Rothmans faces growing competition in the discount cigarette sector and lower than expected sales of its premium brand 555 Smooth.
The company, which is likely to focus future communications efforts on field marketing and related disciplines in major UK cities, is consulting with staff over the loss of about 90 jobs from its Aylesbury head office.
The restructure follows the recent introduction of the tobacco advertising ban and heralds forthcoming restrictions on direct marketing and point-of-sale promotional campaigns.
Rothmans, which distributes and markets brands including Rothmans King Size, Dunhill and 555, has a UK market share of about 6%. While it would not comment publicly on 555 Smooth sales, the company is known to be disappointed that the brand has not made a greater impact on the back of a £12m advertising campaign through 141 International.
News of the job cuts comes as BAT announced flat quarterly profits of £464m in the three months to March 31. The firm's global 'drive brands' - Dunhill, Kent, Lucky Strike and Pall Mall - showed combined growth of 15%. It said UK results had "improved as a result of the absence of the high spend incurred last year to support the launch of State Express 555".
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