Russia: Cigarette Market Business in Brief

Source from:  The Moscow Times 06/17/2014

Russia's cigarette market will shrink by 8-10 percent this year as anti-smoking legislation and an economic downturn begin to bite, the head of Japan Tobacco, Mitsuomi Koizumi, told Japan's Nikkei paper, ITAR-Tass reported Monday.

Koizumi blamed the fall on a tax hike on cigarettes in January and the introduction of a ban on smoking in restaurants and cafes that came into force this month.

Much of the reduction in sales will also be due to smokers choosing cheaper brands, he added — "When the economy begins to slide, buyers of expensive cigarettes drop down to lower-quality products."

Koizumi said Japan Tobacco, which with brands like Winston and Camel has a 36 percent share of the Russian market, ought to see its revenues fall in Russia slower than the overall 8-10 percent contraction. Enditem