Spirits sales soar in Adnams’ full year results

Suffolk-based brewer, distiller and retailer Adnams has reported a 39% spike in spirits volume sales for 2015, despite overall sales flatlining.

Despite operating profits increasing 7.3% from £3.8 million in 2014 to £4.1m in 2015, overall sales declined -.05% from £66m to £65.7m in the full year up to 31 December 2015.

The firm attributed the stagnant sales results to tough trading during the first half of 2015, combined with the temporary closure of two of its key hotel properties for several months last year.

Turnover during H1 of the firm’s 2015 fiscal year was 3% behind that of 2014, but a stronger performance in the second half of the year resulted in profits falling “just 0.5% short of the prior year”.

Beer sales were down 1.5% in 2015 due to increased competition from smaller brewers.

“I am pleased to report the company made food progress in 2015, the economic mood was reasonably buoyant and a cut in duty rate for the third year running was a welcome announcement in the budget,” commented Jonathan Adnams OBE, chairman.

“Ghost Ship has remained in strong growth, as have our newer range of kegged, canned and bottled beers which fit well into the vibrant growing UK craft beer market.

“Our investment into the brewery and distillery continues and this development will ensure we have the flexibility and capacity to meet the demands of the changing beer market.

“Our spirits have become an integral part of our business and we’re delighted to have trebled our capacity with the addition of two new stills.”