Philip Morris Names Threats to Cigarette Market

Philip Morris International Tobacco Company are more concerned with the influence on the sale of tobacco products in recent acceptance of Russia into the WTO, what about the harm to the company need to put it on packs of cigarettes and about anti-smoking campaign.

 Philip Morris Izhora, one of the two companies in full cigarette factories in Russia, reducing production by 2 percent last year – up to 70 billion cigarettes a year – at the same time can increase its market share by 0.8 percent to 26.2 percent.

“The number of cigarettes produced in plants will not grow in the near future; it drops all over the world,” said Alex Kim, Director of Corporate Affairs of Philip Morris International subsidiaries in Russia and Belarus.

“Russia has the second-largest tobacco market in the world, and its market volume declined 2 percent last year, total 375 billion cigarettes.”

The reasons are to reduce the growth of the struggle between tobacco companies and the global anti-smoking campaign.

Philip Morris International owns two of the strongest segments of the most popular brands – Parliament and L & M. This explains why the reduction of tobacco products did not affect its market share. What can affect it in the future; legal measures are currently being debated in the Duma.

One of the legal measures being discussed is the mandatory placement of graphic images on cigarette packs. The project authors base their arguments on the experience of other countries such as Thailand.

“After six years with the use of photo reviews of the dangers of smoking on cigarette packs, the number of smokers in Thailand fell by 20 percent,” Rossiyskaya Gazeta newspaper quoted the words of the explanatory note to the bill Thursday.

Excise tax on cigarettes also increased in early July of this year.

“Philip Morris Izhora is one of the largest taxpayers already, in 2011 we paid only 45 billion rubles ($ 1.5 billion) in taxes and customs duties for all the different types of budget and extra budgetary funds in Russia,” said Kim.

Philip Morris Izhora factory manufactures cigarettes in more than 50 kinds of international brands such as Marlboro, Parliament and Virginia S. cigarette factory are located in Russia and former Soviet republics, as well as exported to other countries. Izhora plant also exports other tobacco products such as filters.

“The product we offer is very ambiguous, and we try to keep our adult consumers about what risks they take, [when they use it],” said Maria Kulakhmetov, corporate communications and public relations manager of Philip Morris Sales and Marketing in Moscow.

“Our company was the first to put warning labels on cigarette packs. In 2003 we started to put flyers on the dangers of smoking inside the package. In addition, everyone can read about the dangers of smoking on our site. ”

“As for graphics, and warning labels, they will not affect demand,” said Kim.

“When the warning signs first appeared, people are curious and ask questions, and then just started to ignore them. Risks that we identified are associated with Russia joining the WTO and its relations with the countries of the Customs Union,” he added. “Nevertheless, we believe in our own brands and their quality.”