Since the ban on Smoking in public places was introduced in England a year ago, cigarettes sales have dropped 6% according to new figures released today by market company Nielsen.

In total, smokers bought 2.1 billion less cigarettes in Britain in the 10 months from July last year to April 2008. 92% (1.93 billion cigarettes) of this decline was driven by sales in England and Wales with a further 220 million less sticks smoked in Scotland, where the ban was introduced a year earlier.

Jake Shepherd, Marketing Director at Nielsen commented, “In addition to the smoking ban, cigarette sales have been hit by new legislation which outlaws the sale of tobacco to under-18’s which came into effect in October 2007 and increasing duty on tobacco which is pricing cash strapped smokers out of the market. Nielsen expects that the full year sales decline will amount to some 2.6 billion cigarettes less than was sold in the year before the smoking ban was introduced.”

Beer and spirits sales have also suffered. In the 9 months from July to March volume sales of alcohol fell 8% in the On-trade in England & Wales. Before the ban sales were falling at a steady 3%. The wet summer of 2007 has added to the downturn but Nielsen analysts estimate that just under half of the 8% decline can be attributed to the smoking ban. Data from a Nielsen survey polled before the ban came into effect showed that 60% of people thought they would be more likely to visit a pub once it was non-smoking, but when this survey was re-polled several months after the ban had been in place, only 45% said they would be more likely to visit now pubs were non-smoking. In fact, 44% of people said they visit licensed premises less often than they did before the ban was in place.

Shepherd continued, “Nielsen estimates that around 175 million less pints have been drunk in the last year in England and Wales as a direct result of the smoking ban. The winter months were particularly bad – sales fell 9.3% through November to January when smokers would have been reluctant to stand outside in the cold to have a cigarette.”

Sales of wine however, have not been as badly hit. Sales here have gone from -2% before the ban to -4% since the ban. Shepherd added, “Wine has held up somewhat better than other drinks, probably benefiting from the increasing importance of food and women to the On-trade. In Scotland we have seen the sales of both tobacco and alcohol (out of home) stabilise during the second year of the ban being in force so we do not expect these decline rates to continue in the long term. Investment into outdoor smoking areas has been considerable and most consumers have now adapted to the change.”

There was a big push to encourage smokers to quit over 2007. Nielsen Media tracked advertising spend from manufacturers of smoking cessation products such as nicotine patches or gum – £18 million was spent on advertising this type of product in 2007, with £6million of this focused around the time the smoking ban was introduced in England. The government, also, ploughed investment into anti-smoking strategies with over £6million being spent on quitting advice and health service advertising.