Ghost Ship brewer Adnams cuts staff after ‘challenging’ trading
Adnams, the brewer of Ghost Ship ale, has resorted to letting go of staff as it takes emergency measures to face up to “challenging” trading conditions.
The Suffolk-based brewer and pub owner told shareholders it has kicked off “a series of operational, commercial and labour management initiatives” after facing worse-than-expected sales at the start of the year.
Adnams has been contacted for comment over the precise number of roles affected.
The beer company said it was forced to contend with “continued pressure on consumer spending and subdued trading conditions” in the six months to June.
The group posted a £1.4m pre tax loss in the period, marginally smaller than last year’s £1.5m shortfall. The firm’s turnover shrunk by nine per cent to £27.4m.
Chairman Simon Townsend said the brewer’s performance was “below expectations during the first half of the year” but he added that it is “making progress” towards its long-term plan.
Townsend blamed the drop-off in revenue on the sale of a number of the Adnams’ tenanted pubs in 2025, which pushed up turnover in that year.
The beer boss said he has been “encouraged by the early results” of the company’s efforts to turn around its trading, which were boosted by “very favourable weather” and the FIFA World Cup.
Sales at its managed pubs, which are located in Suffolk and Norfolk, jumped by 3.3 per cent in July, lifting the group’s profit in its pub arm by 10 per cent in the month.
Adnams boosted by World Cup sales
Townsend said Adnams is also seeing “encouraging evidence” of growth in retail sales of its beer. Bottom-line profitability at its shop in Bury St Edmunds increased five-fold after the site was relocated, he said.
“Trading with supermarkets also remained broadly in line with the previous year and continued to outperform the wider beer market,” the chairman added.
The group slashed £2m from its operating expenses in the first half of this year thanks to “improvements in efficiency, overhead control and operational discipline,” its accounts stated.
Adnams said it told shareholders at its annual general meeting that it will be directing more cash and attention towards its estate of pubs, and away from its brewing arm.
“We highlighted our view that Adnams is a hospitality business with a brewery at its heart. This remains the central organising principle of our strategy.
“We own a distinctive collection of pubs, hotels and hospitality assets which provide attractive opportunities to improve returns through operational excellence and focused investment,” Townsend said.
Earlier this year, Adnams announced that it would be cutting alcohol content across a number of its beers in a bid to capture booming consumer demand for low-strength options.
The beer firm was founded by brothers George and Ernest Adnams in 1872 when they purchased the Sole Bay Brewery in Southwold, Suffolk. Adnams is listed on the junior Aquis Stock Exchange.