Difference between revisions of "Imperial Brands"

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===Board Members===
===Board Members===
A new chairman has been lined up at Imperial Brands but the appointment is being held up by legal issues. The eight-months long hunt for a replacement for Mark Williamson has allegedly taken longer than expected because of the difficulty of finding "high-calibre directors willing to oversee a tobacco business." In addition, it had to compete with its arch rival British American Tobacco, which is also looking to replace its chairman, Richard Burrows. <ref>[https://www.thetimes.co.uk/article/legal-issues-delay-hunt-for-tobacco-boss-82vhvh9t5 ‘Legal issues’ delay hunt for tobacco boss], ''The Times'', 7 October 2019, Accessed 9 October 2019 /ref>
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Revision as of 09:20, 9 October 2019

Imperial Tobacco Group is a British company. It is the fifth largest company participating in the global tobacco market and controls 3.7 percent of the international cigarette market. [1] Imperial operates in more than 160 markets, and key growth markets are in Italy, Russia, Japan, and Saudi Arabia. [2] [3] Top brands include West, Davidoff, John Player Special, and Gauloises. [4] In 2016, Imperial Tobacco was the world’s fifth-largest international cigarette company based on market share. [5]

Company Overview

Imperial Brands is a FTSE 100 company headquartered in Bristol in the United Kingdom. Imperial Brands consists of five distinct entities: Imperial Tobacco, Tabacalera, ITG Brands, Fontem Ventures and Logista. [6]

The core business is built around a tobacco portfolio that offers a comprehensive range of cigarettes (e.g. Davidoff, Gauloises), fine cut (e.g. Drum, Golden Virginia) and smokeless tobaccos (e.g. skruf), papers (e.g. Rizla) and cigars (e.g. Montecristo, Cohiba). Through the Fontem Ventures business, Imperial Brands are also developing a portfolio of brands beyond tobacco, including the e-vapour brand blu. [6]

Key Executives

Imperial Brands announced that the current CEO Alison Cooper will step down from her position after six years with the company. [7]

Name Position Bio
Alison Cooper, BSC, ACA Chief Executive Officer Since being appointed as Chief Executive Alison has led the development and implementation of the Group’s sustainable sales growth strategy. Alison joined the Group in 1999 and, through a number of senior roles, has contributed significantly to the international expansion of the Group.

Appointment: Appointed Director in July 2007. Appointed Chief Executive in May 2010.

External Appointments: None.[8]

Oliver Tant, BSC, CA (SCOTLAND) Chief Financial Officer Oliver held a number of senior positions in a 32-year career at KPMG, including Global Managing Director Financial Advisory and Private Equity Division and Head of UK Audit. He was also a member of both the UK and German boards of KPMG. He brings to Imperial international experience in change management, organizational restructuring, corporate finance and mergers and acquisitions.

Appointment: Appointed to the Board of Directors in October 2013 and became Chief Financial Officer in November 2013.[8]

Matthew Phillips, LLB Chief Development Officer Matthew held a number of senior roles prior to his appointment to the Board as Corporate Affairs Director in June 2012 and has been integral to the development and implementation of the Group's strategy. In his current role he is responsible for Next Generation Product innovation, product science, smokeless tobacco, corporate development and corporate and legal affairs.

Appointment: Appointed Director in June 2012. Appointed Chief Development Officer, June 2015.[8]

