The new excise duty system on tobacco, coupled with the restrictions caused by foot and mouth, have hit profits at Pernod Ricard's wholesale grocery distributor BWG. Reporting its half-year results to June, the French parent said operating profit for BWG ­ which includes Appleby Westward and Key Lekkerland ­ was down 7% to £11.38m on turnover up 16%. The division is up for sale, and a shortlist of three buyers has been drawn up, but joint md Pierre Pringuet said the sale was unlikely to be completed until December. However, he hoped its joint purchase with Diageo of Seagram could receive clearance by the US authorities by mid October. The company is still waiting for regulatory approval for the deal from the US and Canada, and chairman and chief executive Patrick Ricard said: "Management teams are in place preparing for integration and the disposal of Seagram non core assets is well under way and ahead of schedule." Pernod reported good performances for its spirits and wine business with volume growth up 5.2% and operating profit up 16.2% to £79.66m. Group pre-tax profit was up 14.7% to £106.59m on turnover up 7.4% to £1.38bn. {{NEWS }}