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.

IQOS Enters Kantar BrandZ Global Top 100 for First Time, Valued at $36.6 Billion and Ranked No. 74
IQOS Enters Kantar BrandZ Global Top 100 for First Time, Valued at $36.6 Billion and Ranked No. 74
Philip Morris International’s IQOS has entered the Kantar BrandZ Top 100 Most Valuable Global Brands for the first time, ranking No. 74 with a brand value of $36.634 billion and becoming one of only three newcomers to the 2026 ranking. Kantar said the combined value of the Global Top 100 reached $13.1 trillion, up 22% year on year, while the threshold for entry rose to a record high. PMI says IQOS has more than 35 million users worldwide and surpassed $10 billion in annual net revenues within a decade of launch.
Sep.03
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
KT&G will launch the lil Tonino Lamborghini heated tobacco device in Seoul on September 15, 2026. The product introduces a new heating technology called Flashwave Heating, which uses microwaves to heat tobacco sticks internally and delivers a manufacturer-rated heat-up time of about three seconds. The device features an all-metal aluminum body, a color display and a dedicated GUI, and launches alongside a new line of NAU tobacco sticks that are incompatible with existing lil consumables. Korean media describe the product as KT&G's first new heated tobacco platform since lil AIBLE was introduced in 2022.
Aug.31
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
IKE Tech Launches IKE 2.0 Compliance Platform for Nicotine Products
IKE Tech Launches IKE 2.0 Compliance Platform for Nicotine Products
IKE Tech launched IKE 2.0 on September 28, initially targeting nicotine products with a platform that combines user identity verification, product authentication, configurable policy controls and data analytics. Products can be authenticated through direct device integration or NFC smart tags. IKE Tech was formed with participation from Ispire's Aspire North America, Berify and Chemular, with Ispire currently holding a 40% interest. Its age-verification component PMTA was accepted by the FDA in 2025 and remains under review. The company did not disclose customer names, commercial deployment volumes, pricing or revenue tied to IKE 2.0.
News
Sep.29 by 2Firsts Perspectives
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippine lawmakers are considering an overhaul of the country's vape excise-tax regime to eliminate the wide gap between taxes on nicotine salt and freebase nicotine liquids and reduce incentives for misdeclaration. House Bill 5364, filed by Rep. Rufus Rodriguez and Rep. Maximo Rodriguez Jr., would impose a unified ₱10-per-milliliter tax on vapor products, with 5% annual increases beginning in 2027. Rodriguez says the proposal could generate an average ₱6 billion in annual collections from 2027 through 2030. The debate comes as the Philippine government considers tobacco, vape and other health-tax reforms to help offset around ₱66 billion in revenue expected to be forgone under a proposed tax-relief package.
Aug.18
Philippines Customs Seizes PHP11.68 Billion($200 Million) in Illegal Tobacco and Vapes in First Seven Months of 2026
Philippines Customs Seizes PHP11.68 Billion($200 Million) in Illegal Tobacco and Vapes in First Seven Months of 2026
Philippines Customs data showed that illegal cigarettes and vape products seized during the first seven months of 2026 were valued at about PHP11.68 billion, exceeding the PHP2.516 billion recorded for the full year of 2025. The figures were disclosed by a Bureau of Customs official during a House Committee on Ways and Means hearing on tobacco excise tax reforms. Vape-related seizures were valued at about PHP1.65 billion, with most cases recorded at the Manila International Container Port. Customs officials said enforcement against illicit tobacco trade would continue.
Aug.26