Adnams boss says last year was as hard for the brewer as Covid-19
Adnams chairman says last year was ‘at least’ as hard as Covid-19 for brewer after Ukraine war, strikes and slow recovery from rising inflation
- Southwold-based brewer Adnams celebrated its 150th anniversary last year
- Jonathan Adnams said the company’s trading was strong in early 2022
- From the autumn, demand was affected by the mini budget and the railway strikes
Last year was “at least as challenging” for the Adnmans brewery as it had to endure the pandemic, according to the group’s chairman.
Dr. Jonathan Adnams said the brewer’s trading was strong in early 2022 after two rough years, but then suffered from rising interest rates, rising inflation and industrial unrest.
Consumer confidence has taken a hit from three-decade inflation, which until recently was in the double digits, forcing the Bank of England to raise interest rates amid rising commodity and energy prices.
More tough times: Adnams chairman has admitted last year was ‘at least as challenging’ for the brewer and pub operator as the Covid-19 pandemic
Dr. Adnams also blamed the weak sales on “instability due to the fall mini-budget, rising interest rates and industrial turmoil,” which pushed consumer confidence to “decades’ lowest levels.”
The Suffolk-based company’s turnover rose by £7m to £64.2m in 2022, a weaker improvement than hoped as lockdown restrictions were in place at the sites for much of the previous year.
Losses fell by just £114,000 to £1.5 million, partly due to the £4.9 million increase in the company’s cost base during the last nine months of the period due to rising prices of commodities such as barley, a primary beer ingredient.
The company has decided not to pay a final dividend to shareholders, having made an interim payout to them in February last year following massive trading in the summer of 2021 and early 2022.
Dr. Adnams said: It is no exaggeration to suggest that the business climate for the company and the wider brewing and hospitality industry has been at least as challenging as it has been during the Covid-19 pandemic.
“The company worked extremely hard during the year to contain inflation, control costs, manage cash flows and serve customers well. However, it had no choice but to pass on most of the increased costs to customers. ‘
On the future trading environment, he warned: “The outside world remains uncertain and volatile. At the beginning of the year, we had been looking forward to seeing our markets return to normal after the pandemic.
“The start of the year promised this, when global events took place leading to the UK and the rest of the world facing many challenges from an economic, social and environmental perspective.”
However, the group still enjoyed healthy demand over the summer thanks to warm weather and the ongoing pandemic-induced trend for domestic holidays among Britons.
Sales of its low-alcohol and non-alcoholic beer also grew significantly, with the Ghost Ship 0.5 percent beer particularly popular with customers.
Last year marked 150 years since the company was founded by brothers George and Ernest Adnams following their purchase of the Sole Bay Brewery in Southwold, although beer has been made where Adnams is located since the 1340s.
Jonathan Adnams is the fourth generation of his family to run the company, which he has been running since 2006. He has been working for the brewer since he was 19.
As for the future, Mr. Adnams said the company would maintain its long-term strategy of “building a premium beer, spirits and on-trade brand that attracts and expands its loyal customer base.”
We do this by continuing to invest in the fabric of our hotels, pubs, stores and online businesses, exceeding customer expectations in terms of service and product quality, and using our data to better tailor offers to customers to reward their loyalty.’