1. CANADA
SENEGAL
CÔTE
D’IVOIRE
GHANA
NIGERIA
CAMEROON
DEM. REP.
OF CONGO
UNITED REPUBLIC
OF TANZANIA
KENYA
ETHIOPIA
MADAGASCAR
ZIMBABWE
S. AFRICA
TOGO
SAUDI
ARABIA
YEMEN
ALGERIA
EGYPT
MOROCCO
MALAYSIA
INDONESIA
INDIA
NEPAL
BANGLADESH
PAKISTAN
KAZAKHSTAN
CHINA
RUSSIAN
FEDERATION
VIETNAM
CAMBODIA
JAPAN
KYRGYZSTAN
UZBEKISTAN
JORDAN
IRAQ
SYRIAN
ARAB
REP.
LEBANON ISL. REP.
OF IRAN
KUWAIT
TURKEY
LIBYAN
ARAB
JAMAHIRIYA
TUNISIA
PHILIPPINES
ARMENIA
AZERBAIJAN
GEORGIA
LAO
PDR
MALTA
MAURITIUS
GREECE
SLOVENIA
UKRAINE
SPAIN
BELGIUM
FRANCE
GERMANY
ITALY
PORTUGAL
UNITED
KINGDOM
NORWAY
SWEDEN
DENMARK
SWITZ.
POLAND
ESTONIA
LATVIA
LITHUANIA
BELARUS
CZECH REP.
SLOVAKIA
AUSTRIA
HUNGARY
ROMANIA
BULGARIA
CROATIA
Bosnia and
Herzegovina
ALBANIA
SERBIA
FYR MACEDONIA
FINLAND
NETHERLANDS
THAILAND
UAE
ANGOLA
MYANMAR
HONG KONG
MOZAMBIQUE
SINGAPORE
SRI LANKA
SUDAN
ZAMBIA
IRELAND
TURKMENISTAN
CYPRUS
Cuba
Mexico
Guatemala
El Salvador
Honduras
Nicaragua
Costa Rica
Panama
Colombia
Venezuela
Ecuador
Peru
Bolivia
Brazil
Argentina
Chile
Uruguay
Paraguay
Jamaica
Trinidad and Tobago
Dominican Rep.
UNITED STATES OF AMERICA
REP.
MOLDOVA
RUSSIAN FED.
DPR
KOREA
REP.
KOREA
MONTENEGRO
ISRAEL
C H A P T E R
14
TOBACCO COMPANIES
I
n recent years, dozens of cigarette manufacturing
companies have consolidated under four major private
corporations: Altria/Philip Morris, British American
Tobacco, Japan Tobacco International, and Imperial Tobacco.
State monopolies are also major cigarette manufacturers. The
largest state monopoly is China National Tobacco Corporation,
with a global cigarette market share that exceeds that of any
private company. Because the European Union intends to
restrict further mergers and acquisitions that increase a tobacco
company’s market-share dominance, industry consolidation
trends may have peaked.
The tobacco industry includes some of the most powerful
transnational corporate entities in the world. Tobacco
conglomerates have diversified into many other industries, such
as financial services, food and beverages, pharmaceuticals, real
estate, hotels, restaurants, communications, and apparel, among
others. The tobacco industry is expected to continue increasing
in size and power.
The global tobacco market, valued at $378 billion, grew by
4.6 percent in 2007. By the year 2012, the value of the global
tobacco market is projected to increase another 23 percent,
reaching $464.4 billion. If Big Tobacco were a country, it would
have the 23rd-largest gross domestic product in the world,
surpassing the GDP of countries like Norway and Saudi Arabia.
“In the tobacco business, big is beautiful.”
—Ronald Wildmann, an analyst at zurich’s Bank Leu AG,
on the Rothmans/BAT merger, 1999
“If I were to describe any
moment in my life as perfect,
this would be it.”
—Andrew Schindler, chief
executive and chairman of
R. J. Reynolds Tobacco, on the
merger between R. J. Reynolds
and Brown & Williamson Tobacco
Corporation, 2004
Tobacco Company Profits,
2008 or latest available year
Altria/Philip
Morris
British American
Tobacco
Japan Tobacco
International
Imperial Tobacco
Altadis
$5,223,338,640 (US$)
$7,692,000,000 (US$)
$2,611,669,320 (US$)
$800,350,106 (US$)
None
Altria/Philip Morris
British American
Tobacco
Japan Tobacco
International/Gallaher
State Monopoly
Altria: Richmond,
Virginia, USA
Philip Morris
International:
Lausanne,
Switzerland
British American
Tobacco:
London, UK
Japan Tobacco
International:
Tokyo, Japan
Imperial
Tobacco
Group:
Bristol, UK
Location of
headquarters of
major transnational
tobacco companies
$13,400,000,000 (US$)
Imperial Tobacco/
Altadis
Other
China National
Tobacco
Corporation
32.0%
British
American Tobacco
17.1%
Japan Tobacco
International
10.8%
Imperial Tobacco/
Altadis
5.6%
Others
15.8%
Leading tobacco manufacturer
By country, 2006
AUSTRALIA
NEW ZEALAND
No data
Altadis:
Madrid, Spain
Philip Morris
International
18.7%
Global Cigarette Market Share, 2007
51
50