Speaking at the AGM today, Jonathan Adnams, Executive Chairman, made the following comments:
“In 2007 your company demonstrated its resilience and exciting potential by growing turnover, profits and market share in what was an extremely difficult year for the drinks industry.
“During the year we had to deal with the smoking ban, introduced in July, summer floods and poor weather, increasing costs of raw materials and declining consumer confidence since the autumn. In this difficult environment our robust performance is a testament to the strength of our brand, the quality of our people, our ability to innovate, and our track record of investing in the business to support future growth.
Our infrastructure and brand development work of recent years has positioned Adnams well to capitalise upon a growing consumer trend - the market for green, ethical and fair-trade goods is valued at £15 bn and growing at 9% p.a.. Adnams has credibility and a strong reputation in this market, not only for the innovative nature of our infrastructure renewal but also because of our products. Last week we were proud to launch East Green, the UK’s first carbon neutral beer in 500+ Tesco stores. Our wine portfolio is also something about which we are very proud with around 20% of the range being either organic or biodynamic.
“We have an ambitious strategic plan in place to more than double operating profits over the next five years and believe that by building on the strength of the Adnams brand and by our commitment to doing the right thing we will be able to deliver improving value for shareholders.
“Adnams has entered 2008 in a stronger position than ever, however the operating environment has become more challenging and uncertain. In order to meet our strategic plan we have been expanding and strengthening our teams, which will result in increased costs in our half year results. Our Brewing and Brands business is holding volumes and growing market share, but the beer trade is being hit hard by declining consumer confidence made worse by the recent penal increase in duty rates. In Leisure Retail operations are growing well as we expand our store numbers, but again consumer caution is making trading more difficult than was more recently the case.
“We believe Adnams is well-positioned to meet the challenges of 2008 and overall we look to the long-term future with confidence.”
Download AGM Powerpoint Presentation (54.6MB)*
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