by Claire Hu Suffolk-based family brewer Adnams has increased pre-tax profits from £3m to £3.4m and beer sales by 11% despite selling only 7% of its beer through its own pubs. The brewer, wine distributor and owner of 85 tenanted pubs and two hotels saw turnover increase from £33.8m to £36.9m and earnings per share rise from 454.2p to 584.3p. Against a backdrop of a declining cask-beer market, Adnams achieved increased sales in 2002, bringing its three-year compound increase to 43%. The company is gearing up for expected demand with the creation of three new fermenting vessels at its Southwold brewhouse, bringing capacity to 110,000 barrels. With only up to 7% of its beer sold in its own pubs, the business continued its marketing drive to reach the national market with the launch of a new Adnams bottle. Discussions are at an advanced stage to begin exporting Broadside Strong Original and Suffolk Strong Bitter to overseas markets. In its own tied Adnams pubs where beer volumes rose by a modest 0.5% and wine sales by 15% continuing to forge closer links with local communities in their Suffolk heartland is a priority, said chairman Simon Loftus. Two bottom-end pubs were sold and the White Hart in Halesworth purchased. Refurbishments were carried out at the Cardinal's Hat, Harleston, the Ferry Inn, Stokesby, and the Crown and Swan hotels in Southwold. There were several disappointments including the on-trade wine business, which was hit by a reduction in activity in London restaurants. Total wine turnover was 4% down. But financial performance is only part of the picture, stressed Loftus, who pointed to achievements including being listed in a top 100 list of the most giving companies the only British brewer and winning the 2002 Anglia Business Award for Environmental Business. Chairman Simon Loftus drew a salary package of £137,000, up £10,000 on the previous year. Managing director Jonathan Adnams paid himself £125,000, up £14,000.