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English Smoking Ban Cuts Cigarette Sales by 6%, Nielsen Says

June 30 (Bloomberg) -- England's ban on indoor smoking in public places has contributed to a 6 percent drop in U.K. cigarette sales since taking effect a year ago, market researcher Nielsen Co. said. British smokers bought 2.1 billion fewer Cigarettes in the 10 months through April, Nielsen said today in an e-mailed statement. Sales probably have dropped by about 2.6 billion Cigarettes in the year to date, the statement shows. Sales of alcoholic beverages have slid 8 percent now that drinkers can no longer smoke in pubs, according to Nielsen. The report suggests the restrictions may have weighed More heavily on bar owners than on tobacco companies. Punch Taverns Plc, the biggest U.K. pub landlord, has lost three-quarters of its market value in the past year, More than the drop of about 7 percent by Bristol, England-based Imperial Tobacco Group Plc, the maker of Lambert & Butler Cigarettes. Drinkers have consumed 175 million fewer pints in the last year in England and Wales as a direct result of the ban, Jake Shepherd, a Nielsen marketing director, said in the statement. More than two-fifths of Britons now go out to licensed premises to drink less often than before the ban, a Nielsen survey shows. Indoor smoking in public places had been prohibited elsewhere in the U.K. when the English ban took effect on July 1 of last year. Scotland had introduced a similar measure in March 2006, followed by Wales and Northern Ireland in April 2007. To contact the reporter on this story: Thomas Mulier in Madrid at tmulier@bloomberg.net.