Joerg Biebernick Division Director, Returns Joerg has considerable brand marketing and general management experience built during a 25-year career in Europe and the US. Prior to joining Imperial, Joerg served as President, Latin America for Kimberly Clark. He has also held senior positions working in the consumer goods sector for both Georgia Pacific and Procter & Gamble. In addition to managing the Returns Division, Joerg has responsibility for Market Repeatable Model and the Imperial Tobacco brand portfolio. Joerg joined Imperial in November 2017.[8]
Dominic Brisby Division Director, Growth Dominic leads the Growth Division, which includes selected markets in the EU, Eastern Europe, Asia, and the Middle East and also incorporates the USA and Premium Cigar Division. He previously led the Returns Division. Prior to becoming a Division Director in 2013, Dominic held a number of international general management roles at Imperial and has been responsible for businesses in the Czech Republic, Poland and Iberia. Appointed Growth Division Director in November 2017.[8]
Richard Hill Group Commercial Director, Vapour Richard has 30 years of international experience in consumer goods and banking. After an early career leading sales & marketing teams in Europe, he performed global CFO roles in both Allied Domecq and Standard Chartered. He was President and CEO of SC First Bank, South Korea’s largest foreign investor and has held several public non-executive board positions. In his current role he leads the Fontem Ventures Amsterdam team, which is focused on the development of vapour commercial strategies and branding. Richard was appointed to his current role in April 2018. He previously headed up Group Transformation and HR, having joined Imperial in October 2016. [8]
Amal Pramanik Group Strategy Director Amal is a qualified executive coach and has mentored senior managers across the world on a variety of operational and leadership themes. His role includes overall responsibility for Group Transformation and HR. Appointed as Strategy Director in November 2017 having joined the Operating Executive in 2016.[8]
Walter Prinz Group Manufacturing & Supply Chain Director Walter has overall responsibility for all tobacco and Next Generation Product manufacturing and supply chain operations. He joined Reemtsma in 1987 and has held a number of senior roles. Prior to his appointment to the Operating Executive, Walter was Director of Product Development and Purchasing. Appointed Group Manufacturing, Research & Development Director in October 2010, taking on additional responsibility for Supply Chain in October 2014.[8]

In January 2019, Morgan Lee was appointed as the group’s market manager for Ireland. [9]

Board Members

A new chairman has been lined up at Imperial Brands but the appointment is being held up by legal issues. The eight-months long hunt for a replacement for Mark Williamson has allegedly taken longer than expected because of the difficulty of finding "high-calibre directors willing to oversee a tobacco business." In addition, it had to compete with its arch rival British American Tobacco, which is also looking to replace its chairman, Richard Burrows. Cite error: Closing </ref> missing for <ref> tag

Imperial Brands and British American Tobacco have had GBP 8.6 billion wiped off their stock market value as the United States FDA announcement to crack down on the sale of flavoured e-cigarettes and menthol cigarettes. [10] Imperial reported revenue from tobacco and next-generation products rose 2.1 percent to 7.73 billion pounds in the year to Sept. 30. That was better than analysts’ average estimate of 7.63 billion, according to a company-supplied consensus. For the year ahead, Imperial said it expects to deliver constant currency revenue growth at, or above, the upper end of a 1 to 4 percent growth range.[11]

In September 2018, Reuters reported Imperial Brands expects alternatives to smoking such as vaping pens and a heated tobacco device to add up to 1.5 billion pounds to its revenues by 2020. Imperial has estimated the e-cigarette market could exceed USD 30 billion by 2020, up from around USD 4 billion now. [12]


According to Imperial's website, Priority Growth Markets are characterised by large profit and/or volume pools with shares below 15 per cent and a real potential for long-term share and profit growth. The website lists the following countries: Italy, Japan, Russia, Saudi Arabia. [13]

Imperial has relatively large shares in Returns Markets, mostly above 15 percent. The focus is on managing strong positions in these markets, whilst driving sustainable profit growth. Priority Returns Markets include Australia, France,United Kingdom, Germany, Spain. [13]

Annual Trends

Tobacco Segment

(in millions GBP)

2017 [2]:91 2016 [14]:90 2015 [15]:85 2014 (Restated) [15]:85 2014 [16]:83 2013 [17]:98
Revenue 22,786 20,890 19,011 19,501 19,656 20,881
Net revenue 7,757 7,167 6,251 6,421 6,576 7,007
Operating profit 2,199 2,126 1,910 1,925 1,970 1,888
Adjusted operating profit 3,595 3,360 2,895 2,805 2,850 3,003
Adjusted operating margin percentage 46.3 46.9 46.3 43.7 43.3 42.9

Profits Per Reportable Segments

Growth Markets

Growth Markets

(in millions GBP)

