FDBusiness.com

After recovering strongly in the second half, English regional brewer and pub company Adnams has reported a 1.5% slip in operating profit to £3.2m on sales down by 0.8% to £50.9m for the year ended December 31st 2010. Pre-tax profit fell by 9.4% to £2.8m.

During the year, the company diversified into spirits by opening a microdistillery producing Adnams gin and vodka at its brewery. Adnams is believed to be the first UK brewer to be given a license to distil on the same site. The enterprising company has also established an anaerobic digester adjacent to its distribution centre in Suffolk.

“Over many years Adnams has been building its brand and reputation and extending it beyond our core business in brewing and pubs but these markets remain key and again it has been very tough in 2010. 20% less beer is consumed in the UK than was consumed six years ago, and the reduction is 30% when looking just at drinking in pubs,” points out chairman Jonathan Adnams. “As it turned out, 2010 was a steady year for the economy as a whole, but it looks as though we may see tougher times in 2011, starting with the VAT increase to 20% at the beginning of the year and with the prospect of substantial public sector cutbacks. Nonetheless, Adnams believes itself to be well placed. Our balance sheet and brand reputation are strong and we have the team in place to grow, develop and innovate.”