A Speyside-based whisky auctioneer has become the first UK business of its type to establish a bonded warehouse in Singapore.

Whisky Hammer, set up by brothers Daniel and Craig Milne in 2015, declared the move will strengthen its offer by making it easier for buyers in Asia to take part in its monthly auctions, while helping UK sellers achieve better prices by tapping into the surging interest in whisky across the continent.

Figures published by the Scotch Whisky Association (SWA) in February showed that Asia-Pacific continued to dominate as the industry’s largest regional market by value in 2023, with exports worth more than £1.8 billion, down 1.4% on 2022 but up 45% on 2019.

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The value of Scotch whisky markets to several key markets, including the US and France, slowed down in 2023 following a bumper year in 2022, as the industry felt the impact of economic pressures and geopolitical unrest. However, distillers remain confident in the sector’s prospects for the long-term future, notably in Asia.

Singapore has traditionally been a gateway for Scotch whisky industry to markets throughout the Far East, including China. According to the SWA's latest figures, exports to Singapore increased by 19% to £378m in 2023.

Whisky Hammer, which also has a sister retail business, Still Spirit, comprising a whisky shop with more than 200 drams in Ellon, has made the investment in Singapore shortly after hosting its 100th auction. It saw more than 5,000 lots go under the hammer.

The investment also coincides with the firm's current auction, which is live now and ends on Sunday (June 23) at 10pm. Around 2,000 unique, rare, and collectible whiskies are open to bids, including a bottle of Yamazaki 55-year-old, the oldest-ever Japanese single malt whisky. A bottle was last sold by Whisky Hammer for £380,000 in November 2022.

The current auction also includes The Reach, an 81-year-old (1940) Macallan.

Daniel Milne said: “Our customer base in Asia continues to grow, and they are demanding more value-added services from us to complement our auctions. Our new bonded warehouse in Singapore is a sign of our commitment to investing in the needs of our customers in Asia and how we’re providing a seamless purchasing experience for them, while also supporting sellers back home in the UK looking to benefit from this growth in demand.”

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Whisky Hammer explained that goods ordered in Asia will be shipped from Scotland to Singapore, and then delivered to the company's bonded warehouse. A small entry fee covers all additional costs associated with transit “under bond”, with customers then paying for their bottles to be stored and insures at the warehouse.

Customers who then wish to remove their bottles from the warehouse can pay to be able to collect their purchases in person from the warehouse, engage a “white glove” concierge service under which goods are hand delivered to customers at Changi Airport on their way out of Singapore, or have them shipped out of the warehouse to a local or foreign address.

Mr Milne, a chartered accountant who previously worked in the oil and gas industry, added: “The bonded warehouse service provides our customers with the convenience to store their whisky in a safe, controlled environment, and the flexibility to access it whenever they transit at Singapore Changi Airport. Our white glove service ensures prompt point-to-point delivery of the customer’s whisky from the warehouse to them. We’re confident that this offering is a cost-effective means to empower those looking to start a whisky collection or add to an existing one.”