Artisanal Spirits Company announces plans to target Vietnam

Scotch Malt Whisky Society-owner the Artisanal Spirits Company has named Vietnam as its next target market as gains in Asia drive membership growth.

The Artisanal Spirits Company, owner of The Scotch Malt Whisky Society (SMWS), Single Cask Nation (SCN) and JG Thomson, posted its preliminary results for the year ended 31 December 2024 this morning.

The group delivered EBITDA of £1.1m, a record performance which was slightly ahead of market expectations and up £1.6m versus 2023 at £0.5m.

Revenue grew marginally by 0.4% to £23.6m (2023: £23.5m). The company saw a £1.5m net debt reduction in the second half of 2024.

CEO Andrew Dane said the company had achieved its ambitions in 2024 “despite a backdrop of uncertain economic conditions in some markets”.

Membership growth

SMWS memberships grew 4% year-on-year to 42,700 in 2024, the company has reported.

Growth rates were highest in Asia. Membership in the region saw significant growth year on year, up 12% to more than 5,400 members.

China (+24%) and the recently added Korea franchise (+59%) were the driving forces here. The former increased its retention levels from 49% to 62% and the latter further consolidated its new position in the region as a high-performing franchise market.

SMWS’s key Asian markets consist of China, Japan, Taiwan and franchise partner Korea, alongside franchises in Malaysia and SE Asia.

Memberships in China increased, but challenging economic headwinds in the region created challenges for revenues, which were down 20% across the Asian region; another year of decline.

China and the Far East remain important markets fro the group, it said in today’s statement, but the company has reduced exposure to the Chinese market to limit risk. The group has said it offset this decline with stronger delivery in Europe.

Internal forecasts have assumed no material recovery in the Chinese economy over the next two to three years “which will hopefully represent a relatively prudent assumption for medium term growth in the market”, the company said in its financial results.

Last year was the group’s first full year in Taiwan and South Korea. Positive results in these markets offset challenges in Japan, where revenues were down 30% year on year.

Now, the Artisanal Spirits Company has set its sights on a new market in Asia, focusing international expansion efforts on Vietnam.

“We are confident that our proven strategies and strong brand will resonate with consumers in Vietnam, opening new avenues for growth and success. This will build on previous expansions into Taiwan, South Korea and across South-East Asia, where demand for ultra-premium whisky remains strong,” the group said.

Current trading

Dane referenced a “positive start” to 2025, stating that the company is “on track to deliver further profitable growth and cash generation in FY25 and beyond”.

The company has more than 18,000 casks in stock, primarily comprised of single malt Scotch whisky, independently valued in July 2024 at £102m.Stock includes whisky from 150 different distilleries across 20 countries which is sold to members both as individual bottles and whole casks.

Its DtC model is responsible for 90% of revenue for the ASC, which operates across 30 countries.

“We have delivered profitable growth, helped by our successful acquisition of US based Single Cask Nation in January 2024 and the additional investment in our SMWS USA operations completed in January 2025 also further augments the exciting opportunity for ASC to deliver profitable growth in this key market,” said Dane.

“We continue to have an outstanding asset backing, with the current cask inventory value of just over £100m representing around 4x both NBV and Net Debt. We have now made the important transition of only acquiring stock on a replenishment basis, and this continues to increase the positive future cash profile of the business which is encouraging.”

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