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Big Tobacco and the Advent of E-Cigarettes
Background
The U.S. tobacco industry is among the most heavily regulated and heavily taxed industries in the United States (The Economist, 2014). Medical evidence of the adverse effects of smoking continues to grow, and the share of American adults who smoke has declined markedly during the past fifty years, from 42% in 1965 to less than 18% in 2013 (CDC, 2013). But in spite of ever-increasing regulation and public wariness of the U.S. tobacco industry, tobacco companies continue to thrive. This oligopoly industry, dominated by big tobacco companies Altria, Reynolds American, and Lorillard, serves a shrinking but remarkably loyal customer base. Critics are quick to point out that, despite extensive regulation of the marketing practices in the industry, tobacco products remain highly lucrative, with sales of over $66 billion in 2014 (Hargreaves, 2014).
This beleaguered but very profitable industry must now deal with another, potentially very disruptive innovation in the form of e-cigarettes. This new product category, the modern version of which dates from 2007, generated U.S. sales of $2.5 billion in 2014 (Richtel, 2014). Although the e-cigarette sector is still relatively small, it clearly has the potential to disrupt tobacco sales in the coming years. E-cig use is generally perceived to be less unhealthful than cigarette smoking, and the e-cig habit is substantially less costly than consuming tobacco cigarettes (Richtel, 2014). Moreover, e-cigarettes are far less regulated than tobacco products, without many of the marketing constraints.
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Problem Statement
Tobacco companies must address the advent of e-cigarettes in order to defend their tobacco business and to identify business opportunities in the growing e-cigarette product sector.
Alternative
Solution
s
In order to limit the impact of e-cigarettes on the sales of tobacco cigarettes, tobacco companies can lobby for additional regulation of this new product category. Increased regulation will help to “level the playing field” and reduce the advantages enjoyed by e-cigs as a consequence of their largely unrestricted marketing. Among the areas for increased regulation of e-cigarettes, the tobacco companies can lobby federal, state, and local governments to ban television and radio broadcasting of e-cig advertising, prohibit online sales of this product category, and proscribe e-cig use in public places. These changes will reduce some of the advantages of e-cigs over tobacco products, thereby presumably slowing the market acceptance.
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1. Tobacco in Argentina
Report Details:
Published:December 2012
No. of Pages: 52
Price: Single User License – US$1900
In 2011, the consumption of cigarettes registered positive growth after two years of slight decline.
The increase is due to the weak government policies against tobacco, keeping the number of
smokers stable and a fall in the relative price of a pack of cigarettes. The increase in the price of
cigarettes was less than inflation and the average wage has increased.
Euromonitor International''s Tobacco in Argentina report offers a comprehensive guide to the size
and shape of the market at a national level. It provides the latest retail sales data 2007-2011,
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 the new legislative,
distribution or pricing issues. Forecasts to 2016 illustrate how the market is set to change.
Product coverage: Cigarettes, Cigarettes Including RYO Stick Equivalent, Cigars, Smokeless
Tobacco, Smoking Tobacco.
Data coverage: market sizes (historic and forecasts), company shares, brand shares and
distribution data.
Why buy this report?
* Get a detailed picture of the Tobacco market;
* Pinpoint growth sectors and identify factors driving change;
* Understand the competitive environment, the market’s major players and leading brands;
* Use five-year forecasts to assess how the market is predicted to develop.
Euromonitor International has over 40 years'' experience of publishing market research reports,
business reference books and online information systems. With offices in London, Chicago,
Singapore, Shanghai, Vilnius, Dubai, Cape Town, Santiago, Sydney, Tokyo and Bangalore and a
network of over 800 analysts worldwide, Euromonitor International has a unique capability to
develop reliable information resources to help drive informed strategic planning.
Get your copy of this report @
http://www.reportsnreports.com/reports/210697-tobacco-in-argentina.html
2. Major points covered in Table of Contents of this report include
TOBACCO IN ARGENTINA
Euromonitor International
December 2012
LIST OF CONTENTS AND TABLES
Executive Summary
After Two Years, Consumption of Tobacco Grows
New Anti-tobacco Law Tries To Reduce Consumption
Low Retailer Margin Drives Iilegal Increases on the Price of Cigarettes
Companies Are Focused on Flavoured Cigarettes
New Plant of Philip Morris
Operating Environment
Legislative Overview/ Fctc Ratification
Summary 1 Legislation Summary at a Glance
Country-specific Legislation:
Minimum Legal Smoking Age
Smoking Prevalence
Table 1 Smoking Prevalence in Adult Population 2006-2011
Table 2 Number of Smokers by Gender 2006-2011
Tar Levels
Health Warnings
Advertising & Sponsorship
Point of Sale Display Bans
Smoking in Public Places
Low Ignition Propensity (lip) Regulation
''reduced Harm''
Electronic Cigarettes
Litigation
Death by Cause
Table 3 Death by Cause 2007-2011
Taxation and Pricing
Duty Paid Packet Marks
Taxation Rates
Summary 2 Taxation and Duty Levies 2006-2011
Average Cigarette Pack Price Breakdown
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/imports/exports
Illicit Trade in Cigarettes
Market Indicators
Table 5 Illicit Trade Estimate of Cigarettes by Volume 2006-2011
3. Market Data
Table 6 Sales of Tobacco by Category: Volume 2006-2011
Table 7 Sales of Tobacco by Category: Value 2006-2011
Table 8 Sales of Tobacco by Category: % Volume Growth 2006-2011
Table 9 Sales of Tobacco by Category: % Value Growth 2006-2011
Table 10 Forecast Sales of Tobacco by Category: Volume 2011-2016
