Reduced passenger numbers prompt increased UK cigarette sales

Andrew Pentol

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Imperial Tobacco attributes the strength of the euro and reduced savings in travel-retail to last year’s sales increase

Tobacco products supplier Imperial Tobacco has pinpointed a fall in travel-retail cigarette sales in 2009 as the main reason for the first sales increase of UK duty-paid cigarettes and fine-cut tobacco in four decades.

According to a recent company interim management statement, the annual UK duty-paid cigarette market increased 1% to 45.5bn cigarettes last year while the fine-cut equivalent rose 21% to 4.650 tonnes (4.49 tons).

Incoming CEO Alison Cooper, who replaces the retiring Gareth Davies on May 12 2010, said: "In the UK, people are travelling a bit less and buying fewer cigarettes through travel-retail. It's that dynamic more than anything. The strength of the euro has also made it less cheap."