2017 [2]:91-92 2016 [14]:90-91 2015 [15]:85-86 2014 (Restated) [15]:85-86 2014 [16]:83 2013 [17]:98-99
Total revenue 3,665 3,137 3,019 3,192 3,893 4,303
External revenue 3,602 3,085 2,970 3,145 3,846 4,253
Tobacco Net Revenue 1,768 1,568 1,449 1,513 2,113 2,254

Returns Markets North

Returns Markets North

(in millions GBP)

2017 [2]:91-92 2016 [14]:90-91 2015 [15]:85-86 2014 (Restated) [15]:85-86 2014 [16]:83 2013 [17]:98-99
Total revenue 13,533 12,537 12,332 12,939 12,939 13,527
External revenue 13,503 12,504 12,303 12,915 12,915 13,506
Tobacco Net Revenue 2,755 2,645 2,649 2,801 2,801 2,929

Returns Markets South

Returns Markets South

(in millions GBP)

2017 [2]:91-92 2016 [14]:90-91 2015 [15]:85-86 2014 (Restated) [15]:85-86 2014 [16]:83 2013 [17]:98-99
Total revenue 2,463 2,274 2,245 2,497 2,824 3,051
External revenue 1,748 1,598 1,576 1,753 2,080 2,222
Tobacco Net Revenue 1,569 1,477 1,446 1,600 1,662 1,824



(in millions GBP)

2017 [2]:91-92 2016 [14]:90-91 2015 [15]:85-86 2014 (Restated) [15]:85-86
Total revenue 3,125 2,942 1,415 873
External revenue 3,125 2,942 1,415 873
Tobacco Net Revenue 1,665 1,477 707 507


Recent acquisitions Acquired Organization Name Acquiring Organization Name Announced Date Value

(in USD)

Nerudia acquired by Imperial Brands [18] Nerudia Imperial Brands 1/11/2017 0.00
Rizla acquired by Imperial Brands [18] Rizla Imperial Brands 22/01/1997 0.00
Barjan - Mistic Electronic Cigarettes Brand acquired by Imperial Brands [18]

Barjan - Mistic Electronic Cigarettes Brand

Imperial Brands 12/11/2012 0.00
Reemtsma Cigarettenfabriken GmbH acquired by Imperial Brands [18] Reemtsma Cigarettenfabriken GmbH Imperial Brands 1/01/2003 0.00
Davidoff acquired by Imperial Brands Davidoff Imperial Brands 1/08/2006 739 million


Name Number of ordinary shares Percentage of issued share capital
Barrow Hanley Mewhinney & Strauss LLC [19] 13,535,355 1.42
Schafer Cullen Capital Management Inc [19] 2,094,950 0.22

Imperial Brands has recently invested in a cannabis-focused biotech company that is researching how compounds in cannabis can be turned into medicine. [20] Imperial Brands signed a CAD 123-million investment deal with Auxly Cannabis Group that includes a research and development partnership. [21] Auxly Cannabis Group announced the closing of a transaction with Imperial Tobacco Group plc in September. Imperial Brands invested CAD 123 million in Auxly. [22]

Tobacco companies have received more than GBP 45 million investment from the United Kingdom's Lincolnshire County Council’s pension fund. The current investment (as of January 2019) for Imperial Brands sits at GBP 4.6 million. [23]

Market Share

In 2017, Imperial Tobacco grew market share in Russia [2]:17 and Poland [2]:18. In 2016, Imperial Tobacco was the world’s fifth-largest international cigarette company based on market share. [5]

Emerging Markets

Growth or Emerging Markets are mainly large profit or volume pools where Imperial Market typically have market shares below 15 percent and where the total tobacco approach provides many opportunities for share and profit growth both now and in the future.[2]:91

Growth Markets include: Iraq, Norway, Russia, Saudi Arabia, Taiwan (also includes premium cigar and Fontem Ventures)[2]:91

