This New Investment Fund Will Focus on American Single Malt Whiskey
As we reported recently, January 19 marked the day that American single malt officially became a federally recognized whiskey category. This news was a long time coming for many distilleries and brands that have been making this type of whiskey for years, and surely there will now be more new producers getting in on the action. To support this burgeoning category, ASM Capital Partners has formed a new investment fund that will focus exclusively on American single malt—but with the recent news about the softening whiskey market, it remains to be seen how this will play out.
The rules that the TTB adopted for American single malt are as follows: the whiskey must be made from a mashbill of 100 percent malted barley at one distillery in the U.S., matured in oak casks no bigger than 700 liters, distilled to no more than 160 proof, and bottled at a minimum of 80 proof. While there is no minimum aging requirement, most whiskey spends at least two to four years in barrels, if not more, and for many distilleries that means no income is coming in while the whiskey ages. This can be especially challenging for small startups, and that’s where the ASM Capital Whiskey Fund comes in.
ASM Capital Partners was founded by a team that includes New Hampshire native Rob Robillard—who also founded Cabin Fever Maple Whiskey, which he sold to Diageo in 2012—along with his son Hunter and a few other key members. “In the early 2000s, when new beer and wine brands were popping up left and right, I created flavored whiskey,” said Robillard in a statement. “I went from making moonshine in my backyard from a couple of lobster pots welded together with a copper pipe stuffed with stainless-steel wool, to partnering with Diageo. Now, I’m looking to disrupt yet another new space with ASM Capital Group, leading the newly designated ASM category.”
“By investing in aged distillate, the one commodity that connects the industry, the fund is well-positioned to leverage the growing demand for mature returns,” added his son and managing partner Hunter.
This fund is really about new brands and distilleries that won’t have whiskey ready to sell for anywhere from two to five years as it matures, so ASM Capital Partners is set to invest in barrels of American single malt and help to store and insure them while they age. The company is also expanding its distribution network to reach what it considers key markets, including India, China, Indonesia, and Australia. It is also developing “strategic partnerships” with important industry organizations like the Distilled Spirits Council and the American Single Malt Whiskey Commission.
Of course, this is also a challenging time for American whiskey with recent news that MGP is scaling back on whiskey production this year and Jack Daniel’s parent company Brown-Forman is cutting 12 percent of its global workforce and selling its Louisville cooperage. Add to that the threat of a new round of Trump tariffs, which seem to be increasingly likely—just today, the president announced that he will impose a 25 percent tariff on goods from Canada and Mexico and 10 percent tariff on Chinese goods starting February 1. It remains to be seen how allof this will affect the American single malt category, which is already a very small market compared to bourbon and rye whiskey. We reached out to a representative for ASM Capital Partners to find out if the firm has any concerns about the future of this endeavor, but have not heard back yet. We will update this story if we get a response.
