Danish brewer Carlsberg has warned the UK beer market has been "severely hit by sharp declines in consumption driven by the on-trade".
Carlsberg said the smoking ban and the worsening economic climate had taken a toll on beer volumes and sales in the UK for the year but did not divulge specific information on UK decreases.
It has already announced plans to close the Joshua Tetley brewery in Leeds.
But net revenue in Western Europe as a whole rose 16% to 37.128m DKK on last year as higher sales in Switzerland, Poland, South East Europe and the Nordics offset the negative impact from the UK.
Average prices have increased by 5% on last year to "offset cost inflation in key inputs such as malt, hops, cans and bottles".
Carlsberg chief executive Jørgen Buhl Rasmussen hailed the year as one of "significant progress" following the integration of Scottish & Newcastle, which it acquired in a joint deal with Heineken in April 2008. Carlsberg took full control of Baltic Beverage Holdings as a result of the deal.
Chiefly as a result of the S&N deal, operating profit rose 52% to 7.9bn DKK and turnover was up 34% to 2.6n DKK for the year. Total beer volumes increased 33% over the year —acquisitions accounted for 30% of the increase.
However, Carlsberg warned that it would have to cut costs over the coming year. "A global economic recession is now a reality," said Buhl Rasmussen.
"Consequently, our focus in 2009 will be on increasing cash flow and protecting earnings, cost control, significantly reducing capital expenditure, and accelerating debt repayment.
"After a solid performance in 2008 Carlsberg is well prepared for a challenging 2009, ready to take all necessary actions to protect our business as much as possible."