Adnams cuts jobs as conditions remain ‘challenging’ for Ghost Ship brewer

Group takes “series of operational, commercial and labour management initiatives” after facing worse-than-expected sales at the start of the year

Adnams, the brewer behind the popular Ghost Ship ale, has been forced to cut jobs as it implements emergency measures to tackle what it describes as “challenging” trading conditions.

The Suffolk-based brewer and pub operator informed shareholders it has launched “a series of operational, commercial and labour management initiatives” following worse-than-anticipated sales at the start of the year.

Adnams has been approached for comment regarding the precise number of positions affected.

The brewery said it has had to grapple with “continued pressure on consumer spending and subdued trading conditions” during the six months to June.

The group recorded a £1.4m pre-tax loss over the period, marginally lower than the previous year’s £1.5m deficit. The firm’s turnover contracted by nine per cent to £27.4m, as reported by City AM.

Chairman Simon Townsend acknowledged that the brewer’s performance was “below expectations during the first half of the year”, while adding that it is “making progress” towards its long-term strategy.

Townsend attributed the fall in revenue to the disposal of a number of Adnams’ tenanted pubs in 2025, which had inflated turnover in that year.

The brewing chief said he has been “encouraged by the early results” of the company’s turnaround efforts, which have been buoyed by “very favourable weather” and the FIFA World Cup.

Sales at its managed pubs across Suffolk and Norfolk climbed by 3.3 per cent in July, boosting the group’s pub arm profits by 10 per cent during the month. Adnams boosted by World Cup sales.

Townsend said Adnams is also witnessing “encouraging evidence” of expansion in retail beer sales. Profitability at its Bury St Edmunds shop surged five-fold following the site’s relocation, he said.

“Trading with supermarkets also remained broadly in line with the previous year and continued to outperform the wider beer market,” the chairman added.

The group cut £2m from its operating costs in the first half of this year thanks to “improvements in efficiency, overhead control and operational discipline,” its accounts stated.

Adnams said it informed shareholders at its annual general meeting that it will be channelling more resources and focus towards its pub estate, and away from its brewing operations.

“We highlighted our view that Adnams is a hospitality business with a brewery at its heart. This remains the central organising principle of our strategy. “.

“We own a distinctive collection of pubs, hotels and hospitality assets which provide attractive opportunities to improve returns through operational excellence and focused investment,” Townsend said.

Earlier this year, Adnams revealed that it would be reducing alcohol content across several of its beers in an effort to tap into surging consumer appetite for low-strength alternatives. The brewing company was established by brothers George and Ernest Adnams in 1872 when they acquired the Sole Bay Brewery in Southwold, Suffolk.

Adnams is listed on the junior Aquis Stock Exchange.