Tobacco in slovakia

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Euromonitor International’s “Tobacco in Slovakia” is now available at ReportsnReports.com.

Euromonitor International’s “Tobacco in Slovakia” is now available at ReportsnReports.com.

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  • 1. Tobacco in SlovakiaReport SummarySlovak tobacco market remains steady in 2010Sales of tobacco in Slovakia remained stable in 2010, growing modestly in current value terms. Asubstantial improvement was notable particularly within cigarettes as the category managed to recordmarginal growth compared to a 1% decline in 2009 in volume terms. This was mainly the result of unitprice stability as well as minor pre-stocking activity during the last few months of 2010.Slovakia on an important trade route for illegal importsSlovakia lies on a trade route connecting Eastern and Western Europe, particularly for goodsoriginating from Ukraine and Russia. This is a particularly popular route for smugglers trying to evadetax. The illicit trade of cigarettes rose by 3% in 2010, attempting to satisfy the increasing demand forcheap goods especially in Western Europe. Only a small fraction of these imports are meant forSlovakia itself as most shipments continue westwards. These cigarettes originate from illegal factoriesin Ukraine and Romania, with both fake economy and premium brands made from the same localtobacco blend, thus making it a very profitable business.Philip Morris Slovakia continues to lead the market in 2010Philip Morris Slovakia maintained its leading position in 2010 and even managed to increase the gapbetween itself and second ranked manufacturer Imperial Slovakia Tobacco market. It is estimated thatPhilip Morris accounts for more than 50% of total tobacco volume sales in the country.Excise tax set to reach a maximum by the end of 2013The Slovak government has introduced a plan to continually increase taxation so as to bring it in linewith the limit set by the European Commission. This will be done in two phases, with the firstcommencing in 2011 and a second bigger increase taking place in 2013. This will put additionalpressure on manufacturers and force unit prices up significantly. However, there have been recentrumours that this may happen even earlier, starting in 2012, as a result of austerity measures adoptedby the government to reduce Slovakia’s fiscal deficit.Legislative amendment bans sale of certain pack sizesFollowing the introduction of anti-smoking legislation (No 406/2009), cigarettes are now only allowedto be sold in two different pack sizes. This legislation came into effect in August 2010 and from thatdate all distributors had to remove packs containing any number of cigarettes other than 19 or 20sticks. This led to the disappearance of the recently popular 10-unit pack, primarily purchased bypeople who do not smoke regularly (ie social smokers).
  • 2. TABLE OF CONTENTSTobacco in Slovakia - Industry OverviewEXECUTIVE SUMMARYSlovak tobacco market remains steady in 2010Slovakia on an important trade route for illegal importsPhilip Morris Slovakia continues to lead the market in 2010Excise tax set to reach a maximum by the end of 2013Legislative amendment bans sale of certain pack sizesOPERATING ENVIRONMENTLegislative overview/ FCTC ratificationSummary 1 Legislation Summary at a GlanceCountry-specific legislation:Minimum legal smoking ageSmoking PrevalenceTable 1 Smoking Prevalence in Adult Population 2005-2010Table 2 Number of Smokers by Gender 2005-2010Tar levelsHealth warningsAdvertising & SponsorshipPoint-of-sale Display BansSmoking in public placesLow Ignition Propensity (LIP) regulationElectronic cigarettesLitigationDeath by CauseTable 3 Death by Cause 2005-2010TAXATION AND PRICINGDuty paid packet marksTaxation ratesTable 4 Taxation and Duty Levies for CigarettesTable 5 Taxation and Duty Levies for Cigars/CigarillosTable 6 Taxation and Duty Levies for RYO Cut TobaccoAverage cigarette pack price breakdownTable 7 Average Cigarette Pack Price Breakdown: Brand Examples 2010PRODUCTION/IMPORTS/EXPORTSTable 8 Production/Imports/Exports 2005-2010Table 9 Trade Statistics – Tobacco Leaf 2006-2010Illicit trade in cigarettesMARKET INDICATORSTable 10 Illicit Trade Estimate of Cigarettes by Volume 2005-2010MARKET DATATable 11 Sales of Tobacco by Category: Volume 2005-2010Table 12 Sales of Tobacco by Category: Value 2005-2010Table 13 Sales of Tobacco by Category: % Volume Growth 2005-2010Table 14 Sales of Tobacco by Category: % Value Growth 2005-2010
