Imperial hit by vaping crackdown

SHARES in British tobacco giant Imperial Brands fell to a five-year low amid signs a backlash against ‘vaping’ among young Americans is hitting sales in the US.

Known for brands such as Lambert & Butler, Gauloises and Golden Virginia, it is shifting to ecigarettes as smokers look for less harmful alternatives.

But regulators at the US Food and Drug Administration (FCA) are campaigning to tackle an ‘epidemic’ of young Americans using e-cigarettes, hitting sales of its ‘blu’ range.

The products are less harmful than cigarettes, according to Public Health England, but still use addictive substance nicotine.

In a sign the backlash is taking its toll, Imperial said sales of its ‘next generation products’ totalled £148m in the first half of the year.

That was up 245pc on the same period last year but well below predictions of £176m.

Imperial chief executive Alison Cooper said: ‘When you’re developing something new there’s always going to be the odd bump in the road, but the actual prospects are very positive indeed.’

Shares fell 6.3pc, or 147p, to 2180.5p, their lowest since early 2014. Sales in the first half rose 2.3pc to £14.4bn, with profits up 38pc to £1.2bn. The dividend rose 10pc, to 62.6p per share.