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Ban prompts dip in cigarette sales

A drop in cigarette sales prompted by England's smoking ban gathered pace at the end of last year. Smokers in Britain bought 47 billion cigarettes in the past 12 months, a year-on-year drop of nearly 4 per cent.

According to market analysts Nielsen volume sales fell by 6.3 per cent in the three months after the smoking ban came into force in England on 1 July.

The drop became more acute in the last three months of 2007 with a year-on-year drop of 6.7 per cent.

Total cigarette sales in Britain in the year to January 26 hit £9.68 billion, up 2.3 per cent on the previous year.

Lambert & Butler was the most popular cigarette brand with sales of £1.36 billion, up 2.5 per cent year-on-year.

Mayfair cigarettes came in second place with value sales increasing 9.8 per cent year-on-year to £663 million.

A spokesman for Nielsen said, "Value growth was driven by price and duty increases, while volume sales reflect a market that is coming to terms with an unprecedented year."

They added, "The true impact of the smoking ban will not become apparent for another few months because sales temporarily lifted over the Christmas period. 2008 looks to be a difficult year for the tobacco industry with the full effects of the smoking ban realised, the forthcoming pictorial health warnings and restriction on selling tobacco to those aged under 18."

Source: The Independent, 26th February 2008
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