Shepherd Neame – executive interview

In our interview, Shepherd Neame CEO Jonathan Neame and CFO Mark Rider explore what sets the business apart in the pub and brewing landscape. They highlight how the group is navigating structural industry pressures such as declining beer volumes and pub closures, while driving long-term improvements in revenue and profitability across its estate. Next, they discuss the strategic value of Shepherd Neame’s vertically integrated model, owning both a brewery and pubs, and how this differentiates it from peers that have exited brewing. They address the margin pressures from recent cost inflation and plans to rebuild profitability, and how the capital allocation policy should help to close the valuation gap between the company’s market valuation and underlying asset value. Finally, they highlight the key takeaways from the H126 results.

Shepherd Neame is Britain’s oldest brewer, founded in 1698 and based in Faversham. The company operates as a vertically integrated pub and brewing business, combining beer production with an extensive portfolio of pubs, hotels and inns across the South East of England, particularly in London and Kent. At its core, Shepherd Neame brews a range of traditional ales and lagers, both its own brands and licensed international beers, while also owning and operating just under 300 pubs. This dual model allows it to control product quality, distribution and the customer experience, which is a key differentiator compared to many UK peers that have sold their brewing operations.