By Mark Williamson
THE Scotch Malt Whisky Society is poised to enter a key growth market in Asia after linking up with a leading liquor distributor in South Korea.
The society has signed a franchise agreement with F.J. Korea, which it expects to help build a significant presence in a country that is reckoned to offer big opportunities.
F.J. Korea distributes products to more than 2,000 bars and the like in South Korea and has operations in key locations across the country, such as Seoul.
The society expects F.J. Korea will help it to recruit new members and to boost demand for the kind of niche and limited-edition products it markets.
Owned by the Edinburgh-based Artisanal Spirits Company, the society says it offers members exclusive access to a unique range of single cask Scotch malt whiskies and other craft spirits. These are sourced from over 100 distilleries in 20 countries.
It described South Korea as the tenth largest market within the global Ultra-Premium Scotch Malt Whisky sector.
The society is confident that the South Korean market will grow strongly as social changes fuel demand for premium products.
David Ridley, managing director of The Artisanal Spirits Company, said the agreement with F.J. Korea would help the group progress its strategy to expand its presence in key international whisky markets.
He added: “We look forward to collaborating with F.J. Korea whose existing brand portfolio is highly complementary to SMWS’ premium whiskies. FJK has committed to grow the SMWS brand for the long term, pledging a dedicated team to focus on our brands and member recruitment in in this new market.”
The Artisanal Spirits Company has secured entry into the markets of Mexico and South Africa in recent months through franchise agreements.
Last month the company posted a 25 per cent increase in first half revenues to almost £10m.
Mr Ridley said then that the premium end of the spirits market looked set for continued growth.
“We have very much got that continued tailwind in the market, despite cost-of-living increases,” he noted. “We do believe that premiumisation will be ultimately much stronger over the course of the second half of this year.”
The Scotch Malt Whisky Society grew member numbers by 24% in the first half, to 33,600.
Numbers increased by 31% in the UK to 17,700 and by 33% in Europe to 3,900. The US remained the biggest market following a 15% increase in member numbers in the half to 5,500. Member numbers also increased by 15% in China, to 1,600.
The Artisanal Spirits Company floated on the Aim market in June. Shares in the firm closed up 2.5p at 72.5p yesterday.
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