Butcombe Brewery Company in North Somerset has posted a 30 per cent increase in sales in its latest financial results. The Wrington-based business said it has been boosted by acquired pubs and the extension of its bottled business into supermarkets.
The business reported turnover of £18.4m for the year to 28 February 2012, compared with turnover of £14.1m in the previous year. Pre-tax profit also increased by 8 per cent from £1.3m in 2011 to £1.4m.
Butcombe Brewery was established in 1978. In 2005 the company relocated to a new purpose built facility in Wrington which was the largest new-build brewery built in the UK in the last 35 years.
The company’s cask beers include Butcombe Bitter and Butcombe Gold and it also produces Ashton Press Cider.
The business said its core cask business increased volumes by 3 per cent aided by the launch of Rare Breed in January 2012, which was developed in conjunction with Adam Henson from Countryfile. It added that its cider and wholesaling businesses “both continue to show good growth”.
Butcombe also produces bottled beers and during the year it expanded into the supermarket sector. It said brewery sales “substantially increased” from £7.4m to £8.7m as a result of its entrance into the supermarkets and duty increases.
It added that the costs and resources associated with first year of focus in the supermarket sector “held back” the net return but added it “will bear fruit in future years”.
Like-for-like pub sales increased by 3 per cent and it said total sales increased by 40 per cent because of the acquisition of five new outlets. It acquired the Fox and Hounds in Charlton Adam in November 2010; the Mill in Rode, the Pig and Fiddle in Bath and the Frog and Fiddle in Cheltenham in April 2011; and the Malt Shovel in Cannington in December 2011.
Writing in the company’s annual report, the directors of Butcombe Brewery Company said: “The first half of the year benefited from the Royal Wedding and good spring weather but trading conditions deteriorated from June onwards.
“Despite this, and slightly disappointing trading at two of the newly acquired outlets, our pubs contributed an EBITDA of £1.32m up 25 per cent from the £1.06m achieved last year.”
Post-year end the business acquired an additional pub, the Imperial in Weston-super-Mare, taking its pub estate up to 21. The business added that it has been “an exceptionally tough start” to the current financial year.
It said: “But despite the difficult trading conditions – a combination of the economy and weather – we remain confident that the strength of our brands and the positioning of our outlets will allow the business to continue to progress”.If you enjoyed this post, make sure you subscribe to my RSS feed!