Profits pour in at brewer Shepherd Neame

By DAILY MAIL REPORTER
Updated: 11:55 EST, 18 March 2010

Spitfire and Bishops Finger brewer Shepherd Neame posted record results today but said it was nervous about the impact of tax hikes this year.

The UK's oldest brewer sold more than 49 million pints in the 26 weeks to December 26 as pre-tax profits rose 38 per cent to £4.9million.

The strong growth in beer volumes - helped by an award-winning 'Bottle of Britain' advertising campaign for Spitfire - helped push revenues 8 per cent higher to a record £60.8million.

Tax worries: The hike in alcohol duty could affect sales

But with a general election looming - as well as measures to tackle the UK's huge deficit - the company also warned of uncertain prospects this year.

'We remain cautious about the impact on consumer expenditure of further potential rises in excise duty, VAT and other taxes over the next year or two and by the impact of further potential regulation on the sector,' it said.

The company's profits were also helped by cost saving moves such as an IT overhaul and a new bottling line at its brewery in Faversham, Kent.

Festive trading was on a par with last year despite a 'significant' number of last minute cancellations as pubs in rural areas were hit with snow before Christmas.

The wintry weather continued to disrupt trading in January and February, it added.
The brewer, which was established in 1608, has 369 pubs mainly in the South-East and employs more than 1,000 staff.

The group also makes Master Brew and Canterbury Jack as well as brewing brands including Asahi, Kingfisher, Holsten Export and Oranjeboom under licence.