Adnams cuts alcohol content across range in beer overhaul
Adnams has reported early signs of success in its beer range overhaul after reducing the alcoholic content across a number of products.
The Suffolk-based brewer, famed for its 0.5 per cent Ghost Ship low-alcohol beer, took the decision last year to introduce more lower strength beers in a bid to capture consumer demand for lower alcohol as well as swerve costly alcohol duty hikes.
A number of the firm’s products, such as its bitter and IPA, now have a 3.4 per cent ABV strength, below the 3.5 per cent at which £22 per litre duty is introduced. Under current rules, any drink under 3.5 per cent strength gets a much lower £9 per litre charge.
“These changes not only align with consumer trends but also offer us an opportunity to create more value to invest back into the growth of our brands,” Adnams said.
“We are confident that the flavour of our beers will remain uncompromised, thanks to the expertise of our brewing team.”
The Aquis-listed firm reported a one per cent decline in off-trade beer volumes, but this outperformed the wider 5 per cent decline in the market.
Adnams battles debt costs and tax rises
Adnams posted a 6 per cent decline in turnover for 2025 to £63.7m, but pre-tax losses were slashed by three-quarters to £0.7m as the firm sold off some of its pubs to reduce debt costs.
“This balance sheet restructuring was enabled by the disposal of a number of property assets, and whilst this was a difficult decision to implement, it was absolutely necessary to enable the company to survive, Adnams said.
“The assets for disposal were carefully selected according to a variety of criteria including, but not limited to, their historically low returns, unattractive earnings prospects or their peripheral locations when compared to our core geographic footprint.”
Adnams chairman Simon Townsend warned that the company continues to struggle to absorb government-imposed cost-rises including higher national insurance costs, higher minimum wage rates and fresh employment rights-based regulatory burdens.
“The entire UK hospitality industry remains hugely overtaxed and will incur further employment cost increases in 2026,” Townsend said.
