Nine-month group volume at British American Tobacco declined 0.6 per cent to 523 billion sticks as part of what BAT termed an industry trend that may be moderating.

“Group volumes were slightly lower than last year as a result of the industry volume,” BAT said in a statement today. “The environment continues to be challenging due to the current economic climate although there are some signs that the impact on volume is moderating. However, the expansion of illicit trade remains a threat, driven by shock excise increases and pressure on consumers’ disposable income. In addition, a number of currencies weakened against sterling during the quarter.”

Volumes of four key brands, Kent, Dunhill, Pall Mall and Lucky Strike, bucked the trend and rose an aggregate 8 per cent in the nine months ending 30 September, said BAT. (ci)