Imperial Tobacco’s UK Brands ''Strengthened’ by Pack Innovation

Source from:  Packaging News (uk)  11/02/2012

Packaging innovation is helping to strengthen Imperial Tobacco’s UK brands, according to the firm.

The news came as Imperial Tobacco, which owns the Lambert & Butler, JPS and Windsor Blue brands,  revealed that pre-tax profits halved in the year to September 30 from £2.2bn to £1bn following an increase in restructuring costs.

 
 

Pack innovation
 
In its preliminary results for the 12 months ended 30 September, the tobacco firm said that its new slimmer, queen-sized label L&B Profile and new GlideTec packaging – which has a small window on the front of the cigarette pack that allows the user to slide up the inner sleeve with their thumb – helped improve the product mix.
 
The firm added: "Glide-Tec’s been a particular focus this year, this leading pack innovation provides smokers with choice and reinforces brand differentiation.
 
"We’ve rapidly scaled this initiative, improving the performance of our key strategic brands, as well as heritage brands such as Lambert & Butler and Fortuna.  L&B’s position in the UK has been strengthened and Fortuna’s gaining share in Spain – and as a result of these successes, we’re improving sales mix.  In total, GlideTec’s delivered sales of over a billion cigarettes in 13 markets, plus global duty free, and there’s more to come."
 
Spain
 
Elsewhere, Imperial Tobacco said it has taken a £1.2bn writedown on its Spanish business as the economic outlook in the southern Mediterranean country worsens.  The group, which is the market leader in Spain, said illicit trade was an increasing problem in austerity-hit countries as smokers try to buy their tobacco cheaper from the black market.
 
In Spain, the legal tobacco market has shrunk by 10% over the last year although the recession has delivered a boost for sales of fine cut tobacco as more smokers choose to roll their own cigarettes.
 
Group revenue dipped to £28.6bn from £29bn in 2011 as income in a number of European countries, including Germany and Spain, and also America, fell.
 
Plain packaging
 
Speaking about plain packaging and regulation, chief executive Alison Cooper said: "The newsflow surrounding regulatory issues can also create a perception of rapid change – but again the reality is somewhat different; the actual progress of extreme regulation is, on the whole, slow.
 
"For example, if I look at product display bans. On average only two countries a year have introduced bans over the last decade, and the potential progress of plain packaging is likely to be even slower as the legal hurdles are considerably more complex to overcome. " Enditem