ALL EYES oN ASMW
AMERICAN SINGLE MALT WHISKEY
American Single Malt Whiskey is a type of whiskey produced by a single distillery using 100% malted barley. While traditionally associated with Scotch whisky, American Single Malt Whiskey has gained recognition due to its distinct production process and flavor profiles. Unlike Scotch, which must adhere to specific regulations regarding distillation and aging, American Single Malt Whiskey has fewer legal constraints, allowing for greater experimentation and creativity among distillers.
The category has seen significant growth in recent years, and investors see potential in this emerging category, considering factors such as minimal production limitations, untapped market opportunities, and the potential for establishing a first-mover advantage. Overall, American Single Malt Whiskey presents a promising opportunity for both producers and investors in the whiskey industry.
A NEW ERA IN WHISKEY
With consumer interest in premium and craft spirits at an all-time high, the market demand for whiskey in the U.S. continues to make significant gains (+6.8%, FY21). U.S.-based craft distilleries are differentiating themselves from larger size producers by releasing a new ‘niche’ version of whiskey outside the traditional Bourbon, rye, and blended variants led by American single malt whiskies (+21.4%, FY21).
A NEW CATEGORY
The American Single Malt Whiskey category is one of the newest liquor classes in the US.
By the end of 2024, most liquor stores will have designated shelf space and signage for the category, allowing Lost Woods prominent shelf space within a fast-growing, high-focus area.
For a whiskey to be considered American Single Malt, it must be:
- Produced in a single U.S distillery
- Contain a mash consisting of 100% malted barley
- Stored in smaller batch oak barrels during production
- Have a finished distillation proof of 160 and bottled with at least an 80 proof finished product
Lost Woods Whiskey meets the above requirements and is well positioned to be a top brand within the new category.
NEW CATEGORY OPPORTUNITY
In 2022, the Single Malt Whiskey market size was valued at $2.83B with a projected forecast of $4.06B by 2030, growing at a compound annual growth rate (CAGR) of 4.09%.
Lost Woods is at the forefront of this new market and creating an opportunity to be one of the first in this growing category. When considering the new, fast-growing American Single Malt Whiskey (ASM) category, there is a significant opportunity within the next 2-3 years for Lost Woods to grab market- and mind-share during the early release of the new category.
From 2020-2021 ASM grew at 21.4%, doubling or tripling the rate of all other categories and the 4.3% growth in Bourbon which continues to be a declining trend.
We are on our way to achieving our goal that American Single Malt Whiskey is synonymous with the Lost Woods brand.