Brewer Adnams is to put on hold any expansion of its Cellar & Kitchen wine chain because of the economic downturn.
The Southwold-based brewer this week reported a 64% drop in full-year operating profits to £1.5m for the year to 31 December.
However, chairman Jonathan Adnams insisted the format for the chain, which currently consists of nine stores, would be "a runner" in the long term.
"Retailing is not easy at all at the moment," he told The Grocer. "The stores haven't been open long and it's been a tougher year than we had planned for. But business in the early part of the year has been positive."
As yet, there were no new stores in the pipeline, but the chain was "functioning well", he added. "We are very confident with it. We are going to continue working with what we've got, keep making gentle progress and hold back on openings until the environment is more certain."
Adnams opened two stores last year in Richmond upon Thames in Surrey and Southwold in Suffolk.
The Southwold store, which opened in December and is the brewer's eco-friendly flagship store - complete with toilets flushed with rainwater and walls insulated with sheep wool - was performing "exactly as planned and more" Adnams added.
Adnams said its pub business had been affected by the widening price gap between drinking at home and in the pub, but off-trade sales were up around 4% after the brewer launched three take-home beers in 2008 - carbon-neutral beer East Green, pale ale Lighthouse and brown ale Gunhill.
"We're quite pleased with how they're going," Adnams said.
"We're a small player in the off-trade but it has allowed us to tap into new segments and new areas of the market."
He admitted it was hard to see much light at the end of the global economic tunnel and that he anticipated a tough 2009.
However, he added: "Our strategy of investment in our business and diversifying our earnings has resulted in Adnams being well positioned to weather the downturn."
The Southwold-based brewer this week reported a 64% drop in full-year operating profits to £1.5m for the year to 31 December.
However, chairman Jonathan Adnams insisted the format for the chain, which currently consists of nine stores, would be "a runner" in the long term.
"Retailing is not easy at all at the moment," he told The Grocer. "The stores haven't been open long and it's been a tougher year than we had planned for. But business in the early part of the year has been positive."
As yet, there were no new stores in the pipeline, but the chain was "functioning well", he added. "We are very confident with it. We are going to continue working with what we've got, keep making gentle progress and hold back on openings until the environment is more certain."
Adnams opened two stores last year in Richmond upon Thames in Surrey and Southwold in Suffolk.
The Southwold store, which opened in December and is the brewer's eco-friendly flagship store - complete with toilets flushed with rainwater and walls insulated with sheep wool - was performing "exactly as planned and more" Adnams added.
Adnams said its pub business had been affected by the widening price gap between drinking at home and in the pub, but off-trade sales were up around 4% after the brewer launched three take-home beers in 2008 - carbon-neutral beer East Green, pale ale Lighthouse and brown ale Gunhill.
"We're quite pleased with how they're going," Adnams said.
"We're a small player in the off-trade but it has allowed us to tap into new segments and new areas of the market."
He admitted it was hard to see much light at the end of the global economic tunnel and that he anticipated a tough 2009.
However, he added: "Our strategy of investment in our business and diversifying our earnings has resulted in Adnams being well positioned to weather the downturn."
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