Adnams issues profit warning
Southwold-based brewer Adnams has warned that its 2008 profits will be "substantially lower" than last year's.
In a trading statement Adnams said pub closures and the general decline in the on-trade were having a severe impact on its beer volumes, which dropped 6% in 2008.
The company, which last year announced it had halted ambitious expansion plans for its Cellar & Kitchen estate, said it had confidence in the nine existing shops.
"These stores continue to establish themselves, but deteriorating economic conditions have inevitably made this process slower and harder. The continuing plunge of sterling, notably the fall against the euro and the dollar, has seriously eroded margins in our wine business," the statement said.
"Adnams has made a number of large-scale investments to renew its infrastructure over the past few years. Construction of the new Cellar & Kitchen store in Southwold was the last part of the renewal that is currently planned. There are no plans to roll out further stores at this point, but the board remains confident of the robustness of the concept," it continued.
Adnams' full-year results are to be announced at the beginning of April.