Adnams squeezed by pub chain takeovers

A sudden spate of takeovers of smaller pub chains by larger groups has led to independent brewers' beer being squeezed out of their premises, the chairman of Adnams said today.

Jonathan Adnams said: "The acquisitiveness of other brewers has created a challenge as it generally means that we are locked out from selling to the acquired properties. Three small pub group customers have recently been bought in quick succession: Geronimo Inns, Realpubs and the Capital Pub Company."

Despite this Adnams sold 2.5% more beer in the first half than it did in the same period last year, with take home sales soaring by 17%.

Adnams said the first half had been something of a "roller-coaster" thanks both to consumer sentiment and unusually good weather, particularly in April.

The 120-year-old brewer's sales rose by 6% to £24.5 million, and while operating profits dipped 2% to £812,000 pre-tax profits rose 9% to £700,000.

The group's growing wine and wine shops business completely bucked the general retail market, with same-store sales rising 14% - the best rate of growth for five years.

Adnams said: "Volatile consumer sentiment is a worry for any business when planning for the future. Currently we sense consumer concern and a reluctance to commit, particularly for larger spends.

"Whether and for how long this will continue is not something that we can easily judge. We do however have the view that Adnams is here for the long term and we will act and invest on that basis."