The company expects net profit to drop 28.9 per cent to 57 billion yen (S$939 million) in the calendar year 2009, a statement said.

Operating profit is forecast to slide 17.1 per cent to 121 billion yen while revenue is expected to fall 0.2 per cent to 2.3 trillion yen.

'Consumer sentiment has been weakening, reflecting high commodity prices and the uncertain outlook' for the economy, a company statement said.

Mid-range wines in particular 'were greatly affected by the sudden economic downturn in the last three months of the year, and sales of Beaujolais Nouveau also struggled,' it said.

The group said net profit increased 20.2 per cent last year to 80.18 billion yen thanks to its acquisition of healthy beverage companies.

Operating profit grew 21.0 per cent to 145.98 billion yen on revenue up 27.9 per cent to 2.30 trillion yen.

Kirin earlier this week dropped a bid to buy Australian soft drinks giant Coca-Cola Amatil Ltd, which had complained that the price was too low. -- AFP