Gallagher tobacco sales drop 9.3%

Global tobacco giant Gallagher said its Irish sales fell 9.3% in the first five months of 2004.

The company, whose brands include Benson & Hedges and Silk Cut cigarettes, blamed the fall on increases in tobacco duty. It said higher taxes in the Republic meant the price gap between the Republic and the North had narrowed, causing fewer people from Northern Ireland to travel across the Border to buy cigarettes. The company also said it was too early to assess the impact of the smoking ban here.