Table 11 Forecast Sales of Tobacco by Category: Value 2011-2016
Table 12 Forecast Sales of Tobacco by Category: % Volume Growth 2011-2016
Table 13 Forecast Sales of Tobacco by Category: % Value Growth 2011-2016
Sources
Summary 3 Research Sources
Coimexpor Argentina SA in Tobacco (argentina)
Strategic Direction
Key Facts
Summary 4 Coimexpor Argentina SA: Key Facts
Summary 5 Coimexpor Argentina SA: Operational Indicators
Company Background
Production
Summary 6 Coimexpor Argentina SA: Production Statistics 2011
Competitive Positioning
Summary 7 Coimexpor Argentina SA: Competitive Position 2011
Espert SA in Tobacco (argentina)
Strategic Direction
Key Facts
Summary 8 Espert SA: Key Facts
Summary 9 Espert SA: Operational Indicators
Company Background
Production
Summary 10 Espert SA: Production Statistics 2011
Competitive Positioning
Summary 11 Espert SA: Competitive Position 2011
Massalin Particulares SA in Tobacco (argentina)
Strategic Direction
Key Facts
Summary 12 Massalin Particulares SA: Key Facts
Summary 13 Massalin Particulares SA: Operational Indicators
Company Background
Production
Summary 14 Massalin Particulares SA: Production Statistics 2011
Competitive Positioning
Summary 15 Massalin Particulares SA: Competitive Position 2011
Nobleza Piccardo Saic Y F in Tobacco (argentina)
4. Strategic Direction
Key Facts
Summary 16 Nobleza Piccardo SAIC Y F: Key Facts
Summary 17 Nobleza Piccardo SAIC Y F: Operational Indicators
Company Background
Production
Summary 18 Nobleza Piccardo SAIC y F: Production Statistics 2011
Competitive Positioning
Summary 19 Nobleza Piccardo SAIC y F: Competitive Position 2011
Headlines
Trends
Competitive Landscape
New Product Developments
Summary 20 Cigarettes - New Product Launches
Distribution
Prospects
Category Background
Cigarettes: Price Bands
Summary 21 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Flavour Threads and Capsule Filters
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard Filter
Cigarettes: Regular Vs Slims Vs Superslims
Cigarettes: Pack Size
Cigarettes: Pack Type
Category Data
Table 14 Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 15 Sales of Cigarettes by Tar Level: Value 2006-2011
Table 16 Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 17 Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 18 Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 19 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 20 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 21 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2006-2011
Table 22 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2006-2011
Table 23 Sales of Cigarettes by Length: % Volume Breakdown 2006-2011
Table 24 Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2007-2011
Table 25 Sales of Cigarettes by Pack Size: % Volume Breakdown 2006-2011
Table 26 Sales of Cigarettes by Pack Type: % Volume Breakdown 2006-2011
Table 27 Cigarettes Company Shares 2007-2011
Table 28 Cigarettes Brand Shares 2008-2011
5. Table 29 Sales of Cigarettes by Distribution Format: % Analysis 2006-2011
Table 30 Cigarettes: Production, Imports and Exports: Total Volume 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2011-2016
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2011-2016
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2011-2016
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2011-2016
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2011-2016
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2011-2016
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2011-2016
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2011-2016
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown
2011-2016
Table 40 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2011-2016
Table 41 Forecast Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2011-
2016
Table 42 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2011-2016
Table 43 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2011-2016
Headlines
Trends
Hand-made Versus Machine Manufactured Splits
Table 44 Sales of Cigars by Hand-made vs Machine-made: % Volume/Value Breakdown 2004-
2011
Competitive Landscape
New Product Developments
Distribution
Prospects
Category Data
Table 45 Sales of Cigars by Category: Volume 2006-2011
Table 46 Sales of Cigars by Category: Value 2006-2011
Table 47 Sales of Cigars by Category: % Volume Growth 2006-2011
Table 48 Sales of Cigars by Category: % Value Growth 2006-2011
Table 49 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2006-
2011
Table 50 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2006-
2011
Table 51 Company Shares of Cigars Excluding Cigarillos 2007-2011
Table 52 Brand Shares of Cigars Excluding Cigarillos 2008-2011
Table 53 Company Shares of Cigarillos 2007-2011
Table 54 Brand Shares of Cigarillos 2008-2011
Table 55 Sales of Cigars by Distribution Format: % Analysis 2006-2011
Table 56 Forecast Sales of Cigars by Category: Volume 2011-2016
Table 57 Forecast Sales of Cigars by Category: Value 2011-2016
6. Table 58 Forecast Sales of Cigars by Category: % Volume Growth 2011-2016
Table 59 Forecast Sales of Cigars by Category: % Value Growth 2011-2016
Headlines
Trends
the Role and Effect of Cannabis/marijuana
Distribution
Competitive Landscape
New Product Developments
Prospects
Category Data
Table 60 Sales of Smoking Tobacco by Category: Volume 2006-2011
Table 61 Sales of Smoking Tobacco by Category: Value 2006-2011
Table 62 Sales of Smoking Tobacco by Category: % Volume Growth 2006-2011
Table 63 Sales of Smoking Tobacco by Category: % Value Growth 2006-2011
Table 64 Company Shares of RYO Tobacco 2007-2011
Table 65 Brand Shares of RYO Tobacco 2008-2011
Table 66 Company Shares of Pipe Tobacco 2007-2011
Table 67 Brand Shares of Pipe Tobacco 2008-2011
Table 68 Sales of Smoking Tobacco by Distribution Format: % Analysis 2006-2011
Table 69 Forecast Sales of Smoking Tobacco by Category: Volume 2011-2016
Table 70 Forecast Sales of Smoking Tobacco by Category: Value 2011-2016
Table 71 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2011-2016
Table 72 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2011-2016
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