Gallaher Group

Gallaher Limited

Type	Private limited company Subsidiary of Japan Tobacco
Industry	Tobacco
Founded	1857
Headquarters	Weybridge, Surrey, England
Key people	John Gildersleeve (Chairman) Nigel Northridge (CEO)
Products	Cigarettes, Tobacco
Revenue	£8,401 million (2006)
Operating income	£660 million (2006)
Net income	£408 million (2006)
Parent	Japan Tobacco[1]

Gallaher Group is a United Kingdom-based multinational tobacco company. It was traded on the London Stock Exchange and was a constituent of the FTSE 100 Index, prior to its April 2007 acquisition by Japan Tobacco.

History

The business was originally founded in 1857 by Tom Gallaher in Derry, Ireland.^[2] By 1896, he had opened the largest tobacco factory in the world in Belfast. The business was incorporated on 28 March 1896 to "carry on in all their branches the businesses of tobacco, cigar, cigarettes and snuff manufacture".

Formerly produced in London and Dublin, Gallaher's moved its production to Belfast (cigarettes) and Wales (cigars) in the early 20th century.

Gallaher went on to acquire a number of rival companies including J. A. Pattreiouex (1937), J. R. Freeman (1947), Cope Bros & Co (1952) and Benson & Hedges (1955).^[3]

On 4 August 2000 Gallaher completed acquisition of Liggett Ducat, Russia's number one cigarette brand.^[4] In January 2002, Gallaher became the 100% owner of Austria's former nationalised biggest tobacco-company Austria Tabak.^[5]

In 2002 US tobacco firm Reynolds formed Reynolds-Gallaher International to give the manufacturer access to cigarette sales in most countries in the European Union. It was scheduled to run through 2012 but in May 2007, as a result of the acquisition of Gallaher Group by Japan Tobacco, it was announced that this joint-venture would cease in November.^[6]

The closure of the former J. R. Freeman's factory in Cardiff was announced in September 2007, with all work scheduled to move to the Ballymena factory by September 2009.^[7]

Japan Tobacco became the sole owner of the Gallaher Group on 18 April 2007, in the largest ever foreign acquisition in Japanese history.^[8] JT has made tentative plans to close Gallaher's head office in Weybridge, with implications for 330 jobs.^[9]

Operations

Gallaher operates primarily in the United Kingdom and Europe, with much smaller operations in Central Asia, Africa and the Middle East. Gallaher is the third largest of the three major British tobacco groups; the other two are British American Tobacco and Imperial Tobacco.

Gallaher brands include Benson & Hedges (with Philip Morris International, British American Tobacco, and Japan Tobacco), Silk Cut, Sterling, Mayfair, Crystal, Nil, Kensitas Club, Senior Service, Dos Hermanos, Gold Seal, Amber Leaf, Sobranie and Hamlet Cigars.

Benson & Hedges

Djarum Black

The Djarum brands include Djarum Super, Djarum Black, Djarum Coklat, Djarum 76, Djarum Istimewa, Djarum Special, Djarum Menthol, Djarum Vanilla, Djarum Cherry, LA Lights, Mustang, Mr. Brown, and Envio Mild.

References