REG - Artisanal Spirits Co - US Shipment & Strategy Update

Artisanal SpiritsAnnouncement

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RNS Number : 2637I  Artisanal Spirits Company PLC (The)  20 November 2025

20 November 2025

 

The Artisanal Spirits Company plc

("ASC") or ("the Company")

 

US Shipment & Strategy Update

One-off non-cash impact on FY25 results but no impact on underlying
performance

 

The Artisanal Spirits Company (AIM: ART), the creator of outstanding,
limited-edition whiskies and experiences around the world, and owner of The
Scotch Malt Whisky Society ("SMWS" or "the Society"), Single Cask Nation
("SCN"), J.G. Thomson and Artisan Casks announces an update on SMWS America
shipments for the year ending 31 December 2025 ("FY25") and longer-term
strategic developments for the operations in the United States ("US") that
will have a one-off non-cash impact on FY25 but does not impact the underlying
business trajectory.

 

FY25 SMWS America Shipments:

 

The recent government shutdown in the US has created a substantial backlog in
the regulatory approval of new product labels, which is currently quoted by
the US Government Alcohol and Tobacco Tax and Trade Bureau ("TTB") to be in
excess of six weeks versus the normal 72 hour process under which the SMWS has
successfully operated for the past 30+ years. This directly impacts SMWS due
to the unique model of the Society's limited-edition whiskies whereby each new
bottle sold in the US requires a Certificate of Label Approval ("COLA").

 

As a result, the $3.2m of SMWS America shipments which were due to ship in
November 2025, will be unable to clear US customs before the end of the year,
due to the 100+ outstanding COLAs which are not expected to be issued until
2026. These planned shipments would have taken full year SMWS America revenue
to £4.2m, in line with both the average shipments and in-market sales for
FY21-FY24 (£4.2m).

 

These circumstances are entirely outside of the Company's control and will
have a non-cash impact on the reported results for FY25 of c.£2.5m of revenue
and c.£2m of EBITDA.  However, importantly, this will have no impact on
in-market operations, where depletions in Q4-25 to date have returned to
single digit growth following the decline experienced in the previous 12
months.

 

Route-to-Market Development:

 

It has been our strategy to take more direct management of our US operations
over time, reducing costs and improving performance in the world's largest
market for Scotch Malt Whisky. We have already made progress on this path,
with phase one successfully implemented in the market earlier this year. This
delivered recurring annual savings of around $0.5m per year and gave us direct
operational control of the marketing and operations team in the US.

 

The next stage of this strategy is to move to an improved in-country route to
market, with direct relationships with US '3-tier' partners which will deliver
substantial recurring cost and efficiency benefits. To make this change, we
need to transition the in-market stock from our legacy partner into the new
model.

 

We have decided to accelerate this move, as the TTB impact means that the
stocks held by our existing partner will be significantly reduced, making a
transition to this new route-to-market at the end of March 2026 (when the
current contract expires) simpler and more efficient to execute.

 

This means that in addition to the impact of the two FY25 shipments that had
been scheduled for November 2025 noted above, there will be a further
non-recurring, non-cash accounting impact of c$2-2.5m of revenue and
c.£1-£1.5m EBITDA in FY25, reflecting the stock that is currently in market
and is expected to still be held by our existing importer as at 31 December
2025.

 

As a result, the total combined non-recurring, non-cash revenue impact in FY25
is expected to be £4-4.5m. The non-recurring, non-cash EBITDA impact in FY25
is expected to be c£3-£3.5m.

 

Importantly, the underlying performance of the remainder of the business
continues to deliver in line with current market expectations.

 

Trading Outlook:

 

For FY26, we anticipate revenue to be broadly flat versus FY25 underlying
revenue (i.e. excluding the US one-offs noted above) and to deliver positive
mid to high single digit EBITDA margin.

 

Looking forward, the benefits of the change to our US operations are expected
to be:

 

Ø Substantial cost savings, estimated as positive total cash impact of c$1m
(c£750k) over the next three years.

Ø Aligning revenue recognition with depletions, which is both:

o  consistent  with our approach in all other key markets

o  in line with the current timescale for cash receipts from the US

Ø Direct engagement with '3-tier' partners in the US, allowing us to improve
performance in the market, through increased efficiency and speed to market
for new initiatives.

 

 

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

 

"The Company had made good progress on the production and logistics required
to deliver our full year US shipment plan.  It is therefore highly
frustrating that this development - which is outside the Company's control,
will have an adverse effect on our reported results, albeit this is a non-cash
impact and not a reflection of underlying trading levels.

 

"The US is the world's largest market for Scotch Malt Whisky and while the
market has been challenging over the last 12 months, the management actions
implemented at the start of this year have been successful, momentum is
improving and the US remains the largest longer-term strategic opportunity for
the business. Hence, we have taken the decision to leverage the opportunity
presented by the impact of the recent US government shutdown to accelerate the
next stage of our strategic development in this market."

 

 

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                        https://artisanal-spirits.com/s/3db035

                                                        (https://artisanal-spirits.com/s/3db035)
 Andrew Dane, Chief Executive Officer

 Billy McCarter, Chief Financial Officer

 Panmure Liberum Limited (Nominated Adviser and Broker)

 Edward Thomas                                            Tel: +44 (0)20 3100 2222

 Dru Danford

 John More

 Instinctif Partners (Financial PR)

 Justine Warren                                           Tel: +44 (0)20 7802 2617 / 2634

 Hannah Scott

 

 

About The Artisanal Spirits Company

ASC's purpose is to captivate a global community of whisky adventurers, by
creating and selling outstanding, limited-edition whiskies 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), J.G.Thomson (JGT) and Artisan Casks. Owning over 18,000
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 to members both as individual bottles and whole
casks.

With an established global presence in some 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 Scotch malt and other 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 USA.
SCN also retails to key international whisky markets around the world.

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.

In July 2025, ASC launched Artisan Casks, a luxury private cask programme
allowing private individuals the chance to purchase an individual cask of a
quality that allows for immediate bottling and joining a select network with a
discerning appreciation for finest craftsmanship and luxury experiences.

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 £23.6
million in FY24, predominantly from outside the UK, with an expanding presence
in the other key global whisky markets including USA, China, Europe, Japan,
Australia and Taiwan.

ASC has a substantial asset backing and is delivering profitable growth and
cash generation.

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