Cigarettes in Peru

CIGARETTES IN PERU
Euromonitor International
October 2013
CIGARETTES IN PERU
Passport
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
New Product Developments ......................................................................................................... 2
Summary 1
Cigarettes - New Product Launches ............................................................. 3
Distribution ................................................................................................................................... 3
Prospects ..................................................................................................................................... 4
Category Background ................................................................................................................... 5
Cigarettes: Price Bands ............................................................................................................ 5
Summary 2
Cigarette Price Band Definitions .................................................................. 6
Cigarettes: Tobacco Blend ....................................................................................................... 6

Cigarettes: Menthol/standard .................................................................................................... 6
Cigarettes: Filter/non-filter ........................................................................................................ 7
Cigarettes: Carbon/standard Filter ............................................................................................ 7
Cigarettes: Filter Length ........................................................................................................... 7
Cigarettes: Regular Vs Slims Vs Superslims ............................................................................ 7
Cigarettes: Pack Size ............................................................................................................... 8
Cigarettes: Pack Type .............................................................................................................. 8
Category Data .............................................................................................................................. 8
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Sales of Cigarettes by Tar Level: Volume 2007-2012 .................................. 8

Sales of Cigarettes by Tar Level: Value 2007-2012 ..................................... 8
Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012 ................. 9
Sales of Cigarettes by Tar Level: % Value Growth 2007-2012 .................... 9
Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012......... 9
Sales of Cigarettes by Standard/Menthol: % Volume Breakdown
2007-2012 .................................................................................................... 9
Sales of Cigarettes by Tobacco Type: % Volume Breakdown 20072012 ........................................................................................................... 10
Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown
2007-2012 .................................................................................................. 10
Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume
Breakdown 2007-2012 ............................................................................... 10
Sales of Cigarettes by Length: % Volume Breakdown 2007-2012 ............. 10
Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown
2007-2012 .................................................................................................. 11
Sales of Cigarettes by Pack Size: % Volume Breakdown 2007-2012 ........ 11
Sales of Cigarettes by Pack Type: % Volume Breakdown 2007-2012 ....... 11
NBO Company Shares of Cigarettes: % Volume 2008-2012 ..................... 11
Cigarettes Brand Shares 2009-2012 .......................................................... 12
Sales of Cigarettes by Distribution Format: % Analysis 2007-2012 ........... 13
Cigarettes: Production, Imports and Exports: Total Volume 2007-2012 ..... 13
Forecast Sales of Cigarettes by Tar Level: Volume 2012-2017 ................. 14
Forecast Sales of Cigarettes by Tar Level: Value 2012-2017 .................... 14
Forecast Sales of Cigarettes by Tar Level: % Volume Growth 20122017 ........................................................................................................... 14
CIGARETTES IN PERU
Table 21
Table 22
Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Passport
Forecast Sales of Cigarettes by Tar Level: % Value Growth 20122017 ........................................................................................................... 14

