The Tabacco price war shaking the Spanish market has started taking victims. Imperial Tabacco, a large British firm that owns Altadis, spoke up first. Yesterday the firm announced 124 million euros worth of cutbacks to benefits that will affect Spanish employees.
?We have acted to protect our market position and the long-term sustainability of our business in Spain. We will keep monitoring the situation closely,? the company explained.
It owns Fortuna and Ducados and is the only central production unit in Spain, employing more than 1,500 workers.
According to their calculations, more than 40 million euros of non-recurring cuts will occur. They are a direct result of recrent price drops affecting the national tabacco market recently.
Imperial was one of the first tabacco companies to advise on the strained situation threatening the Spanish market. It was obliged to close a plant in Extremadura and to reduce production up to 35% in Cantabria, where the main national brands are made.
