REG - Artisanal Spirits Co - Acquisition of US based Single Cask Nation

Artisanal SpiritsAnnouncement

04/01/2024 07:00

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RNS Number : 5830Y  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                        via Instinctif PR

 Andrew Dane, Chief Executive Officer

 Billy McCarter, Chief Financial Officer

 Liberum Capital Limited (Nominated Adviser and Broker)   Tel: +44 (0) 20 3100 2222

 Edward Thomas

 Dru Danford

 John More

 Instinctif Partners (Financial PR)                       Tel: +44 (0)20 7457 2020

 Justine Warren

 Matthew Smallwood

 Joe Quinlan

 

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.

 

 

 

 

 

 

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