Scotch Malt Whisky Society owner cheers tariff and trade deals amid first-half gains
“We want people thinking ‘what do we do differently that adds value’” – Andrew Dane, CEO
Scotch Malt Whisky Society owner Artisanal Spirits Company (ASC) is poised to benefit from the removal of tariffs on all whiskies to the US and the enactment of the India-UK free trade agreement.
The Edinburgh-based group also cheered good progress at its branded businesses in the first half, which comprise the Scotch Malt Whisky Society (SMWS), Single Cask Nation, JG Thomson and Artisan Casks. Revenue from SMWS, Single Cask Nation and Artisan Casks collectively increased by high single digits, year on year.
In a trading update for the six months to the end of June, the group noted that growth from the brands business had been offset by lower trade cask sales, resulting in overall revenue “broadly in line” with the first half of 2025.
Speaking to The Scotsman, ASC chief executive Andrew Dane described the half-year performance as very encouraging, with the company making good progress in key strategic areas, including cost control.
“The business now has two parts to it - the branded bit is going pretty well, with strong profitability on the back of high single-digit sales growth,” he noted. “Trade cask is much lumpier but the branded part drives long-term value for the business.
“We want people thinking ‘what do we do differently that adds value’ and that’s not just owning some casks and selling them on. It’s putting them in a bottle, getting them to a member, having a global footprint, having these other brands across the range.”
Dane said the group was set to benefit from the imminent removal of tariffs on all UK whiskies to the key US market, while India now looked more attractive after a free trade agreement with the country came into force.
“We have been in India before but it was about a decade ago and tariffs buckled us,” he said. “We signed a franchise agreement last year but held off shipment until this [trade agreement] was enacted.
“The direct benefit to us is pretty small in the short term but the indirect benefits for the industry are substantial,” he added. “For us it’s a nice little bonus but not a transformational thing.”
The trading update showed that global SMWS membership remains just under 40,000, broadly consistent with December last year, but up by about 1,000 compared with June 2025. Retention remained consistent at around 70 per cent and new member recruitment increased by about 15 per cent, year-on-year, with recruitment said to be particularly strong in China.
Dane added: “Looking ahead we remain focused on delivering our expectations for the full year, through a combination of continued momentum on sales from our branded businesses and continuing to unlock significant value through trade cask sales.”
In March, ASC posted a bottom-line, pre-tax loss of £7 million for the year to the end of December 2025, compared with a loss of £3.1m in 2024. Overall revenues fell to £19.9m from £23.6m a year earlier.
Meanwhile, Nodjame Fouad, chief executive of the aged spirits and champagne division at Chivas Brothers owner Pernod Ricard, said: “The opening up of the Indian market represents a significant opportunity for the UK as the world’s leading exporter of spirits, and a welcome boost for the Scotch whisky industry.
“It supports Scotland’s export ambitions, enhancing competitiveness in a key international market and reinforcing the contribution our industry makes to jobs, investment and economic growth across Scotland and the wider UK.”
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