Brewer Adnams has blamed a “weak beer market [and] softening consumer confidence” for a drop in full-year sales and profits.

Adnams, which owns the retail chain Cellar & Kitchen, said operating profits fell 64% to £1.5m in the year to 31 December on sales down 0.6% at £47.1m.

“A weak beer market, coupled with softening consumer confidence, regulatory and lifestyle changes have affected our performance and seen an increase in drinking at home,” said chairman Jonathan Adnams.

“Similarly, our wine business has been hit by the decline of sterling against the euro.”

He said the company had taken actions to mitigate the impact of the economic downturn by actively managing its cost base and scaling back its store roll-out programme.

In January, Adnams warned that its full-year sales would be “substantially lower” following a 6% fall in beer volumes in 2008.