Oldest UK Pub Company May Shut Brewing Division

By the Editorial Team · Thursday, October 1, 2026

Shepherd Neame is reviewing the future of its brewing division, including the possibility of selling or closing it, due to a sharp decline in profitability and challenging market conditions. Despite strong pub performance, falling beer sales and rising costs have severely impacted the brewing segment, prompting the family-run company to consider significant strategic changes.

Shepherd Neame, Britain's oldest pub company, is considering the possible sale or closure of its brewing division as it confronts declining profitability amid challenging industry conditions. The family-run firm, founded in 1698 and based in Faversham, Kent, is conducting a strategic review of its brewery operations in response to a significant drop in performance.

The company, which operates 280 pubs and employs around 1,600 people, reported a 43 percent fall in profit before tax to £3.6 million for the year ending June 27, with revenues decreasing slightly to £163 million. Sales volumes of beer and cider fell by 5.4 percent overall, while own-brand ales, including popular lines like Spitfire and Bishop’s Finger, experienced a sharper decline of 9.6 percent. This contributed to a 4.6 percent reduction in revenue for the Brewing and Brands division, which dropped to £42.8 million and saw its profit shrink from £1 million in 2025 to just £100,000.

Jonathan Neame, who assumed leadership of the business in 2003 and represents the fifth generation of the family to manage the company, acknowledged ongoing pressures facing the brewing side of the business despite strong performance in the pub segment. He cited a combination of falling market demand, inflationary pressures, and rising logistics costs as key challenges complicating the division’s outlook.

“Brewing remains central to our identity and success, but the path forward is complex,” Neame said. “The decline in profitability over recent years has been significant, and while we are seeing strong momentum within our pubs, the Brewing and Brands division is under notable pressure.” He described the wider sector as “chronically overtaxed and overregulated,” which further impacts operational viability.

Shepherd Neame has not disclosed specific options being considered in its strategic review but has not ruled out selling the brewing business as a potential course of action. The review is ongoing, and the company has refrained from commenting in detail pending its completion. Neame is also expected to succeed Richard Oldfield as executive chairman in the near future.

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