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 8th 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.”