UK & Japan: Kent-based brewer Shepherd Neame is to produce beer for the largest brewer in Japan

The Asahi deal follows two years of talks and was unveiled as Shepherd Neame brewer announced results for its 30th consecutive year of profit growth on October 4. But the brewer saw beer sales fall in volume by 2.6%, partly because of its refusal to sell Spitfire at lower prices to JD Wetherspoon.

The report on Tuesday said the company was "not prepared to reduce prices of Spitfire to maintain volumes". However sales of draught Spitfire to other customers increased by 10.5%, figures for the year showed.

Chief executive Jonathan Neame said the firm's core brands, including Spitfire were "performing well", and Asahi Super Dry was "an important addition" to the Shepherd Neame portfolio. In a final chairman's statement, Robert Neame said: "The brewery can rightly be proud of having licensed brewing agreements for premium brands with international brewing companies in India, Japan, China, Germany and Holland."

Mr Neame is standing down as chairman at the company's annual meeting, but plans to stay as a non-executive director until the end of June 2006. The company claims to be Britain's oldest brewer, dating back to 1698, and has 367 pubs in London and across the South East.

Highlights of the year included pre-tax profits rising by 6.1% to £9.9m, compared with £9.3m in 2004. And turnover rose by 1.1% this year to £91.4m, compared with £90.3m in the previous year.

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