Imperial Tobacco Canada is the first tobacco manufacturer to raise the pricing issue with the tobacco growers and with the federal government's Round Table on Tobacco. The company intends to work in a cooperative manner with both the federal and provincial governments as well as the Ontario marketing board to find solutions to this issue. The federal and provincial governments are rightly responsible for providing financial assistance to growers for the impacts of the overall decline of tobacco consumption in Canada.
Imperial Tobacco Canada is concerned about the impact of industry realities on tobacco growers. That is why the company has raised this issue in a forum where solutions can be found in a cooperative manner. That is also why it did not unilaterally stop buying leaf tobacco from Quebec, and instead implemented a gradual phase-out.
Imperial Tobacco Canada has indicated to the tobacco Board that the landed international market price for tobacco is the inevitable direction if the overall industry is to remain competitive in their respective markets. Imperial Tobacco Canada believes that finding solutions to these issues is the only means of ensuring the long-term competitive stability of the tobacco growing industry in Canada.
National shortages of some tobacco grades have forced the company to import for the last 15 years in order to meet its quality and grade requirements. Cigarette brands use specific recipes which require different mixes of tobacco grades. These different recipes allow the company to offer adult consumers products with specific taste differences. Meeting consumer demand and expectations means that Imperial Tobacco Canada will not compromise the quality of its products. Therefore, the company will continue to purchase high-quality Virginia flue-cured tobacco in the specific grades it requires in order to fulfil its recipes. – less–ZoomInfo