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

16
Acquisitions
Three new steps in Group
internationalization
2004 was marked by three major acquisitions that tie in perfectly with the Group’s
external growth strategy and reinforce its international dimension.
In Russia, the acquisition of Balkan Star, the country’s leading independent cigarette
manufacturer, enabled Altadis to move into the world’s fourth-largest cigarette
market and provided it with a solid foundation for expansion in Central and Eastern
Europe. In Italy, our Logista subsidiary’s acquisition of Etinera, the country’s
top-ranking tobacco distributor, strengthened the Group’s position as a key Southern
Europe logistics player. This position was reinforced even further by the acquisition
of Geopost, France’s promotional logistics leader,
On the heels of the purchase of Morocco-based Régie des Tabacs du Maroc,
these acquisitions provide Altadis with promising new growth opportunities.
Russia:
Altadis gains a key position on
the world’s fourth-largest market
On November 4, 2004, the Group fi nalized its acquisition
of Balkan Star, the leading independent cigarette
manufacturer in Russia. With over 31 billion units
sold in 2004 and a market share of about 10%, Balkan
Star has unique growth potential. Its leading brand,
Balkanskaya Zvezda, has a preponderant position
in the Russian fi lter-cigarette segment, with close
to 21.8 billion units sold in 2004. The company’s
leading-edge plant, in addition – located in Yaroslavl,
270 kilometers north of Moscow – is one of
the country’s largest cigarette factories, with
a newly-increased annual production capacity following
recent infrastructure-upgrading investments.
Balkan Star also has a highly-effective distribution
network made up of distributors, joint ventures
and retailers in Eastern Russia that enables it to serve
the country’s 48 most heavily-populated regions.
With its strong brands, effi cient manufacturing
resources and vast logistics network, Balkan Star
offers major expansion opportunities in a particularly
attractive market that represents over 300 billion
cigarettes a year.
Dominated until recently by very inexpensive local
brands, the Russian market offers considerable
potential for a switch in consumption to higher-priced
international cigarette brands.