Smoker's market to struggle after ban
After the public smoking ban comes into effect in July, not only will tobacco sales drop, but alcohol spending will also see a decline, according to expert predictions.The Centre for Economic and Business Research (CEBR) calculates that England's forthcoming smoking ban will cause a three per cent drop in spending on both tobacco and alcohol.After scrutinising previous data, CEBR has concluded that the market for both substances will fall by over three per cent in the third quarter of 2007, reaching an annual nadir in the fourth quarter of the year, when a 3.5 per cent decline in sales is estimated.Winter months are forecast to magnify market woes as 'social smokers' will find smoking outside off-putting.CEBR says that recent spending in these sectors has already seen a decline, but the drop in sales after July may be enough to rattle pubs and clubs. Jonathan Said, senior economist at CEBR, commented: "Virtually all parts of the hospitality sector are going to be affected to a greater or lesser extent by the forthcoming smoking ban."However, while some companies have made concerted efforts to understand the likely impact and plan around it, others are likely to face a shock come July 1st."
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