British American Tobacco (BAT), a manufacturer of Lucky Strike cigarettes, plans to lay 950 employees off at its German plant due to reduction of number of smokers in Western Europe.
“The difficult economic situation, combined with a sharp increase in excise duties in some countries has led to a decrease in sales volumes,” the tobacco company said.
The staffing cut at a factory in the Bavarian town of Bayreuth, where 1,320 people work, will be held within two years. The production will be moved to other European companies, according to a spokesman for BAT.
Due to the high taxes in the tobacco industry and a ban on smoking in public places, British American Tobacco reduced its staff to 87 thousand at the end of 2015, while it had approximately 140 thousand employees in 2001. Currently, the manufacturer of Lucky Strike is the third largest cigarette company and covers 19% of the global tobacco market.
According to a recent research, the smoking rate in Western Europe fell by 3.6% to 23% in the last ten years. Smokers in Germany switched to roll-your-own cigarettes for the sake of saving.
Recall that the most popular brand of British American Tobacco is still Lucky Strike. Until 2006, Lucky Strike cigarettes were truly iconic smokes. But namely, in 2006 they turned out to be under band for production and sale in North America. The reasons for this prohibition are not very clear. Whatever it was, but these cigarettes cannot be found for purchase in North America.
However, due to high popularity of Lucky Strike, smokers continue to seek ways to buy these cigarettes as they do not want to change their preferences. In this case, online cigarette stores come to the rescue. Because of the inability to find the Lucky Strike in local stores, Americans have started to buy lucky strike cigarettes in online tobacco stores, which offer delivery to the United States.