French drinks group Pernod Ricard, which owns the Irish Distillers Group, reported a higher-than-forecast rise in first-half sales. But sales in Ireland were flat in the first six months of 2001, largely as a result of the effects of foot-and-mouth disease, group joint chief executive Mr Richard Burrows said. Mr Burrows expects sales in Ireland to pick up in the second half of the year.

Pernod Ricard's sale of BWG Limited, the franchise holder for Spar in the Republic, is understood to be in its second phase, with venture capital companies forming the bulk of the seven bidders. Two trade buyers from Ireland and Britain are also understood to be involved.