Factory Openings and Closures

Imperial Tobacco Group met with Reidsville tobacco manufacturing facility employees in November 2018 to discuss plans to move operations to its Greensboro manufacturing facility. The tobacco company says all of its cigarette production will shift to the company's Greensboro facility by 2020. [24]

Year Issue
2016 Closure of the Logrono (GBP 108 million) and Mullingar (GBP 21 million) factories. [14]:92
2014 Imperial Tobacco announced proposed closure of cigarette factories in Nottingham and Nantes. [16]:10


Table below provides review of dividend payment history since 2014:

Ex-dividend Date Payment Date Amount (in p)
15 January 2015 15 February 2015 89.3[25]
28 May 2015 30 June 2015 21.4[25]
27 August 2015 30 September 2015 21.4[25]
19 November 2015 31 December 2015 49.1[25]
4 February 2016 31 March 2016 49.1p[25]
19 May 16 30 June 16 23.5[25]
18 August 2016 30 September 2016 23.5[25]
17 November 2016 30 December 2016 54.1[25]
16 February 2017 31-Mar-17 54.1[25]
18 May 17 30 June 17 25.85[25]
17 August 2017 29 September 2017 25.85[25]
16 November 2017 29 December 2017 59.51[25]
22 February 2018 29 March 18 59.51[25]
24 May 18 29 June 18 28.435[25]
23 August 2018 28 September 2018 28.435[25]


Key Portfolio

The company’s tobacco portfolio offers a range of papers and cigars, fine cut, smokeless tobaccos and cigarettes. Through their subsidiary Fontem Ventures, Imperial Brands is also strengthening their range of tobacco free smoking products, including the e-vapour brand blu. The tobacco brands of Imperial Brands are sold in 160 countries worldwide, including the United States where it has a market share of six percent with their ITG brands: Maverick, Winston and Kool, where each of them accounts for some two percent respectively. The share of the company’s revenue in the United States accounted for some 20.6 percent in 2016, amounting to about 1.5 billion USD in that year. [5]

In 2017, the company's Growth Brands (Davidoff, Gauloises Blondes, JPS, West, Fine, News, Winston, Bastos, Lambert & Butler and Parker & Simpson) accounted for approximately 60.2 percent of Imperial Brands' Group sales volumes. [5]

Growth Brands [26]

  • Davidoff
  • Gauloises
  • P&S
  • News
  • West
  • Winston
  • L&B
  • Bastos
  • JSP
  • Fine

Specialist Brands[26]

  • Gitanes
  • Jade
  • Habana
  • Kool
  • Rizzla
  • blu
  • Cohiba
  • Montecristo
  • Drum
  • Golden Viginia
  • skruf
  • Backwoods

Heated Tobacco Products

A press release sent out on October 3 2018 by ResearchandMarkets.com noted Imperial Brands, in partnership with China National Tobacco, established a joint venture, Global Horizon Ventures Limited (GHVL) focused on long-term earnings potential and competitive position in the growing smokeless tobacco market. [27] Imperial said it will debut its first heated-tobacco product Pulze in Japan. The company predicted that such smoking alternatives may add as much as 1.5 billion pounds (USD 2 billion) in revenue in 2020. [12]

In Summer 2018, Imperial launched a product called myblu, in reaction Juul's entry into the US market. [28]

A 2014 report by Public Health England revealed that Imperial-owned cigarettes are sold in Lloyds and Boots pharmacies around the United Kingdom. This is against the advice of the Royal Pharmaceutical Society. In 2014, Lloyds Pharmacy began selling Vype and Boots pharmacies began selling Puritane, the e-cigarette brand owned by Imperial tobacco’s subsidiary Fontem. [29]


Volume of Cigarettes by Region

Volumes (in billions stick equivalent) 2017 2016 2015 2014 (Restated) 2014 2013
Group Volume 265.2 [2]:15 276.5 [14]:13 285.1 [15]:9 294.0 [16]:8 294.0 [16]:8 317.0 [17]:6
Growth Brands Volume 159.6 [2]:8 151.0 [14]:6 145.1 [15]:12 131.0 [16]:11 131.0 [16]:11 129.0 [17]:8
Growth Brands Volume (percent) 60.2 54.7 50.9 44.6 44.6 40.7

