Imperial Tobacco has sales decline as smokers quit habit

More smokers opting for cheaper fine-cut tobacco were not enough to stem a sales decline at Imperial Tobacco, maker of Lambert & Butler, West and Gauloises.

Imps said cigarette sales fell 4.3% in the nine months to June, worse than the 3.7% decline reported in its first half.

Fewer smokers sparking up in Russia, Spain, Ukraine and the US were the main reason for the fall. In the UK, where Imps has almost 50% market share, it said overall sales were "stable", with fine-cut tobacco up 18%.

Chief executive Alison Cooper said Imps had put up prices "in a number of markets" to help offset the dip in demand.

Imps said it is waiting to hear if it had been granted a judicial review of the proposed ban of displaying cigarettes in England.

"There is no credible evidence that smokers start as a result displaying tobacco products," Imps said. "This legislation will fuel the growth in illicit trade."