Theakston Brewery has blamed costly packaging taxes for a 72% dip in pre-tax profits.
Operating profit at T&R Theakston fell by over £200k to £108k in the year ended 31 December 2025, after the Yorkshire-based brewer was force to absorb £300k in additional costs relating to packaging taxes, including a one-off timing impact from its first EPR bill.
It meant profits before tax fell from £271k to just £76k.
“While our pre-tax profit may have decreased, the majority of this is the result of increased packaging taxes,” said Richard Bradbury, MD of T&R Theakston. “It is also reflected in our ongoing work to minimise the cost pressures on our pub customers and their consumers by ensuring price increases are kept as low as possible.”
However, “no compromise was made on continuing to buy the best malt and hops”, Theakston insisted.
As a result, cost of sales at the brewer climbed 11.3%, well ahead of a 5% increase in turnover to £9.2m.
In a bid to offset rising input costs, Theakston had invested in solar energy to reduce its exposure to energy prices, its directors revealed.
Off-trade sales climb
Despite the myriad of challenges, Theakston reported growing demand for its beers. Cask ale volumes climbed by 3%, led by its Old Peculier and XB brands, while off-trade volumes climbed 13% following new launches including Nowt Peculier 0.0% and Salted Caramel Porter.
Nowt Peculier was now listed in 285 Morrisons stores nationwide, as well as regionally via Co-op, it said. Salted Caramel Porter, meanwhile, was listed with Morrisons nationally and Tesco and Co-op regionally.
“Despite the economic headwinds that have been synonymous with this decade, we retain a positive outlook for the business,” Bradbury added.
The family-run independent brewery will celebrate its bicentenary year in 2027.
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