Adnams - Sole Bay Brewery

Adnams PLC

AGM Statement

Monday 27 April 2009

The following comments were made at today's AGM:

Whilst Adnams' financial result for 2008 was disappointing, we nonetheless pressed ahead with developments that are important for the future of the Company and we continued to receive widespread external recognition.

2008 saw the most extensive economic turmoil since the Second World War and events called into question the business practices of many institutions. In such times it is all the more vital that those, like this Company, who are committed to doing the right thing, continue to keep their eyes focussed on the longer term and are not distracted by short-termist overtures.

In the beer market, where the recent history has been one of decline, and in cask beer that decline has been continuing for a long period, we are starting to see some positive signs. At the end of April our total sales of Adnams beer will be just over 1% ahead of where they were a year ago. Adnams beer volumes in its tenanted pub estate are up by 4.2% on a like-for-like basis.

Our Cellar&Kitchen stores have also had a strong start to 2009 and their turnover in the first quarter is up by 22%, after excluding the impact of the store in Richmond, which opened last April.

Whilst there seems little doubt that economic turbulence will continue for some while yet, we believe that Adnams has been responding appropriately. We have managed our cost base in line with more difficult times, we are supporting our pub tenants, last month we acquired three very fine new pubs and we are starting to see some encouraging signs in our sales.

Adnams is appropriately cautious, given today's climate, and we note the further hike in beer duty delivered last week, but we believe that we are continuing to do the right things.