Suffolk brewer and retailer Adnams has warned that its 2008 profits would be "substantially" lower than 2007 due to falling sales as a result of the economic downturn.
The Southwold-based firm said its beer sales fell 6% last year as "the seriousness of the economic decline exceeded the expectations of most".
Adnams warned that while trading conditions may continue to deteriorate, it was well positioned to weather the storm. The firm is now due to publish its 2008 results at the start of April.
Adnams sells 93% of its beer through pubs outside its own estate. Its own estate — comprising 80 pubs, two Southwold hotels and nine Cellar & Kitchen stores — has also been affected by the downturn.
The group's wine arm has been further impacted by the weakness of the pound against the euro and the US dollar, making importing more expensive and "seriously" eating into profit margins, according to Adnams.
"Overall our trading since August has been less strong than we had anticipated at that time, but we have continued to concentrate on doing the right things for both the shorter and longer term," said Adnams.