Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

50
FRANCK COSTE
Cigar Marketing and Sales
Director, France
France
“Our strategy of
upgrading the brand
portfolio has produced
results and enabled us
to return to a growth
pattern.”
2004 was a particularly brisk year in the French cigar
market, with total sales volume increasing nearly 10%
despite an approximately 25% January hike in taxes
and prices.
Within this context, Altadis upped its volume by 2%
but posted a stronger 4.3% rise in net revenues.
Upgrading of the Group’s brand portfolio, which
had begun several years earlier, resulted in a sharp
turnaround in sales volumes in 2004 following an initial
second-half 2003 period of stabilization.
This successful product-line revitalization, combined
with the Group’s capacity for innovation and new product
launchings, lies at the heart of Altadis’ French cigar
business strategy. It has created a growth momentum
enabling Altadis to benefi t fully from the 2004 French
market recovery and to confi rm its leadership position.
+12%
Strong growth
in Premium
cigar sales
Growth in 2004 was primarily due to Fleur de Savane
which, with a 16% volume gain, posted one of
the best performances of the top fi ve brands in
the French market, while the Group’s traditional Ninas
and Havanitos brands also registered good results.
The strategy of new product launchings also produced
results. The Guantanamera Cuban brand, which was
introduced in 2003, confi rmed its success with revenues
more than doubling in 2004.
Sales of Premium cigars surged, increasing revenues
in this high-value segment by 12%. Several brands
contributed to this performance: Partagas experienced
solid gains in sales; Pléiades, which marked its
20 th anniversary during the year, posted over 20% growth
in sales volume due to the success of its two
Nomades formats, launched in June, and its special
“20 th anniversary” series; Flor de Copan, which
introduced a unique French line of three 100%
Honduran cigars; and the José L. Piedra brand,
in the entry-level Cuban products category, which
once again maintained its growth momentum.