Traditional brewer Adnams is combating falling UK beer consumption by diversifying into new areas and updating its equipment.   The Southwold-based brewer owns two hotels and a total of 80 pubs.  It now plans to branch out into retail and premium beers and has invested in state-of-the-art brewing machinery which extracts more starch from malt, making the company less vulnerable to rising cereal prices, and affords tighter quality control, reducing wastage.   The brewer is opening a chain of retail stores in East Anglia called Cellar & Kitchen, which will sell beers and wines as well as kitchenware and which will eventually incorporate café facilities.   Financial Times 6/10/07 page 20 (Companies & Markets)

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