Diageo is set to report a 4 per cent rise in annual profits this week.
Analysts expect the the world's biggest spirits group and owner Guinness to post pre-tax profits in the year to June 30th of £2.036 billion to £2.078 billion sterling, up from £1.980 billion.
The company, which reports later this week, alarmed investors in July by saying growth of its top eight brands had slowed in the first six months of 2002 and with poor sales of its new rum-based Captain Morgan Gold.
This has undermined the shares which have underperformed the British market over the last month, with further concerns that sales of ready-to-drink products, such as Smirnoff Ice, are slowing and the realignment of its US distributors is hitting difficulties.
The July warning prompted analysts to expect drinks sales growth to slow to about 8 to 9 per cent for the year from 11 per cent in the first half. They also expect sales from its eight priority brands to slow from 15 per cent in the first half.
Diageo has increased its focus on alcoholic beverages. It sold Burger King last month for $2.26 billion, a deal to be completed later this year; disposed of US food group Pillsbury for $10.5 billion last year; and jointly bought the Seagram's drinks business at the end of 2001.
Analysts will also look for an update on the integration of Seagram - which gave Diageo brands such as Captain Morgan, Crown Royal Canadian whisky and Sterling Californian wines -and what the group will do with the cash from Burger King.