DUTCH brewer Heineken yesterday said it had seen ''significant'' UK growth - despite a decline in the domestic beer market.

The company said Heineken's UK volumes had increased by 27 per cent after its rebranding of the lager as a premium beer gained momentum.

Heineken, which also produces Amstel lager, said European sales had benefited from good weather as overall underlying profits for the group increased more than 33 per cent to 548 million Euros (£372.1m) in the first half this year.

Heineken also enjoyed growth in Ireland, Italy and Spain in that period, although poorer weather in June dampened the strong start to the year.

The company has upgraded forecasts of full-year profits on the back of its good start to this year.

Strong growth levels were also seen in central and eastern Europe, Africa and Asia, although further growth is expected to continue at a ''more moderate'' pace in the second half of the year.

Overall sales of the Heineken brand increased nearly 11 per cent, with African markets growing by more than a third.