North Yorkshire brewery reports profit for first time in five years
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Black Sheep Brewery has moved back into the black after reporting a profit for the first time in five years.
For the 12 months ending March 2018, the North Yorkshire-based brewery saw a 3.3% increase in turnover to £18.6m from £18m in 2017.
Operating profit also rose to £697,000, marking a £260,000 profit from a £437,000 operating loss in 2017.
During this period, the brewery created seven new beer brands in a variety of pack types, including the launch of its first-ever lager, 54° North.
Plans are also in place to develop Black Sheep’s own £2m packaging facility for its bottled products, as well as the potential to diversify the company’s retail operation.
Rob Theakston, managing director of The Black Sheep Brewery, said: “This has been another year of progress for Black Sheep as we demonstrated our ability to adapt to the challenging market and trading conditions to deliver positive results and an award-winning year.
“The day-to-day running of the brewery and the collaborative efforts of our team has contributed massively to this year’s success, executing the Board’s strategy to reshape and make Black Sheep even more competitive.
“We have continued to diversify the Black Sheep brand with the development of several new products to the on and off-trade that complements our existing, core range. The launch of 54° North, our first-ever lager, was one of many well-received new additions to the Black Sheep range.
“Our innovative brewing approach is helping to set Black Sheep up for the future as we continue to face a shrinking cask market, and this diversification will be crucial to our future success.”
Black Sheep also became the official brewery of the Tour De Yorkshire and renewed its sponsorship with Yorkshire County Cricket Club (YCCC).
Andy Slee, chairman of The Black Sheep Brewery, added: “We have enjoyed a positive year, despite varying challenges facing brewers, including the disproportionate tax burden on the sector.
“Black Sheep currently pays five and a half times more in beer duty than eBay pays in UK corporation tax which strikes me as wholly unfair. Beer duty and business rates remain the issues focusing the sectors time at present, especially in dialogue with Government.
“I am delighted that we have been able to meet our targets and deliver encouraging results. Our priority remains building on this positivity and delivering a sustainable future.”
Paul Theakston, founder of The Black Sheep Brewery, is also set to step down from the Board after the company’s AGM (27 September).
Commenting on Theakston’s decision to step down, Slee said: “The entire Board and I would like to wish our pioneering Founder Paul Theakston all the very best in his well-earned retirement.
“Paul has overseen the development of this iconic brewery over the last 26 years and been instrumental in making Black Sheep a household name that is exported throughout the world. His sons, Rob and Jo, the wider management team and the Board will continue to uphold the values and legacy he has left behind, producing great Yorkshire beers day-in-day-out.”