EASTERN EARNINGS FOR S&N

Scottish and Newcastle says its 50%-owned Baltic Beverages Holding in eastern Europe saw third-quarter sales in euros rise 1%.

BBH is one of the group's key growth businesses.

BBH, whose key asset is a majority shareholding in Russia's biggest brewer Baltika, said third-quarter 2003 sales rose to £239m.

Operating profit was up 3% at £74.6m, while third quarter BBH Russian beer volumes rose 12%.

The group said it anticipates continued profitable volume growth in the fourth quarter.

BBH is a 50/50 joint venture between S&N and Denmark's Carlsberg Breweries operating in six eastern European markets - Russia, Ukraine, Kazakhstan and the three Baltic states.

Despite cold summer weather in the third-quarter it showed a continuation of good volume trends from the second quarter both within BBH and for the market as a whole, BBH said.

Carlsberg also reported third-quarter results, showing an 11% fall in nine-month operating profits, BBH said.

Scottish and Newcastle, the number one brewer in the mature beer markets of Britain and France with brands such as Foster's and Kronenbourg, bought Finland's Hartwall in 2002