Brand drives turnaround at Adnams PLC
Financial press this weekend reports the impressive turnaround in financial performance at Adnams PLC with the publication of its half year interim results. The headline is a jump in operating profit from £142,000 at the same time in 2008 to £922,000 in 2009.
The figures are interesting not only because they come at the height of such a deep recession, widely acknowledged to be taking its toll on the pub industry (50 pubs closing a week) but also because of the key drivers of their growth. Firstly a programme of new product development in bottled beer that began with Adnams Explorer followed by East Green, Gun Hill, Lighthouse and most recently a William Godell special edition, resulting in considerably greater supermarket distribution for the brand and volume growth to compensate for a tighter pub market. And secondly a "feminisation" of the brand through the retail business, in particular the Cellar and Kitchen branded retail business (turnover up 27%!) retailing distinctive wines and quality kithchenware on and offline, now reaching out as much to discerning affluent women as it once did men.
I'm sure a fair degree of financial prudence has played its part in the impressive turnaround on profits, no doubt some pain along the way, but I am sure Adnams brand marketing, growing availability and reaching new audiences will make sure this is a turnaround to last.
