Shares in the UK-based drinks combine, Diageo, fell on Friday following the company's statement on proposed changes to legislation regarding the sale of flavoured malt beverages (FMBs), or "malternatives", in the US.

Diageo said that sales of its own Smirnoff Ice brand, the leading RTD brand on the market, could be affected by the changes. "These proposals mark a change in US policy under which FMBs have been produced, marketed and sold for the past 30 years, during which FMBs experienced strong growth, vigorous competition and consumer satisfaction," the company said.

Diageo said on Friday that it intends to use the 90-day period which the US Treasury has set aside for comment on the proposals to provide its own input on the changes. It also said that it expected it would be some time before the changes to the regulations came into effect. Diageo shares fell by 1% to 663 pence during afternoon trading on the London Stock Exchange.