Hydes brews up 150% rise in beer production
Manchester-based Hydes brewery boosted its beer production by 150% in 2005 after taking on the contract to brew Boddingtons for Inbev a year ago.
Annual barrelage in 2005 was 100,000 as Hydes brewed 12 different cask beers and 16 keg products, including Harp lager
The company brewed just 35,000 barrels in 2000.
Hydes, whose financial year ends in March, expects the current year to be transformational thanks to heavy investment in its brewery and its managed pubs.
The company, which has 80 tenanted and managed pubs, saw 14.6% growth in turnover to £27.5m but a 38.8% fall in profit to £1.68m in the year to 31 March 2005 as it geared up for brewing expansion and invested in its managed estate.
The Inbev contract required the introduction of extra fermentation vessels which increased overall brewing capacity from 110,000 barrels to 140,000. Acquisition and development of land next to the brewery will allow the storage and distribution of the extra beer.
Production director Paul Jefferies said: "Last year was our best ever in terms of volume and range of beer brewed. More than £1m was invested in the brewery with the addition of Boddingtons.
"But alongside that we have also seen significant increase in demand for our other products and in particular cask beer, throughout the year."
Hydes' last financial year saw the creation of its three largest turnover-managed pubs - two by acquisition and one by the building of a 36-room lodge next to the Coach & Four pub in Wilmslow.
The developments are expected to boost the managed division, which saw turnover rise 5% to £17.4m but profit contribution decline by 17.6% to £3.4m as a result of increased costs and increased competition.
Hydes freetrade business is also a significant profit centre. In the year to March 2005, profit increased by 46.6% to £1.71m. Core free trade volumes rose by 27.9% and wholesale volumes were up by 38.5%. Chairman Chris Hyde said in the 2005 accounts: "The profit performance in 2004-2005 has clearly been very poor. However, turnover continued to grow and significant developments were undertaken."
