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Global Briefing

Tobacco: Eastern European Market Growth Stubbed Out by Soaring Russian Taxation

Aug 2012

Price: US$2,000

About this Report

About this Report

Although the pricing strength of international brands has kept the market growing, the operating environment is increasingly tough as a series of tax and other legislative measures come into effect, particularly in Russia, the region’s dominant market (and the world’s second-largest cigarette market after China). Consequently, cigarette volumes will struggle to grow, with smoking prevalence declining and non-cigarette categories such as RYO and cigars picking up the slack.


What this report includes

  • Up-to-the minute analysis of the latest trends in the industry
  • New product development, forecasts and other themes
  • Unique graphics and illustrated case studies
  • Most recent brand and company news
  • New insight into the size and shape of the market

Why buy this report

  • Clear, concise powerpoint format makes it easy to digest
  • Leading industry opinion keeps you abreast of latest news and trends
  • Forward-looking outlook on a category, market or issue affecting the industry
  • Latest five year forecasts assess how the market is predicted to develop
  • Understand the competitive environment, the leading players and brands

Table of Contents

Table of Contents

Introduction

Scope

Key findings

Regional Context

Eastern Europe shrinks a little more

World player Russia leads the region

Category Context

Cigarettes the primary category in Eastern Europe

Country Highlights

Still some pockets of growth in cigarette market

Tax and price regimes impact performance

Smoking Prevalence

Eastern Europe has more than its share of heavy smokers

Russia will see 1.6 million fewer smokers by 2016

Legislation Overview

Eastern Europe legislation: Summary table

Russia commits to anti-tobacco legislation

Bans of all kinds increase as legislative noose tightens

Price and Taxation

Tax hikes drive price rises

Price rises have an impact on volume

EU legislation drives highest tax proportions

Economy cigarettes lose out to illicit

Russia looks to double prices

Illicit Trade

Low levels of illicit trade within region but a key supplier to others

Price hikes drive illicit sales up

Company and Brand Shares

Multinationals are the unrivalled leaders in Eastern Europe

Donskoi sale set to change the market place

CNTC buys Donskoi ?

Leading company p erformance

Winston leads Eastern Europe through its popularity in Russia

New Product Developments

Innovation in pack and product to stimulate interest

New product development trends in cigarettes

JTI focus: Winning Winston (mid-price)

Other Tobacco P roducts

RYO tobacco gets a boost from higher cigarette prices

Other Tobacco Products

Hungary leads RYO tobacco sales

Closing of loophole sees Polish pipe tobacco market slide

The RYO price advantage: Does it exist?

New product development trends in RYO

Eastern Europe only a small player in the cigar market

Russian love of cigarillos drives cigar category

Cigarette alternative is a powerful demand driver

Brining more variety to a developing market

Distribution

Small stores under threat but still dominate distribution

P rospects

Tougher operating environment will make growth challenging

Report Definitions

Definitions

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