Forecast Sales of Cigarettes by Price Band: % Volume Breakdown
2012-2017 .................................................................................................. 15
Forecast Sales of Cigarettes by Standard/Menthol: % Volume
Breakdown 2012-2017 ............................................................................... 15
Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown
2012-2017 .................................................................................................. 15
Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume
Breakdown 2012-2017 ............................................................................... 15
Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: %
Volume Breakdown 2012-2017 .................................................................. 15
Forecast Sales of Cigarettes by Length: % Volume Breakdown 20122017 ........................................................................................................... 16
Forecast Sales of Cigarettes by Regular/Slim/Superslim: % Volume
Breakdown 2012-2017 ............................................................................... 16
Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown
2012-2017 .................................................................................................. 16
Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown
2012-2017 .................................................................................................. 16
II
CIGARETTES IN PERU
CIGARETTES IN PERU
HEADLINES
Cigarettes decreases by 21% in retail volume terms to reach 2.1 billion sticks sold and by
16% in current value terms to reach PEN520 million in 2012
Higher prices of economy and mid-priced brands, negatively impact the retail market
Low-tar cigarettes achieves 7% growth in current value terms, in 2012
British American Tobacco Per Holdings SAA leads with an 85% volume share in 2012
Legislation gradually drives trend towards reducing or quitting cigarette consumption while the
taxing system drives up illicit sales
Cigarette sales will decrease in volume terms, recording a negative CAGR of 1% over the
forecast period
TRENDS
In 2012, cigarette prices increased by 6% on average; significantly above the inflation rate,
estimated at 3%. Price increases determined two different behaviours. On the one hand, as
economy brands became more expensive, a significant portion of consumers who purchase
these brands turned to the illicit market, purchasing cigarettes by units or purchasing
counterfeit products. On the other hand, as the price gap between mid-priced brands and
premium brands becomes smaller, some consumers, benefitting from higher purchasing
power, traded up to premium brands. Given the fact that economy brands represent an
important portion of the cigarettes market, retail sales were negatively impacted and dropped
by 15% in volume terms, while illicit sales increased by 15%.
Cigarettes experienced a 16% decline in current value terms in 2012, as price increases were
not enough to offset the volume decline. High tar and mid tar cigarettes registered notorious
declines in value terms, basically because economy brands have significant weight in these
categories. Nevertheless, low tar and ultra low tar cigarettes were able to post positive
performances, as some consumers were attracted to such products because they are
perceived as being less harmful to health.
In 2012, low tar cigarettes registered a 7% increase in current value terms, benefitted by a
price increase of 6%, as well as increasing interest among young women who prefer products
that have less odour.
Mid tar cigarettes represent the most popular type of product in Peru, accounting for 78% of
retail volume sales. Although there has not been an important shift in tar levels during 2012, a
gradual increase of low and ultra low tar cigarettes among young women is observed, as they
meet their preferences better.
Manufacturers complied with the new legislative climate, carrying health warnings with text
and graphics on their cigarettes packaging. In addition, given the fact that advertisements for
cigarettes are banned from TV and radio, manufacturers are increasingly investing in placing
posters and offering special cabinets within modern grocery retailers, forecourt retailers and
independent small grocers.
Menthol brands are the only flavoured cigarettes available in the legal market and in 2012
they represented 15% of retail volume sales of cigarettes. These products are sustainably
gaining share among women and social smokers due to their pleasant flavour and the fact
that they do not leave an unpleasant aftertaste or odour in the mouth.
Passport
CIGARETTES IN PERU
Organic cigarettes are not available in the Peruvian market. During Q2 2012, leading
multinational British American Tobacco Plc, launched the first additive-free cigarette available
in Peru under the brand Lucky Strike 100% Tobacco. The brand is slowly increasing its
awareness and mainly attracts affluent consumers due to its high unit prices.
COMPETITIVE LANDSCAPE
In Peru, multinational British American Tobacco Plc dominates the cigarette industry, through
its two companies, local one Tabacalera Nacional SA (TANASA) and British American
Tobacco Per Holdings SAA. In addition, multinational Philip Morris International Inc also
participates in this arena. In 2012, multinational British American Tobacco Plc remains the
indisputable leader in the market with an 85% volume share, followed by Philip Morris
International Inc with a 12% volume share. It is worth noting that while British American
Tobacco Plc mostly imports its products from Chile, Philip Morris International Inc brings its
products mostly from Argentina.
Philip Morris Per experienced a decrease in share of one percentage point, in 2012. This
performance is explained by the fact that its most popular brand, Caribe, an economy one,
continues to lose ground due to the advance of the illegal market and its limited availability.
Since in Peru there are strongly restrictive regulations on cigarette advertising, sales shares
are won or lost based on distribution level, advertising at the point of sale and the
development of variants of well-positioned global flagship brands- such as Lucky Strike and
Marlboro-, since consumers tend to remain loyal to their favourite brands. For instance, while
banners are commonly seen within forecourt retailers and modern grocery retailers they are
increasingly being placed within independent small grocers.
Both British American Tobacco Plc and Philip Morris Inc mainly focus their marketing on their
premium brands such as Lucky Strike and Marlboro, as these companies seek to increase
awareness of variant launches as well as drive consumers to these brands that generate
higher profits. Despite this, in 2012, multinational British American Tobacco Plc ran a
promotion for its Pall Mall brand, an economy one, which offered a package of 12 units for
PEN2, a lower unit price, than the traditional pack of 10 units priced at PEN1.8. This
promotion was well received by Peruvian consumers and successfully attracted some
smokers to the brand.
Manufacturers comply with the legislative restrictions and develop two strategies to maintain
sales. On the one hand, there is an emphasis on having a closer relationship with
independent small grocers, progressively distributing their products directly to them or through
trusted distributors, in order to avoid sales of illicit products. Moreover, manufacturers also
focus on carrying our education campaigns with wholesalers; warning about low quality and
the tax evasion of illegal products, since these types of products have a significant level of
penetration through this channel.
NEW PRODUCT DEVELOPMENTS

In February 2012, multinational Philip Morris International Inc launched its L&M brand, its third
economy brand that the company offers in the Peruvian market. It is worth noting that L&M
cigarettes are long, offering more value for money as they cost the same as regular economy
brands. In turn, multinational British American Tobacco Plc showed product innovation with its
launch of Lucky Strike 100% Tabaco, in August 2012; the first additive-free brand available in
the local market. The two new brands were mostly promoted through posters placed within
cabinets in modern and traditional groceries.
Passport
CIGARETTES IN PERU
Passport
2012 NPDs do not present any clear indicator of being targeted especially to male or female
consumers.
Multinational British American Tobacco Plc was also responsible for packaging innovation as
its new brand Lucky Strike 100% Tabaco is offered in folding carton made of recycled paper.
Product innovation was mainly observed with the launch of Lucky Strike 100% Tabaco, a
product that is perceived by consumers to deliver a higher quality thanks to being free of
additives. In addition, the use of recycled paper for the packaging is expected to attract some
consumers who are worried about environmental preservation.
There has not been any product development driven by legislation in 2012. Companies have
focused on developing products that have the best chances to grow as they appeal to an
increasing number of consumers.
Summary 1
Brand
Cigarettes - New Product Launches

