BAT’s aspirational brands segment takes big volumes hit on reduced consumer spending

0
240
  • Aspiration brand segment witnessed a 55% decline
  • The premium segment saw a 91% jump while the value for money segment increased volumes by 10%
  • The low value for money segment also saw a decline at 43%

Harare – Cigarette manufacturer and distributor, British America Tobacco (BAT) Zimbabwe Holdings limited says their first quarter ended 31 March 2021 was characterised by an adverse trading environment which saw the company’s more expensive product segment experiencing a major decline in sales volumes as a result of reduced consumer spending.

BAT has three main cigarette product segments which are premium, aspirational, value for money and low value for money.

Under the premium segment, it produces Dunhill cigarettes which saw a 91 percent increase following a return to the market in March.

The aspirational segment has the brands Dunhill Newberry and Dunhill Kingsgate. This segment recorded a 55 percent decline in volumes against the first quarter of last year which the company accredits to “reduced consumer disposable incomes hit by the COVID-19 pandemic.”

There is also the value for money segment which comprises probably the company’s best-known products, Madison and Everest, and this segment saw sales volumes going up by 10 percent in the quarter when compared to the same period in the prior year.

Lastly, there is the low value for money segment which houses the brand Ascot and despite being the least priced the cigarette brand recorded a 43 percent decline in volumes.

Overall, sales volumes in the quarter went up by three percent while the company’s revenue increased by 75 percent in inflation-adjusted terms.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here