Adnams warns of tough 2008 for pubs

East Anglian brewer and pub operator Adnams has warned of a “turbulent year for the drinks industry” and pubs in 2008.

The warning came after a tough 2007, which saw the off-trade erode publicans' market share further.

Adnams said that beer sales in the on-trade had fallen by 6.5% in 2007, while wine sales had fallen by 4% at pubs.

In the overall UK beer market sales slipped 4% while wine sale actually inccreased by 3% last year.

Despite this, Adnams saw its sales for the year ending 31 December 2007 rise by 2.8% to £47.4m across its estate of 80 tenanted pubs.

Pre-tax profit rose from £3.7m to £7.4m after the pub company sold nine of its pubs late last year.

Jonathan Adnams, executive chairman of Adnams, said the company still aimed to double operating profit over the next five years but warned that reduced levels of consumer confidence would make 2008 another challenging year.

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By Christopher Walton

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