C&C said it expects Irish cider volumes to fall 7% for the first six months of 2007, although exports of Magners to Britain are expected to rise 2%.

Guinness sales fell 7% in Ireland and the volume drunk fell by 9%. In Britain, sales fell 4% as consumption dropped 6%.

Overall, Diageo's net sales in Ireland since June 2006 fell 1% although Michael Ioakimides, Diageo Ireland managing director, was keen to point out sales were up 1% for the second (wet) half of the financial year. The drinks giant said it accounted for 40% of total alchololic beverage sales across Ireland, and all of its categories including whiskeys, wines, vodka, liquers and lagers showed single figure sales growth. Only the Guinness went down.

Internationally, Guinness sales are booming in Korea, Africa and India, with Nigeria overtaking Ireland for the first time to place second after the stout guzzling Brits. In fact Diageo's sales are up in all regions except for the 4% drop in Europe.

The company has instigated a strategic review of its brewing operations in Ireland, but would not comment on speculation that it may sell some or all of its valuable St James gate facility in Dublin.

"We're a 40bn capital business and we're not interested in property deals, we're motivated by long term investment that meets the needs of our brand and brewing efficiency, " a spokesman told the Sunday Tribune.

Guinness is brewed in several facilities worldwide, although Guinness flavor extract is made exclusively in Dublin and exported overseas.