Sale of cigarettes to end in Ceska posta branches this year

Czech postal services operator Ceska posta will stop selling cigarettes in all of its branches at the end of this year, even earlier in branches where the contract allows it, Klara Volna of the IT Ministry responsible for Ceska Posta told CTK yesterday.

Ceska posta spokesman Ladislav Vancura would not comment at the present time.

It was new IT Minister Dana Berova who demanded the abolition of the sale of cigarettes, discussing it with the company’s CEO Karel Kratina.

Last year, Ceska posta earned CZK 50 million in revenues from the sale of tobacco products, CZK 20 million in January-April. Since last year, cigarette sales have brought nearly CZK 7 million in profit to the company.

At the beginning of May, Ceska posta said it would continue selling cigarettes. It launched their trial sale at the end of 2003.

Among those protesting the sale of tobacco products in the state-owned company are the Health Ministry and organisations against smoking.

Cigarettes help to raise sales and clients reacted positively to the sales, particularly in small towns. Ceska posta also argued that it was not getting any subsidies from the state and had to earn money for its operations.

Over the last few years, Ceska posta has been grappling with growing competition on the liberalised market and the mass development of mobile and Internet communication. As a result, its revenues are growing at a slower pace than its costs. The company has launched other trading activities, such as banking, insurance and betting services, as well as the sale of certain goods.

Last year, Ceska posta net profit fell by a third to CZK 445 million. The company runs 3,400 branches.

CTK news edited by the sta