By Scott Wright

THE owner of the prestigious Scotch Malt Whisky Society has moved to strengthen its supply chain by investing in a major new logistics and operations hub in central Scotland.

The Artisanal Spirits Company, which floated on the stock market earlier this year, told the City that it has signed a 10-year lease on a 37,000 square foot building in Uddingston.

Edinburgh-based Artisanal said the new facility, which will include a warehouse, offices and a production building, would give it “greater control” over its supply chain and equip it to supply the society’s growing membership base.

Membership of the society has risen above 30,000 for the first time, with uptake in the UK “particularly encouraging” following the reopening of venues and easing of coronavirus restrictions. The society has four member venues in the UK – in Leith, Edinburgh, Glasgow and London – as well as “partner” bars around the world.

Details of the new logistics hub comes shortly after the company announced in September that it had agreed heads of terms on a new logistics warehouse in west central Scotland when it reported its interim results, without disclosing the location.

Artisanal said the investment will be funded by the proceeds of its flotation on the Alternative Investment Market in June, which valued the company at around £78 million.

The successful flotation raised £26m from retail and institutional investors, with £15m going into company offers. Part of the £15m will go towards the new facility, though much of the float proceeds is being invested in whisky stocks and casks to expand the range offered to society members.

Artisanal said design work on the Uddingston building, which enjoys “excellent transport links” and is located in a secure yard, is under way, with equipment now being sourced. Installation is scheduled to begin at the start of next year and it is expected that the facility will be fully operational in the second half of next year. Around 10 people will be employed at the site, which will cost around £2m to fit out.

David Ridley, executive managing director of Artisanal, said: “Securing a long-term lease at a newly refurbished supply chain facility comes at an exciting time for us as we continue to scale up the business with the IPO proceeds. The facility will allow us to take greater control over the group’s supply chain, whilst also providing us with the resources to supply our growing membership.

“To have attracted 30,000 members worldwide is testament to our offering and signifies an exciting milestone for the group and we look forward to further membership growth, while continuing to excite our existing members, with an increasing variety of flavours and quality SMWS products in the years to come.”

Artisanal, which employs around 80 people, said the new site will give it “enhanced capability” to supply its growing membership with “ultra-premium” Scotch whisky and other spirits.

In a recent interview with The Herald, Mr Ridley outlined plans for the soon-to-be-launched JG Thomson brand, which is named after the company that used to own the Vaults in Leith – “spiritual home” of the society since it was established in 1983.

Mr Ridley said the Vaults has the “longest commercial history of wines and spirits, and it dates back to the time monks traded coal for casks and barrels of Bordeaux” several centuries ago.

Artisanal plans to introduce a range of blended malt Scotch whiskies with different flavour profiles – rich, sweet and smoky – as well as gins and rums under the JG Thomson name. Prices will start at the recommended retail price of £43 per bottle for the blended malt, which will be available online as well as in whisky shops, bars, and restaurants in the coming weeks.

The maiden stock market results published by Artisanal in September showed that revenue increased by a forecast-beating 20 per cent to £7.9m in the fist half of the year.

Shares in the company closed the day up 1p at 103.5p.