Page last updated at 17:22 GMT, Monday, 6 April 2009 18:22 UK

Adnams suffers slump in profits

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Adnams said profits last year slid from 4.2m to 1.2m

Suffolk brewer Adnams has warned 2009 will be a bad year for the pub industry after reporting a 64% fall in profits.

The group said faltering consumer confidence was hitting demand, with pressure from supermarkets and higher running costs affecting profits.

It also said a bigger government tax burden was adding to the squeeze.

Adnams, which is based in Southwold, said operating profits fell from £4.2m to £1.5m last year, with revenues edging 1% lower to £47.1m.

From today's perspective it is hard to see much light at the end of the global economic tunnel
Jonathan Adnams

The company said 2009 would be "as bad or worse" for the beleaguered pub industry.

Jonathan Adnams, the firm's executive chairman, said: "From today's perspective it is hard to see much light at the end of the global economic tunnel and we have to anticipate a tough 2009."

The company - whose wine business was also hit by the weakening of sterling against the euro - said it was taking action to weather the storm such as freezing beer prices for its pubs.

The brewer suffered from a weaker beer market, with overall UK on-trade sales falling 9.3% last year.

Mr Adnams said: "We will continue to keep a strong control over costs, but we will also keep our eyes on the longer-term future and position the company to take advantage of opportunities as they arise."

The company has been brewing beer on its Southwold site since 1872, when George and Ernest Adnams bought the Sole Bay Brewery with the help of their father.

Beer has been brewed on the site since the 14th Century.



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