  • 3. Table 15 Forecast Sales of Tobacco by Category: Volume 2010-2015Table 16 Forecast Sales of Tobacco by Category: Value 2010-2015Table 17 Forecast Sales of Tobacco by Category: % Volume Growth 2010-2015Table 18 Forecast Sales of Tobacco by Category: % Value Growth 2010-2015DEFINITIONSSummary 2 Research SourcesTobacco in Slovakia - Company ProfilesDanczek Bratislava sro in Tobacco (Slovakia)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 4 Danczek Bratislava sro: Competitive Position 2010Imperial Tobacco Slovakia in Tobacco (Slovakia)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 7 Imperial Tobacco Slovakia: Competitive Position 2010Philip Morris Slovakia sro in Tobacco (Slovakia)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 10 Philip Morris Slovakia sro: Competitive Position 2010Cigarettes in Slovakia - Category AnalysisHEADLINESTRENDSCigarette sales remained stable in 2010 thanks to a multitude of factors. The smoking populationbenefited from the number of smoking juveniles coming of age as well as the emergence of the so-called “party smoker”, ie somebody who only smokes at parties and various social events. Theforthcoming tobacco excise tax hike in February 2011 also led to some forestalling on the part ofconsumers. However, as forestalling is banned for distributors and retailers, this impacted demandonly slightly.COMPETITIVE LANDSCAPEThe cigarette industry in Slovakia is dominated by two international companies. Philip Morris Slovakiacontinued to lead in 2010 and was able to strengthen its volume share to 45%. Ranked second wasImperial Tobacco Slovakia with a 39% volume share. Taking into consideration the current marketsituation, it would be virtually impossible for domestic players to successfully compete in this industry.The remaining 16% volume share was split between other foreign multinationals.NEW PRODUCT DEVELOPMENTSSummary 11 Cigarettes - New Product LaunchesDISTRIBUTION
  • 4. PROSPECTSAs excise tax on tobacco products is expected to soar, cigarette smokers will be forced to look foralternatives. This increased pressure on each smoker’s budget will force more and more people tooccasionally seek illicit products. RYO tobacco is expected to strengthen, particularly in the yearsfollowing the tax hikes. Over the forecast period cigarettes is expected to remain largely flat in bothvolume and constant value terms, representing a much weaker performance than that of the reviewperiod.CATEGORY BACKGROUNDCigarettes: Price BandsSummary 12 Cigarette Price Band DefinitionsCigarettes: Menthol/standardCigarettes: Filter/non-filterCigarettes: Carbon/standard filterCigarettes: Filter lengthCigarettes: Slims/superslims vs regularCigarettes: Pack sizeCigarettes: Pack typeCATEGORY DATATable 19 Sales of Cigarettes by Tar Level: Volume 2005-2010Table 20 Sales of Cigarettes by Tar Level: Value 2005-2010Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2005-2010Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2005-2010Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2005-2010Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2005-2010Table 26 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2005-2010Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2005-2010Table 28 Sales of Cigarettes by Length: % Volume Breakdown 2005-2010Table 29 Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2006-2010Table 30 Sales of Cigarettes by Pack Size: % Volume Breakdown 2005-2010Table 31 Sales of Cigarettes by Pack Type: % Volume Breakdown 2005-2010Table 32 Cigarettes Company Shares 2006-2010Table 33 Cigarettes Brand Shares 2007-2010Table 34 Sales of Cigarettes by Distribution Format: % Analysis 2005-2010Table 35 Cigarettes: Production, Imports and Exports: Total Volume 2005-2010Table 36 Forecast Sales of Cigarettes by Tar Level: Volume 2010-2015Table 37 Forecast Sales of Cigarettes by Tar Level: Value 2010-2015Table 38 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2010-2015Table 39 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2010-2015Table 40 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2010-2015Table 41 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2010-2015Table 42 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2010-2015Table 43 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2010-2015Table 44 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2010-2015Table 45 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2010-2015Table 46 Forecast Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2010-2015
