Historic brewer Adnams calls in advisers to explore funding options

Brewer and pub operator Adnams has instructed advisers to explore funding options to secure the financial future of the business.

The 152-year-old company, which is based in Suffolk, said it was seeking investment "to fund future growth plans" after reporting widening losses.

In a statement responding to press speculation, Adnams said: "As a business of more than 150 years, and ever mindful of the challenges faced by the hospitality and brewing industries in recent times, the company is continually proactive in seeking ways to ensure that the business is even more resilient for the years to come."

In the company's latest financial statement, chairman Jonathan Adnams, a member of the company's founding family, warned that cost pressures and a softening in consumer demand had seen losses widen.

Turnover for the six months to June 2023 stood at £30m, in line with the previous year, but operating losses had increased more than threefold to £2.4m.

Adnams attributed this to "continued pressure on input prices and reduced demand particularly in quarter one of the year".

He added: "Cash generation remains a focus for the company alongside managing levels of borrowing in the current higher interest rate environment."

Sky News has reported that Alvarez & Marsal has been appointed to explore options for Adnams, with speculation this could include an injection of private capital as well as the sale of freehold pubs and inns.

The brewing industry has seen a number of high-profile administrations in the last year, including Warwickshire-based Purity Brewing Company, which was bought out of administration by Breal Capital last month.

The investment firm had earlier bought Yorkshire-based Black Sheep brewery out of administration as well as acquiring London craft brewers Brick Brewery, Brew by Numbers and wine bar group Vinoteca in August 2023.