Artisanal Spirits Company: Scotch Malt Whisky Society owner takes action after £1m trade tariff blow

The Edinburgh-based group, which floated on the London Stock Exchange in 2021, said it continued to navigate a “challenging global whisky market” but stressed that it was taking actions to mitigate the fallout, including ramping up it focus on other emerging markets such as China and Vietnam.

Releasing interim results covering the six months to the end of June, Artisanal Spirits Company (ASC) told investors that it remained on track with its strategic goals thanks to “ongoing revenue diversification” and several new initiatives, as well as fresh cost efficiencies.

It noted that membership retention remained strong at 70 per cent, with total membership numbers up 3 per cent on the first half of last year. Half the membership is based in the UK.

Overall revenues were down 4 per cent, year on year, to £9.7m, largely reflecting the £1m or so reduction in “rephased” US shipments while the group implemented its tariff mitigation plan and also reflecting weaker consumer confidence across the Atlantic. Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) - or underlying profits - were maintained at £1m, matching last year’s first-half performance. However, at the bottom line ASC reported a loss before tax of £3.6m, compared with a deficit of £3.1m a year earlier.

Chief executive Andrew Dane said the group remained on track to deliver full-year underlying earnings in line with City hopes despite the global economic woes and tariff turmoil. It comes after First Minister John Swinney met President Donald Trump in the Oval Office this week and held “constructive discussions” on whisky tariffs.

Dane described the first-half performance as “credible” and noted that the revenue decline was primarily about timing in the US.

“We paused most of our first-half shipments,” he said. “What we maybe underestimated was the short-term impact on the consumer confidence in the market caused by the uncertainty associated with the tariffs. However, the US remains the world’s biggest premium market and still represents a huge growth opportunity for us.”

He added: “With momentum building in the second half, particularly across Europe and China, and US shipments now resuming momentum, we remain on track to deliver full-year Ebitda in line with market expectations.”

As well as the Scotch Malt Whisky Society, ASC owns Single Cask Nation, JG Thomson and Artisan Casks. Owning more than 18,000 casks primarily comprising single malt Scotch, the group’s stock includes whisky and other spirits from 150 distilleries across 20 countries, which is sold to members both as individual bottles and whole casks.

Last month, ASC cheered a new Indian tie-up as it expands its whisky fan club globally. The move followed the recent sealing of a free trade agreement between the UK and India - seen as a major boost to the Scotch whisky industry.

In January 2024, the group acquired Single Cask Nation, which sources, curates and bottles single-cask whiskies and other spirits selling both online and via traditional retail channels to its following of more than 10,000 whisky enthusiasts in the US.

In its latest results statement, ASC said the introduction of tariffs to the spirits market had created “a significant amount of uncertainty within the industry and the local economy”. It led to a pause on shipments to the US and, as a result, shipments were down around 50 per cent, or £1m.

The firm added: “Looking ahead, at this time, tariffs appear to be a requirement to trade in the market, however, through the actions we have taken, we are now in a position to ship goods to the country at a more optimal cost than [the first half] and therefore anticipate we will see a heavier weighting of US shipments in H2. Our full-year expectation is that shipments will resume at similar levels to 2024 as we see some growth coming in the market.

“Membership in the US has declined by 9 per cent, further evidence of market conditions, however, we expect to see growth in H2 now we have greater control in the market and focus attention in this area, including the new loyalty programme.”

Change

Nick Sherrard, managing director of brands firm Label Sessions, noted: “Change is coming to the whisky and spirits market with big shifts in consumer behaviour, new competition and complexity in global distribution that Trump’s tariffs are only one example of. And you can see the impact of all of that in this update from the Artisanal Spirits Company.

“What worked for Scottish whisky in the past is not going to be what unlocks future opportunity, and the industry is becoming more conservative at the precise moment it needs to be most radical.

“Increased access to markets like India and Vietnam will amount to very little if consumers do not see the brands as relevant. In that respect, the Artisanal Spirits Company needs to decide if it is building for the future or optimising for the short term.”

Analysts at Panmure Liberum said the group had made a “positive start” to its second half after a “solid” first six months.

ASC also pointed to continued recognition for the “quality and consistency” of its whiskies, with 13 awards achieved in 2025 so far, across three key industry events.

John Swinney holds 'constructive discussions' with Donald Trump on whisky tariffs