Sheps reports satisfactory trading and restructures board

Shepherd Neame has announced a reorganisation of its board as it has reached a 10-year logistics agreement with Kuehne + Nagel, in a move that will see the departure of production and distribution director Tom Falcon and is likely to result in a “limited number” of redundancies as 57 employees enter consultation.

The board will be reorganised around two trading divisions, Brewing & Brands and Retail & Tenanted, to be implemented over the next 12 months.

Graeme Craig, currently sales and marketing director, will become director of brewing and brands, with effect from January 2014. Nigel Bunting, currently retail director, will become director of retail and tenanted operations, from July 2014.

George Barnes, currently tenanted and property director, will become property and services director with responsibility for all property matters, technical services and other commercial issues, from July 2014.

Under the agreement with Kuehne + Nagel will provide distribution and warehousing services to Shepherd Neame.

Kuehne + Nagel and Shepherd Neame will combine their existing operations which currently both operate out of the Shepherd Neame Distribution Centre in Faversham.

Shepherd Neame said: “The company has entered a period of consultation with 57 staff whose roles will transfer across to Kuehne + Nagel. A key consideration for both parties is that SNDC becomes an integral part of the Kuehne + Nagel national network with a commitment to maintaining as many jobs in Faversham as possible, but some restructuring including a very limited number of redundancies is anticipated.

Solid performance

Shepherd Neame this morning reported “satisfactory” underlying trading performance in the 52 weeks to 29 June, with like-for-like retail sales up 3.3% and average EBITDAR per tenanted pub up 3%. Tenanted like-for-like EBITDAR declined by -1%, or by -0.5% adjusted to exclude pubs closed for disposal.

Total beer volumes for the 52 weeks was down 1.3% but underlying own beer volume, adjusted to exclude contract brewing, was up 0.9%. For the 52 weeks to 29 June, the company said it expects operating profit before exceptionals to be in line with market expectations.

Shepherd Neame chief executive Jonathan Neame said: “Looking at our trading for the full year, I am very pleased that we have delivered a solid performance in difficult market conditions, with like for like retail sales up 3.3%. We have a healthy trading position, a strong brand portfolio and this new agreement with Kuehne + Nagel gives us new opportunities going forward.”

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