A slowing Irish economy and a decline in consumer spending were the main factors behind a flat half-year profit performance from Guinness Ireland.
The Diageo-owned company, which sells Budweiser and Carlsberg in the Republic as well as local brands like Guinness and Baileys, said sales in the six months ended December rose by just 2 per cent to €550 million while operating profits were flat at €140 million.
"Consumer confidence has deteriorated over the last six months and this has affected our marketplace," Guinness assistant managing director Mr Clive Brownlee said.
"Overall, we produced level profits but we would like to be in a growth position, in the 5-10 per cent range of profit growth. Flat profits is not what we are looking for."
Sales of Diageo's beer, wines, spirits and ready-to-drink products recorded an overall 2 per cent decline in the Republic but there were significant variations between products and brands.
The company's spirits products again outperformed its beer offerings with volumes up by 3 per cent.
Baileys remained a star performer for the group with sales volumes up by 11 per cent in the Republic, while volumes of Smirnoff vodka rose by 2 per cent.
Ready-to-drink products, which account for less than 2 per cent of the overall market, delivered a strong performance with volumes up by 23 per cent, helped by the launch of Smirnoff Black Ice and Smirnoff Ice on Draught.
But Diageo's Irish beer business had a tougher time. It described sales of its lager brands as "disappointing" with volumes declining by 6 per cent whereas the long-alcoholic drinks market as a whole was down just 3 per cent.
However, Guinness delivered "an encouraging performance in a difficult market", stemming recent declines to hold its market share in the period.
Stout volumes fell by 3 per cent, in line with the market.
Despite a slowdown in the tourist market, visitor numbers at the Guinness Storehouse rose by 19 per cent last year.
Mr Brownlee said the centre expected to receive 700,000 visitors this year, rising to one million in five years' time.
Meanwhile, parent group Diageo, which includes global brands like Johnnie Walker scotch and Smirnoff vodka, reported a 5 per cent increase in profits before tax, goodwill and exceptional items to €1.3 billion.
Strong sales of Smirnoff and Baileys in the key US and British markets helped offset weakness in Spain and Latin America as well as Ireland.
Baileys reported overall volume growth of 12 per cent and net sales growth of 14 per cent.
Britain proved the strongest market for the brand with sales there up by 35 per cent to one million cases while the US, Bailey's largest market, posted sales growth of 12 per cent.
Sales of Baileys have now reached six million cases worldwide and R&A Bailey chief executive, Mr Frank Fenn, said the brand was on track to sell 10 million cases by 2007.
