The company - whose brands include Ballantine's scotch whisky, Tia Maria and Beefeater gin - said underlying profits for the half year rose 2% to �256m ($405m).

Analysts had been expecting profits to be flat after the company warned in February that its results would be hit by rising pension costs, the weakness of the US dollar and a drop in earnings from Spain.

But chief executive Philip Bowman said strong trading in the US, Latin America and Asia Pacific had helped to overcome these problems, and that Allied was on track to meet market expectations for the full year.

'Robust' performance

Allied Domecq shares jumped in early trade but failed to hold on to their gains and ended the day down 12.5 pence at 316.25p.

The company said the results were lifted by the recent additions of winemaker Montana and coconut rum Malibu to its portfolio of brands.

"The robust strength in the trading performance reflects the strategic choices and investment made in the past three years," Mr Bowman said.

"The brand portfolio is now better oriented towards more rapidly growing categories such as vodka, rum, cream liqueurs and premium wine."