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Imperial Tobacco plans to launch its Davidoff range of cigarettes in the United States after reaching a deal with American authorities.
The Bristol-based maker of Lambert & Butler and Superkings has signed up to America’s Master Settlement Agreement, which ensures that tobacco companies will not be pursued for health-related claims in return for annual payments into a fund.
All tobacco companies must sign up before they can trade in the US. Imperial is expected to use the agreement to launch some of its international luxury brands, such as Davidoff, and possibly rolling tobacco brands, such as Golden Virginia, in the US.
There are not thought to be immediate plans to make other Imperial brands such Regal, L&B and Embassy available in America. The approval will put Imperial’s products in direct competition with top-selling US brands such as Lucky Strike and Marlboro.
Gareth Davis, chief executive, said: “This is excellent news and we are looking forward to further enhancing our presence in this highly profitable market. We need to complete a formal brand registration process before launching any new Imperial Tobacco brands in the USA. This process should be concluded in the coming weeks.”
Imperial already sells cigarettes in America through Commonwealth Brands, which it bought for £974 million in February. Commonwealth, which controls 3.7 per cent of the US market, is already a signatory to the agreement. Imperial also sells Rizla cigarette papers.
Under the terms of the Master Settlement Agreement, tobacco companies finance a $1.5 billion antismoking campaign. They have also agreed to publish previously secret industry documents and abolish certain industry pressure groups.
Separately, Imperial is awaiting final regulatory approval for its acquisition of Altadis, the Spanish group that owns the Gitanes and Gauloises brands.
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