Marketing and External Relations

Global Campaigns

A 2018 investigations uncovered social media advertising campaigns from Imperial Brands reaching millions online, including in the United States. [30]

In 2014, an Imperial Tobacco ad campaign promoting a free-to-download app listing smoking-friendly bars and venues has been banned by the Advertising Standards Authority for "normalising" and "condoning" smoking. Imperial Tobacco ran a series of poster ads under the name Smoke Spots, with no indication on the ads that the free app was provided by Imperial Tobacco. [31]


In 2015, World Bank pulled out of the 12th Annual Asia Pacific Tax Forum, which was to be co-organized by a consortium funded by several transnational tobacco companies, including Imperial. [32]

Corporate Social Responsibility

In May 2014, Guardian reported Imperial Tobacco Group was amongst the companies purchasing tobacco grown in the United States. According to Guardian, these companies current approaches 'did not sufficiently protect children from hazardous work and some companies allow for lower standards of protection for children in their US supply chain than for children working on tobacco farms in other countries'.[33]

Imperial is a board member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT). [34] A report published in April 2018 by Human Rights Watch said there was widespread child labour in tobacco farms in Zimbabwe, where multinationals including Imperial buy tobacco. [35] The ECLT Board members include: International Tobacco Growers Association; Alliance One International; Altria Client Services; British American Tobacco; Contrax-Nicotex Tobacco; Hail & Cotton; Imperial Tobacco Group; Japan Tobacco International; Philip Morris International; Premium Tobacco; Scandinavian Tobacco Group; Sunel Ticaret Turk; Swedish Match; and Universal Leaf Tobacco. [36] The partnership has been ongoing since 2002 and seeks to eliminate child labour and promote workers’ rights in tobacco-growing communities in Brazil, Malawi, Tanzania, Uganda and Zambia. [37]

In 2015, Imperial Tobacco contributed GBP 57,000 to help tackle the Ebola outbreak in West Africa. [38]

Academic resource Tobacco Tactics provides an extensive overview of Imperial's 2014 Love Where You Live campaign here. [39]

In 2014, Imperial Tobacco Poland was presented with an award from the country's Business Centre Club, recognizing the significant contribution it makes to the nation’s economy. [40]


The PETA International Science Consortium Ltd., Imperial Brands PLC, Altria Client Services, British American Tobacco (BAT) PLC, and Philip Morris International Inc have joined together to donate USD 110,000 worth of equipment that will help to replace the use of animals in respiratory testing with more human-relevant, non-animal test methods. [41]

Imperial Tobacco was one of the sponsors of the 2018 Middle East & Africa Duty Free Association (MEADFA) Conference was held in November 2018under the patronage of H.E. Mr. Saad Hariri, Lebanese President of the Council of Ministers, in Beirut, Lebanon. [42]

Marketing to Kids

Campaign for Tobacco-Free Kids investigation into over 100 social media campaigns by Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands revealed tobacco companies pay social media influencers on platforms like Instagram, Facebook and Twitter to advertise their products. [43]

An investigation exposing how tobacco companies market cigarettes on social media around the world revealed Imperial Tobacco products were seen near schools in 22 countries in a smaller number. Despite the findings a spokesman for Imperial Brands said to company ensures:

  "that our product and brand communications are not aimed at, or made appealing to, people under the age of 18 or non-smokers, and that we operate in accordance with local laws”. [44]

In the United States, investigations into Imperial Brands’ efforts to market to kids have uncovered an explosion of sweet flavored tobacco products, especially e-cigarettes and cigars. [45]

Political Spending

For a list of political contributions in the United States look here.

