Jonathan Adnams, chairman of his family firm, has told MCA he expects the current rate of 39% growth in spirits volumes to continue for the immediate future.
He said the company was close to the end of churning its pub estate and there were no conversions to the managed portfolio planned at the moment. He said the focus for growth was on the currently 11-strong shops portfolio, with a further two openings planned for this year.
The company this morning reported a 0.5% dip in total sales for the year 31 December, to £65.7m. Adnams pointed out that at the half-year point turnover had been lagging 3%.
He said the closure for refurbishment of the Ship hotel at Levington for much of the early part of the year had aided this early slump and said that many of the initiatives launched by the company had come to fruition in the latter half of the year.
On the rapid growth in spirits sales, Adnams said: “It’s especially impressive given that we commissioned an extension to our distillery in January. We were working flat out last year to meet demand so this should allow us to grow even quicker this year.
“It also means we can get our whisky production back up to strength.
“It’s a good business for us. The interest in craft gins and vodkas is growing all the time and we’re well placed to capitalise on that. It twins so well with craft beer. If your customers have an appetite for crat beers, the chances are they are going to have an appetite for craft spirits too.”
Adnams said the next launches from the distillery would be a rye vodka and matcha tea gin.
On the pubs portfolio – made up of 47 tenanted and four managed properties – Adnams said: “Any acquisitions for the immediate future will be opportunistic. At the moment it’s not a side of the business we’re really looking to grow.”
During 2015 Adnams sold: the Bull, Cavendish, the Cock, Clare, the Queen’s Head, Long Stratton, the Queen’s Head, Bramfield, the Fleece, Bungay and the Ship, Burnhamon-Crouch. Since the year end it has sold the Cherry Tree, Harleston. The King’s Head, Southwold is still for sale.
