DUTCH brewing giant Heineken today said key brands inherited with the takeover of Scottish & Newcastle had outperformed a weakening UK beer market.
Heineken, which completed the £7.8bn acquisition of S&N with Danish rival and Leeds-based Tetley owner Carlsberg earlier this year, said Kronenbourg 1664 and John Smith's, which is brewed at Tadcaster, gained share despite a 2.5 per cent fall in the
wider domestic market.
The firm has faced headwinds such as alcohol duty hikes, rising input costs and a weaker economy, but a strong performance in the UK and Switzerland offset declines in Italy, Spain and Holland, the brewer said.
Volumes of its Heineken premium brand rose 2.5 per cent to 390m litres, driven by France and the UK, the firm added.
Alongside a strong performance from S&N beers, the company has also been pushing its main Heineken brand.
It sold 1.29bn litres of Heineken in the first half, while it is a sponsor of the UEFA Champions League and the new James Bond film, Quantum of Solace.
"The Heineken brand is well positioned to exploit the positive trend for international premium brands, and the growth of our top-of-mainstream brands will add to our margin and profit growth as well," the firm said.
The brewer added that cider brands Strongbow and Bulmers showed "sustained growth" in the UK after continued spending on advertising and sales.
Heineken has cut 85 jobs from S&N's former Edinburgh corporate headquarters since the deal, with a further 38 staff working in interim posts.
The group, which has around 4,500 UK staff, said the integration of the business was "proceeding well" and had added 608m euros (£485.9m) to revenues since May.
It now expects to make an extra £25m in cost savings from the acquisition of S&N, which called time on more than 250 years of history for the brewer.
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