Cigarettes giant Imperial Tobacco has reduced the value of its Spanish business by £1.2 billion writedown after austerity-hit smokers turn to black market fakes in a bid to reduce the cost of smoking.
The legal tobacco market has shrunk by 10% in Spain over the last year, said Imperial
“Economic conditions remain difficult in Spain; high unemployment and increasing government austerity measures are placing further pressures on consumers and the duty paid tobacco market, with illicit trade a growing problem,” the group continued.
