Imperial Tobacco has warned that government plans to produce "plain packet" cigarettes could open the door for smugglers and counterfeits.
Under proposals announced by health secretary Andy Burnham this week, all tobacco and cigarette packets rolling off the conveyor belt will soon be stripped of brand logos, colour and graphics.
The announcement comes under a wider plan to cut the number of UK smokers by 21 per cent over the next ten years.
However, Imperial Tobacco say there is no evidence to suggest that packaging plays a role in smoking habits and the move would have a detrimental affect on the industry.
Chief executive Gareth Davis, told shareholders: "Making all tobacco products available in the same generic plain packaging will further fuel the growth in illicit trade and undermine government’s plans to increase investment in tackling smuggling and counterfeiting," according to the London Evening Standard.
Imperial Tobacco is the largest cigarette manufacturer in the UK.
Earlier this week the company announced that the annual cigarette market had increased by 1 per cent year-on-year, producing 45.5 billion cigarettes in 2009.