ABC

Australia's second largest brewer, Lion Nathan, has reported a 13 per cent rise in full-year profit, boosted mainly by premium beers sales.

The company's net profit before one-off costs rose to $313 million for the 12 months to the end of September, which is in line with expectations.

Lion Nathan says the beer market is in good shape, but its wine businesses is struggling as overseas wine drinkers exposed to the economic crisis switched to cheaper wine brands.

"Despite the economic circumstances, consumers continue to trade up to more premium beers, with premium beer remaining attractive as an affordable luxury," said Lion Nathan's chief executive Rob Murray.

"We've seen a continued trend to switching to at-home consumption in particular regions, but overall the market remains in good health."

He also says, unlike their overseas counterparts, Australian wine drinkers are not sacrificing quality during the tougher economic times.

"Australian wine consumers have been really resilient and continued to trade up in quality, but wine consumers globally have responded quite differently to the challenging economic conditions and have traded down to less expensive wines," he observed.

"This has proved particularly challenging to a business like ours which is unashamedly focused on premium wines."

The Japanese company Kirin finalised its buy-out of Lion Nathan last month and is currently reviewing how to best combine the business with the dairy and juice group, National Foods.