Share of illegal cigarettes in Russia falls to 7% in Q3 - study
<p> MINSK, Dec 18 - PrimePress. The share of illegal cigarettes in Russia in the third quarter of 2020 stood at 7%, having fallen by more than half year on year, according to the findings of a tobacco market study by Nielsen. </p> <p> </p> <p> The survey data is reported by major tobacco companies - Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI) and Imperial Tobacco. In the third quarter of 2019, Nielsen estimated the market share of illegal cigarettes at 15.6%. </p> <p> </p> <p> “The share of illegal cigarettes in Russia was 7% in the third quarter of 2020... The study recorded a year on year decrease in the share of counterfeit cigarettes produced in Russia, as well as a reduction in the supply of illegal products from non-CIS countries to 1% versus 2.4% in 2019,” the report said, cited by Prime news agency. </p> <p> </p> <p> At the same time, the share of illegal cigarettes produced in Belarus, according to the study, increased by half to 54%. As a result the share of the illegal product, coming from the EEU countries, increased up to 64% from 55% the year before, but its structure has changed, primarily due to the reduction of supplies from Armenia, Kazakhstan and Kyrgyzstan: their share went down to 10.8% of the total illegal market, the report said. </p> <p> </p> <p> Representatives of tobacco companies pointed to a number of factors that may have influenced the decline in the share of illegal cigarettes, the main ones being the actions of the Russian authorities and the impact of the coronavirus. </p> <p> </p> <p> “We have seen a decrease in illicit trade in the third quarter as a result of both encouraging government efforts to address the problem and pandemic-related factors, such as restrictions on movement between countries and quarantine measures,” said Galina Rodina, vice president for corporate relations and communications at JTI Russia. </p> <p> </p> <p> “The government’s efforts to combat illegal trafficking in tobacco products have led to a reduction in the grey market,” said Imperial Tobacco Russia and Central Asia corporate and legal affairs director Ilona Myrtova. “Nevertheless, it is necessary to continue counteracting illegal trafficking, so that this result is not short-lived and the growth of illegal volumes does not resume,” said Alexander Mironenko, director for relations with the EAEC and trademark protection at PMI Russia. </p> <p> </p> <p> Igor Cherkassky, head of counteraction to illegal trade at BAT Russia, pointed out that a significant deterrent to the development of the grey market this year was the pandemic and its consequences. “However, the key prerequisites for the spread of illegal products have not yet been eliminated. These include, first of all, the price gap between the EEU countries, which will only increase next year,” the representative added. End </p>
2020-12-19
Primepress
MINSK, Dec 18 - PrimePress. The share of illegal cigarettes in Russia in the third quarter of 2020 stood at 7%, having fallen by more than half year on year, according to the findings of a tobacco market study by Nielsen.
The survey data is reported by major tobacco companies - Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI) and Imperial Tobacco. In the third quarter of 2019, Nielsen estimated the market share of illegal cigarettes at 15.6%.
“The share of illegal cigarettes in Russia was 7% in the third quarter of 2020... The study recorded a year on year decrease in the share of counterfeit cigarettes produced in Russia, as well as a reduction in the supply of illegal products from non-CIS countries to 1% versus 2.4% in 2019,” the report said, cited by Prime news agency.
At the same time, the share of illegal cigarettes produced in Belarus, according to the study, increased by half to 54%. As a result the share of the illegal product, coming from the EEU countries, increased up to 64% from 55% the year before, but its structure has changed, primarily due to the reduction of supplies from Armenia, Kazakhstan and Kyrgyzstan: their share went down to 10.8% of the total illegal market, the report said.
Representatives of tobacco companies pointed to a number of factors that may have influenced the decline in the share of illegal cigarettes, the main ones being the actions of the Russian authorities and the impact of the coronavirus.
“We have seen a decrease in illicit trade in the third quarter as a result of both encouraging government efforts to address the problem and pandemic-related factors, such as restrictions on movement between countries and quarantine measures,” said Galina Rodina, vice president for corporate relations and communications at JTI Russia.
“The government’s efforts to combat illegal trafficking in tobacco products have led to a reduction in the grey market,” said Imperial Tobacco Russia and Central Asia corporate and legal affairs director Ilona Myrtova. “Nevertheless, it is necessary to continue counteracting illegal trafficking, so that this result is not short-lived and the growth of illegal volumes does not resume,” said Alexander Mironenko, director for relations with the EAEC and trademark protection at PMI Russia.
Igor Cherkassky, head of counteraction to illegal trade at BAT Russia, pointed out that a significant deterrent to the development of the grey market this year was the pandemic and its consequences. “However, the key prerequisites for the spread of illegal products have not yet been eliminated. These include, first of all, the price gap between the EEU countries, which will only increase next year,” the representative added. End