Adnams ‘delivered substantial change’ in 2017

Suffolk-based brewer and distiller Adnams has reported a 45.2% drop in operating profit following a year of “huge investment”.

Adnams’ spirits volumes grew 68% last year

The UK drinks group’s sales grew 6.4% to £74.7m, while its operating profit almost halved to £2.1m in the 12 months to 31 December 2017.

Adnams, which also manages a number of pubs and retail outlets, undertook a “major refurbishment” of Southwold-based The Swan hotel in 2017, at the same time as completing a three-year investment in its brewery and upgrading its IT systems.

In December, Adnams completed its move to 100% renewable energy, thus reducing annual carbon emissions by over 1,000 tonnes.

Jonathan Adnams, chairman of the company, said: “2017 was a year of huge investment. We saw some inevitable disruption, but we delivered substantial change.

“We continue to focus on what matters most. To deliver a service and product which allows us to stand out from the crowd. To grow the business when and where appropriate, answering increasing market demand. And above all to delight our new and loyal customers in everything we do.”

Adnams’ spirits volumes grew 68% last year, while spirits sales in Adnams’ shops increased 43%, online sales grew 50% and export volumes increased 31%. The company’s oak-aged Copper House Gin is said to “substantially outsell” its other spirits, and has “further headroom for growth”.

“This is a market with continuing growth opportunities and beyond gin we have been maturing whisky,” Jonathan Adnams added. “We are developing our strategy to gain a good foothold in what we foresee as being a strong market for English whisky.”

Adnams released its first whiskies, made using local malted barley and rye, in 2013.