According to the fourth-quarter results statement of MillerCoors, the Molson Coors Brewing-SABMiller joint venture, profits plunged 40 percent partly because its sales to retailers dropped 2.3 percent, owing to slump in the demand for Miller Lite and some above-premium brands.

Nonetheless, the merger charges of the joint venture excluded, profits were up from last year figures of $116 million to $135 million. The underlying fourth-quarter net income increased 16.5 percent, as the company stepped up its cost-savings targets.

The fourth-quarter revenue for MillerCoors, the second largest beer company in the US, leaped 3.1 percent to reach $1.74 billion.

MillerCoors, which was formed in July 2008, said the announced rise in the figures had resulted from increase in prices, as well as cost-cutting measures undertaken by the company.

Saying that the company's timing towards the attainment of its original objective of $50 million in savings in the first year has hastened, and it now anticipates the realization $128 million by 2009 June-end. The company also added that it was matching pace with its stated goal of delivering yearly cost savings of $500 million by the third year of joint business.

In a statement, MillerCoors CEO Leo Kiely said: "While the U. S. beer category softened in the fourth quarter, we increased pricing and net revenue to deliver strong profit growth."