Imps doesn't expect smoking ban

13 April 2012

IMPERIAL Tobacco, maker of Lambert & Butler and Embassy cigarettes, does not expect the Gorvernment to follow the Irish lead and impose a smoking ban in pubs.

Chief executive Gareth Davis said the Government would probably 'encourage' establishments to provide spaces and facilities for smokers and non-smokers.

This will be contained in the White Paper on health issues to be published in the autumn, possibly in November, he added.

'It is unlikely that there will be an outright smoking ban,' he said.

The UK is Imperial's biggest market, providing about 40% of its annual profits. Imperial dominates nearly half of the cigarette market in Britain.

Davis added his voice to warnings about troubles in the crucial German market, where new taxes have hit the industry hard.

The German government is imposing swingeing 'sin taxes' on smokers in stages, starting early this year, triggering an immediate 6% slump in tobacco sales.

Imps, whose West and Davidoff brands are big sellers in Germany, said cigarette sales there fell 12% in the year to August.

However, its new launch JPS Red, had gone down well in the country, said chief executive Gareth Davis.

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