FDBusiness.com

UK regional brewer and pub operator Adnams has increased operating profit by 15% to £3.8 million on the back of a 9% increase in turnover to £66.0 million for the 12 months to 31 December 2014. Sales of the company’s own beer reached their highest ever levels at over 95,000 barrels (over 27 million pints) and at the same time debt levels fell by £2.7 million to £8.0 million.

Whilst beer and pubs remain at the heart of Adnams’ business, it also owns and runs hotels, makes its own hand-crafted spirits and operates nearly a dozen Adnams Cellar & Kitchen Stores as well as an online store.

“2014 was a strong year for Adnams. We recorded our highest ever brewing year, saw continued growth in sales of our spirits and achieved profitability within our shops,” says Jonathan Adnams OBE, chairman of Adnams. “The economic outlook is by no means certain, however, we are making a confident statement in announcing the start of a major and innovative project to expand and improve our brewery and distillery. We have regularly made the point that Adnams is about the long term, that is our commitment and it will remain the case.”

He continues: “Adnams is well placed to participate in the growing market for craft beers, both in cask and keg. We have an established reputation, a first class range of products and an ability to innovate and respond to consumer demands. Alongside this, we need equipment that gives us the flexibility to deliver what the market requires. This is the backdrop to a major investment programme that we will be undertaking between now and 2018. We will be spending some £7 million on the brewery to ensure that we have the capacity to produce not just our core cask ales, but also the kegged, canned and bottled products that are in increasing demand.”