Drinks giant Diageo today reported profits in line with market hopes but said the task of improving sales in Europe remained its biggest challenge.

DIAGEO, owners of Guinness and Baileys, struggled in the first half of its financial year.

Lakeland Dairies, Ireland's second largest dairy processing co-operative announced today that it has entered into a supply contact with Diageo Group to provide fresh cream for the Baileys brand, from the its processing facility at Bailieborough, Co Cavan.