Suffolk brewer's new initiatives

Beer drinkers can expect four new brews from Southwold-based Adnams during the next year as the company bids to continue its growth in an increasingly turbulent market.

News of the brewer's plans emerged as figures for its performance during 2007 revealed an increase in operating profits, albeit at a slower pace compared with the previous year.

Last year's profit was up 2.6pc to £4.2m, compared with a 12pc rise in 2006, while turnover in 2007 increased by 2.8pc to £47.4m.

Executive chairman Jonathan Adnams said the company had significantly outperformed the UK beer market, which had shrunk by 4pc as the smoking ban and weaken-ing consumer confidence bit hard.

He added that Adnams would not rest on its laurels during 2008, revealing plans to open more of the company's Kitchen & Cellar stores, while tempting drinkers with four new beers.

"We are very pleased with our performance in 2007 in what was an extremely difficult year for the UK drinks industry," said Mr Adnams.

"While we enter 2008 in a stronger position than ever, we are aware that the external economic environment continues to be volatile. We have adopted an ambitious strategic plan under which we aim to more than double our operating profits for the next five years.

"We believe that by building on the strength of the Adnams brand, and through our commitment to doing the right thing, we will be able to deliver improving value for share-holders."

Mr Adnams was remaining tight-lipped about the types of new beer the company would be concocting, but will be hoping it has a similar impact to its Spindrift brand, which is now well-established in London and the South East.

Adnams' coffers have been boosted by the sale of part of its Victoria Street distribution centre in South-wold, while its new environmentally friendly building in neighbouring Reydon has helped achieve savings.

Mr Adnams said he was also pleased by a 33pc reduction in the company's net debt to £10.9m.

Adnams' Cellar and Kitchen range of stores have tapped into the growth of the UK's wine market, with five new stores opening in 2007. A further five are due to open this year, with plans to have 30 operating by 2012. Meanwhile, the company's two hotels in Southwold performed strongly, despite the poor summer weather.

Mr Adnams added: "We know what we want to do and make our investments. It's about focusing on the opportunities out there."

Source: Eastern Daily Press