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Archive for December, 2007

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Volumes down, but sales up at BAT

| December 3, 2007

Global drive brands thrive

Volume sales by British American Tobacco during the nine months to the end of September, at 504 billion, were 1 percent down on those of the nine months to Sept. 30, 2006.

The fall in volumes was attributed mainly to the high level of trade buying in some markets at the end of 2006, supply chain disruptions in the Middle East and the loss of StiX in Germany.

Sales of BAT’s four global drive brands, however, grew by 10 percent—18 percent during the third quarter.

Sales of Kent were reported to have grown by 18 percent. The brand enjoyed good growth in Russia, Romania, Ukraine and Chile and was said to have benefited from “significant volume increases from the brand migrations in Western Europe and new markets in Azerbaijan and Kazakhstan.”

Dunhill sales rose by 7 percent, driven by strong performances in South Korea, Russia, France, Italy, South Africa and Saudi Arabia, though volumes were lower in Malaysia and Taiwan.

Lucky Strike volumes were described as having been “slightly up” as the growth in Spain, Italy, France, Argentina and the Czech Republic was almost offset by declines as a result of lower industry volumes in Germany and Japan.

Pall Mall continued its growth with an increase of 9 percent, driven by its performances in Italy, Hungary, Russia, Uzbekistan and Turkey and partly offset by lower volumes in Romania, Spain and Greece. Significantly, this strong performance was achieved despite the absence of Pall Mall StiX in Germany this year.

In the company’s Europe region, volumes, at 180 billion, were down by 2 percent, with reductions in Germany, Russia, Switzerland, France and Ukraine partly offset by an increase in Romania.

In the Asia-Pacific region, volumes, at 109 billion, were 3 percent higher as a result of strong growth in Pakistan, South Korea and Vietnam partly offset by declines in Malaysia and Bangladesh.

In the Latin America region, volumes, at 111 billion, were 2 percent down as an increase in Venezuela was more than offset by declines in Mexico, Argentina and Central America.

In the Africa and Middle East region, volumes, at 73 billion, were 3 percent lower due to supply disruptions to the Middle East and a change in distribution model in Turkey.

In the America-Pacific region, volumes, at 31 billion, were decreased by 4 percent mainly as a result of the decline in industry volumes in Canada partly offset by the growth in Japan.