Gallaher says 2002 sales will meet expectations

Tobacco firm Gallaher Group today said trading in 2002 is in line with expectations.

Tobacco firm Gallaher Group today said trading in 2002 is in line with expectations.

The producer of Benson & Hedges and Silk Cut cigarettes said in a statement today its sales in Ireland had outperformed the overall market.

It also claims it has increased its market share in the State by holding sales "broadly level" with 2001 while cigarette sales dropped by 2 per cent.

In Britain, the personal cigarette allowance for travellers within the EU is expected to have some negative impact on the size of the British duty paid in the near term.

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However, it expects this to be offset by sales within its Continental European division, which is still seeing the benefits of integration with Austria Tabak in the second half.

Gallaher said its joint project team with the China National Tobacco Corporation - formed in September 2002 - has made good progress in preparing manufacture and distribution agreements in China and Russia. It expects these agreements will be in place by September 2003.