(Telegraph) - Centuries-old family merchant books loss after major £25m strategy overhaul.

Berry Bros & Rudd, the Queen’s wine and spirit merchant, has reported its first loss in recent memory as the 315-year-old family-owned firm invests in a major £25m strategy overhaul.

The company, which has been supplying the Royal Family since the reign of King George III, described the result as the “darkest hour before the dawn” as it ploughs ahead with a five-year strategy to refocus on premium spirits and grow its wine business in Asia.

Accounts to be filed at Companies House this week will show Berry Bros fell to a £7.3m pre-tax loss for the 12 months to March 31, from a £1.4m profit the year before. The losses are exacerbated by £4m of exceptional items as the group remains locked in a legal battle to recover debts it believes it is owed by its former wine distributor in Hong Kong.

The group has invested almost £7m this year to implement its strategy and has also faced higher costs as a result of acquiring and integrating Richards Walford & Co, a wine agency business.

At an operating level, losses reached £2.8m against a £3.7m last time. Turnover also dipped 16pc to £138m.