Despite rising volumes at its Henley on Thames brewery, the Oxfordshire brewer and pub operator Brakspear says it is finding it hard to make a profit on beer that reflects its sales performance.
Brakspear said its sales of draught cask ale were up 4% in the financial year to December 31, and its sales of bottled beer were up 5%. Its beers won another eight gold medals during the year.
However, Mike Foster, Brakspear's chairman, said: "Sadly, the profitability of the brewing operation does not reflect the sales and quality performance." He blamed the growing purchasing power of the large pubs groups and excess brewing capacity in the industry, which, he said, "continue to exert substantial downward pressure on the brewing margins of small independent brewers like Brakspear."
Overall, Brakspear's turnover rose 22% to £19.8m for the year, with operating profits up 8% to £3.7m and profit before tax up 12.5% to £4.5m. This included profits on property disposals of £1.3m, money which Brakspear said will be used to acquire new sites and develop existing pubs in its 98-pub tenanted estate.
During 2001 Brakspear bought another three pubs for its leased/tenanted wing, and carried out major development at four pubs. It sold five pubs in its Honeypot Inns division, which put in turnover of £3.9m and an operating profit of £46,000.
Brakspear said its sales of draught cask ale were up 4% in the financial year to December 31, and its sales of bottled beer were up 5%. Its beers won another eight gold medals during the year.
However, Mike Foster, Brakspear's chairman, said: "Sadly, the profitability of the brewing operation does not reflect the sales and quality performance." He blamed the growing purchasing power of the large pubs groups and excess brewing capacity in the industry, which, he said, "continue to exert substantial downward pressure on the brewing margins of small independent brewers like Brakspear."
Overall, Brakspear's turnover rose 22% to £19.8m for the year, with operating profits up 8% to £3.7m and profit before tax up 12.5% to £4.5m. This included profits on property disposals of £1.3m, money which Brakspear said will be used to acquire new sites and develop existing pubs in its 98-pub tenanted estate.
During 2001 Brakspear bought another three pubs for its leased/tenanted wing, and carried out major development at four pubs. It sold five pubs in its Honeypot Inns division, which put in turnover of £3.9m and an operating profit of £46,000.
