Scottish & Newcastle said on Friday that it had made organisational changes, which will see it split its business into four operational divisions, rather than the two that exist now.

The four new operating divisions will include the UK led by John Dunsmore and France led by Didier Lefèvre.

On top of that there will be a Greater Europe and the USA division, consisting of Western European markets outside France and the UK, the US business, and Eastern European markets, including responsibility for S&N's interests in Baltic Beverages Holding (BBH). This division will be led by John Nicolson, who will join the Board of BBH as part of these changes.

Finally there will be an Asian development markets division. This new division will have particular responsibility for developing partnerships in India (through Millennium Beverage JV) and in China with Chongqing Brewery. This division will be led by John Hunt who was previously Finance Director of the International Beer Division.

The company said the changes would also see greater group wide integration of key functional roles.

S&N will integrate marketing, production, procurement, finance, information services, and human resources in order to try make the most of its international scale.

The new structure will take effect from the 28th June 2004.

Tony Froggatt, chief executive officer said: "This is an important step in enabling S&N to optimise the potential of our great brands and get closer to our customers and consumers.

The changes announced today will strengthen our focus and will improve the quality and integration of functional support for each business in all our key markets."