Scottish & Newcastle said its 50/50 joint venture with Denmark's Carlsberg Breweries in eastern Europe, Baltic Beverages Holding had posted a 14% drop in first half sales.

Interim sales at BBH fell to 552m euros, but S&N said there had been a recovery in beer volumes in the second quarter with volumes in Russia up 10% and 4% for the half year.

S&N was confident that changes to the distribution network at its Baltika brewery would see full-year volumes for the Russian market show high single-digit growth.