Imperial Tobacco to drop `Tobacco’ from its name
16 Dec 2015
Imperial Tobacco, one of the world's biggest cigarette manufacturers, seeks to drop the word "tobacco" from its name in its first major rebranding exercise since inception a century ago.
The FTSE 100 giant, famous for its Davidoff, Gauloises and Lambert & Butler cigarettes, would like to be known as Imperial Brands. Shareholders would vote on the new corporate title at its next annual general meeting on 3 February.
According to a spokesman the move was ''absolutely not'' intended to distance the Bristol-based business group, founded as The Imperial Tobacco Company in 1901 with the merger of 13 different businesses, from its main product.
''Tobacco is at the heart of what we do,'' he said. ''It's only the corporate entity that is changing, so the Imperial Tobacco businesses across the world will still be called Imperial Tobacco.''
He added the name change was to better reflect ''the brand-focused business that we are today''. He added, Imperial also produced non-tobacco electronic cigarettes, had logistics operations, and had expanded following its recent £4.6-billion acquitision of cigarette brands spun off from the merger of Lorillard and Reynolds American.
The last financial year to the end of September, saw the company generate over £25-billion in sales almost entirely from cigarettes, cigars and other tobacco-linked products.
According to commentators, the move would likely fuel speculation that the company could consider diversification outside tobacco into other consumer products. Shares in Imperial were up 3 per cent yesterday as rumours swirled that it could also be the target of a takeover bid.
In a statement, Imperial, which was formed in 1901, said, ''Imperial Brands better reflects the dynamic, brand-focused business that we are now.
''Our business is built around great consumer brands. Our growth and specialist brands are the key assets in our portfolio and we continue to focus on building the contribution they make to our volume and revenue development.
''We also have powerful corporate brands: Imperial Tobacco, home to most of our tobacco subsidiaries around the world, Tabacalera, our cigar business, ITG Brands in the USA, Fontem Ventures and Logista.
''As a result, physical changes will be minimal and largely confined to our Bristol head office and corporate website. There will not be a global rebranding.''
