Tobacco in Chile
Euromonitor International's Tobacco in Chile market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 71 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
New stricter anti-smoking law approved
A new anti-smoking law was approved and it took effect in August 2006. This law focuses on protecting non-smokers. It prohibits smoking in many public places and obliges restaurants to have separated sections for smokers and non-smokers. In addition, it prohibits almost all advertising and the use of names with labels such as light, ultra light or suave. Also, it obliges the incorporation of images and health warnings on cigarette packages, and prohibits selling near schools.
The main purpose of the new anti-smoking law is to increase health awareness in the general public. It shows that the government is concerned about the level of smoking in Chile. If the execution and enforcement of the law works properly, a reduction in smoking rates is expected in the medium- and long-term.
Cigarettes operates as a monopoly
Cía Chilena de Tabacos SA, a subsidiary of British American Tobacco, held the greatest volume share in tobacco in 2006. Because Cía Chilena de Tabacos SA was able to use its dominance to prevent competition, volume shares were stable over the review period. Philip Morris attempted to compete by introducing brands to counter Cía Chilena de Tabacos SA, such as launching mid-priced L&M in 2003 to compete against Belmont. However, Cía Chilena de Tabacos SA’s illegal tactics with retailers prevented it from being a threat. Additionally, after the initiation of the new anti-smoking law, Cía Chilena de Tabacos SA consolidated its good relationship with distributors and points of sale, because it lent financial and legal help to them to aid those entities with fulfilling the requirements of the new law. It helped to move many points of sale that did not comply with the minimum distance to a school. Also, it lent consultants to many restaurants to help them with the division of smoking and non-smoking sections.
Mid tar gains ground
In 2004, Cía Chilena de Tabacos SA, the main player in the Chilean market, adopted a ceiling of 10mg of tar content in its products, serving both to create a positive public image as well as to prepare the company for the imminent approval of the new anti-smoking law that took effect in 2006. As a result, the company’s products that were considered high tar in 2003 dropped into the mid tar category in 2004, creating a serious shift in tar level shares due to Cía Chilena de Tabacos SA’ dominance.
Brand ambassadors
According to the current anti-smoking law, all tobacco publicity, other than point of sale advertising, is prohibited. This includes sponsorships of sporting and musical events and the distribution of free tobacco-branded gifts. Therefore, a new type of advertising was born, the brand ambassador or promoter that visits pubs, cafés, discos and restaurants touting the benefits of each brand.
Cigars and smoking tobacco remain negligible
Chilean tobacco continued to be very cigarette-oriented in 2005. Due to poor distribution and marketing, cigar and smoking tobacco are very fragmented. While cigars is considered a trendy luxury item, smoking tobacco use is little known. The need for accessories such as pipes, rolling papers and rolling machines gives the impression that smoking tobacco is unaffordable and an activity for older adults. Distributors and stores will have to break down these notions in order to further develop these products.
Table of contents
TOBACCO IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
New stricter anti-smoking law approved
Cigarettes operates as a monopoly
Mid tar gains ground
Brand ambassadors
Cigars and smoking tobacco remain negligible
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Tar
Health warnings
Duty paid packet marks
Summary 1 Retail Price of Cigarettes, reported 6 November 2006
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Table 2 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 5 Sales of Tobacco by Sector: Volume 2001-2006
Table 6 Sales of Tobacco by Sector: Value 2001-2006
Table 7 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 8 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 9 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 10 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 11 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 12 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 2 Research Sources
LOCAL COMPANY PROFILES - CHILE
CíA CHILENA DE TABACOS SA - TOBACCO - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Compañía Chilena de Tabacos SA (Cía Chilena de Tabacos SA): Key Facts
Summary 4 Compañía Chilena de Tabacos SA (Cía Chilena de Tabacos SA): Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 5 Compañía Chilena de Tabacos SA (Cía Chilena de Tabacos SA): Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 6 Compañía Chilena de Tabacos S.A. (Cía Chilena de Tabacos SA): Competitive Position 2006
COMERCIAL PINARES LTDA - TOBACCO - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Comercial Pinares Ltda: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 Comercial Pinares Ltda: Competitive Position 2006
INTERNATIONAL TOBACCO MARKETING LTDA - TOBACCO - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 9 International Tobacco Marketing Ltda: Key Facts
Summary 10 International Tobacco Marketing Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 International Tobacco Marketing Ltda: Competitive Position 2006
TABACALERA NACIONAL SA (TANASA) - TOBACCO - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Tabacalera Nacional SA (Tanasa): Key Facts
Summary 13 Tabacalera Nacional SA (Tanasa): Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 Tabacalera Nacional SA (Tanasa): Competitive Position 2006
TABAQUERíA ÁGORA - TOBACCO - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Tabaquería Ágora: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 16 Tabaquería Ágora: Competitive Position 2006
CIGARETTES IN CHILE
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 15 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 16 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 17 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 18 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 19 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 20 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 21 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 22 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 23 Sales of Cigarettes by Length 2001-2006
Table 24 Sales of Cigarettes by Pack Size 2001-2006
Table 25 Sales of Cigarettes by Pack Type 2001-2006
Table 26 Cigarettes Company Shares 2002-2006
Table 27 Cigarettes Brand Shares 2003-2006
Table 28 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 29 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 30 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 32 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 33 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 34 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 35 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 36 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 37 Forecast Sales of Cigarettes by Length 2006-2011
Table 38 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 39 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Sales of Cigars by Subsector: Volume 2001-2006
Table 41 Sales of Cigars by Subsector: Value 2001-2006
Table 42 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 43 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 44 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 45 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 46 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 47 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 48 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 49 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 50 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 51 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 52 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 53 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 54 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 55 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011