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Higher taxation set to impact growth of Irish cigars industry
Cigars in the United Kingdom - a new market research report on 2014-03-24 12:38:01
Cigars is jointly led by Gallaher and Henri Wintermans Cigars, accounting for volume shares of 29% and 28% respectively in 2012. Gallaher chiefly owes its strength to the Hamlet range, which led cigars excluding cigarillos with a 28% volume share in 2012, and ranked second in cigarillos with a 22% volume share.

Hamlet is a well-established brand which enjoys strong awareness and customer loyalty, particularly amongst consumers aged 40 and over, thanks to its strong advertising support in the past. Henri Wintermans Cigars, meanwhile, derives the bulk of its sales from the Café Crème range in cigarillos, with the company dominating cigarillos in 2012 with a 54% volume share.

Like all tobacco products, cigars faced higher taxation towards the end of the review period. The March 2012 budget added 10p to a pack of five small cigars, with cigars also seeing higher VAT introduced at the start of the year. These tax increases also had a higher impact on cigar smokers due to ongoing economic uncertainty and higher VAT across the board, with many smokers thus facing eroded disposable incomes.

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