Collinson Grant

Imperial Tobacco

The Imperial Tobacco Company’s history dates back to 1901. Our relationship with the business started in the mid 1980s after Hanson PLC acquired it. Collinson Grant was an important part of the reorganisation team. Over the next ten years, profitability was improved dramatically, even though volumes were falling. Market value was stabilised and the Imperial brands strengthened. Financial performance, productivity and margins improved year-on-year.

After being demerged in 1996, Imperial embarked on a vigorous acquisition programme in Europe, and set out to establish itself in most international markets (except the USA). In this time Imperial’s excellent growth in profits has been sustained.

Imperial’s organisational model is based on value-chain principles, flat structures, strong managerial controls and powerful incentives. It is designed to improve profits whilst managing declining volumes. More recently the approach has been adapted to cope with multi-national growth. Several consultants have been supporting directors in refining core organisational principles to meet new circumstances. As the company expands, the logistical and performance controls have to be upgraded. Investment has centred on improving customer service, quality, productivity and the capabilities of employees.

Working with Imperial’s management team over fifteen years has been rewarding. It is amazing that the pace of improvement continues unabated, underpinning the high profits achieved during this period.