Tobacco in Dominican Republic
Euromonitor International's Tobacco in Dominican Republic 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: 62 | Publication date: Jul 2009
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Executive summary
After decline following 2007 tax crisis, market rebounds in 2008
The Dominican government introduced much higher taxes on cigarettes in 2007 which drove many distributors and retailers to purchase products wholesale before the tax came into effect, waiting for when they could make a huge profit by selling at the new price. This led to shortages in retail outlets, which many small retailers took advantage of to overprice the cigarettes they had. The end result was a large reduction in the consumption of cigarettes in 2007 and a large increase in contraband and counterfeit cigarettes. In 2008 this whole situation reversed, with consumption increasing and the price level of cigarettes becoming more standardised across different retail outlets.
With no new cigarette products in 2008, competition has shifted focus
After a number of years which saw increased product launches and attempts at introducing new product types such as non-menthol, flavoured cigarettes by La Tabacalera CxA, and carbon filters such as those British American Tobacco Republica Dominicana featured on its Kent branded products, competition has shifted focus from the introduction of new products to the further development of the most successful launches. BAT Republica Dominicana has found its Newport branded products have interested Dominican consumers more than the other products it introduced and 2008 saw the company’s market share increase slightly even though it did not launch any new products.
Cigarette manufacturers battle for exclusive point-of-sale displays
With no new product introductions and little use of advertising, cigarette manufacturers are trying to increase their in-store presence through the use of point-of-sale displays and promotional signs that are exclusive to their brands. Philip Morris has an agreement with Supermercados Nacional, which permits the placement of its cigarette dispensers above all cash registers, prominently featuring its brand names and limiting the stock of competing brands to a customer service section of the store. BAT Republica Dominicana has a similar deal with Esso on the Run food shops, where its products are prominently featured in a large display which covers practically the entire area behind the cashier section with stacks of its products and signs, while Philip Morris products are barely in view. These agreements serve not only to promote the respective brands but also to imply to consumers that these are the most popular brands.
Supermarkets the main retailers of cigars in the Dominican Republic
The large quantity of consumers which visit supermarkets every day in the Dominican Republic has made this the most important channel for cigars since these retailers have the proper infrastructure to look after this product in the right way. Cigars have to be cared for in special cases where temperature and humidity are closely controlled and there is limited exposure to direct sunlight, which deteriorates cigar quality. Almost all supermarkets have an emergency source of electricity capable of running all the installed appliances they have, including their storage facilities, due to frequent power cuts that are commonplace in the country. In addition, the high traffic and one-stop-shop convenience that supermarkets offer make cigar consumers most likely to purchase in these establishments regularly.
Tobacco products forecast to post slowing growth rates from 2009 to 2013
The cigarettes sector posted strong growth in 2008 as it recovered from problems resulting from increased taxes in 2007, although this recovery is expected to diminish since the increased volumes seen in 2008 were not really due to a large increase in consumers but instead a return to previous levels. The sector is expected to continue to grow through to 2013, but with each year seeing a slower growth rate. With regard to the cigars sector, which in the past five years saw explosive growth due to the fact that there has been a growing fad for smoking cigars, this growth has made the sector much larger and has thus made it much harder to continue to grow at the same pace, especially when most producers consider the domestic market as secondary to their export market.
Table of contents
TOBACCO IN DOMINICAN REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
After decline following 2007 tax crisis, market rebounds in 2008
With no new cigarette products in 2008, competition has shifted focus
Cigarette manufacturers battle for exclusive point-of-sale displays
Supermarkets the main retailers of cigars in the Dominican Republic
Tobacco products forecast to post slowing growth rates from 2009 to 2013
MARKET BACKGROUND
operating environment
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
Table 3 Death by Cause 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Country-specific legislation:
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 4 Taxation and Duty Levies
Table 5 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 7 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2003-2008
Table 9 Sales of Tobacco by Sector: Value 2003-2008
Table 10 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 11 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 12 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
DISTRIBUTION
Competitive Landscape
New Product Developments
Prospects
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 2 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 16 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 17 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 25 Sales of Cigarettes by Length 2003-2008
Table 26 Sales of Cigarettes by Regular/Slim 2006-2008
Table 27 Sales of Cigarettes by Pack Size 2003-2008
Table 28 Sales of Cigarettes by Pack Type 2003-2008
Table 29 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 30 Cigarettes Company Shares 2004-2008
Table 31 Cigarettes Brand Shares 2005-2008
Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 41 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 42 Forecast Sales of Cigarettes by Length 2008-2013
Table 43 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
SECTOR DATA
Table 46 Sales of Cigars by Subsector: Volume 2003-2008
Table 47 Sales of Cigars by Subsector: Value 2003-2008
Table 48 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 49 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 50 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 51 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 52 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 53 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
SMOKELESS TOBACCO
Headlines
Trends
DISTRIBUTION
LA AURORA CXA
Strategic Direction
KEY FACTS
Summary 3 La Aurora CxA: Key Facts
Company Background
Production
Competitive Positioning
Summary 4 La Aurora CxA: Competitive Position 2008
LA TABACALERA CXA
Strategic Direction
KEY FACTS
Summary 5 La Tabacalera CxA: Key Facts
Company Background
Production
Competitive Positioning
Summary 6 La Tabacalera CxA: Competitive Position 2008