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Learn moreSep 2017
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In this first in an ongoing series of quarterly briefings looking at major (and some minor) developments in the world of tobacco we assess the latest performance of the major multinationals, the FDA’s plan to reduce nicotine in cigarettes and Euromonitor’s updated economic growth projections for the world’s key markets.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
For the first time in its history, the US Food and Drug Administration (FDA) is seeking to limit nicotine content in tobacco products,. The goal is to “render cigarettes minimally addictive” by reducing the amount of the addictive chemical, which, according to the FDA, is the leading cause of preventable death in the US.
According to the Beijing municipal government, the number of cigarettes sold in the region in 2016 fell by 8%, while smoking prevalence among the population aged 15 or older fell by 4.7 percentage points to 22.3% with smokers falling by some 200,000.
BAT has announced the completion of its acquisition of the 57.8% of RAI that it did not already own. The acquisition makes BAT a major player in the US market accounting for some 34% by volume and owning Newport the second largest and fastest growing major brand.
According to the latest Project Sun report by KPMG, illicit cigarettes volume in Europe in 2016 compared with 2015 fell by 8.8% to 48.3 billion sticks as incomes rose and unemployment fell. However, contraband cigarettes still accounted for 9% of total consumption in 2016.
The China National Tobacco Corporation (CNTC) and Cuba’s Habanos S.A. have signed a letter of intenton under which Habanos will advise on cigar production in China while increasing cigar sales there. Cuba’scigar sales to China accounted for more than half volume and 70% by revenue. Habanos is a joint venturebetween Cuba’s state-owned Cubatabaco and Altadis, an affiliate of Imperial Brands recorded revenue ofabout USD450 million in 2016.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.