Adnams weathers bad year to turn in profits rise
By: JimOldfield
September 23rd, 2012
Adnams has weathered its “most difficult year”, beating a failing economy and the summer washout to turn in a 5.5 per cent rise in operating profits.
The Southwold family brewer made profits of £857,000 on a turnover of £25.8 million, which increased by five per cent.
It boosted demand with new ales Ghost Ship, its Diamond Ale for the Queen’s Jubilee celebrations, and its Flame Runner Olympic celebration ale.
Adnams saw own-brewed beer volumes rise by 5 per cent in the six months to June 30, as sales through off-licences and supermarkets rose 13% and it held its prices for pub customers for the fourth year in a row.
Chairman Jonathan Adnams said: “It’s the most difficult year we have faced in terms of encouraging people to part with their hard-earned cash”.
In his chairman’s report, Mr Adnams joined industry leaders in slamming the Government’s “misguided” policy on beer taxation, which he said continued to harm the industry and cost jobs which could be given to the UK’s unemployed younger generation.
He said: “The Government seems to be intent upon continuing its misguided policies regarding beer duty. The duty escalator has remained in place to the cost of brewers and pubs, not to mention their customers.
“This policy has also imposed a cost on many of our unemployed younger generation who are being denied the jobs that they might otherwise have had in the hospitality industry.”
He re-iterated that the Beer Escalator has widened the differential between UK duties and those of other countries, with a “predictable” increase in duty fraud, now estimated to be running at £500 million a year.
But he acknowledged one positive tax move – a 50 per cent duty cut for beers lower than 2.8 per cent ABV – adding that Adnams now produced Sole Star and Ginger Beer in this category.
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Adnams Southwold
