Speyside-based auction house Whisky Hammer have revealed plans to establish a bonded warehouse in Singapore, becoming the first UK spirits auctioneer to do so in Asia.
Whisky Hammer was founded in 2015 by brothers Daniel and Craig Milne and the firm recently celebrated hosting their 100th auction. It is hoped that the new warehouse will have the dual benefit of making the process of purchasing whisky easier for their Asian customers while enabling better prices for UK and European sellers.
There is currently surging interest in whisky throughout the region; data published earlier this year by the Scotch Whisky Association revealed that exports to the market totalled over £1.8 billion in 2023. Singapore has traditionally been the gateway to the wider Asian-Pacific market for many industries. SWA figures show that exports to Singapore increased by 19% in 2023.
Whiskies purchased by customers in Asia will have their bottles shipped from Scotland to Singapore, paying small fees to cover transit, storage and insurance costs. To access their bottles, customers can either collect in person or have the bottles delivered to their preferred address, be that local or international.
Customers also have the option to utilise a ‘white glove’ concierge service, where bottles are hand delivered to clients at Changi Airport as they depart Singapore.
David Milne explained “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.”
He added: “The bonded warehouse service provides our customers with the convenience to store their whisky in a safe, controlled environment... 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.”
The growing Asian market is incredibly important to the Scotch whisky industry and yet is still regarded as having plenty of untapped potential. Many distilleries have tried to capitalise on this by releasing special edition whiskies exclusive to the region. Some producers are going even further. Companies such as Diageo, Pernod Ricard and Angus Dundee have all recently built, or are in the process of building, whisky distilleries in China.
It’s interesting to see how the secondary market is also looking to facilitate increased sales and improve their relationship with customers in the region. Against the backdrop of reports of a struggling secondary market, it makes sense for auction houses to shake up their business where they can.