Shepherd Neame, Britain's oldest brewery, is exploring the future of its brewing operations. The Faversham, Kent-based company, established in 1698, has initiated a strategic review to address soaring costs and declining sales.
Jonathan Neame, chief executive, stated the company is grappling with higher logistics costs, falling sales volumes, and the necessity to invest in and modernise its plant. He noted that profitability in this part of the business has been decreasing for several years.
The decision follows a near-10 per cent year-on-year decline in beer volumes, as consumers shift away from traditional cask ales towards modern lagers, stouts, and other alcoholic drinks. The company's brewing operations saw a 4.6 per cent revenue decline to £42.8m in the year to the end of June. Overall company revenue fell by 1.1 per cent to £162.6m, with pre-tax profit sliding 43 per cent to £3.6m.
Shepherd Neame operates over 200 pubs across England, and its London sites were highlighted as strong performers over the past year.