The legal market for cigarettes had a positive evolution over the last two years, mostly due to the dramatic drop in the illicit trade, said Adrian Popa, Corporate & Regulatory Affairs Director of cigarette maker "British American Tobacco" (BAT) Romania.
In his opinion, "the most important factor which disrupts the cigarette market is the level of taxes, the excise in particular, which is disproportionately large compared to that of other countries which Romania shares 2,000 km of border with; this has the collateral effect of the smuggling of tobacco products coming in from the neighboring countries in question, such as Ukraine, Moldova and Serbia, where the price of a cigarette pack is far lower than it is in Romania". According to Mr. Popa, the steps to fight tax evasion which the state took over the last 12-14 months, proved effective, and he added that most of their effects are reflected in the market research which he periodically conducts.
The representative of BAT considers that the legislative predictability and the regulatory measures which are integrated in a plan and implemented based on a schedule are essential for the functioning of a healthy and stable business environment: "Just like any other business, the cigarette industry needs stability and the transparency of the legislative process".
BAT has a market share of 52% of the domestic tobacco market, according to the audit data for the month of January 2012, and has over 650 employees in Romania.
The brand portfolio of "British American Tobacco" Romania comprises "Dunhill", "Vogue", "Kent", "Lucky Strike", "Pall Mall", "Viceroy" and "Rothmans".
The "Kent Convertibles" brand has reached a market share of 1.4%, less than one year after its launch, Adrian Popa said.
In the first half of 2011, British American Tobacco (BAT) Romania saw an increase in profit, as a resu