2016 2014 2012
Democrats [46] 12,500 4,000 19,500
Republicans [46] 27,900 74,000 75,200
Percentage Democrats [46] 31 5 21
Percentage Republicans [46] 69 95 79
Total [46] 40,400 78,000 94,700
Chamber Member Amount

(in USD) [46]

Senate Burr, Richard (R-NC) 8,000
Senate Scott, Tim (R-SC) 5,000
Senate Toomey, Pat (R-PA) 3,500
Senate Blunt, Roy (R-MO) 2,500
Senate Casey, Bob (D-PA) 2,500
Senate McConnell, Mitch (R-KY) 2,500
Senate Moran, Jerry (R-KS) 2,500
House Ellmers, Renee (R-NC) 2,000
House Guthrie, Brett (R-KY) 1,500
House Kelly, Mike (R-PA) 1,000
House Meehan, Patrick (R-PA) 1,000
House Murphy, Tim (R-PA) 1,000
House Boehner, John (R-OH) (2,600)


The US House of Representatives committee has asked e-cigarette manufacturers to hand over details about the health impact of products, heaping renewed scrutiny on the popular devices. The energy and commerce committee wrote to Fontem Ventures, a subsidiary of Imperial Brands, the tobacco manufacturer, which owns the Blu vaping brand, Reynolds American, the US business of British American Tobacco, Japan Tobacco International and Juul. [47]

New Zealand MPs are questioning Imperial Brand’s claim that they are not targeting new customers. In an inquiry into smoking in cars, MPs on the Health Select Committee questioned the company's integrity, after an Imperial Brands representative said the company is only looking to transition current smokers to vape products, claiming they are only concerned with "people who have tried absolutely everything and cannot quit." One MP pointed out that the company's website states tobacco maximisation as a core part of its strategy, seemingly contradicting the Imperial Brands’ representative’s claim. [48]

Tobacco Litigation

A full list of tobacco industry litigation cases can be found here.

According to the 2017 annual report, no tobacco litigation claim brought against the Imperial Group has been successful and/or resulted in the recovery of damages.[2]:27

In February 2018, Dutch prosecutors rejected attempted murder case brought against the world's largest tobacco Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Tobacco by mother with lung cancer. [49]

Year Country Update
2006 Italy Imperial Tobacco is currently facing two claims in Italy. The first is against Logista, which is the subject of a challenge on grounds of jurisdiction and the admission of evidence. This challenge was heard in 2006 but judgment is still awaited. The second claim has been brought in the Court of Messina against Imperial Tobacco Italia and Reemtsma by two individuals claiming EUR800,000 in total. We have denied liability. [2]:50
2015 Morocco In June 2015, a claim was filed in the Casablanca Court by the heirs of a deceased individual against our Moroccan subsidiary,

Société Marocaine des Tabacs. The total amount of compensation sought was not specified. On 9 February 2016, the Casablanca Court found in favour of SMT and dismissed the claim. No appeal has been filed. [2]:50

NA Argentina Imperial Tobacco subsidiary, Société Nationale d’Exploitation Industrielle des Tabacs et Allumettes SAS (SEITA), has been notified of a claim filed in the Court of Buenos Aires against Nobleza Piccardo by an individual smoker. Nobleza Piccardo has denied liability. Nobleza Piccardo manufactures and distributes two brands of cigarettes owned by SEITA in Argentina under the terms of a Licence Agreement. Nobleza Piccardo has sought to invoke an indemnity contained in the Licence Agreement, pursuant to which SEITA is responsible for any product liability to third parties. The amount claimed is ARS 8,980,200. The claim is currently in the evidence production period, during which all expert and witness evidence will be produced. [2]:50
2016 Russia In August 2016, a claim was filed in the Russian Court against 18 tobacco companies including JSC Imperial Tobacco Yaroslavl by an individual claiming RUB 523,480,297 and other amounts related to the profits of the defendants. Imperial was notified of the claim by the Russian Court in February 2017. The claim was dismissed in full at a hearing in April 2017. The claimant appealed the decision. The appeal was heard on 18 July 2017 by Moscow Court’s Judicial Panel for Civil Cases. The appeal was dismissed in full and the claimant has until 18 January 2018 to appeal the decision. [2]:50
NA The Netherlands Reports in the public media indicate that a complaint has been lodged with the Public Prosecutor in the Netherlands directed at the four major tobacco manufacturers, including Imperial Tobacco Benelux. Neither Imperial Tobacco Benelux nor any of its employees has been charged by the Public Prosecutor in the Netherlands, but we are monitoring developments. [2]:50
2017 Poland On 9 October 2017, Imperial Tobacco Polska SA (“Imperial Polska”) received notice that a claim has been filed against it in the

