Tobacco Insights: January 2017

Table of Contents

1. A Global Perspective 7

1.1. Cigarette Consumption & Production 7

1.1.1 Cigarette Consumption Trends, 2004-2014 7

1.1.2 Cigarette Production Trends, 2003-2013 11

1.1.3 Regional Cigarette Consumption, 2013 16

1.1.4 Regional Cigarette Production, 2013 17

1.1.5 Per Capita Consumption of Cigarettes by Country, 2004-2014 18

2. Global News 22

2.1. Asia-Pacific 22

2.1.1 Cambodia 22

2.1.2 China 22

2.1.3 India 22

2.1.4 Indonesia 22

2.1.5 Japan 24

2.1.6 Malaysia 24

2.1.7 New Zealand 25

2.1.8 Pakistan 25

2.1.9 Philippines 25

2.1.10 South Korea 25

2.1.11 Sri Lanka 26

2.1.12 Taiwan 26

2.2. Africa 27

2.2.1 Malawi 27

2.2.2 Morocco 27

2.2.3 Mozambique 27

2.2.4 Nigeria 27

2.2.5 Sudan 27

2.2.7 Zimbabwe 28

2.3. Central America 28

2.3.1 Nicaragua 28

2.4. North America 29

2.4.1 Canada 29

2.4.2 The US 31

2.5. Europe 37

2.5.1 The European Union (EU) 37

2.5.2 Bosnia-Herzegovina 37

2.5.3 Finland 37

2.5.4 France 38

2.5.5 The Netherlands 39

2.5.6 Poland 39

2.5.7 Russia 39

2.5.8 Spain 40

2.5.9 Sweden 42

2.5.10 Turkey 42

2.5.11 The UK 43

3. Consumer Analysis of Recent Product Development 45

3.1. Lucky Strike – Cigarillos – Blue 45

3.2. Jiaozi Kuanzhai – Xiangyan – Wuliang Nongxiang 46

3.3. Marlboro – Cigarrillos – Ice Fusion 47

3.4. Pall Mall/XL Black Edition – Cigarrillos – Tokyo Midnight 48

3.5. Mantra – Rolling Paper – Cola,Chocolate,Peach,Coconut 49

3.6. Jiaozi X Shengxiao – Xizhi Xiangyan – Lizhi Xiangwei 50

3.7. Marlboro – Cigarette – 2017 New Year Limited Edition 51

3.8. Swisher Sweets – Cigar – Peach 52

3.9. Vype Pebble – E-Cigarette Kit – Yellow, Blue, Red, Black, Green 53

3.10. News – Cigarettes – Blue Connection,Red Connection 54

3.11. News Special Cut – Tabac a Rouler – M, L, XXL, XL, Jumbo 55

3.12. Lucky Strike – Ciarettes – Double Arome 56

3.13. Marlboro – Cigarettes – Slate 57

3.14. Kent – Cigarrillos – Belmont Blend 58

4. Company News 59

4.1. Altria 59

4.2. British American Tobacco (BAT) 61

4.3. Gold Leaf Tobacco 62

4.4. Imperial Brands 63

4.5. Japan Tobacco Inc. 65

4.6. J. Cortès 66

4.7. Korea Tobacco & Ginseng 67

4.8. Philip Morris International 67

4.9. Reynolds American Inc. 69

4.10. Rich Cigars 69

5. Heat not Burn products- is the iQos the future of Tobacco? 70

5.1. The iQos product 70

5.2. Ongoing risk reduction debate needs regulatory bodies 71

5.3. iQos has achieved promising early success 71

5.4. Competition and Future Issues 72

6. Appendix 74

About GlobalData 74

Disclaimer 75

List of Tables

Table 1: Global Cigarette Consumption, pieces (million), 2004-2014 7

Table 2: Global Cigarette Production, pieces (million), 2003-2013 11

Table 3: Regional Cigarette Consumption, 2013 16

Table 4: Regional Cigarette Production, 2013 17

Table 5: Per Capita Consumption of Cigarettes by Country, pieces, 2004-2014 18

Table 6: Japan: JT Monthly Cigarette Sales, Fiscal 2015-2017 24

Table 7: New Zealand: Tobacco Excise Duties, 2016-2017 25

Table 8: Canada: Monthly Cigarette Production and Sales, 2014-2016 29

Table 10: US: Monthly Small Cigars Consumption & Production Trends, 2015 & 2016, Million Pieces 32

