail channels to its following of over 10,000 whisky enthusiasts in the US.  SCN also retails to international markets including the UK, Germany, Sweden, Japan, Israel and Canada.

Launched in the UK in late 2021, JGT has a focus on outstanding small batch blended malt whiskies and other spirits, available both through direct-to-consumer online sales and through traditional retail channels. The award-winning brand has subsequently expanded into international markets.

With proven e-commerce reach and a growing family of brands, ASC is building a portfolio of limited-edition and small-batch whisky and other spirits brands for a global movement of discerning consumers - delivering revenue of c.£23 million in FY23 with over 80% of revenue generated online, predominantly from outside the UK, with presence in the other key global whisky markets including USA, China, Europe, Japan, Australia and Taiwan.

ASC has a pioneering business model, a substantial and growing addressable market presenting a long-term global growth opportunity and a strong and resilient business primed to deliver growth.

 

END