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

Germany
Gauloises Blondes,
our key growth driver
As a result of two tax hikes in 2004, the slippage
in the German market seen the previous year persisted
and even accelerated. Cigarette sales fell by 16%
in volume and 5% in revenue, to the benefi t of rolling
tobacco and pre-cut tobacco rolls because of their lower
price. This decline in the offi cial market also refl ected
the impact of illegal imports from Central Europe.
Within the diffi cult environment that weighed on its
third-biggest market, just behind its two domestic
markets, however, Altadis turned in a very positive
performance. Despite an 8% fall in sales volume, with
6.7 billion units sold in 2004 compared with 7.3 billion
in 2003, revenues increased and market share rose
almost half a percentage point, to 5.9%.
Gauloises Blondes was the key driver of this growth,
posting another excellent year. Buoyed by a positive
image and wide appeal to German consumers, the brand
consolidated the number-three position it had gained in
2003. All three versions made strides throughout the
country, giving the brand a record market share of 5.6%,
up from 5.2% in 2003. In the vending-machine network,
which is a strategic distribution channel in Germany,
the brand even gained a full percentage point, raising its
market share to 8.9%.
Austria
Gauloises Blondes moves
to third place
The 4% market downturn did not affect the ongoing
advance of Gauloises Blondes. Its sales rose 1%
and its market share, gaining 0.4 point, reached 8.2%,
making it the country’s third-ranking brand. In terms
of volume, the Austrian market is the third-largest in
Europe for Gauloises Blondes and, in terms of market
share, it is the fi rst. At the end of 2004, Altadis expanded
its Austrian portfolio with the launch of Fortuna,
its second international brand.
MATTI RIHKO
European Director and Altadis
Finland CEO
“Germany is now
the foremost market
for Gauloises Blondes,
even before France.”
Switzerland
+12% for Gauloises Blondes
Despite a 4% fall in the market, Altadis’ sales grew
by 2%. The 12% gain by Gauloises Blondes was
particularly signifi cant and gave the brand a 1%
y ear-end market share. Overall, Altadis’ share
of the Swiss market rose to over the 3% level.
Benelux
First successes for Altadis
Belgium
2004’s overall market fi gures marked a break with
previous years in the region’s three areas: a sharp 18%
fall in the Netherlands, a 3% decline in Belgium, where
cross-border sales to France partially made up for lower
consumption, and interrupted growth in Luxembourg.
Throughout the region, the strong drop in consumption
was due to price hikes and the impact of anti-smoking
campaigns. Altadis continued to improve its positions
in this particularly diffi cult environment. In Belgium and
Luxembourg, Altadis Belgium, a logistics and marketing
subsidiary created in 2003, substantially accelerated the
penetration and expansion of its portfolio, launching a total
of eight products including two new brands – Fortuna in
Luxembourg, and News in packages of 25 and in both of its
versions in Belgium. Gauloises Blondes continued to post
gains, representing 2.3% of the market in the Netherlands,
3.4% in Belgium and 7% in Luxembourg. Altogether, Altadis’
market share was over 2.5% in the Netherlands, 6% in
Belgium and 9.5% in Luxembourg.
This strategy of combining new launches with the
consolidation of brands already on the market – in
particular, Gauloises Blondes – is aimed at ongoing
long-term development.
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