RCS - Artisanal Spirits Co - South Korea Franchise Agreement

Artisanal SpiritsAnnouncement

19/10/2022 07:00

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RNS Number : 3316D  Artisanal Spirits Company PLC (The)  19 October 2022

RNS Reach

 

19 October 2022

 

 

The Artisanal Spirits Company plc

 

("The Artisanal Spirits Company", "ASC" or the "Group")

 

New partnership agreement in Asia

 

Inaugural franchise agreement in South Korea

 

The Artisanal Spirits Company (AIM: ART), curators of the world's favourite,
single-cask and limited-edition whisky, and owner of The Scotch Malt Whisky
Society ("SMWS"), is pleased to announce that SMWS has signed a new franchise
agreement with F.J. Korea ("FJK") in South Korea, Asia's fourth largest
economy.

The Artisanal Spirits Company has a long-term, sustainable, global growth
opportunity supported by the significant and growing addressable market in
which it operates, with this new franchise helping to further expand the
Group's commercial business potential. South Korea is the tenth largest market
within the global Ultra-Premium Scotch Malt Whisky sector, based on value, and
was estimated to be worth c. US$161 million in 2021, an increase of 65% vs
2020 (source: IWSR). This represents an entirely new market for SMWS which has
not had a presence in South Korea to date.

F.J. Korea is the fourth largest liquor distributor in South Korea with a
strong presence at over 2,000 on-trade venues and a wide national network base
in key locations such as Seoul. In association with FJK, SMWS plans to recruit
new members in the region through the SMWS website, digital marketing and
social media activity, as well as physical, in person partner bar and live
marketing initiatives such as whisky festivals and tasting events.

South Korea's whisky market is well positioned for increased premiumisation
and e-commerce growth, demonstrating similar consumer trends to other global
markets in which ASC operates, as consumers increasingly seek limited edition
products and bespoke experiences. This is combined with a growing number of
local whisky enthusiasts on social media and an emerging cohort of younger
consumers, in particular, continuing to eschew larger, more mainstream brands
in favour of niche, craft and limited edition Single Malt Scotch Whisky. The
pioneering SMWS model, based around a loyal, valuable and growing membership,
combined with the constant stream of unique, award winning products, is
therefore perfectly placed to succeed in this market.

This development follows the Group's recent entry into Mexico and South Africa
last year, through franchise agreements in those respective geographies, as
ASC continues to expand its global footprint into new growth markets.

 

David Ridley, Managing Director of Artisanal Spirits Company, commented:

"I am delighted to announce this exciting collaboration as ASC continues to
progress its strategy to expand its presence in key international whisky
markets, adding South Korea to our growing footprint.  This further
establishes our operations in Asia - one of the fastest growing whisky regions
in the world.

 

"We look forward to collaborating with F.J. Korea whose existing brand
portfolio is highly complementary to SMWS' premium whiskies.  FJK has
committed to grow the SMWS brand for the long term, pledging a dedicated team
to focus on our brands and member recruitment in in this new market. This
further underpins our approach to seeding and expanding our growing presence
in key international markets and the exciting potential we believe the Asia
region continues to represent for ASC within the context of our international
growth plan."

 

 

For further information, please contact:

 The Artisanal Spirits Company plc                             via Instinctif Partners

 David Ridley, Managing Director

 Andrew Dane, Finance Director

 Singer Capital Markets (Nominated Adviser & Sole Broker)      020 7496 3000

 Sandy Fraser

 Rachel Hayes

 George Tzimas

 Asha Chotai

 Instinctif Partners (Financial PR)                            020 7457 2020

 Justine Warren

 Matthew Smallwood

Notes to Editors:

 

The Artisanal Spirits Company (ASC) are curators of the world's favourite,
single-cask and limited-edition whisky.

Based in Edinburgh, ASC owns The Scotch Malt Whisky Society (SMWS) which was
established in 1983 and currently has a growing worldwide membership of just
over 36,000 paying members.

SMWS provides members with inspiring experiences, content and exclusive access
to a vast and unique range of outstanding single cask Scotch malt whiskies and
other craft spirits, sourced from over 100 distilleries in 20 countries and
expertly curated with diligence and care.

Since producing the Society's very first cask, we have created around 10,000
different whisky releases, producing a constant flow of unique and exciting
one-of-a-kind whiskies.

With proven e-commerce reach and new brands like J.G. Thomson, ASC is building
a portfolio of small-batch spirits brands for a global movement of discerning
consumers - delivering c. £20 million in annual revenues with over 80% of
revenue generated online and over 65% from outside the UK, with a growing
presence in the key global whisky markets including UK, China, USA and Europe.

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.

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