Company
USP/Notes
Date
Lucky Strike 100%

Tabaco
British American
Tobacco Per
Holdings SAA
A variant of the Lucky

Strike brand that
offers the first
additive-free cigarette
available in the local
market. In addition,
the product also
offers the first
packaging made of
recycled paper.
August 2012
L&M
Philip Morris Per SA
Third economy brand

offered by the
multinational. In
addition, the product
is one of the few
long-sized ones
available on the
market.
February 2011
Source:
Euromonitor International from store checks
DISTRIBUTION
Independent small grocers continues to represent the leading distribution channel for
cigarettes, accounting for 77% of total retail volume sales in 2012. The high penetration
achieved by these outlets is explained by their proximity to consumers homes and
workplaces and the good level of availability of smaller packaging formats.
It is worth noting that street vendors remain a very popular distribution channel in Peru, as
they are the main source for purchasing loose cigarettes; a form of sale banned by Peruvian
legislation. Nevertheless, as street vendors can easily change location, they continue to flout
the law. Taking into account that Euromonitor International only considers the legal market,
the importance of street vendors is minimised within distribution estimates.
Legislation changes introduced in 2010, banned sales of cigarette units and established 10 as
the minimum number of cigarettes per package. Most distribution channels rapidly adjust to
these measures to avoid losing their working license. Nevertheless, street vendors benefitted
from the new legislation and increased their market share, since they are the only channel
CIGARETTES IN PERU
that continues selling cigarettes per unit, since authorities face difficulties in controlling their
sales.
Manufacturers are increasing their investment in advertising through point-of-sale. For
instance, forecourt retailers, supermarkets and hypermarkets carry cigarettes in cabinets
placed above the cash machine that have sophisticated posters to support the most popular
brands or launches. In addition, some forecourt retailers carry LCD TV screens located near
the cash machine that can help create unique brand images.
Point-of-sale is not being threatened legislatively, the only regulation that applies is that health
warnings must be part of the advertisement. However, it is expected that in the future,
pressure from anti-tobacco groups will result in some restrictions regarding advertisements
where children and teenagers are present.
The relationship between manufacturers and retailers has become tighter as a result of
legislation restrictions on advertising. For instance, manufacturers are focusing on offering
better benefits to retailers if they agree to display their brands. Such benefits can take the
form of attractive price discounts or, in the case of independent small grocers, prizes such
as household appliances, when they reach a specific sales quota.
Manufacturers are not using distribution tactics such as direct sales distribution or brand
champions.
Peruvian law stipulates that vending machines are only permitted in areas to which people
aged under 18 have no access, such as bars. Additionally, if the vending machine has
promotional material on it, it must include one of the health warnings stipulated by law, in a
space that represents 15% of the total space assigned for the material. In addition, the fine for
not obeying this law is PEN3,600 and the temporary closure of the outlet or the temporary
suspension of the business license. There has not been any innovation in age-verification
methods.
There are no laws regulating internet sales of cigarettes although purchasing safeguards are
applied to online orders and transactions. The only measure to verify that the customer is at
least 18-years-old is the obligation to provide an identification number that matches the credit
card information used for payment. Internet sales of cigarettes remain negligible in Peru, as
consumers can easily purchase these products within walking distance at independent small
grocers.
PROSPECTS
Sales of cigarettes will see a negative volume CAGR of 1% over the forecast period, which is
a better performance than the 7% drop in volume terms registered during the 2007-2012
period. While retail sales were significantly affected by the change in the taxing system during
the review period, a change in the taxing system for cigarettes is not expected during the
forecast period. Nevertheless, volume is expected to decrease at a slow pace, as some
smokers concerned about their health reduce their consumption of cigarettes while some lowincome consumers turn to the illegal market in charge of more affordable prices.
Illicit trade, both under the form of counterfeit products and sales of loose cigarettes,
constitutes the main threat to growth over the forecast period. Although the government is
expected to increase the number of operatives to detect and seize illegal products, illicit trade
will account for 35% of total cigarette sales in the country by 2017.
Legislation could have a negative impact on cigarette consumption provided that a ban on
selling loose cigarettes and the ban on smoking in public places become fully enforced within
every state in the country.
Passport
CIGARETTES IN PERU
Ultra low and low tar cigarettes will achieve the best performance over the forecast period,
with volume growth of 1%, each. This performance will be explained by the increased interest
among young adults in products that have a smooth flavour and do not leave a strong odour
in the mouth after consumption. In addition, both categories still represent a small portion of
retail volume sales and as a result, they have good potential to continue developing at healthy
rates.
Manufacturers are expected to increase their pressure on the government so that it fights illicit
trade more effectively. In addition, manufacturers are expected to continue their informative
campaigns within wholesalers to raise awareness of the disadvantage of selling counterfeit
products.
It is expected that Lucky Strike 100% Tabaco and L&M will be successful in attracting the
attention of both affluent and low income consumers, respectively, in the short-term. As a
result, both British American Tobacco and Philip Morris International will continue to launch
products that respond to Peruvian consumers preferences.
CATEGORY BACKGROUND
Cigarettes: Price Bands
Mid-price cigarettes continue to lead sales, accounting for 56% of total retail volume sales in
2012. These cigarettes benefit from the fact that Hamilton, a cigarette belonging to this price
band, constitutes the most popular brand of cigarettes in Peru, representing 47% of total
volume sales. Furthermore, mid-price cigarettes enjoy wide distribution. Economy brands
figure in second position with a 28% volume share, basically demanded by low-income
segments due to its lower unit prices and strong availability through traditional grocers.
Finally, premium brands account for 16% of total cigarette volume sales in 2012, thanks to the
fact that manufacturers advertising efforts are focused on this price band as they provide the
highest profits.
Current taxation system that imposes a flat tax for each cigarette coupled with yearly cigarette
price increases determine that economy brands are becoming less affordable to low-income
segments. In response, consumption of economy brands shows a moderately declining trend
since 2011, as some consumers opt to purchase their favourite economy brand through the
illicit market. In turn, premium brands follow the opposite direction, with some smokers
benefitting from higher purchasing power, trading up to this type of brand.
Multinational British American Tobacco Plc has a broad portfolio with brands across the price
spectrum in order to cater to as many consumers as possible. In turn, multinational Philip
Morris focuses on premium and economy brands. Both companies tend to concentrate their
advertising efforts on their premium brands since they are more profitable and they have more
potential to place new brands variants in this price band.
Peru does not have super-premium or budget sales, as consumers looking for super-premium
or even cheaper brands than economy ones normally turn to the illicit market.
Manufacturers have not shifted any brands between price bands or launched sub-variants of
one price brand into a lower priced-one.
There are no price wars between manufacturers currently and it is not expected that they will
reduce costs by repackaging with soft-pack as Peruvian consumers perceive the flip-flop
packs to effectively preserve the product.
Price bands have not registered changes due to the global economic climate, as Perus
economy continues to register healthy rates of growth. However, due to the tax system, price
Passport
CIGARETTES IN PERU
Passport
increases will continue to mainly impact economy brands, and in response, more low-income
consumers are expected to turn to the illicit market.
Since no major shifts in price bands are expected, overall value sizes will increase with the
demand.
Summary 2
Price band
Cigarette Price Band Definitions

