Tobacco Industry News

Reports

Battleground for smokers lies in new markets
After last summer’s transitions in the tobacco industry--Imperial Tobacco’s acquisition of Altadis, and Japan Tobacco’s purchase of Gallaher—69% of the world’s cigarette market is controlled by four companies. The top four cigarette companies are Philip Morris International, British American Tobacco, Japan Tobacco and Imperial. As cigarette sales decline in established cigarette markets due to public health concerns and restrictive policy changes, these companies will turn to emerging markets, according to industry analysts. Companies will rely on internal growth, deals with state-run tobacco companies, and profits from new markets. In 2007, emerging markets generated over two thirds of the worldwide demand for cigarettes, and these areas were responsible for 55% of the past year’s profit growth. For more information, click here.

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International

Plain packs a risk to UK cigarette profits-analysts
The UK government is researching a proposal to remove logos and branding from cigarette packaging, and the change could have a significant impact on tobacco companies’ profits, according to analysts. If the plan were implemented, all cigarette packaging would be a generic black and white, with only health warnings for adornment. With all cigarette packaging looking much alike, one analyst predicts that a price increase in one brand would be more likely to cause smokers to switch to a cheaper brand. For more information, click here.

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