Cigarette sales fall after pub ban

Last Modified: 19 Sep 2007
Source: ITN

Cigarette sales have fallen following the recent UK smoking ban in pubs and restaurants, according to Imperial Tobacco.

The Bristol-based group,which makes the Embassy, Lambert & Butler and Richmond brands, has seen volume decline following the introduction of the ban in Wales, Northern Ireland and England.

Imperial, which is in the process of acquiring rival Spanish brand Altadis, said it expected this impact to decrease over time, reflecting similar trends in Ireland, where the ban has been in place for three years, and Scotland.

However, the company stated that its overall performance was in line with its expectations for the year to September 30, with volumes and margins both higher following impressive performances from JPS, international brand West and premium brand Davidoff.

Market share continued to grow in Germany, despite a declining tobacco market, while further success across western Europe has continued after an increase in cigarette prices.

An imminent European court ruling could bump up the tax rate on individually sold cigarettes to the same rate as packets. "Singles" have been a major growth area as packets have become so expensive for many.

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