Adnams hails 66% spirits volume growth

Suffolk-based brewer, distiller and retailer Adnams witnessed 66% volume sales growth in its spirits business last year after tripling distilling capacity.

Adnams has celebrated “record” volume sales growth for both its beer and spirits businesses

In the 12 months to 31 December 2016, total sales increased 7%, hitting a “record high” of £70.3 million, however operating profit dropped 3.8% to £3.9m due to depreciation of the sterling.

Adnams said its spirits business had a “particularly good” year in 2016, with “very strong growth” across all channels, including supermarkets, pubs and its own shops. Both Adnams’s beer and spirits units experienced “record” volume sales.

In 2015, the company revealed plans to invest £500,000 in expanding its distilling operations following “rapid” growth.

Two new pot stills and extra storage tanks were installed to triple Adnams’s distilling capability. The expansion was completed at the start of last year.

“Our key product, Adnams Copper House Gin, continues to grow its reputation as one of the best drinks of its type,” said Jonathan Adnams, company chairman (pictured left).

“The tripling of capacity that we put in place at the start of 2016 came just in time to allow us to fulfil the demand that we have seen.

“The fact that we can produce high quality alcohol, that we then distil, means that we can deliver a true ‘grain to glass’ drink, which sets us apart in a market that largely comprises distillers who buy alcohol from bulk producers.”

Adnams also spoke of “many predictions of economic downturn” following the Brexit vote last year, but said so-far “these have not been borne out”.

He also called the UK Government’s decision to increase alcohol duties in line with inflation a “disappointing relapse”, and said he hopes “it does not signal a return to a period of damaging duty hikes”.

In August last year, Adnams grew its spirits offering with the launch of two new rye-based products, Adnams Rising Sun Gin and Rye Hill Vodka.