Company Loses Place to Contraband Cigarettes

From: CRE Brazil

The illegal cigarette trade was responsible for reducing the share that Souza Cruz had – a Brazilian subsidiary of British Tobacco – in the domestic market. Last year, the company held 62.3% of the sales volume. In the first quarter of this year, it fell to 61%. According to the Director of Strategic Planning for the company, Paulo Ayres, the illegal products are occupying more and more space in retail.

To prove this fact, he cites a survey showing that contraband cigarettes being negotiated in 45% of the points of sale regulated in Brazil. In 2008, this percentage was 38%.


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