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Adnams boss steps down, but what’s next for the business?
Adnams chairman Jonathan Adnams OBE has stepped down with immediate effect. db looks at what’s next for the business.
The head of the Suffolk-based beer, spirits and hospitality group will leave the role “due to health reasons” with Simon Townsend stepping in on an interim basis, as non-executive chairman. Townsend is already a non-executive director of the company and chair of the remuneration committee.
The change for the company comes at a time when its future is still in a changeable phase, with the business’s board already evaluating offers for moving the company forwards with a view to revealing plans to its shareholders this autumn and telling db that it was “grateful” for customers’ “unwavering loyalty”.
Jonathan Adnams joined the business in 1975 and began his career in brewery engineering before joining the board in 1988. He was then appointed managing director in 1997 and chairman in 2006. During his leadership, Adnams has been instrumental in driving the company forwards in terms of innovation and sustainability, being the guiding force behind the business’s investment into energy-efficient brewing equipment as well as its distillery. Adnams was additionally awarded an OBE in 2008 for his commitment to corporate social responsibility.
Townsend, who joined the Adnams board in January 2023, is notably already chairman of traditional brewery Wadworth & Co, as well as being a non-executive director of JW Lees & Co, a non-executive director of Cote Restaurants and a senior advisor at global consultancy Teneo. Added to this, he is also a member of the advisory board of diversity and inclusion organisation WiHTL.
Previously, Townsend has also served as a non-executive director of FTSE-listed housebuilder Countryside Properties plc.
Adnams, whose family remains a significant shareholder, has said he will continue to support the business, but only until next year’s AGM.
Speaking about the decision, Adnams said: “I’m saddened to be stepping down from the board earlier than planned but will of course continue to champion the business from the sidelines.
He explained: “Adnams has always been a lot more than just a name to me. The success of the company has been one of the biggest priorities in my life for almost half a century and I’m immensely proud of its achievements. I’m also reassured that the principles on which we built the business – integrity, charity, innovation – are as present today as they ever were. That, as ever, is testament to its people.”
The Suffolk-based brewer has faced a lot of changes of late and this year it updated its packaging and revealed two new beers joining its portfolio, but admitted it is still searching for funds to secure its future.
Earlier in the year, the historic company sent the industry into panic following news it was seeking guidance from advisors to raise new funding. The situation looked bleak, but speaking to db, a spokesperson for Adnams revealed that it was not alone in its struggles and admitted: “Like many operators in the hospitality and brewing sectors, Adnams has been experiencing significant inflationary pressure on its labour, energy, raw ingredients and borrowing costs. Alongside this, we’ve seen weaker overall consumer demand, as households come under the same financial pressures. We have continued to focus on managing our costs and cash flow carefully through a number of initiatives, whilst focusing on a number of growth opportunities across our business and markets. We’re encouraged by improved trading conditions at the start of 2024 and are confident the steps we’re taking will drive stronger sales growth and restore stronger profitability in the longer-term.”
Describing Townsend’s capabilities at the helm, Adnams insisted that Townsend “has the expertise and experience to guide Adnams through its current transition and help secure a long-term financial solution to underpin its growth ambitions”.
Commenting on the role change, Townsend added: “The Adnams family, business and community owes a debt of gratitude to Jonathan for the contribution he’s made over a 50-year career. His personal commitment to innovation – in our products through to our brewing and distilling capabilities – has been instrumental in building the foundations we continue to benefit from today. Not only that, but – as a leader – he has embodied the principles and values to such an extent that they flow through every aspect of our business today. I’m excited about the opportunities we now face and remain fully committed to securing the long-term financial solution we need to support our growth.”
Adnams next phase will be to disclose its plans for financing the business and reveal how that might take shape to support its future, amidst speculation it would sell the company outright, those at the helm have been quick to deny rumours. There has however been talk within the beer and pub sector of the business carving up its highly-regarded pub estate and sell parts off to potentially release funds, however right now that route has also been quashed as simple speculation.
The business has promised its avid followers that it will keep it abreast of new developments within the business as soon as they come to fruition and reiterated how much it appreciates the sector and its loyal base of supporters.
Speaking at its recent AGM, its new CEO Jenny Hanlon stated how “the business has come through some challenging market conditions” but admitted that now it needed to capitalise on its “unique strengths” in order to “drive profitable and sustainable growth”.
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