Sales volumes at Heineken Ireland grew by 5 per cent in the first six months of the year, the company announced yesterday.

The company said the total beer market was down 5.6 per cent compared to the first six months of 2003.

Mr Nico Vervelde, managing director, said the performance was very strong when set against the general trend. "We are growing volume, and will continue to invest in all our brands, above and below the line, to ensure a positive market share development through to year end," he said.

Heineken's share of the beer market increased by 0.6 per cent in the first six months. Heineken, its flagship brand, held close to 30 per cent of the overall lager market.

The company said on-trade sales in Ireland generally were down 2 per cent, while the off-trade has grown by 8 per cent year-on-year. Heineken said products like the Heineken Chiller pack and the Coors Light returnable bottle had helped the company strengthen its position in the off-trade.

But the company refused to underestimate the continuing importance of on-trade sales. "Relative to the European market model, the Irish pub continues to be the mainstay of the trade and is a key contributor to the Irish economy and tourism," said a company statement.

The company acknowledged that Murphy's Irish Stout was under continuing pressure with a 4 per cent fall in volumes in the period.

"It continues to focus its resources in the greater Munster market. Internationally, the brand is available in over 70 countries and is experiencing growth in the major stout markets of the UK, USA and Scandinavia".

The main Heineken group, Heineken Holding NV, posted a 4.5 per cent fall in net profits to €319 million for the first six months. This was at the lower end of expectations as a weak dollar and sluggish markets continued to hurt the business.