E-Malt.com News article: 3404

UK: Shepherd Neame, UK’s oldest brewer, is counting the cost of a feud within its controlling family with a write-off over the resignation of former director Stuart Neame, who vowed to fight on for changes at the brewer of Spitfire ale, Reuters revealed on October 6, 2004. The 300-year-old Kent brewer, famous for its cheeky Second World War-themed advertising, was drawn into a family dogfight when vice-chairman Neame resigned last October, and as a major shareholder his battle goes on at this month's annual meeting.

Neame, one of the fifth generation of Neames to control the business and who owns 5 percent of the group, is pushing the group to split its brewing and pub operations, and get its chairman and his cousin Bobby Neame, 70, to step down early. Stuart Neame will now come forward with three resolutions at the company's AGM on October 29 to press for improved corporate governance, publish separate profits from brewing, pubs and property, and appoint his brother Roderick Neame as a director.

The brewer said it incurred a charge of 822,000 pounds to cover Stuart Neame's resignation, with 460,000 pounds for his pension from 2007 and 362,000 pounds for his departure and employment tribunal costs. But the company insists its policy is unchanged after reporting a 29th year of profit growth. "Stuart has a lot to say, but it is irrelevant to strategy," said Jonathan Neame, chief executive and son of the chairman, after posting a rise in annual profits on Wednesday. He added that the group hoped to announce a replacement for his father and chairman at the AGM this month to take over after next year's AGM, also in October.

The group, which runs one brewery and 368 pubs, reported pretax profit before exceptionals up 8.7 percent to 9 million pounds in the year to June 26 on turnover nearly 7 percent ahead at 90.3 million, boosted by Spitfire volumes up 10.2 percent. Chief Executive Neame said trading through the summer had been more difficult than last year due to wet weather, and described it as "average" compared with last year's "good" trade.


10 October, 2004