Rising costs squeeze Marstonís

05 December, 2008

Turnover in Marstonís beer division increased by 8.7% to £91.4 million in the year to Oct 4, but operating profit was down 7% to 16.1 million as rising costs squeezed margins.

Total beer volumes increased by 5%, and volumes of premium ale by 17.5% following the acquisitions of Ringwood and Wychwood.

The company said it had increased market share in the off-trade during the year.

In the year ahead, its off-trade bottled ale portfolio will be focused on Marstonís Pedigree, Marstonís Old Empire, Hobgoblin, Wychcraft, Brakspear Oxford Gold, Ringwood Old Thumper and Jennings Cumberland Ale.

In a statement on its results, Marstonís said: ďIt is our view that our portfolio of ale brands can benefit from the longer term growth in eating out in pubs and the continued growth of the off-trade.Ē

Chief executive Ralph Findlay said: ďWe remain cautious about the immediate trading outlook but are confident that steps already taken in respect of capital expenditure and cost management are appropriate for the current environment.Ē

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