Regional Court in Poznań by an individual claiming PLN 1,000,000 by way of compensation for alleged smoking related health effects. Imperial Polska has not yet filed a Statement of Defence but it intends to deny liability. [2]:50

2016 United States A number of smoking and health-related claims have been brought against Imperial Tobacco Group Brands in the state courts. Imperial Tobacco Group Brands has the benefit of an indemnity from another manufacturer in respect of each of these claims. As a result, ITG Brands either has been dismissed, or is expected to be dismissed, without prejudice from each of the claims.[2]:50
2016 United States Imperial Tobacco is currently defending one e-vapour-related claim in the USA. This is a consolidation of two purported class actions (Diek and Whitney) seeking to recover unquantified damages, including punitive damages. A claim that had been brought by the Center for Environmental Health alleging violations of the California Safe Drinking and Toxic Enforcement Act ended. [2]:50

In 2015, tobacco companies including Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Tobacco Group took the British government to court on Thursday, arguing that the UK’s “plain packaging” law, unlawfully takes away its intellectual property. [50]

Imperial Brands (majority share owner of Lao Tobacco Company) and Lao-China Hongta Good Luck Company Ltd.,violated the law by not printing pictorial health warnings on their cigarette packs. These two companies control over 80 percent of the cigarette market in Lao PDR. [51]

Partners and Allies

In 2017, the organization has paid between EUR 400,000 and EUR 499,999 on activities related to lobbying and registration fees within the EuropeanUnion. [6]

According to Transparency Register, in 2017 Imperial disclosed it was a member of the following associations:

  • Confederation of EC Cigarette Manufacturers [6]
  • European Smoking Tobacco Association [6]
  • European Cigar Manufacturers Association [6]
  • European Rolling Papers Association [6]
  • European Travel Retail Council [6]
  • Wirtschaftsrat [6]
  • Public Affairs Council [6]


European Union

Main European Union initiatives, policies and legislative files followed by the organization are:

  • The implementation of Directive 2014/40/EU on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture , presentation, and sale of tobacco and related products. [6]
  • Review of Directive 2011/64/EC, on the structure and rates of excise duty applied to manufactured tobacco. [6]
  • Review of Council Directive 2008/118/EC concerning the general arrangements for excise duty and repealing Directive 92/12/EEC [6]

The organization employs three part-time and four full-time lobbyists. The European Union Register lists the following employees:

Name Contract Status Start Date End Date
Nveed Chaudhry [6] Active 16 May 2019 31 May 2020
Valerio Forconi [6] Active 30 November 2018 30 November 2018
Dreis Maebe [6] Active 30 November 2018 30 November 2018
Justyna Smok-Chayn [6] Active 13 March 2019 31 March 2020

EU Transparency register lists Philip Morris International as a member of various associations and networks around the world, including:[6]

  • Confederation of EC Cigarette Manufacturers (CECCM)
  • European Smoking Tobacco Association (ESTA)
  • European Cigar Manufacturers Association (ECMA)
  • European Rolling Papers Association (ERPA)
  • European Travel Retail Council (ETRC)
  • Wirtschaftsrat
  • Public Affairs Council

In 2017, Fontem Ventures, affiliated with Imperial Tobacco used the services of Aspect Consulting for lobbying in Brussels [52] and Blue Star Strategies globally. [53]


The website TobaccoTactics, offers an updated list of organizations Imperial Tobacco was a member or supporter of in 2017. The Austrian Public Affairs Association website lists Hanna Friedl and Jared Wiener from Imperial Tobacco Austria as members. [54]

