Imperial Brand's Development Strategy for Dual Markets

Sep.26.2022
Imperial Brand's Development Strategy for Dual Markets
Imperial Brands focuses on two markets: traditional tobacco and next-generation products. They prioritize the US, UK, and Australia.

The current development strategy of Empire Brand is to balance two markets: on one hand, to focus on the combustible tobacco product market and further enhance the market value of its product portfolio; on the other hand, to continuously explore new types of tobacco products (referred to as next-generation products by Empire Brand) in the market.


Imperial Brands concentrates its resources on the US, Germany, UK, Australia and Spanish markets, with 72% of its revenue from combustible tobacco products derived from these markets. Last year, the company saw an increase in sales in the US, UK and Australia markets, while experiencing a decline in sales in Germany and Spain. The increased market share was achieved while maintaining stable prices. Imperial Brands is intensifying its efforts in these markets to further increase its share of the market.


To further enhance profitability, the Empire brand selectively cultivates markets with potential for growth, such as Africa and Europe, while also selectively exiting markets where their business is relatively weak.


Expanding its business in new tobacco products while maintaining a stronghold in the combustible tobacco market is a crucial part of the Empire Brand's strategy for promoting sustainability. In the European market, heated tobacco is the primary category of new tobacco products. The Empire Brand believes that its advantage in the traditional tobacco market can assist in the development of new tobacco products.


Empire brand focuses on heating combustible cigarettes in the European market and on electronic cigarettes in the American market. At the same time, the brand's oral tobacco business remains focused on the European market.


Imperial Brands has launched its heated tobacco product, Pulze, in the Czech and Greek markets. Currently, heated tobacco products make up approximately 10% of the tobacco market share in the Czech Republic and over 10% in Greece, with further potential for growth in these two countries.


The empire brand has revamped its marketing strategy for the Blu e-cigarette sold in the United States in order to further increase sales.


In March of this year, Imperial Brands launched an awareness campaign for their electronic cigarette products in Canada. The aim was to educate Canadian consumers on the differences between e-cigarettes and traditional tobacco products. The company invested heavily in outdoor and digital advertising to increase product visibility. The campaign lasted for 10 weeks and was just one part of Imperial Brands' broader marketing efforts.


The Empire brand stated that their strategic goal is to establish a sustainable, consumer-centered next-generation product business system and they are currently making good progress towards this aim.


Stefan Bommhardt, CEO of the Imperial brand, stated, "We have conducted a comprehensive review of our business development strategy, searching for all possible opportunities that can bring value. Our five-year plan outlines our priorities that will determine our investment targets for the market and the brand. We will improve our working methods and create a flexible, collaborative, performance-based operating model to achieve better and more stable business performance.


Empire brand has identified three key factors to drive its development strategy: customer-centric approach, performance-based operational model, and streamlined and efficient processes. To support this strategy, the company has decided to increase investment in core business departments such as marketing by £50-60 million per year. Additionally, with business restructuring and simplification, Empire brand expects to save £100-150 million in costs by the end of fiscal year 2023.


This article contains excerpts or reprints from third-party sources, and their copyright belongs to the original media and authors. If there is any infringement, please contact us for deletion. Any units or individuals wishing to reprint should contact the author and refrain from directly copying.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
As InterTabac 2026 approaches, Sabine Loos, Managing Director of Westfalenhallen Unternehmensgruppe, tells 2Firsts that global tobacco trade fairs are evolving beyond product display. With new nicotine categories, shifting regulation and more complex supply chains reshaping the industry, InterTabac is positioning itself as a platform for market insight, regulatory discussion and global business connection.
Special Report
Jul.02
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
Nick Ricketts, President of Oral Products at Philip Morris International (PMI), told Logos Press that nicotine pouches should be brought under clear regulatory frameworks covering nicotine limits, flavor rules, age verification, sales controls and marketing standards, arguing that the absence of clear rules or blanket bans may push consumer demand into illegal or semi-legal channels.
Jul.06
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece have opposed Ireland’s proposed nicotine product regulations, arguing that the measures could affect EU market coordination and the free movement of products. Ireland plans to introduce stricter rules covering nicotine products including vapes and nicotine pouches, with measures involving packaging, marketing and sales controls. The dispute highlights differences among EU member states between stronger public health protections and maintaining regulatory consistency within the bloc’s single market.
Jul.29
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Recent reports from Germany and Switzerland show growing concern over vape and tobacco vending machines near schools or in public settings, with parents, teachers and residents questioning youth access, age-verification controls and the sale of vapes alongside snacks and drinks.
Jul.06
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
British American Tobacco’s (BAT) nicotine pouch brand Velo has released a global consumer study and launched its “Echoes of Tomorrowland” campaign with electronic music festival brand Tomorrowland. The research surveyed 2,009 nicotine users across the UK, Spain, Pakistan, Poland and Austria. Velo said 61% of respondents feel more comfortable expressing themselves when they see others doing the same, while 39% said building meaningful connections becomes harder with age. The campaign reflects how nicotine pouch brands are increasingly using music, communities and lifestyle marketing to build consumer engagement.
Aug.10
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
The FDA has authorized four additional on! nicotine pouches, bringing the U.S. total to 30. The decision marks another outcome of the agency’s nicotine pouch review pilot, whose communication and review practices are now being applied more broadly across the category. It also extends Helix’s authorized portfolio from on! PLUS to the earlier on! line. Yet all FDA-authorized nicotine pouches still come from subsidiaries of PMI or Altria, underscoring how concentrated U.S. regulatory access remains.
Aug.05