Price
Unit
Brand examples
Premium
Above n/s 5.9
Pack of 20
Lucky Strike Click &

Roll, Kent White,
Marlboro Blue Fresh
Mid-priced
n/s 4 to n/s 5.9
Pack of 20
Hamilton, Winston
Blue, Premier
Economy
Below n/s 4
Pack of 20
Caribe, Pall Mall,

L&M
Source:
Euromonitor International from store checks
Cigarettes: Tobacco Blend

American blend remains the most popular blend in Peru, accounting for 97% of overall retail
volume sales in 2012, as this is the blend most used by British American Tobacco Per
Holdings SAA for its most popular brands, such as Hamilton, Pall Mall and Lucky Strike.
There has not been any innovation involving tobacco blends in the local market.
Cigarettes: Menthol/standard
Menthol cigarettes began to become popular since 2007, as companies offering these types
of products increased their advertising efforts and increased their availability within mid-price
and premium segments. Middle-income and affluent young adults and women responded
well, as they typically prefer smoother flavours and appreciate the fact that menthol cigarettes
leave less odour after smoking. In 2012, menthol cigarettes represent 15% of overall retail
volume sales.
There are no other flavours available in the retail market in Peru, which is very traditional.
Flavour capsule filters have been available since 2010, when multinational British American
Tobacco Plc launched its Lucky Strike Click & Roll brand. Currently, this and Lucky Strike
Click & Roll Fresh a variant with stronger menthol flavour- are the only two brands available
in the local market.
Given the fact that women and young adults in Peru prefer menthol cigarettes, manufacturers
will continue to periodically launch new menthol brand variants during the forecast period.
Flavour threads and capsule filters
There were no product launches in 2012 based on flavour capsules. Menthol-flavoured
capsules have been available in the local market since 2010, with the launch of Lucky Strike
Click & Roll by British American Tobacco Per Holdings SAA. In January 2012, Lucky Strike
Click & Roll Fresh, a product that carries a stronger mint flavour and relies on a flavour
capsule to release it, was launched. Both brands are popular and have contributed to
improving the penetration of the company in the premium price band.
There are no brands combining menthol and carbon filters in Peru.
CIGARETTES IN PERU
Cigarettes: Filter/non-filter
Non-filter cigarettes have always had very low penetration among consumers who generally
dislike their taste. In addition, since 2006, Law 28705 banned the commercialisation of nonfilter cigarettes. This determined that since 2006, 100% of the retail market is made up of filter
cigarettes.
Most Peruvian smokers are used to filter cigarettes as they provide a smoother flavour than
filterless cigarettes. Moreover, given the ban on filterless cigarettes since 2006, consumers
who want to purchase this type of products can only find them within the illegal market.
Flavour capsules, which are available in the country since 2010, constitute the latest
innovation.
Taking into account that Peruvians, on average, do not like cigarettes with a strong taste and
the fact that non-filter cigarettes are banned by law, it is expected that this type of product will
practically disappear over the forecast period.
Cigarettes: Carbon/standard Filter