Imperial Tobacco is a Gold member of the Scottish Grocers Federation, a front group 'promoting responsible community retailing by lobbying, communication, networking and advice.' As of 2018, British American Tobacco and Japan Tobacco International were both listed as members on the organization's website. [55]


Scottish National Party accepted conference fees from Japan Tobacco International and Imperial Tobacco. Both companies were at the SNP Party Conference after buying "business day" passes advertised at GBP 1,750 each. [56]

In 2010, European Commission announced a multi-year agreement with Imperial Tobacco to work together in tackling the illicit trade in tobacco products. Under the legally binding agreement, ITL will work with the European Commission, its anti-fraud office OLAF, and Member States’ law enforcement authorities to help in the fight against contraband and counterfeit cigarettes. The Agreement included a USD 300 million contribution (over the next 20 years) by Imperial Tobacco. [57]

Consultancies, Banking and Finance

Name Contract Status Notes Notable Clients
PricewaterhouseCoopers LLP (PwC) (2017) Active PwC are Imperial Tobacco's auditors. [2]:43,71
  • Bank of America
  • American International Group
  • Chase
  • Goldman Sachs
  • Prudential Financial
  • IBM
  • United Technologies


KPMG (2017) TBC KPMG LLP UK prepared a report on Illicit tobacco in New Zealand for Imperial Tobacco New Zealand Limited.[59]

A KPMG conducted a study for British American Tobacco, Imperial Tobacco, Japan Tobacco International and Philip Morris International that revealed one in every ten cigarettes consumed in the European Union in 2013 were illicit. [60]

  • Siemens
  • Dangote Group
  • The State of Hawaii [61]
Pinsent Masons LLP (2017) Active Pinsent Masons LLP provided legal advice in respect of the operation of the Group’s employee share plans. [2]:71
  • Transport for London
  • Teva Pharmaceuticals
  • E.ON
Allen & Overy LLP (2017) Active Allen & Overy LLP is available to provide legal advice to Imperial Tobacco's Renumeration Committee as and when required. It was not used for remuneration-related advice during the financial year. Allen & Overy LLP also provided other legal services to the Group. [2]:71 NA
The Kangaroo Group 2017 - onging The Kangaroo Group promotes free trade across the European Union. In 2017, the Group’s tobacco industry members were listed as Barry Ronan from British American Tobacco, Mario Muller from the Confederation of European Community Cigarette Manufacturers, Alan Hardacre from Imperial Tobacco, Kristof Doms from Philip Morris International and Paolo Bochicchio from Japan Tobacco International. [62]

Marketing, Conferences and Public Relations

Omnicom’s BBDO has retained the global advertising account of British cigarette group Imperial Tobacco after a review. The account does not include advertising for e-cigarette brand Blu, which is owned by Fontem Ventures, part of Imperial Tobacco’s parent company Imperial Brands. [63]

Name Contract Status Notes
Global Tobacco and Nicotine Forum (2019) Active Alison Cooper, CEO of Imperial Brands will be on of the keynote speakers at the 2019 Forum in Washington DC. [64]
MSQ Partners(2018) Active Blu, the vaping brand owned by Imperial Tobacco, has appointed MSQ Partners and Fold7-backed brand experience agency Hyperactive to work on the launch campaign. [65]
Hyperactive (2018) Active Blu, the vaping brand owned by Imperial Tobacco, has appointed MSQ Partners and Fold7-backed brand experience agency Hyperactive to work on the launch campaign. [66]
Proximity (2015) NA In March 2014, Proximity picked up Imperial Tobacco’s global creative account. WPP’s Deepblue Networks was the incumbent. [67] Big text
FTI (2016) Active FTI Consulting, Inc. is a global business advisory firm. [68]
Aspect Consulting (2014) Active In 2017, Fontem Ventures, affiliated with Imperial Tobacco used the services of Aspect Consulting for lobbying in Brussels[69] and Blue Star Strategies globally. [70]
Bell Pottinger (2017) Inactive Imperial Brands used Bell Pottinger for two decades until a scandal over Bell Pottinger's secret campaign to stir up racial tensions in South Africa came to surface. [71]


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