Subscriber login Close [x]
remember me
You are not logged in.

Adnams takes short-term hit

Published:  06 April, 2009

Adnams has blamed the declining beer sector and falling value of sterling for a big dip in its profits.

The Suffolk brewer and wine merchant saw sales slip by £300,000 to £47.1 million in the 12 months to December 31. Operating profits fell from £4.2 million to £1.5 million.

The company said that "regulatory and lifestyle changes" had impacted on its beer sales in pubs, while currency issues had affected the wine business.

It said it was continuing to invest in its business for the longer term, even if that added to costs in the short term.

Executive chairman Jonathan Adnams said: "During 2008, Adnams has achieved a great deal, holding true to our values, despite the global economic crisis and challenges faced by our own industry.

"Over the past few years we have successfully repositioned Adnams to meet those challenges and have invested in the business to provide the foundations for sustainable growth.

"We have developed and launched our award-winning Cellar & Kitchen stores, which have great potential for the future and provide a new stream of earnings for the company. We have also invested heavily in our brand, our staff and in our infrastructure. These actions have given us a powerful position for the future but have impacted the short term profitability of the business."