Pre Close Trading Update

RNS Number:9133M
Cains Beer Company PLC
31 January 2008



For release at 0700 hrs on 31st January 2008


                           Cains Beer Company (CBC/L)
                           ("Cains" or the "Company")

                            Pre-Close Trading update


Cains Beer Company PLC, the AIM-listed craft brewer and operator of 105 pubs,
which acquired the North-West based pub company, Honeycombe Leisure plc
("Honeycombe") in June 2007 by way of a reverse takeover, today releases a
pre-close period trading update. This update is prior to the announcement of
Cains' preliminary results on Thursday, 10th April 2008, for the 18 month period
ended 31 October 2007*. .

The Board are pleased to report that Cains' performance during the period was in
line with current market expectations.

Trading since the start of the new financial year has been difficult across the
industry with competitive pressures being felt following the smoking ban,
commodity price rises and the downturn in consumer spending. However, we
continue to make progress and have put in place various initiatives to drive
synergies and extract cost from the business.

Honeycombe has been fully integrated into the Cains business, generating synergy
benefits from the closure of Honeycombe's head office in Preston, the provision
of a central distribution centre of product to the pubs and rationalisation of
the workforce.

Cains beer has been pouring across the whole pub estate since October 2007 and
our aim is to shift the mix of sales in favour of Cains branded beers in the
medium term by promotions and in-house marketing.

We have undertaken a full estate review, which has outlined a number of
opportunities to invest in the estate and steadily transform unbranded pubs into
a cohesive pub estate predominately marked with the Cains brand. To that end, we
announced in December the opening of the newly named Market Tavern in Glossop as
the first pub in the estate to undergo a complete refurbishment as part of a £5
million investment by the Company. Eight further sites have been earmarked for
refurbishment as part of the next stage of this re-branding exercise and the
Company looks forward to announcing further progress in due course.

The Company's contract packaging and brands divisions have performed well and
are in line with management expectations, seeing pleasing brand wins with
several of the UK's largest food retailers.

Cains are the Official Beer sponsors to Liverpool European Capital of Culture
2008. As a major sponsor with pouring rights at high profile events, Cains is
poised to benefit from the city's year in the spotlight and the brand awareness
this will generate. Cains has also commissioned a leading British Pop Artist to
produce a limited edition label for its Finest Lager, which will go on sale from
1st February 2008. The design has been based on Cains' vision to become 
Britain's favourite beer company.


Sudarghara Dusanj, Chief Executive, commented:

"Cains and Honeycombe integrating as one company was always based on a
deliverable turnaround strategy and it still is. Challenges exist, but the
progress made so far has been encouraging and we are confident that the model we
have put in place will rejuvenate the pubs and build on the success of the
brewery and its brands across our own estate, the on trade and off trade. "

"The current trading climate for our industry is difficult but not unforeseen
and the business is well placed to build a sustainable and profitable future
under a strong brand with an experienced team."

* The 18 month period ending 31 October 2007 due to be reported on, follows the
move of Cains year-end from 30 April to 31 October. Accordingly, the Company
initially reported a second set of interims for the 6 months ending 30 April
2007 on 24 July 2007 relating to the old Honeycombe Leisure plc business.



                                  ENDS



For further information visit: (www.cains.co.uk) or enquiries to:

Cains Beer Company Plc                       0151 709 8734
Sudarghara Dusanj

Charles Stanley Securities (Nominated        0207 149 6000
Adviser)

Rick Thompson
Henry Fitzgerald-O'Connor
Adventis Financial PR                        0207 034 4758
Tarquin Edwards                              07879 458 364
Chris Steele                                 07979 604 687




Notes to Editors

About Cains Beer Company plc

- Cains Beer Company is a craft brewer of award-winning beers and lager. The
  company is listed on AIM and operates 105 individual pubs, mainly located in 
  the North of England.

- Cains is the official beer of Liverpool's European Capital of Culture 2008 and
  the brewery is closely aligned to the arts through a partnership with 
  Britain's Tate galleries.

- Cains is credited with brewing a Premium British Lager. Its Finest Lager is
  fully matured for a full flavour and brewed using only the best malt in the
  world - Maris Otter. It was voted the 2nd 'Best Thing in the World' by GQ
  Magazine.

- The company's Stanhope Street brewery, known as 'The Terracotta Palace' and
  widely regarded as an iconic landmark in Liverpool, was built in 1887 although
  brewing started on the site when the business was founded by Irish-born
  entrepreneur Robert Cains in 1850.

- With a modern vision to become 'Britain's Favourite Beer Company', Cains is
  now headed by entrepreneurial brothers Sudarghara and Ajmail Dusanj, who are
  chief executive and chief operations officer respectively. Their relentless
  focus on product quality and innovation has won the company countless awards 
  and accolades since they purchased the brewery in 2002.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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