Imperial Tobacco is to increase its stake in the US tobacco market to ten per cent by purchasing the brands Salem, Kool, Maverick, Blu, and Winston, in a deal worth £4.6 billion, according to thisismoney.co.uk and dailymail.co.uk.
The cigarette brands were placed on sale as a byproduct of the merger between Reynolds American and Lorillard – respectively the second- and third-biggest tobacco companies in America. Imperial Tobacco’s US arm will now generate 20 per cent of its revenue.
Winston is regarded as a premium cigarette brand, and Maverick a budget-cigarette producer; Salem and Kool are menthol cigarettes brands, and Blu an e-cigarette one.
Alison Cooper, Imperial Tobacco, CEO, said, “I’m delighted to announce the completion of this deal, which will transform our position in the US and generate significant returns."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly.