Imperial Tobacco Group plc Sponsored ADR (OTCMKTS: IMBBY) Sells Off Its Other Tobacco Products (OTP) Division In The United States
In the recent years, millions of people have either stopped smoking or have literally switched to e-cigarettes. The move has resulted in such a huge negative impact on the global tobacco market whereby some companies have reported losses. With the new outlook of a majority of people adapting to the new products, Imperial Tobacco Group plc Sponsored ADR (OTCMKTS: IMBBY) has also vowed to renew its focus. The Gauloises cigarettes-maker says that in its efforts to improve performance, it will be rolling out new vaping products
The company’s Chief Executive, Alison Cooper, confirmed the need of simplifying business in order to bring back the declining market. In return, the company will not only be able to deliver returns to its shareholders but it will also be able to invest in its growth agenda.
The company’s disposal of assets and tobacco products
Imperial Brands will be selling off tobacco products business located in the US. The sale is part of an ongoing review and will include disposing of roll-your-own brands, tubes, cigarette papers, and tips. The company claims that the move will facilitate a reinstated focus on driving revenue growth towards the next generation products.
Commending the new move and in support of the next generation products, Cooper stated, “In next-generation products, we are focused on delivering an exceptional consumer experience and we are investing behind an exciting innovation pipeline.”
Imperial Brands is keen on generating additional shareholder value
The United Kingdom-based company has been growing from strength to strength since its inception. The main goal has been the delivery of share gains in its growth Brands and priority markets. It has also been working on a simplification strategy, which involved the reduction of the number of brands it sells
However, with the additional markets coming on stream and with the need to generate additional shareholder value, there is a need to do things differently.
In boosting its market position, the company also acquired several U.S. brands. Other moves the UK Company will be making include investing in innovations. It is worth noting that it has already launched its myblu e-vapor cigarettes in the UK and the US and plans are underway to penetrate other markets.