British brewer Adnams has reported a growth in sales as its low-alcohol beers continue to gain popularity, especially in the off-trade market.
In the six months ended 30 June, the beer, spirits and hospitality group posted a turnover of £31.9m, up from almost £30m in the first half of last year. It narrowed operating losses from £2.5m to £1.8m.
Adnams said it had success in the off-trade ale market, as people bought more beer outside of pubs and restaurants, even as the general market declined by 6.8 per cent in the first half of the year, according to the British Beer and Pub Association (BBPA).
Its Ghost Ship 0.5 pale ale fuelled the majority of these gains and has clung to its position as a “star performer”, Adnams said, with the popular trend for no and low alcohol beverages “set to continue”.
Suffolk-based Adnams, one of the oldest names in British brewing, is best known for its Ghost Ship, Broadside and Southwold beers.
However, spending in pubs and bars continued to struggle, and the company’s sales tumbled 6.9 per cent, greater than the market average that BBPA said fell by 3.9 per cent.
Adnams said its asset disposal programme is now underway, and the funds from this will be used to reduce its debt.
“This, together with our best-ever product line-up, will allow us to explore multiple growth opportunities to utilise our brewing capacity, drive top-line sales and build back to profitability,” said interim chair Simon Townsend.
Earlier this month, chairman Jonathan Adnams stepped down after nearly 50 years with the company, citing health reasons.