The world's second-largest spirits group Allied Domecq has reported a 6% rise in half-year profits but warned that some its core brands had underperformed in the US.
Allied, which makes Ballantine's scotch, Sauza tequila and Beefeater gin, reported pre-tax profits for the six months to February 28 before exceptional items of £251 million sterling, just above analysts' forecast range of £238-249 million.
Group Chief Executive Philip Bowman said the second half of its financial year was meeting expectations, and the company anticipates that it will continue to deliver earnings growth in the full year, while still investing behind its brands.
Bowman said the group pushed US prices up in late 2001 and the group lost volumes in some of its key US brands such as Sauza and Beefeater, but it had now regained market share.
Although Allied lost out in the battle for Seagram's drinks empire last year to rivals Diageo and Pernod Ricard, Bowman is preparing for industry consolidation.
After failing to pick up Seagram, Allied has been on an acquisition spree, buying up Montana wine, Perrier Jouet champagne, the US rights to Stolichnaya vodka and Diageo's Malibu coconut rum in February to bring its acquisition spending up to £1.8 billion over the last 18 months.
