Exclusive: Sharp's quadruples profit

Cornish cask ale brewer Sharp's, which produces Doom Bar, has reported a quadrupling of profit after turnover growth of 40% in 2010.

The company saw turnover leap from £11.4m in the year to 31 October 2009 to £16.1m in the year to 31 October 2010.

Pre-tax profits soared £428,225 in 2009 to £1.63m for the most recent year. Doom Bar is currently the second highest-selling cask ale across the Enterprise Inns estate. Companies House accounts state: "Turnover growth for 2010 was 40.7% and follows a number of years of solid turnover growth for the business.

"The brewery's main brand Doom Bar has been the key driver of sales growths as routes to market open up nationally for the brand.

"The business is forecasting that sales growth will continue throughout 2011 as Doom Bar accesses further routes to market in the UK."

Sharp's reported that it had targeted 32% sales growth in 2010 and 10% operating profit — it hit 11.9%. In 2009, the brewer had targeted 25% sales growth — and achieved 43%. Operating profit target in 2009 had been 5.9% but it hit 6%.

Competition​

On competition Sharp's directors said: "The beer industry is very competitive with low barriers to entry for new brewers and progressive duty relief providing a considerable cost avantage to smaller brewers.

"Sharp's focuses its efforts on beer quality and excellent customer service and does not compete as a matter of course on price.

"The board does not foresee a significant increase in competitive pressure over the coming months."

The number of people employed by Sharp's rose by just five to 68 despite the 40% increase in turnover — there are three directors (Nicholas and Loraine Baker and Joe Keohane), 17 people employed in brewing, 15 in sales, 21 staff in logistics, and 12 in administration.

Directors remuneration was a total of £109,239, including pension contributions. No dividends were declared in the year.

Potential​

At the end of last year Joe Keohane said: "We are delighted with the progress we are making with Doom Bar and we are particularly pleased that its success is helping hard-pressed licensees give people a reason to visit the pub.

"We believe that Doom Bar has the potential to not just be the biggest cask beer brand in the on-trade but the biggest ale brand in the on-trade within three years.

"The growth is cask beer is set to continue and Doom Bar is a brand leading that movement and we feel it can become bigger than the major keg ale brands."

Ted Tuppen, chief executive of Enterprise, said at the end of last year: "Sharp's proactive approach to marketing their brands, with high levels of pub specific support and working in concert with our head office team has helped take Doom Bar, within five years, from local Cornish ale to our second biggest brand nationally with strong sales across the South and particularly within London."

Doom Bar is the number one selling cask brand in the South West and Wales according to CGA Data Monitor, and the fastest growing cask brand in Greater London.