Bristol-based Imperial Tobacco, the city’s largest company by turnover, has said it is ready to fight the Government over plans to introduce plain packaging for tobacco products.
Imperial, whose UK brands include Lambert & Butler, Richmond, Embassy and Golden Virginia, says removing all logos and branding from cigarette packs will not reduce smoking – but could increase sales of bootlegged products.
The Government is consulting on proposals to only allow all tobacco products to be sold in plan packaging.
Health Secretary Andrew Lansley said in a newspaper interview that he is “open-minded” about the public consultation, but added that the Government believes attractive branding encourages smoking.
"Some people thought that the smoking ban had solved the problem, but it had only triggered a one-off reduction that was not repeated in subsequent years. We want to go further, faster," Mr Lansley told The Times.
He also appeared to distance himself from dialogue with the tobacco industry. “We don't work in partnership with the tobacco companies because we are trying to arrive at a point where they have no business in this country,” he added.
Imperial’s share price knocked fell 26p, or 1%, following Mr Lansley’s comments on Friday, closing at £24.74 in a market which was also down. Imperial’s shares were rallying this morning.
Imperial Tobacco is setting out its detailed views in response to the consultation.
A spokesman said: “Our trademarks are protected by law and we have a fundamental right to differentiate our brands from those of our competitors.
“Tobacco packaging has never been identified as a reason why people start to smoke or continue to smoke.
“We are particularly concerned about the impact plain packaging will have on illicit trade.
“Logic dictates that making all tobacco products available in the same generic packaging will increase the already high level of counterfeit product available in the UK, placing further pressures on retailers and government tax revenues.”
If the policies are implemented, the UK would become the first European Union country to introduce plain cigarette packs.
