We are only a quarter of the way through 2024 but it has already been a massive year for Joshua Hatton and Jason Johnstone-Yellin’s Single Cask Nation (SCN). In January the US-based independent bottler announced its acquisition by The Artisanal Spirits Company, parent company of the Scotch Malt Whisky Society, and in February it won Independent Bottler of the Year at the 2024 Icons of Whisky America World Whiskies Awards. Joshua recently sat down with me to talk about the big news and what lies ahead for Single Cask Nation.
First off, congratulations on winning Independent Bottler of the Year at the World Whiskies Awards. Please tell us about the big night. Besides being a great honor, has the recognition changed anything for Single Cask Nation?
Many thanks, Nate. We’re still sort of pinching ourselves after that win. It’s nice to know that 13 years of hard work can pay off! Since this announcement we’ve had people within the industry (bar owners, shop owners, distributors, etc…) congratulate us. Should we start to see an increase in sales due to this win, that would be fantastic. However, for us, the recognition alone puts a nice wind in our sails and we will just continue doing what we’ve been doing.
In January you stunned the whisky world with the announcement that you would be joining The Artisanal Spirits Company (ASC) portfolio. How did this acquisition come about? Did you seek them out, or did they come to you?
ASC and SCN had a friend in common that helped us both come together. For years we’ve known that, as two guys running a business, we could only go so far and that to get the business where we wanted it to be, we would need the support of a larger company.
What were the driving factors that convinced you to make the deal?
ASC was very upfront with the fact that they invest in people. The fact that I, Jason, and Jess Lomas would still be the brains and taste buds behind the brand, was a huge selling point for us. When Jason and I started SCN in 2011 it was with the idea of being the faces and taste buds behind the whisky, but as a small company we found ourselves doing all of the back office and logistical stuff that we were far less interested in. Joining ASC allows us to do what we aimed to do and be who we wanted to be back in 2011.
It also helped that ASC and SCN share the same vision. Our focus is people and flavor first; it’s helping to grow the awareness of independent spirits; it’s liquid to lips and a connection to a community we wish to grow. Again, people and flavor driven.
What does this deal mean for your business moving forward? Will there be a transition period or is everything already fully in motion?
Sure, there’s a bit of a transition happening, but everything is fully in motion and new whiskies are already being selected and bottled (or re-racked for future bottlings). Again, because we’re so similar, it was more a plug-and-play operation with little need for integration. Our puzzle pieces fit quite nicely!
One of the items I noticed in your acquisition FAQ under the question, “Why does ASC want another independent bottler when they have SMWS?” is that the deal will allow you to develop a greater focus on American Whiskey, while the Scotch Malt Whisky Society will continue its focus on Scotch. Does this mean you will be cutting back or eliminating Scottish offerings, or just building up the other side? If so, what is the time-frame for the shift in focus? Obviously you already had planned releases prior to the acquisition, including five Scotch Malt Whiskies in February alone.
Scotch will remain king for SCN, however, as a US-based company our access to American spirits allows us to increase the number of American offerings beyond the ratio it had been in the past. We remain steadfast lovers and purveyors of quality American single malt and are excited to increase the number of bourbon and rye offerings moving forward. Still, Scotch whisky remains our primary focus.
In addition to Single Cask Nation, you have a very successful podcast One Nation Under Whisky. How does the acquisition affect the podcast, if at all? What is next for the podcast and can you give us any sneak-peeks as to what is upcoming?
Another appealing part of this acquisition is that ASC is not very interested in getting in our way. At all. Not with whisky and not with our podcast. That said, now that we’re part of ASC and both Jason and I can devote 100% of our time to our brand(s) moving forward, we can more easily accomplish some of the things with our podcast that we’ve been wanting to do for some time. Watch this space for some really cool stuff coming up!
Independent bottling is a unique side of the whisky world. What are your thoughts on the state of the independent bottling business as a whole? One thing I’ve heard frequently is the growing scarcity of casks and increasing price of those casks made available to independent bottlers.
Do you have time for a beer so I can bend your ear? The growth of independently bottled spirits has been exponential and we do nothing but wish all those who get into the game all the success they are hoping for. That said, yes, casks are getting scarce, the cost of them has grown by 5x, 10x, 20x, etc… (really, just nonsense pricing that has zero to do with the industry).
At some point, some bottlers will start to find that you can’t sell whisky at the prices needed for the bottler to make their margins based on the increased cost of casks. Some bottlers will get hurt in the process. I hope that’s not the case – I really hope I’m wrong – but I fear that outcome. I also fear that with more people getting into the indy bottler arena that some may decide to bottle whatever they can get their hands on just to keep their business going. If the quality is bad, or not up to snuff with the sell price, that negative consumer experience will not only harm that bottler but bottlers at large. I could go on but, again, I’d need a beer!
What would you like to see happen both with Single Cask Nation and with independent bottling as a whole in the future?
For SCN we would simply like to see us continue in the direction we had been going in (and having a new partner helps with this goal tremendously): bottle whiskies and other spirits from around the world that are delicious and priced for drinking.
For IBs in general we’d love to see the cost of casks come down to allow other IBs to flourish.
Is there anything else you would like to say?
Yes, thank you for highlighting independent bottlers and bottling in general.
