Four big brands have helped drive S&N sales

A "strong performance in a challenging environment" during the six months to June 30 lifted pre-tax profits to �163m - 8.7% up on the same period last year.

Beer sales volumes rose 5.5% despite the overall market shrinking by 3.9%.

Strong sales of brands John Smith's, Fosters, Kronenburg and Strongbow gave it a lift in the UK, but slow European sales hit international profits.

It's tough, but we are looking to get value out of the French markett S&N chief executive Tony Froggatt Check S&N's share price

Concerns over the western Europe market pushed S&N's shares 1.92% lower to 458.75 pence by the close of trade in London.

During the six month period, sales were at �1.88bn, up from �1.82bn in the same period a year ago.

But S&N's international region, which excludes the UK and eastern Europe profits slid 10%.

This was put down to reduced consumer confidence and weak economic conditions in France.

'It's tough'

The company admitted market conditions in the Western European zone, which makes nearly half of the firm's profits, were "difficult".

"We plan a sales and marketing driven response in France largely behind our three key brands{in FRance}," said chief executive Tony Froggatt.

"Yes it's tough, but we are looking to get value out of the French market," he said.

Much of S&N's recent growth has come from its Baltic Beverages Holding where volumes grew by 14%, largely on the back of strong growth in Russia.