Shepherd Neame eyes price rises amid budget tax shake-up

Price rises and ‘cost efficiencies’ are on the cards at Shepherd Neame as the brewery prepares for the fiscal impact of the autumn budget.

The pub group behind the Spitfire and Bishop’s Finger brands said higher employers’ national insurance contributions and an increase in the national living wage will cost it £2.6m this year.

Shephard Neame had also previously indicated it would incur £1.2m of additional costs in 2025 as a result of logistical changes, but the group now expects costs to be “£0.3m higher than this figure “.

The company said it would deliver first-half revenue and profit growth in line with expectations.

On Thursday, the group also announced the launch of a share buyback program.

The group is buying and canceling its ordinary shares up to a maximum of £0.5m to boost profits and the value of its shares.

Shepherd Neame said it “traded strongly” over the Christmas period, with like-for-like retail sales rising 7.4 per cent over the five weeks to January 6.

The brewery said it enjoyed “many record days in individual pubs, with trade particularly strong in the final few days up to Christmas Day itself”.

It noted particularly strong retail sales within the M25, where like-for-like sales rose 13.3 per cent.

Total year-to-date comparable sales for the 26 weeks to December 28 rose 4.4 percent.

Turning to beer sales, Shepherd Neame said: “Total beer sales continue to fall driven by the current decline in bottled beer sales, partly offset by strong local direct supply.” Total beer volume during the first half was -12.6 percent, own beer volume was -13.9 percent.’

In October, Shepherd Neame raised concerns about the impact of the proposed reforms on the labor market.