Today: October 7, 2015, 8:39 am

New C&M analysis: Tobacco (Estonia) Imperial Tobacco Estonia OÜ Company Profile
Imperial Tobacco Estonia OÜ in Tobacco (Estonia) - a new company profile report on 2014-03-20 10:51:01
Imperial Tobacco Estonia OÜ represents a large company operating in Estonia´s tobacco market. Retail sales in tobacco continued to increase during 2012 despite decreases in volume sales for cigarettes and smoking tobacco. Retail volume sales of cigars in Estonia increased in 2012. The declines were a result of the strengthening anti-smoking sentiment within society, which was supported by tobacco excise increases and stricter regulation. In addition, anti-tobacco lobby groups increased their activities in 2012. Tobacco, primarily cigarettes, witnessed the withdrawal of several brands in 2012, which forced consumers to change their brand and price range preferences. Therefore, the popularity of economy brands diminished. The importance of supermarkets increased and internet retailing of tobacco products began to emerge in 2012. Unlike previous years, innovation remained rather moderate and breakthroughs in new product development were not noted.

In contrast to the previous year, when tobacco excise rates increased for all tobacco products, higher excise tax was recorded only for cigarettes, where excise tax increased by 10% in 2012. Other categories, in addition to cigarettes, also recorded higher unit prices, as a result of companies increasing the prices of products and a consumer trend towards products with higher perceived quality in place of economy brands.

The government, anti-tobacco lobbies and other interest groups introduced "The Green Paper on Tobacco Policy", which includes proposals on how to reduce smoking in Estonia. The proposals were regarded as rather strict and caused concern among the tobacco companies. One of the proposals was the prohibition of POS (point-of-sale) displays which, however, had already been voluntarily implemented by some grocery retailing chains, which had removed tobacco products from sight. Although some decline in sales of tobacco products was recorded in stores where this action was taken, the chains improved their images as socially-responsible companies.

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