Raising a glass: The Artisanal Spirits Company helps aficionados to indulge their passion for whisky

More than 120 companies decided to float on the stock market in 2021, with almost 70 joining the junior AIM market alone. 

Many have found the going tough since then, missing forecasts, disappointing investors and watching their stock plummet in response.

Artisanal Spirits Company is different. The upscale whisky group floated in June 2021 and has successively met or exceeded expectations ever since.

The shares are 92.5p, so they have risen by more than 11 per cent since Midas recommended them in August 2021. But they are still below the £1.12 at which they floated two months earlier. That seems unjustified and the shares should increase as the company continues to prove its worth.

Artisanal Spirits is the business behind the Scotch Malt Whisky Society, a club for whisky enthusiasts. Celebrating its 40th birthday this year, the society prides itself on creating limited edition whiskies that are sold exclusively to members. 

Each whisky comes from a single cask, with just 250 bottles produced per barrel, making them all slightly different. Last year alone, Artisanal Spirits created around 1,000 new whiskies, some mature, some young, some peaty, some smooth, but all designed to appeal to the discerning tippler.

The concept seems to work a treat. Member numbers grew 12 per cent to 37,400 in 2022, and have continued to increase this year too. 

Just under half come from the UK. But top-notch Scotch is appreciated the world over, with membership soaring by more than 20 per cent in Japan and Australia and almost 30 per cent in continental Europe.

Read Related Also: Fed Official: ‘We Need to Be Cautious’ on Raising Rates After Bank Failures

In return for £85 a year, members gain exclusive online access to the Society’s whiskies, which range in taste, age and price.

Carefully curated whisky does not come cheap – starting out at around £45 and going up to £2,500 for extremely deluxe varieties. But members are prepared to pay. Almost 250,000 bottles were bought in 2022, with Chinese drinkers alone splashing out on up to ten bottles each.

Growing membership and expenditure helped Artisanal Spirits to deliver a 19 per cent rise in 2022 revenues to £21.8 million, with chief executive Andrew Dane expressing confidence about this year and beyond.

The company made a small loss last year, as it invested in fresh casks of whisky and a brand-new plant, where Scotch can be matured, bottled and distributed.

While Dane works with more than 100 independent distilleries, bringing some of the storage and bottling in-house will help margins and Artisanal Spirits is expected to move into profit this year, growing at pace thereafter.

With more than 16,500 casks and sufficient whisky to satisfy demand for the next five years, the group’s assets are highly valued too, worth almost £500 million and rising at inflation-busting rates annually.

Shareholders are offered cut-price membership of the Scotch Malt Whisky Society as well, and the odd exclusive bottle.

Midas verdict: Money is tight but whisky has a certain allure and the Artisanal Spirits Company helps aficionados to indulge their passion. At 92.5p, the shares are a strong hold for existing shareholders and a bargain for new ones too.

Traded on: AIM Ticker: ART Contact: artisanal-spirits.com or via Instinctif Partners on 020 7457 2020