This is a great business win for Scottish Courage

Graham Kendrick Chairman Scottish Courage

Under the agreement, Scottish Courage, the group's beer division, will sell its brands in the pubs which Nomura, the Japanese financial house, bought from Bass in February.

Beer brands such as Foster's, John Smith's, Kronenbourg 1664, Miller and Courage Best will be sold alongside the brands currently supplied by Bass Brewers.

Over time, the drinks distribution to these pubs will be transferred to Scottish Courage from the current distributor Tradeteam.

Nomura is the largest pub operator in the UK

"This is a great business win for Scottish Courage," said chairman Graham Kendrick.

The new venture will be named Voyager Pub Group.

It comes in addition to existing distribution agreements with Nomura's other pub businesses, Unique Pub Company and Inn Partnership.

Pubs for sale

About 740 of Scottish and Newcastle's managed pubs and other establishments are expected to be sold this summer.

One block of 650 pubs are expected to be sold for around �350m, industry sources said.

Scottish & Newcastle spokesman Richard Gibb declined to name any prospective buyers or comment on any speculation about price.

But he said "we would expect to complete in June or July".

Foot-and-mouth

Scottish & Courage says it expects its overall result for its trading year ending on 29 April to be in line with forecasts, despite previously announced losses of about �3m as a result of the foot-and-mouth outbreak in the UK.

Rural footpaths are gradually opened following the foot-and-mouth epidemic

Both its retail and its beer businesses have suffered losses during the financial year.

But analysts predict that the group will announce that it made about �420-430m in net profits.

That means the foot-and-mouth related losses shaved less than 1% off its profits.

Rural impact

"To date the impact [of foot-and-mouth] has been predominantly confined to those rural areas where the disease is most in evidence," the group said.

Customers staying away from the countryside, problems with beer deliveries and higher meat prices which have eroded margins are among the reasons for its losses, Mr Gibb said.

The number of new cases of foot-and-mouth is falling rapidly, several rural footpaths have been re-opened after being closed for weeks and many tourists are again booking their breaks in the UK countryside.

However, Mr Gibb observed that the problem has not yet gone away, though he declined to predict how the epidemic would affect the group in the future.