Jump to full article: Bloomberg News, 2009-10-28
Author: Jeroen Molenaar and Paul Jarvis
Intro: British American Tobacco Plc, Europe’s largest cigarette maker, said shipments declined for the first time in almost two years during the third quarter as markets deteriorated from Brazil to Japan and South Africa.
The quantity of cigarettes sold in the three months ended Sept. 30 fell 2.6 percent to 185 billion, the London-based company said today on its Web site. Nine-month shipments rose 2 percent to 533 billion, weakening from 5 percent growth in the first half and 7 percent in the opening quarter of the year.
BAT Chief Executive Officer Paul Adams said consumers are finding economic conditions “difficult” as unemployment rises. Smokers are switching to cheaper brands and cigarette smuggling is increasing in places such as Germany and eastern Europe as the recession leads consumers to tighten their purse strings.
“This statement had a more bearish tone than previous ones,”
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