Adnams, the Suffolk-based brewer of Ghost Ship ale, has begun letting go of staff as it takes emergency measures to confront "challenging" trading conditions.

The brewer and pub owner told shareholders it has launched "a series of operational, commercial and labour management initiatives" after sales at the start of the year came in worse than expected. Adnams has been contacted for comment on the precise number of roles affected.

The company said it was forced to contend with "continued pressure on consumer spending and subdued trading conditions" in the six months to June. Those pressures are not unique to Adnams: British pub and brewing businesses have faced a tough trading backdrop this year, with elevated costs — including higher employer National Insurance contributions and increases in the National Living Wage that took effect in April — compounding cautious household spending.

The group posted a £1.4m pre-tax loss for the period, marginally smaller than last year's £1.5m shortfall, while turnover fell nine per cent to £27.4m.

Chairman Simon Townsend said the brewer's performance was "below expectations during the first half of the year", but added that it is "making progress" towards its long-term plan. He attributed the drop in revenue to the sale of a number of Adnams' tenanted pubs in 2025, which had inflated turnover in that year.

World Cup boost

Townsend said he had been "encouraged by the early results" of the company's turnaround efforts, which were helped by "very favourable weather" and the FIFA World Cup.

Sales at its managed pubs, located in Suffolk and Norfolk, jumped 3.3 per cent in July, lifting profit in the group's pub arm by 10 per cent in the month.

Townsend said Adnams is also seeing "encouraging evidence" of growth in retail sales of its beer. Bottom-line profitability at its shop in Bury St Edmunds increased five-fold after the site was relocated, 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. UK beer sales more broadly have been softening, making Adnams' claim of outperformance relative to that market a notable bright spot for the brand.

The group cut £2m from its operating expenses in the first half of the year thanks to "improvements in efficiency, overhead control and operational discipline", according to its accounts.

Adnams told shareholders at its annual general meeting that it will direct more cash and attention towards its estate of pubs and away from its brewing arm. The pivot reflects a wider trend among regional brewers, many of which have leaned harder on hospitality and direct-to-consumer channels as supermarket beer margins and volumes have come under strain.

"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," Townsend said.

"We own a distinctive collection of pubs, hotels and hospitality assets which provide attractive opportunities to improve returns through operational excellence and focused investment," he added.

Earlier this year, Adnams announced it would cut alcohol content across a number of its beers in a bid to capture booming consumer demand for low-strength options — a fast-growing segment of the UK drinks market as drinking habits shift towards moderation.

The company was founded by brothers George and Ernest Adnams in 1872, when they purchased the Sole Bay Brewery in Southwold, Suffolk. Adnams is listed on the junior Aquis Stock Exchange.