The phenomenal growth of Caffrey's Irish Ales, which are brewed by Bass in Belfast, has come to an end in the UK market due to competition from Kilkenny, Wexford, Beamish Red and Calder's Cream in the "Irish Ale" sector.

Sir Ian Prosser, chairman of Bass, said that sales of Caffrey's were only "marginally higher" in the 12 months to September 30. The brand's share of the £220 million Irish Ale sector is reckoned to be unchanged at 14.5 per cent.

Overall, trade estimates indicate that Caffrey's sales are running at around 450,000 barrels a year through some 16,000 outlets in the UK and the brand remains more popular than the Guinness-brewed Kilkenny.

Although the brand is now "ex-growth" in the UK market, Bass remains committed to developing Caffrey's into "a leading worldwide brand. It has been introduced into eight other countries, including the Irish Republic.

Operating profits of Bass Brewers taking in Caffrey's rose 7.0 per cent to £168 million on turnover up 3.9 per cent at £1.82 billion. Domestic UK beer volume increased 1.8 per cent, lifting market share to 24 per cent, due to growth in "off-trade" sales. Bass shares recovered from a 14p mark-down after the results to close 1p higher at 874p.

The full year financial results from Bass surprised the market by disclosing a £177 million write-down in the carrying value of the group's bingo business still struggling from the competition of the National Lottery.

Other exceptional charges involved a £35 million loss on the failed takeover of Carlsberg-Tetley blocked by the government and £25 million restructuring costs on brewery closures.

Group profits after interest and exceptional charges plunged 29 per cent to £477 million leading to a 44 per cent decline in "basic" earnings per share to 28.2p. Despite the setback, total dividends are up 10.4 per cent at 27.5p