Scottish & Newcastle (S&N) expects its UK operating profits to be lower in the first half than last year, thanks to rising input costs, poor weather and the impact of the UK-wide smoking bans.
But while there were "particular challenges" in some markets, S&N said it was confident that performance for the full year "would meet expectations for the group as a whole".
In a pre-close trading update S&N said UK beer and cider market share growth had "accelerated, driven by increases in investment in marketing and a portfolio approach that is unmatched by our competitors".
The brewer said that despite the UK beer market seeing a five per cent decline in the first half, all of its key brands - John Smith's, Foster's, Kronenburg and San Miguel - have grown share of category.
The group said it was investing heavily in its cider business, as the market continued to grow despite recent poor weather.
Initiatives to alleviate cost pressures were being put in place, with the first £10m of new cost savings phased into the UK across the second half of 2007.
S&N's French business was seeing further growth, the group added, although trading in its wholesale business in the country remained "extremely challenging".
Mild weather in Russia had meanwhile boosted the group's Baltic Beverage Holdings (BBH) activity there, with BBH's key brand portfolio Baltika continuing to outperform.
S&N announces its interim results on August 7 2007.