Table 11: US: Monthly Large Cigars & Cigarillos Consumption & Production Trends, 2015 & 2016, Million Pieces 32

Table 12: US: Monthly Snuff Consumption & Production Trends, 2015 & 2016, Thousand Pounds (lbs) 33

Table 13: US: Monthly Chewing Tobacco Consumption & Production Trends, 2015 & 2016, Thousand Pounds (lbs) 33

Table 14: US: Monthly Pipe Tobacco Consumption & Production Trends, 2015 & 2016, Thousand Pounds (lbs) 34

Table 15: US: Monthly Roll Your Own Tobacco Consumption & Production Trends, 2015 & 2016, Thousand Pounds (lbs) 35

Table 16: France: Monthly Tobacco Quantities Released for Consumption, 2014-2016 38

Table 17: Spain: Monthly Tobacco Quantities Released for Consumption, 2014-2016 40

Table 18: Spain: Monthly Brand Shares, September 2015 & September 2016, % Volume 42

Table 19: UK: Tobacco Quantities Released for Consumption, 2015 & 2016 44

Table 20: Lucky Strike – Cigarrillos – Blue 45

Table 21: Jiaozi Kuanzhai – Xiangyan – Wuliang Nongxiang 46

Table 22: Marlboro – Cigarrillos – Ice Fusion 47

Table 23: Pall Mall/XL Black Edition – Cigarrillos – Tokyo Midnight 48

Table 24: Mantra – Rolling Paper – Cola,Chocolate,Peach,Coconut 49

Table 25: Jiaozi X Shengxiao – Xizhi Xiangyan – Lizhi Xiangwei 50

Table 26: Marlboro – Cigarette – 2017 New Year Limited Edition 51

Table 27: Swisher Sweets – Cigar – Peach 52

Table 28: Vype Pebble – E-Cigarette Kit – Yellow,Blue ,Red, Black, Green 53

Table 29: News – Cigarettes – Blue Connection,Red Connection 54

Table 30: News Special Cut – Tabac a Rouler – M,L,XXL,XL,Jumbo 55

Table 31: Lucky Strike – Cigarettes – Double Arome 56

Table 32: Marlboro – Cigarettes – Slate 57

Table 33: Kent Cigarrillos – Belmont Blend 58

Table 34: Altria: Adjusted Results 59

Table 35: BAT: Results by Region, Ending September 2016 61

Table 37: Imperial Brands: Results, 2015-2016 63

Table 39: JTI International, Consolidated Financial Results, 2015-2016 65

Table 40: JTI International, International Business Results, 2015-2016 65

Table 41: JTI International, Domestic Business Results, 2015-2016 66

Table 42: Japan: JT December Cigarette Sales, Fiscal 2015-2017 66

Table 44: Philip Morris Cigarette Shipment Volume by Brand 68

List of Figures

Figure 1: Imports as % of Consumption, 2013 16

Figure 2: Exports as % of Production, 2013 17

Figure 3: Tianzi – Xiangyan – Wuliangxiang 30 Nian,Wuliangxiang 20 Nian 45

Figure 4: Jiaozi Kuanzhai – Xiangyan – Wuliang Nongxiang 46

Figure 5: Marlboro – Cigarrillos – Ice Fusion 47

Figure 6: Pall Mall/XL Black Edition – Cigarrillos – Tokyo Midnight 48

Figure 7: Mantra – Rolling Paper – Cola,Chocolate,Peach,Coconut 49

Figure 8: Meridiano – CigarrillosRubios 50

Figure 9: Marlboro – Cigarette – 2017 New Year Limited Edition 51

Figure 10: Swisher Sweets – Cigar – Peach 52

Figure 11: Vype Pebble – E-Cigarette Kit – Yellow,Blue,Red,Black,Green 53

Figure 12: News – Cigarettes – Blue Connection,Red Connection 54

Figure 13: News Special Cut – Tabac a Rouler – M,L,XXL,XL,Jumbo 55

Figure 14: Lucky Strike – Cigarettes – Double Arome 56

Figure 15: Marlboro – Cigarettes – Slate 57

Figure 16: Kent Cigarrillos – Belmont Blend 58

Figure 17: iQos Product, Charger and Marlboro HeatSticks 70

Figure 18: Adult Smoking Population and Smoking Population interested in alternative Tobacco products in major launch countries 72