Reduced tobacco smuggling has been a key factor driving the growth of the UK grocery wholesale market in the past year. 

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This is due to extra customs restrictions imposed during the spread of foot and mouth disease in winter/spring 2001 and in the aftermath of 11 September, says the IGD’s Grocery Wholesaling 2002 report. Both led to increased scrutiny and vigilance at points of entry to the UK and a decline in cross-border travel. HM Customs and Excise have also invested resources in stepping up efforts against smuggling. 


The UK market has grown to approximately £15.8bn (US$22.5bn) this year, an increase of 3.3% on last year. The delivered market experienced a year on year growth rate of 6.6% and is now worth £6.5bn, while the cash & carry sector increased 1.1% to £9.3bn. 

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