Cheaper brands boost Imperial

Smokers trading down to cheaper cigarettes and rolling tobacco in the UK have boosted the owner of the Gauloises, Lambert & Butler and Davidoff tobacco brands.

Imperial Tobacco yesterday said underlying volumes fell 7 per cent in the final quarter of 2011 as sales were hit by the impact of sanctions in Syria, further declines in Spain amid the economic gloom, and destocking following a price rise in the US.

But revenues were down just 1 per cent as it benefited from price rises and the sale of more expensive products. And in the UK the firm has seen strong demand for its value brands, including JPS and Windsor Blue.