Drinks giant Diageo conceded yesterday that the devastating hurricanes that hit the United States this summer had hurt its performance.
The maker of Johnnie Walker whisky and Smirnoff vodka confirmed business had been lost in the south-eastern states of the US because of hurricanes Katrina, Wilma and Rita.
Weak sales of Guinness in Europe and the ongoing decline in demand for readymixed alcoholic drinks have also given bosses a headache since the end of June.
In the US, Diageo is hoping for a glut of orders for its brands over the next six months as retailers and other customers restock their shelves following the stormrelated disruption.
Chief financial officer Nick Rose said it was too early to tell whether the hurricanes would have an effect on full-year performance, "or whether the impact will be limited to the first half".
The downbeat statement disappointed the City even though the company left its guidance for the full year to June 30 unchanged.
Diageo predicted in September that the pick-up in volumes during the current financial year should mirror the three-per-cent growth of the past 12 months, with net sales likely to rise by four per cent.
The hurricanes have already claimed a casualty in soft drinks firm Cadbury Schweppes after it warned investors that margins were likely to be weaker than expected this year.
Cadbury said the storms had led to a shortfall of trucks when it needed to make deliveries and had driven the price of resins used in making bottles higher.
In the trading update, Mr Rose said the increase in oil prices to a record level of $70.85 a barrel in the wake of Hurricane Katrina would cost Diageo an additional £20 million this year. This would be countered by the high operating margins within the business and ongoing efforts to find savings, he added.
Despite its troubles in south-eastern states and recent price increases, Diageo said it was continuing to gain market share across the US as a whole.
Mr Rose said plans were in place to address the continued weakness in ready-to-drink products and Guinness in Europe, but "any benefit is not expected to be seen until later in the financial year".
It comes after volumes of Smirnoff ready-to-drink products fell by more than 25 per cent on the Continent and by 19 per cent in the UK during the previous financial year.
Weak demand for Guinness is more of a surprise as net sales rose four per cent over the year to June 30 in the UK, which consumes 95 per cent of the stout sold in Europe.
"With the exception of Guinness our global priority brands continue to grow strongly," Mr Rose said.
