Fullers upbeat amid downturn

Fullers says that it has increased its market share

Fuller, Smith & Turner, brewer of London Pride, said it was confident it could "cope well" even though the UK economic outlook did "not look good".

The firm saw pre-tax profit fall 6% to £12m in the six months to 27 September. Profits fell 1% after one-off costs.

Fullers said it had increased its share in the UK beer market, which has seen industry-wide sales fall 6%.

It added customers at its top-end pubs were unlikely to be lured by cheaper alternatives.

"The quality of our estate remains a critical element of our strategy and we continue to invest in our pubs to ensure they are well placed to trade through this challenging period," the firm said.

Food factor

Pubs run by tenants were being given support through the "difficult times", though it said cutting rents was not part of its plan.

Fullers said that food sales continued to be a "major driver" of the business.

UK pubs overall have been hit by the economic downturn, with drinkers being more careful with their money.

It comes on the back of the smoking ban, increases in duty on alcohol and competition from supermarkets.

The Campaign for Real Ale (Camra) has claimed that one in eight pubs faces closure in the next four years and has written to the chancellor asking for tax cuts for pubs and calling on supermarkets to be stopped from selling alcohol at a loss.