Carbon-filtered cigarettes in Peru account for only 4% of volume sales in 2012. This type of
product is only available through the Kent brand by multinational British American Tobacco
Plc. This type of product is positioned in the premium segment, targeting affluent consumers.
Peruvian law bans any claim of cigarettes being less harmful to health, therefore no product
can seek to differentiate itself from other brands through this type of advertising.
There has not been any innovation in terms of reducing odours or reducing side stream
smoke.
Cigarettes: Filter Length

In Peru, almost the 100% of retail volume sales are represented by king size/regular
cigarettes that have a 20mm filter.
There is a tradition of consuming king size cigarettes in Peru as the companies participating in
this arena have focused on offering this size of cigarettes in the local market.
The only innovation in terms of filter length was carried out by multinational Philip Morris
International Inc, which in February 2011 launched its L&M brand, superking/long cigarette.
This is an economy brand that carries a price similar to regular sized cigarettes, in an effort to
attract lower income consumers seeking a product that gives them more value for their
money.
Cigarettes: Regular Vs Slims Vs Superslims

There are no super slim brands available in the Peruvian market. Slim cigarettes remain
practically negligible in the retail market and can be more easily found within the illegal
market. The only retail brand available in the market is Kent Nanotek Neo, a premium brand,
commercialised by British American Tobacco Per Holdings SAA since 2009. This product
has very limited availability as the launch was directed to raise brand awareness rather than
gain penetration in the market.
In Peru, most female smokers are used to consuming regular cigarette brands. Despite this,
given the fact that adult female smoking prevalence continues to raise in Peru, there is a good
potential for slim cigarettes to attract women with their sophisticated design. However, in
order to attract a significant portion of female smokers, it would be necessary that slim brands
become available within the mid-price band.
There has not been any product innovation during 2012.
Passport
CIGARETTES IN PERU
Passport
Microslims have not been launched in Peru yet.
Cigarettes: Pack Size

20s represent the most popular pack size sold in Peru, accounting for a 51% volume share in
the retail market, followed by packs of 20s with 44% and 11s with a 5% share in volume
terms, during 2012. It is worth noting that Euromonitor Internationals estimates do not take
into account sales of 1s, a commercial practice banned by law in 2010, which still benefits
from good penetration through street vendors. Young adults, younger consumers and impulse
purchasers, prefer this presentation due to their low prices and convenience.
There are no laws in Peru that determine pack size. Despite this, Law 29517, approved in
2010, bans sales of packages that contain fewer than 10 units. Although most distribution
channels rapidly comply to the law to avoid losing their business licence, street vendors
continue selling cigarettes by the stick, as they can easily flout the law because they are
harder to control.
10 unit packs are expected to continue gaining penetration in the market, as young adults and
occasional consumers turn towards them in search of affordable prices and convenience. As
a result, 10 unit packs is expected to achieve a 46% penetration in 2017, with 20s penetration
slightly decreasing.
20s packs carry unit prices that are slightly lower than those of 10 cigarettes. As a result,
consumers decide to purchase one or another pack size based on their frequency of
consumption and taking into account their budget restrictions.
Cigarettes: Pack Type

Folding cartons account for 93% of retail volume sales of cigarettes in 2012. Peruvian
consumers prefer this format as they perceive it as being the one that best ensures the
products preservation. Soft pack packaging is available within a few mid-price and economy
brands and are purchased by loyal consumers, regardless their packaging format.
At the time of writing, there were no hinge lids in the Peruvian market.
There are no other pack types in the Peruvian market.
CATEGORY DATA
Table 1
Sales of Cigarettes by Tar Level: Volume 2007-2012
million sticks
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Ultra Low Tar Cigarettes
Cigarettes
Source:
2007
2008
2009
2010
2011
2012
483.6
2,430.3
123.6
52.5
3,090.0
484.7
2,447.8
127.1
55.4
3,115.0
487.9
2,480.6
132.7
58.8
3,160.0
423.3
2,161.8
117.7
53.2
2,756.0
413.4
2,127.9
118.6
54.1
2,714.0
303.8
1,664.0
119.8
55.0
2,142.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Cigarettes by Tar Level: Value 2007-2012
PEN million
CIGARETTES IN PERU
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
Passport
2007
2008
2009
2010
2011
2012
67.7
494.3
30.6
15.7
608.4
68.6
506.4
31.9
16.9
623.8
69.4
514.7
33.5
18.1
635.7
68.1
488.9
31.5
16.8
605.3
66.6
502.6
33.3
17.5
620.0
52.4
413.6
35.8
17.9
519.6
Table 3
Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
% volume growth
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
2011/12
2007-12 CAGR
2007/12 Total
-26.5
-21.8
1.0
1.5
-21.1
-8.9
-7.3
-0.6
0.9
-7.1
-37.2
-31.5
-3.1
4.6
-30.7
Table 4
Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
% current value growth
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
2011/12
2007-12 CAGR
2007/12 Total
-21.3
-17.7
7.4
2.3
-16.2
-5.0
-3.5
3.2
2.6
-3.1
-22.6
-16.3
17.0
13.5
-14.6
Table 5
Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
% retail volume
Premium
Mid-Priced
Economy
Total
Source:
2007
2008
2009
2010
2011
2012
12.8
63.5
23.7
100.0
12.9
62.6
24.5
100.0
11.9
61.0
27.1
100.0
13.0
58.8
28.2
100.0
14.2
56.5
29.3
100.0
15.6
56.2
28.2
100.0
2011
2012
Table 6
Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
% retail volume
2007
2008
2009
2010
CIGARETTES IN PERU
Menthol
Standard
Total
Source:
Passport
7.0
93.0
100.0
9.5
90.5
100.0
11.0
89.0
100.0
12.8
87.2
100.0
14.2
85.8
100.0
15.3
84.7
100.0
Table 7
Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
% retail volume
American Blend
Virginia
Other Blend
Total
Source:
2007
2008
2009
2010
2011
2012
97.9
2.1
100.0
97.7
2.3
100.0
97.7
2.3
100.0
97.6
2.4
100.0
97.5
2.5
100.0
97.4
2.6
100.0
Table 8
Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2007-2012
% retail volume
Filtered
Unfiltered
Total
Source:
2007
2008
2009
2010
2011
2012
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Table 9
Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown

2007-2012
% retail volume
Carbon Filter
Non-Carbon Filter
Total
Source:
2007
2008
2009
2010
2011
2012
2.8
97.2
100.0
2.9
97.1
100.0
3.0
97.0
100.0
3.1
96.9
100.0
3.2
96.8
100.0
3.8
96.2
100.0
Table 10
Sales of Cigarettes by Length: % Volume Breakdown 2007-2012
% retail volume
Superking/Long
King Size/Regular
Short
Total
Source:
2007
2008
2009
2010
2011
2012
0.1
99.9
100.0
0.1
99.9
100.0
0.2
99.8
0.0
100.0
0.2
99.8
0.0
100.0
0.2
99.7
0.0
100.0
0.2
99.7
0.0
100.0
10
CIGARETTES IN PERU
Table 11
Passport
Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 20072012
% retail volume
Slim
Superslim
Regular
Total
Source:
2007
2008
2009
2010
2011
2012
0.0
100.0
100.0
0.0
100.0
100.0
0.0
100.0
100.0
0.0
100.0
100.0
0.0
100.0
100.0
0.1
99.9
100.0
Table 12
Sales of Cigarettes by Pack Size: % Volume Breakdown 2007-2012
% retail volume
5s
7s
10s
11s
20s
Total
Source:
2007
2008
2009
2010
2011
2012
19.3
1.3
19.0
3.4
57.0
100.0
22.6
1.4
19.2
3.5
53.4
100.0
24.2
1.3
20.1
3.3
51.1
100.0
28.5
15.5
56.0
100.0
30.5
15.6
54.0
100.0
44.2
4.8
51.1
100.0
Table 13
Sales of Cigarettes by Pack Type: % Volume Breakdown 2007-2012
% retail volume
Folding Cartons
Soft Pack (Paper-based)
Other Pack Types
Total
Source:
2008
2009
2010
2011
2012
91.5
8.5
100.0
92.2
7.8
100.0
92.4
7.6
100.0
92.5
7.5
100.0
92.6
7.4
100.0
92.8
7.2
100.0
Table 14
NBO Company Shares of Cigarettes: % Volume 2008-2012
% retail volume
Company
British American
Tobacco Per Holdings SAA
Tabacalera Nacional SA
(TANASA)
Others
Total
Source:
2007
2008
2009
2010
2011
2012
81.4
81.8
83.8
84.3
84.7
14.7
-
14.4
-
12.9
-
12.1
-
11.5
-
4.0
100.0
3.8
100.0
3.3
100.0
3.6
100.0
3.8
100.0
11
CIGARETTES IN PERU
Table 15
Passport
Cigarettes Brand Shares 2009-2012
% retail volume
Brand
Hamilton
Pall Mall
Lucky Strike
Caribe
Winston
Kent
Marlboro
Premier
Nacional
L&M
Inca
Salem
Next
Golden Beach Menthol
Golden Beach
Advance
Golden Beach
Golden Beach Menthol
Hamilton
Hamilton Light
Inca
Latino
Manhattan
Montana
Nacional
Nevado
Oro Negro
Premier
Salem
Company
2009
2010
2011
2012
British American
British American
British American
British American
British American
British American
British American
British American
British American
British American
British American
British American
(TANASA)
(TANASA)
(TANASA)
(TANASA)
(TANASA)
(TANASA)
(TANASA)
British American
(TANASA)
(TANASA)
(TANASA)
(TANASA)
51.4
50.2
48.8
46.9
12.3
16.7
17.2
17.4
5.1
6.5
7.0
7.8
11.3
3.5
10.1
3.1
8.4
3.4
7.6
4.3
3.0
3.1
3.2
4.0
2.8
3.5
2.5
3.1
3.6
2.9
3.5
2.8
0.8
0.6
1.4
1.2
1.3
0.3
0.3
0.3
0.2
0.4
0.1
0.1
0.1
0.3
0.3
0.2
0.1
0.1
0.0
0.1
0.0
0.2
0.0
0.0
0.0
12
CIGARETTES IN PERU
Passport
(TANASA)
(TANASA)
Winston
Others
Total
Source:
3.8
100.0
3.3
100.0
3.6
100.0
3.8
100.0
Table 16
Sales of Cigarettes by Distribution Format: % Analysis 2007-2012
% retail volume
Store-Based Retailing
- Grocery Retailers
-- Convenience Stores
-- Discounters
-- Forecourt Retailers
-- Hypermarkets
-- Supermarkets
-- Food/drink/tobacco
specialists
--- Food/drink
specialists
--- Tobacco specialists
-- Independent Small
Grocers
-- Other Grocery
Retailers
--- Newsagenttobacconists/kiosks
--- Street vendors
- Non-Grocery Retailers
-- Department Stores
-- Parapharmacies/
Drugstores
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Vending
- Internet Retailing
Non-retail channels
- Bar-tobacconists
- Hotels/restaurants/bars
Total
Source:
2007
2008
2009
2010
2011
2012
98.9
98.9
3.5
6.2
8.2
3.2
98.9
98.9
3.5
6.4
8.1
3.2
99.1
99.1
3.5
6.7
7.3
3.1
99.1
99.1
3.6
6.8
7.3
3.2
99.2
99.2
3.6
6.9
7.4
3.3
99.2
99.2
3.7
7.0
7.4
3.3
3.2
76.4
3.2
76.3
3.1
77.2
3.2
77.0
3.3
76.8
3.3
76.8
1.4
1.3
1.2
1.2
1.1
1.1
0.6
0.5
0.5
0.5
0.5
0.4
0.8
-
0.8
-
0.7
-
0.7
-
0.7
-
0.6
-
1.1
1.1
100.0
1.0
1.0
100.0
0.9
0.9
100.0
0.9
0.9
100.0
0.8
0.8
100.0
0.8
0.8
100.0
Table 17
Cigarettes: Production, Imports and Exports: Total Volume 2007-2012
Million sticks
Cigarettes Import
Cigarettes Export
Cigarettes Production
Source:
2007
2008
2009
2010
2011
2012
3,480.0
5.6
-
3,544.3
24.9
-
3,610.7
0.4
-
2,571.8
4.4
-
2,144.1
24.6
-
1,847.0
-
Euromonitor International from GTIS, official statistics, trade associations, trade press, trade interviews
13
CIGARETTES IN PERU
Note:
Passport
- indicates data not available
Table 18
Forecast Sales of Cigarettes by Tar Level: Volume 2012-2017
million sticks
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
2012
2013
2014
2015
2016
2017
303.8
1,664.0
119.8
55.0
2,142.6
299.3
1,655.7
120.6
55.7
2,131.3
295.7
1,640.8
121.7
56.5
2,114.6
291.5
1,630.9
122.8
57.2
2,102.5
287.7
1,617.9
124.0
58.1
2,087.7
284.2
1,605.9
125.4
58.9
2,074.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 19
Forecast Sales of Cigarettes by Tar Level: Value 2012-2017
PEN million
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
2012
2013
2014
2015
2016
2017
52.4
413.6
35.8
17.9
519.6
51.7
412.1
36.1
18.1
518.0
51.1
408.9
36.5
18.4
514.9
50.5
407.1
36.8
18.7
513.0
49.9
404.4
37.3
19.0
510.4
49.3
402.0
37.7
19.3
508.3
trade sources
Table 20
Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2012-2017
% volume growth
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
Table 21
2016/17
2012-17 CAGR
2012/17 Total
-1.2
-0.7
1.1
1.5
-0.6
-1.3
-0.7
0.9
1.4
-0.6
-6.5
-3.5
4.6
7.2
-3.2
trade sources
Forecast Sales of Cigarettes by Tar Level: % Value Growth 2012-2017
% constant value growth
High Tar Cigarettes

