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Imperial Tobacco Canada, the largest cigarette company in Canada, announced that it is setting up its own distribution service to retailers, according to a Reuters report.
The company -- a subsidiary of British American Tobacco Plc -- said it will start delivering its products directly to retailers across the country at the end of the summer, bypassing current wholesalers. The new structure will help boost Imperial's competitiveness in Canada's declining cigarette market, the company said.
Retailers will have the choice of switching to Imperial's new distribution network or staying with the current wholesaler system. Imperial Tobacco Canada will become the first tobacco company in Canada to implement DSD nationally.
The new service will translate into about 1,000 new jobs in Canada through direct positions at the company and through associations with transportation, information technology and warehousing partners, according to Imperial.