Imperial Tobacco Hurt by Smoking Ban in Spain

The country is one of the tobacco company's largest markets.

March 28, 2011

BRISTOL, England - Last week, Imperial Tobacco said the smoking ban in Spain has driven the total number of cigarettes sold in the past six months down 1 percent, the Daily Mail reports. Spain is one of the company??s biggest markets, after Britain, where Imperial enjoys a 45 percent market share.

As of Jan. 2, Spaniards could no longer light up in bars, cafes or restaurants, in addition to near hospitals or playgrounds. The country approved the anti-smoking bill in late December.

With the smoking ban in place for more than three months, fewer people were smoking in Spain, which contributed to the drop in cigarette sales for Imperial. Shares plummeted as the company said revenue increases would falter, with only a 2 percent increase anticipated in the six months ending March 31. That slowdown comes after a 5 percent hike during the last three months of 2010.

Imperial Tobacco also pointed to Easter being in April instead of March as part of the reason for the sales decrease in the first quarter of 2011. However, with the royal wedding of Prince William and Kate next month, the company expects to see a boost in sales.

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