Imperial Tobacco nine-month stick-equivalent volume fell 7 per cent and sales by 3 per cent as struggling European economies, particularly Spain, undercut demand, the company said.

Volume in the European Union fell an estimated 6 per cent, but by only 2 per cent outside the EU, Imperial said in a trading statement. High unemployment, increased illicit trade and government austerity measures hurt performance in Europe in the reporting period ended 30 June. Expectations for the full fiscal year remain the same, the company said.
A strategic review of more than 250 cigarette and fine-cut brands has been completed and Imperial has begun to act on the conclusions. The review was undertaken to optimise portfolio growth potential and improve market positions, the company said.