Adnams downplays reports of outright sale
Brewer and pub operator Adnams has downplayed reports the entire company could be put up for sale amid speculation over its future.
It comes after Sky News revealed the Suffolk-based brewery was considering an "outright sale" of its 150-year-old business amid a "funding squeeze across the industry".
In February, Adnams confirmed it had instructed advisers to look into funding options to secure the financial future of the business.
In a statement filed on the London Stock Exchange today (2 April), Adnams reiterated that it was exploring "a range of options to fund its future growth".
"The board's intention remains the raising of additional capital from a third party and/or the sale of freehold assets to return capital to the company," the brewer said.
No decision has been taken and shareholders will be informed of developments "at the appropriate time", Adnams added.
Adnams was founded in 1872 in Suffolk by George and Ernest Adnams. It produces cask ale and bottled beers and also operates 11 pubs and hotels, including the White Hart in Blythburgh and the Lord Nelson in Southwold Suffolk.
Its latest update comes ahead of the appointment of Jenny Hanlon as Adnams' chief executive officer in June.
She will be the group's first female chief executive in its 150-year history, having started her career with Ernst & Young before moving into senior finance roles at Greene King, Barclays and Willis plc.
Hanlon, who is currently the company's chief financial officer, will take over from Andy Wood, who will remain involved with Adnams in a consultancy capacity before retiring.
Hanlon said: "Looking ahead, what's important is that we keep evolving and keep innovating – our brand and product portfolio, our brewing, distilling and distribution operations and our estate – while continuing to support our customers, communities and colleagues with the same values and commitments which have served us so well."
Jonathan Adnams, chairman of Adnams and a member of the company's founding family, added: "Andy has been a driving force in building Adnams into the business it is today, leading with both principle and professionalism. We will be forever grateful for the lasting impact he has had on Adnams and wish him well for the future.
"Jenny is the ideal candidate to lead us through the next chapter of Adnams' evolution, both in stabilising our financial footing but also capitalising on Adnams' unique strengths."
In the company's latest financial statement, Adnams 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".
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 in January.
The investment firm 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 2023.
