By Scott Wright
THE company behind the Scotch Malt Whisky Society is mulling a stock market flotation.
Artisanal Spirits Company has appointed financial advisers to examine a possible initial public offering (IPO) on the Alternative Investment Market (AIM).
The plans were revealed as Artisanal unveiled a new chairman and financial results, which showed a modest uptick in sales to £15 million in 2020, driven by a 30 per cent rise in e-commerce sales and growth at home and abroad. The company had generated sales of £14.8m the year before.
Mark Hunter, the former chief executive of brewing giant Molson Coors, has been appointed chairman. He succeeds Paul Skipworth, who has moved into the post of deputy chairman.
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The Scotch Malt Whisky Society was established in 1983 to give enthusiasts access to single-cask Scotch malt whiskies and other craft spirits, and now has 28,000 members around the world. Its biggest international market is China, where it generated sales of £3m last year. Sales to the US, its number two market, reached £2.7m.
More than 85% of Artisanal’s revenue was generated online in 2020, with 9% earned through the Society’s four UK venues, located in Edinburgh, Glasgow and London.
Artisanal said underlying profits increased to £0.6m from £0.5m last year in spite of a £0.7m hit because of the 25 per cent tariff on imports of single malt to the US. The tariff, which was linked to a long-running dispute between the US and EU over aircraft subsidies, has now been suspended.
Artisanal has appointed adviser N+1 Singer to explore a possible IPO, which the company said could increase its public profile and give it access to a wider pool of growth capital.
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Mr Hunter, who is currently a non-executive director of TreeHouse Foods Inc, a US-listed manufacturer and distributor of private label packaged foods and beverages, said: “I feel very privileged to take on this role at such an exciting time for ASC and the Scotch Malt Whisky Society. SMWS is a special organisation, delivering only the very best single cask, single malt whisky, craft spirits and entertainment to its loyal members around the world.
“Working alongside the ASC executive team, I am committed to continuing the work of my predecessor, Paul, in ensuring the Society continues to grow and thrive while protecting the distinctive culture and values that make it so unique.”
David Ridley, managing director of Artisanal, said: “Attracting someone of Mark’s calibre to ASC is testament to the success we’ve had and the opportunities that lie ahead. Mark knows the alcohol industry inside out, but just as importantly is a proud Scot who loves our product, buys into our philosophy and lives and breathes the same values we do. We welcome Mark to the team and look forward to working closely with him to grow ASC and take SMWS to the next level for its members.”
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