  • 5. Table 47 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2010-2015Table 48 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2010-2015Cigars in Slovakia - Category AnalysisHEADLINESTRENDSAs in most other post-Soviet Union countries, there is no significant tradition for cigars in Slovakia.Prior to 1989, during the period of communism, there were only two domestic brands available, forinstance cigars called ‘virzinky’, produced at the now closed Smolnik factory. However, these productswere of low quality and their distribution was underdeveloped. Many smokers are only now justdiscovering the taste of high-quality cigars which are being purchased only occasionally by a widenumber of regular cigarette smokers.HANDMADE VERSUS MACHINE-MANUFACTURED SPLITSTable 49 Sales of Cigars by Handmade vs Machine-manufactured 2006-2010COMPETITIVE LANDSCAPEDanczek Bratislava led the category in 2010 with a 36% volume share followed by My a mi sro with an18% share. Both managed to increase their share slightly in 2010 while Imperial Tobacco Slovakia,which ranked third, held a share of less than 2%.NEW PRODUCT DEVELOPMENTSSummary 13 Cigars and Cigarillos - New Product LaunchesDISTRIBUTIONPROSPECTSHigher excise taxes on tobacco products are expected to limit growth up to 2013. Significant tax hikesare expected to take place over the course of the following three years and this will hamper growthsignificantly. In spite of the negative impact of taxation and declining male smoking prevalence, cigarsand cigarillos is expected to register slower yet a still healthy volume CAGR of 3% over the forecastperiod.CATEGORY DATATable 50 Sales of Cigars by Category: Volume 2005-2010Table 51 Sales of Cigars by Category: Value 2005-2010Table 52 Sales of Cigars by Category: % Volume Growth 2005-2010Table 53 Sales of Cigars by Category: % Value Growth 2005-2010Table 54 Sales of Cigars by Handmade vs Machine Manufactured: % Volume Breakdown 2005-2010Table 55 Company Shares of Cigars Excluding Cigarillos 2006-2010Table 56 Brand Shares of Cigars Excluding Cigarillos 2007-2010Table 57 Company Shares of Cigarillos 2006-2010Table 58 Brand Shares of Cigarillos 2007-2010Table 59 Sales of Cigars by Distribution Format: % Analysis 2005-2010Table 60 Forecast Sales of Cigars by Category: Volume 2010-2015Table 61 Forecast Sales of Cigars by Category: Value 2010-2015Table 62 Forecast Sales of Cigars by Category: % Volume Growth 2010-2015Table 63 Forecast Sales of Cigars by Category: % Value Growth 2010-2015Smokeless Tobacco in Slovakia - Category AnalysisTRENDSSmokeless tobacco sales in Slovakia are negligibleSmoking Tobacco in Slovakia - Category AnalysisHEADLINES
  • 6. TRENDSThe tradition for pipe tobacco in Slovakia dates back to the 17th century. Currently, stylish classicalpipes are not showing significant growth potential. It is rare to see a person smoking a pipe duringhis/her lunch break. Pipes are not as convenient to carry around as cigarettes and require a longertime to prepare. This is why people prefer to smoke them at home or in a café as smoking in suchestablishments is not completely banned. In general, increasing sales of flavoured tobacco for waterpipes was the main growth driver in 2010.The Role and Effect of Cannabis/MarijuanaDISTRIBUTIONCOMPETITIVE LANDSCAPEImperial Tobacco Slovakia dominated the category in 2010 with a volume share of 58%. It was followedby TTI Slovakia and Nakhla Tobacco Co, which both held shares of 6%. Nakhla Tobacco specialises inpipe tobacco, leading that category in 2010 with a volume share of 41%.NEW PRODUCT DEVELOPMENTSSummary 14 Smoking Tobacco - New Product LaunchesPROSPECTSSmoking tobacco is expected to record a volume CAGR of 1% and a constant value CAGR of 5% overthe forecast period.CATEGORY DATATable 64 Sales of Smoking Tobacco by Category: Volume 2005-2010Table 65 Sales of Smoking Tobacco by Category: Value 2005-2010Table 66 Sales of Smoking Tobacco by Category: % Volume Growth 2005-2010Table 67 Sales of Smoking Tobacco by Category: % Value Growth 2005-2010Table 68 Company Shares of RYO Tobacco 2006-2010Table 69 Brand Shares of RYO Tobacco 2007-2010Table 70 Company Shares of Pipe Tobacco 2006-2010Table 71 Brand Shares of Pipe Tobacco 2007-2010Table 72 Sales of Smoking Tobacco by Distribution Format: % Analysis 2005-2010Table 73 Forecast Sales of Smoking Tobacco by Category: Volume 2010-2015Table 74 Forecast Sales of Smoking Tobacco by Category: Value 2010-2015Table 75 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2010-2015Table 76 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2010-2015Related Reports:Tobacco in AustriaTobacco in SloveniaTobacco in UkraineTobacco in IrelandTobacco in CroatiaTobacco in Ecuador
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