Tobacco in Uruguay
Euromonitor International's Tobacco in Uruguay 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.
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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
Uruguay Is the First Latin American Country Free of Tobacco Smoke in Public and Private Enclosed Spaces
In March 2006, Uruguay became the first Latin American country and the fifth in the world free of tobacco smoke in public and private enclosed spaces. The smoking ban consolidated the country's ratification of the Framework Convention for Tobacco Control in 2004. The decree was strongly promoted by President Tabaré Vazquez, a former oncologist whose position against tobacco is well-known. He considers tobacco smoke a national issue, since it is one of the leading causes of death in Uruguay. With this measure the government aims to reduce diseases caused by tobacco, especially cardiovascular diseases and cancer. The smoking ban prohibits smoking in enclosed spaces, and establishments which violate the ban face stiff fines, as high as 30,000 Uruguayan pesos. The government expects that the number of people affected by tobacco smoke will be reduced by restricting the spaces in which people are allowed to smoke.
The Government Takes Strong Measures Against Tobacco Companies
Tobacco company Abal Hnos SA was fined in 2006 for breaking a decree which bans advertising and promotional campaigns offering prizes. The company, which owns the brand Marlboro in Uruguay, launched a promotional campaign at the beginning of 2006, "Marlboro Red Racing School", which offered a trip to Italy. The Ministry of Health declared the campaign illegal, and the company was fined around 30,000 Uruguayan pesos. The decision of the Ministry was controversial, yet it gives a clear signal that the government is taking this issue seriously, as it becomes more severe and rigorous about infractions.
The Smoking Ban Raises Disagreement Among Retailers
CAMBADU, the Centre of retailers, bars and related of Uruguay (Centro de almaceneros minoristas, baristas, autoservicistas y afines del Uruguay) states that most of its affiliates believe the ban affected their revenues. Owners of bars and pubs declare that after the smoking ban came into force their sales decreased by around 20%. Smokers did not stop going out, but they stayed at establishments for a shorter amount of time, as they were forced to go out in order to smoke. On the other hand, organisations such as the National Alliance for the Control of Tobacco, along with health authorities, established that the international experience reveals that this type of measure does not affect commerce; therefore, CAMBADU´s estimates may be premature and should be revised.
Illicit Trade Grows As Prices Increase Due to Higher Taxes
From the time the new government started office, the prices of tobacco products increased drastically due to constant raises of the IMESI, the internal specific tax (Impuesto Específico Interno). The government's aim is to discourage smoking. While tobacco companies believe this will lead to an increase in illicit tobacco, official sources state that raising taxes will not affect the levels of contraband, as customs controls will be harsher. In any case, government officials declare that the measure is to restrict the consumption of tobacco; thus as a health measure, it should not be left to one side just because of possible increases in illicit trade.
Grim Future for Tobacco Products
As legislation covering tobacco products becomes more restrictive, and specific consumption taxes rise, prices for tobacco products are expected to rise significantly over the forecast period. The current administration aims to prevent minors from smoking, with these measures, as well as to encourage light smokers to quit the habit. In addition, the full effect of the smoking ban is expected to be felt in the forecast period, as opportunities for consumption are severely restricted. Overall, the future looks grim for tobacco products.
Table of contents
TOBACCO IN URUGUAY : MARKET INSIGHT
EXECUTIVE SUMMARY
Uruguay Is the First Latin American Country Free of Tobacco Smoke in Public and Private Enclosed Spaces
The Government Takes Strong Measures Against Tobacco Companies
The Smoking Ban Raises Disagreement Among Retailers
Illicit Trade Grows As Prices Increase Due to Higher Taxes
Grim Future for Tobacco Products
OPERATING ENVIRONMENT
Smoking Population
Death by Smoking
Legislation
Tar
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies 2001-2006
Table 2 Average Cigarette Pack Price Breakdown : Brand Examples
Production/Imports/Exports
Table 3 Apparent Consumption 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Deaths from Heart Disease 2001-2006
Table 5 Deaths from Lung Cancer 2001-2006
Table 6 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2001-2006
Table 8 Sales of Tobacco by Sector: Value 2001-2006
Table 9 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 10 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 12 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 13 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
COMPAÑÍA INDUSTRIAL DE TABACOS MONTE PAZ SA
Strategic Direction
Key Facts
Summary 2 Compañía Industrial de Tabacos Monte Paz SA: Key Facts
Company Background
Production by Factory
Summary 3 Compañía Industrial de Tabacos Monte Paz SA: Production Statistics by Factory 2002-2006
Competitive Positioning
Summary 4 Compañía Industrial de Tabacos Monte Paz SA: Competitive Position 2007
XINET SA
Strategic Direction
Key Facts
Summary 5 Xinet SA: Key Facts
Summary 6 Xinet SA: Operational Indicators 2002-2004
Company Background
Competitive Positioning
CIGARETTES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 16 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 17 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Filter vs Non-filter 2001-2006
Table 24 Sales of Filter Cigarettes by Carbon vs Non-carbon 2001-2006
Table 25 Sales of Cigarettes by Length 2001-2006
Table 26 Sales of Cigarettes by Pack Size 2001-2006
Table 27 Sales of Cigarettes by Pack Type 2001-2006
Table 28 Cigarettes Company Shares 2002-2006
Table 29 Cigarettes Brand Shares 2003-2006
Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Filter vs Non-filter 2006-2011
Table 38 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon 2006-2011
Table 39 Forecast Sales of Cigarettes by Length 2006-2011
Table 40 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS AND CIGARILLOS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 42 Sales of Cigars by Subsector: Volume 2001-2006
Table 43 Sales of Cigars by Subsector: Value 2001-2006
Table 44 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 45 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 46 Company Shares of Cigars Excluding Cigarillos 2002-2006
Table 47 Brand Shares of Cigars Excluding Cigarillos 2003-2006
Table 48 Company Shares of Cigarillos 2002-2006
Table 49 Brand Shares of Cigarillos 2003-2006
Table 50 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 51 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 52 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 53 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 54 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 55 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 56 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 57 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 58 Company Shares of RYO Tobacco 2002-2006
Table 59 Brand Shares of RYO Tobacco 2003-2006
Table 60 Company Shares of Pipe Tobacco 2002-2006
Table 61 Brand Shares of Pipe Tobacco 2003-2006
Table 62 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 63 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 64 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 65 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011