^

Business

Philip Morris shipments drop 1.7%

Zinnia B. Dela Peña - The Philippine Star

MANILA, Philippines - Global tobacco giant Philip Morris International reported a slight decline in shipment volume to the Philippines in the third quarter as low-priced brands continue to eat into its market share.

In a report to stockholders, PMI said shipments to the Philippines decreased by 1.7 percent to 17.5 billion units from July to September this year.

Despite the drop in shipment volume, the market share of PMI’s flagship brand Marlboro went up by 1.4 points to 16.8 percent as adult cigarette consumption remains stable. Its Fortune brand also saw its market share increase by 4.7 points to 32.4 percent.

PMI recorded a sharp fall in cigarette shipments to the Philippine market as price-conscious individuals shifted to cheaper brands to satisfy their nicotine craving.

PMI is hopeful that the launch of tax stamps on cigarette packs would address tobacco tax leakage and protect the country from illicit tobacco smuggling.

Based on a recent study done by Oxford Economics and International Tax and Investment Center (ITIC), the Philippines lost some P15.6 billion in revenues due to non-payment of correct taxes by cigarette manufacturers.

The same report showed that consumption of domestic illegal tobacco grew nearly three-fold to 17.1 billion last year.

The Philippines has become one of PMI’s most challenging markets in Asia. PMI suffered a 13-percent drop in its market share last year after the company raised taxes and Mighty held back its pricing.

PMI is a leading international tobacco company with its products sold in more than 180 countries worldwide. Excluding the US and China, the company holds more than 28 percent of the global cigarette market.

 

vuukle comment

CIGARETTE

ITS FORTUNE

MARKET

MARLBORO

OXFORD ECONOMICS AND INTERNATIONAL TAX AND INVESTMENT CENTER

PHILIP MORRIS INTERNATIONAL

PHILIPPINES

PMI

SHARE

TOBACCO

  • Latest
  • Trending
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with