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London drinkers lift Shepherd Neame
Robert Lea24.03.09
Shepherd Neame, which has controversially traded on invoking the spirit of the Second World War, today said Londoners are happily drinking their way through the financial blitzkrieg.
While like-for-like sales across the Kent brewer's pub estate were down 0.2% in the six months to the end of December, comparable sales in its London pubs rose 2.9%.
Fears that smoking bans, financial crises and a bleak winter could see the death of the pub do not appear to be borne out at Shepherd Neame, which said like-for-like sales from December to February across all its pubs had risen 1.8% while beer volumes were 6.7% better.
"Despite a difficult economic background, we have delivered strong sales and our retail business has been resilient," said chief executive Jonathan Neame. Shepherd Neame brews beers such as Spitfire, whose ad campaigns have included "Downed All Over Kent, Just Like the Luftwaffe".
However, higher costs such as the price of barley and energy have eaten into profits.While turnover was up 7% at £56 million in the half year, underlying pre-tax profits fell to £3.6 million from £5 million.
