Somerset cider maker Brothers has blamed increased competition and marketing costs for a dip in revenue, despite its pre-tax profits passing £1 million.
In accounts filed for the year to December 31, 2013, Brothers Drinks Co Ltd reported revenues of £26.1million, down from £29.7million in 2012.
In an attempt to diversify its customer base, the business incurred "significant advertising and marketing costs" associated with promoting its own brand products.
A statement accompanying the financial results said that the strategy was "considered to be in the best interests of shareholders in the long term".
Brothers also revealed that the fruit flavoured cider market had grown during the year, attracting new competitors which led to an overall dip in sales of its branded drinks.
However, pre-tax profit rose to £1.1m last year, up from £658,136. The company's nopw intends to increase pre-tax profit and return on capital employed while "remaining conservatively financed".
Now in its 14th generation, the family-run firm has been making cider in Shepton Mallet, where it employs 110, since 1658 but hit the big time by selling pear cider at the Glastonbury Festival in 1995.
Brothers cited the loss of a major bottling customer due to administration as a principal risk.