Tobacco.org

Cheaper cigarettes target consumers on budget 

Smokers on a budget are emerging as the latest battleground between the UK’s two largest cigarette companies.

As the slowdown in consumer spending deepens, Imperial Tobacco and Gallaher are chasing the low end of the market with price cuts and cheaper brands.

Imperial, which controls 46 per cent of the market with brands such as Lambert & Butler, is set to fire the first shot next month with the launch of JPS Silver, a new low-price brand that retails for £4.21 for a pack of 20.

In response, Gallaher, now owned by Japan Tobacco, is planning to slash prices on Sterling, its budget brand, by 7 per cent from £4.50 to £4.20 a pack.

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