Mid Tar Cigarettes
Low Tar Cigarettes
Cigarettes
Source:
2012-17 CAGR
2012/17 TOTAL
-1.2
-0.6
1.0
1.5
-0.4
-5.9
-2.8
5.4
7.8
-2.2
trade sources
14
CIGARETTES IN PERU
Table 22
Passport
Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2012-2017
% retail volume
Premium
Mid-Priced
Economy
Total
Source:
2012
2013
2014
2015
2016
2017
15.6
56.2
28.2
100.0
15.8
56.3
28.0
100.0
15.9
56.4
27.7
100.0
16.1
56.5
27.4
100.0
16.3
56.7
27.0
100.0
16.4
56.9
26.8
100.0
trade sources
Table 23
Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown

2012-2017
% retail volume
Menthol
Standard
Total
Source:
2012
2013
2014
2015
2016
2017
15.3
84.7
100.0
15.4
84.6
100.0
15.6
84.4
100.0
15.7
84.3
100.0
15.9
84.2
100.0
15.9
84.1
100.0
trade sources
Table 24
Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 20122017
% retail volume
American Blend
Virginia
Other Blend
Total
Source:
2012
2013
2014
2015
2016
2017
97.4
2.6
100.0
97.3
2.7
100.0
97.2
2.8
100.0
97.2
2.8
100.0
97.2
2.8
100.0
97.1
2.9
100.0
trade sources
Table 25
Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown

