Premium Brands Increase Imperial Tobacco

Source from:  Tobacco World 07/30/2012

Smokers reduce their habit slowed the volume of cigarettes and cut tobacco free – a measure known as the "stick equivalents" – 3 per cent for the nine months to 30 June of the year on year, slowing from 4.1 per cent decline reported in the first half. However, the fourth-largest cigarette company’s market share has increased revenues by 3 percent each year through its coverage of premium brands such as Davidoff and West, in the direction of rich smokers. Bristol-the company said Tuesday that sales of what he calls the four “key strategic brands” – including Gauloises Blondes and JPS – rose 13 percent over the same period last year, with up to 6 percent. Other methods to increase revenue include the introduction of cigarette packs that can be flipped open with one hand, and the filters that will release the aroma of menthol in compression. "The ability of Imperial Tobacco, to manage these brands stronger through innovation is a key component of its investment attractiveness," said Chris Wickham, an analyst at Oriel Securities, who reiterated his "buy" recommendation on the stock. Nevertheless, problems continue to fall victims of Imperial Spain – the largest market by revenue after Germany and the UK – with a stick equivalent volumes of 11 per cent on an annualized basis. Spain, which includes about 7 percent of the total revenue of the imperial, was the reason for profits warning last year when the price war with the British American Tobacco and Philip Morris International. Poland and Ukraine were other weaknesses in the Imperial, as the influx of illegal tobacco appear on the market and hurt sales. The volume of finely cut tobacco Imperial fell by 37 percent a year in Poland in the year, while the volume of cigarettes slipped by 11 percent in Ukraine. "Difficult conditions persist in some markets, but we have extensive experience delivering growth in this environment," said Alison Cooper, executive director of the Imperial. Imperial, whose other brands Richmond, Rizla papers and Golden Virginia tobacco, finely chopped, focused on increasing sales of its luxury range of Cuban cigars – up 10 percent from year to year – that have found popularity in the emerging markets in Asia. Enditem