Cigarette sales fall as UK smokers stub out
Embassy maker Imperial Tobacco today said cigarette sales had slipped as smokers curbed their habit following the UK-wide smoking ban.
The Bristol-based group, which makes the UK’s two top selling cigarette brands - Lambert & Butler and Richmond – improved its UK market share during the last year, but saw volumes decline following the introduction of the ban in Wales, Northern Ireland and England.
Imperial, which is in the process of acquiring Spanish rival Altadis, said it expected this impact to decline over time, reflecting similar trends in Ireland, where the ban has been in place for three years, and Scotland.
The company said its overall performance was in line with its expectations for the year to September 30, with volumes and margins both higher following strong performances from JPS, international brand West and premium brand Davidoff.
Market share continued to grow in Germany, despite a declining tobacco market, while profitability across western Europe improved after it hiked cigarette prices.
