Plain packaging will hit tobacco brands - Moodys

Deposit photo cigarettes

Tom Beardsworth

Tobacco profit growth in Europe will be more subdued than predicted as smokers switch to cheaper brands and tighter regulations turn people away from lighting up, according to Moody's Investors Service.

The push by lawmakers to introduce plain packaging in Ireland, the UK and France may eventually deprive companies of the "brand value" of their flagship products, according to the report.