New rules hit Courage figures

COURAGE, the second-largest brewer in the UK, has suffered further from the decline in beer consumption and the changes to the industry brought about by the Government's Beer Orders, writes John Shepherd.

Results yesterday from Foster's Brewing, its Australian owner, showed a decline in Courage's operating profits from Adollars 147m ( pounds 70m) to Adollars 131m for the six months to 31 December. Ted Kunkel, chief executive of Foster's, the fourth-biggest brewer in the world said: 'Courage was adversely affected by the prolonged recession and the uncertainty created by government regulations.'

The Beer Orders, which became law last November, forced Courage to release 1,900 pubs. According to a spokesman, the company has had to rely on heavy discounting to retain beer supply agreements with many of those pubs.

Concern was also expressed in the City yesterday that Courage might have to inject further capital into IEL, its pub subsidiary jointly owned with Grand Metropolitan. Courage and Grand Met each put in pounds 32m last year to prevent IEL breaching banking covenants.