Adnams to undertake £500k distillery expansion

UK drinks producer Adnams is to spend £500,000 expanding its distillery, as the group reveals its spirits volumes grew 37% last year.

English whisky producer Adnams is to expand its distillery following soaring demand

The Suffolk-based distillery, brewery and retailer, which launched two English whiskies in 2013, said its spirits business has grown “rapidly” over the past four years and has already reached full capacity.

As such, the group will enlarge its distillery by installing an additional two pot stills and extra storage tanks. The expansion is expected to be complete by January 2016.

At the same time, Adnams will spend £7m enlarging its brewery to produce more kegged, canned and bottled products.

The expansions were announced as the group reported an overall 9.1% increase in sales for the year to December 2014, reaching £66m, while operating profit rose 14.7% to £3.8m.

“2014 was a strong year for Adnams, our market positioning worked for us, we traded well, the external environment was quite benign, the beer market grew, there was reasonable weather and there was economic growth,” said Jonathan Adnams OBE, Chairman.

“In 2015 we may see more of the same, but there are undoubtedly greater uncertainties over the Eurozone and over the result of the UK general election in May.

“We have nonetheless made a statement of intent and confidence by starting a major and innovative project to expand and improve our brewery and distillery.”