The North Yorkshire business has also reduced its losses before tax to just £2,000 having been £334,000 in the red a year before and it expects to clear its Covid-support debts with HMRC entirely by September this year.
Despite Covid affecting the business, which brews beers such as Old Peculier, Traditional Mild and Barista Stout, Theakston stated it was in a “very robust financial position”. However, it added the start-stop nature of reopening in the on-trade during 2021 led to the cask ale category of Theakston’s particularly suffering from the initial restriction on indoor reopening through operators restricting ranges over “concerns about its perishability”.
Yet, the business “invested significantly in its brand health – at its heart is a relentless commitment to excellent beer quality to ensure consumers are consistently able to enjoy its brands in every setting”.
Well-balanced ale porfolio
Although the on-trade represents 75% of the company’s revenue, the business has “a well-balanced ale portfolio across both cask and keg in the on-trade and has strengthened its capabilities in other sales channels”, which included a change in distributor partners from Kingfisher Beverages Europe to Beer Britannia for its off-trade business and significant investment into digital platforms during 2021, including a revamp of website and enhanced e-commerce capabilities. Theakston also broadened its export business to mitigate exposure in any single market.
Theakston also said proposed reduction in duty for draught beer and to the Small Brewers’ Relief that is set to come into effect in April 2023 would “create a more level playing field on beer duty, bring industry debate over the changes to an end and enable all producers to refocus on creating a healthy and dynamic cask ale category”.
A revision and amendment to the business’s long-term loan facility and a renewed overdraft will help to retain its financial stability.
Challenges faced
On the future, Theakston said: “With financial arrangements agreed until 2026, the company can maintain the focus of its future investment on continuing to develop and brew beer in Masham and on continuing to grow the overall strength of the Theakston brand equity.”
Simon Theakston, joint managing director at Theakston Brewery, added: “As a business with almost 200 years of history, we have faced challenges both recent and historic. The past two years have been tough for all sectors, including the British brewing industry. As our 2021 results show, we are well on the road to overcoming this latest challenge.
“We are absolutely confident about our future, as we continue to recover from the Covid-19 pandemic, and are looking forward with enthusiasm to the next 200 years.”