What the papers say - June 29, 2007

Diageo, the owner of Johnnie Walker whisky and Smirnoff vodka, warned of a slowdown in the US spirits market but reiterated its forecast that it would deliver an 8 per cent rise in under-lying operating profits in the current financial year. The distiller's shares fell 27p to £10.38 amid disappointment that the company was not raising its targeted rate of organic operating profit growth. Analysts had been hoping for a further increase in the company's financial targets after Diageo raised its profit guidance in February - The Financial Times​

In the fickle world of advertising trends, Facebook is enjoying the free marketing that comes from displacing MySpace and YouTube as the hippest online social network. Red Bull, the energy drink, has provided a free web version of the "rock, paper, scissors" game on Facebook as a way of engaging users' interest - The Financial Times​

Chocolate and fizzy drinks group Cadbury Schweppes saw some late buying interest yesterday after it announced US activist investor Nelson Peltz had acquired 3.47% of the company's voting rights. In March Cadbury revealed Peltz had a 3% stake, which led to suggestions he wanted to split the company up. In the event Cadbury announced plans to demerge its beverage business from the confectionery division - The Guardian​

Rank Group is installing outdoor shelters with gambling machines at its Mecca Bingo clubs to try to mitigate the impact of the smoking ban, which starts in England this weekend. The company, which will also be deploying portable electronic bingo machines, said yesterday that the ban would "hold back profit performance" in the second half of this year - The Guardian​

Campaigners for the right to smoke are expected to launch a High Court challenge over the Government's smoking ban in enclosed public places. The ban, which starts on Sunday, covers virtually all enclosed public places including offices, factories, pubs and bars, but not outdoors or in private homes. The pressure group Freedom2Choose is planning to lodge papers at the Royal Courts of Justice in London seeking a judicial review - Daily Mail​