2012-2017
% retail volume
Filtered
Unfiltered
Total
Source:
Table 26
2012
2013
2014
2015
2016
2017
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
trade sources
Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume

Breakdown 2012-2017
15
CIGARETTES IN PERU
Passport
% retail volume
Carbon Filter
Non-Carbon Filter
Total
Source:
2012
2013
2014
2015
2016
2017
3.8
96.2
100.0
3.8
96.2
100.0
3.8
96.2
100.0
3.9
96.1
100.0
3.9
96.1
100.0
4.0
96.0
100.0
trade sources
Table 27
Forecast Sales of Cigarettes by Length: % Volume Breakdown 2012-2017
% retail volume
Superking/Long
King Size/Regular
Short
Total
Source:
2012
2013
2014
2015
2016
2017
0.2
99.7
0.0
100.0
0.2
99.7
0.0
100.0
0.3
99.7
0.0
100.0
0.3
99.7
0.0
100.0
0.3
99.7
0.0
100.0
0.3
99.7
0.0
100.0
trade sources
Table 28
Forecast Sales of Cigarettes by Regular/Slim/Superslim: % Volume

Breakdown 2012-2017
% retail volume
Slim
Superslim
Regular
Total
Source:
2012
2013
2014
2015
2016
2017
0.1
99.9
100.0
0.1
99.9
100.0
0.1
99.9
100.0
0.1
99.9
100.0
0.1
99.9
100.0
0.1
99.9
100.0
trade sources
Table 29
Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2012-2017
% retail volume
5s
7s
10s
11s
20s
Total
Source:
2012
2013
2014
2015
2016
2017
44.2
4.8
51.1
100.0
44.6
4.5
50.9
100.0
45.1
4.3
50.6
100.0
45.5
4.2
50.3
100.0
45.9
4.0
50.1
100.0
46.2
3.8
50.0
100.0
trade sources
Table 30
Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2012-2017
% retail volume
2012
2013
2014
2015
2016
2017
16
CIGARETTES IN PERU
Folding Cartons
Soft Pack (Paper-based)
Other Pack Types
Total
Source:
Passport
92.8
7.2
100.0
93.0
7.0
100.0
93.2
6.8
100.0
93.3
6.7
100.0
trade sources
93.5
6.5
100.0
93.7
6.3
100.0
17

Cigarettes in Peru

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cigarettes in Peru

Uploaded by

Copyright:

Available Formats

CIGARETTES IN PERU

LIST OF CONTENTS AND TABLES

Cigarettes - New Product Launches ............................................................. 3

Cigarette Price Band Definitions .................................................................. 6

Cigarettes: Tobacco Blend ....................................................................................................... 6

Sales of Cigarettes by Tar Level: Volume 2007-2012 .................................. 8

Forecast Sales of Cigarettes by Tar Level: % Value Growth 20122017 ........................................................................................................... 14

NEW PRODUCT DEVELOPMENTS

Cigarettes - New Product Launches

Lucky Strike 100%

A variant of the Lucky

Philip Morris Per SA

Third economy brand

Euromonitor International from store checks

Cigarette Price Band Definitions

Above n/s 5.9

Lucky Strike Click &

n/s 4 to n/s 5.9

Caribe, Pall Mall,

Euromonitor International from store checks

Cigarettes: Tobacco Blend

Cigarettes: Carbon/standard Filter

Cigarettes: Filter Length

Cigarettes: Regular Vs Slims Vs Superslims

Microslims have not been launched in Peru yet.

Cigarettes: Pack Size

Cigarettes: Pack Type

Sales of Cigarettes by Tar Level: Volume 2007-2012

High Tar Cigarettes

Sales of Cigarettes by Tar Level: Value 2007-2012

High Tar Cigarettes

Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012

High Tar Cigarettes

Sales of Cigarettes by Tar Level: % Value Growth 2007-2012

% current value growth

High Tar Cigarettes

Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012

Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012

Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012

Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2007-2012

Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown

Sales of Cigarettes by Length: % Volume Breakdown 2007-2012

Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 20072012

Sales of Cigarettes by Pack Size: % Volume Breakdown 2007-2012

Sales of Cigarettes by Pack Type: % Volume Breakdown 2007-2012

NBO Company Shares of Cigarettes: % Volume 2008-2012

Cigarettes Brand Shares 2009-2012

Sales of Cigarettes by Distribution Format: % Analysis 2007-2012

Cigarettes: Production, Imports and Exports: Total Volume 2007-2012

- indicates data not available

Forecast Sales of Cigarettes by Tar Level: Volume 2012-2017

High Tar Cigarettes

Forecast Sales of Cigarettes by Tar Level: Value 2012-2017

High Tar Cigarettes

Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2012-2017

High Tar Cigarettes

Forecast Sales of Cigarettes by Tar Level: % Value Growth 2012-2017

% constant value growth

High Tar Cigarettes

Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2012-2017

Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown

Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 20122017

Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown

Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume