Tobacco Documents Online

BRITISH AMERICAN TOBACCO Copy Request Form Request Number: Organization: Physicians for a smoke free Canada 7 Request Details Request Date: ~,, ........ emi.ueotlo*eo. • • Ioeeeoeoe• *•• • ••••oao..ut. File Number: ~ f' / [ ~ ~ ..Box Number: C /7 /.q- ~.~. ioeoeeoltleaoJOOlo•• Q...e..D.,. o..a ,el Page Range: First Page Last Page 5oOz ?/O 6 #O ?# g Requested By: (Print Name)... Details below will be filled in by Depository Staff Only II Copy Details Co piedBy: ..... ~~....~ ...................... .. . . . . Date: ...... ~//~.~../~.. .......... Time:~.'~~ .......... ....... Copy Checked By: ............................................. .. ......... . . Date: ............................... .... . Time: ....................... ........ III Delivery Details Checked By: ..................... .. ............. Date: .................... Sent By: ........................................ . . Date: ................. . . .. BATCo document for PFSFC 1 March 1999

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L~ O G BATCo document for PFSFC 1 March 1999

CUT TOBACCO KEY INTERNATIONAL MARKETS THE 1994 SURVEY ERC STATISTICS CANADA G G O', ,.D BATCo document for PFSFC 1 March 1999

Canada Index Page: Introduction 1-2 Market Size Tobacco Products Market, 1988 & 1993 Consu.mption of Smoking & Smokeless Tobacco, 1988-1993 3-4 3 4 Market Structure Consttmpr.ion of Smoking & Smokeless Tobacco by Type, 1988-1993 Smoking Tobacco Consu.mp~on of Smoking Tobacco, 1988-1993 Consumption of Smoking Tobacco by Type, 1988-1993 Consumption of C£garette Tobacco, 1988-1993 Consumption of Pipe Tobacco, 1988-1993 Smokeless Tobacco Consumption of Smokeless Tobacco, 1988-1993 5-10 5 5-8 6 6 7 8 8-10 9 Manufacturers & Brands Cigarette Tobacco: Impo.~s v Domestic Producr~, 1992 & 1993 Manufacturer Shares in Cigarette Tobacco, 1989-1993 Pipe Tobacco: Imporzs v Domestic Producr~, 1992 & 1993 11-14 ii 12 12 New Products 15-16 Smoking Restrictions 17-20 The Smoking Population Breakdown of Smoking Popular-iona~, 1981-1991 Smoking Population by Sex, 1986-1991 Smoking Incidence by Age & Sex, 1991 Smoking Incidence by Re,on, 1991 21-24 21 22 22 23 C~ O 1994 ERC Starm~m In~rua~o,,',al pie Cut Totmoeo/~ r~ (T, ,.o BATCo document for PFSFC 1 March 1999

Canada Index Page: Taxation & Retail Prices Smoking & Smokeless Tobacco: Federal Tax Races, 1994 Summary of Provincial Sales & Tobacco Taxes on Smoking Tobacco Summary of Provincial Sales & Tobacco Taxes on S~icks:~ 25.28 25 26 27 Company Profiles Imasco L~d/Imperial Tobacco Lid Imperial Tobacco, Financial High~h~s, 1987-1992 R J R Macdonald Inc Rotkmans, Benson & Hedges Inc Rothmans Inc, Financial Highlights, 1987-1993 29-32 29-30 29 30 30 31 Production & Trade Production of Smoking Tobacco, 1988-1993 Produ~ion of Smoking Tobacco by Type, 1988-1993 Imports Imports of Smoking Tobacco, 1988-1993 Smoking Tobacco: Imports as % of Consumption, 1988-1993 Imports of Smoking Tobacco by Country of Origin (Volume), 1988-1993 Imports of Smoking Tobacco by Co ,u~cry.- of Origin (Value), 1988-1993 Exports Exports of Smoking Tobacco, 1988-1992 Smoking Tobacco: Exports As % of Production, 1988-1992 Exports of Smoking Tobacco by Counery of Destination, 1991 & 1992 33-38 33 33 34-36 34 34 35 36 37-38 37 37 38 The Future Market Forecasts, 1993-1998 39 39 Lrl 19@4 ERC S~Ls'~cs Int~rnaClonz/plc Cut~ Tel~cco/g4 0 BATCo document for PFSFC 1 March 1999

Canada Introduction All se~-~ors of the tobacco products market have experienced severe falls in sales in recent years m an environment which is becoming increasingly ha_~her in terms of high prices and :ighter restri=ions on both marketing and consumption of r~bacco products. The maxke~s for domesr.icaily produced products have also suffered from a high incidence of tobacco smuggling, although this problem has been reduced most recently through resr,-i~.ions in tax at federal level. Nevertheless, volumes in smoking and smokeless tobacco are well below historic levels with little sign of recovery in the market. Three concerns have a near monopoly on cigarette tobacco sales: Imperial, RJR Macdonald and Rothmans, Benson & Hedges. Imported products dominate the pipe and smokeless tobacco markets. Prospects appear Limited for all tobacco products in view of the Canadian government's crusade against the tobacco industry. Sales of both smoking and smokeless tobacco are set ~o fall further into the 1990s. O CD r,o C 19°~4 ERC ~-~cm Inr~roacional plc - I " Cut Tobacco,~4 BATCo document for PFSFC 1 March 1999

¢ O O 1994 ERC ~.a~s~ lnr~ruat/ona~ pl¢ - ~ - Cm¢ Tol~c~.o~4 BATCo document for PFSFC 1 March 1999

Canada ~axket Size .~_Ii sectors of the Canadian tobacco products market have conrxacr~d over ~e 1988-1893 pe.dod, with sha,--pest falls e~dent in the sectors of cigars & cigarillos, smokeless tobacco and smoking tobacco. Much of the fall in consumption has been caused by the tough anti- tobacco stance of the Canadian government, combiaing fiscal measuxes wi~ restrictions on smoking and tobacco products marketing. A side effect of massive tax hikes has been the development of a massive smuggled tobacco products sector which has cut government tax revenues and forced many retailers into selling illegal tobacco pmduc~ as a matter of course. Tax cuts at federal level in some states in 1993 and 1994 have led to a redu~ion in smuggling, al~ough the problem still exists and is most prominent in the cigarette and cigarette tobacco sectors. Cigarettes are the only sector to have increased market share by volume since 1988, with cigarette tobaccos's share falling back from 19.2% of sales in 1988 to 18.8% in 1993, and pipe tobacco's share remaining constant at 0.8%. Smokeless tobacco and dgars remain marginal market segments, commanding respectively 1.1% and 0.7% of volume in 1993. Tobacco Products Market, 1988 & 1993 Tonnes % Change 1988 % 1993 % 1988-1993 C~gare=~esm 32.515 77.9 21,080 78.7 - 35.2 Cigarette Tobacco 8,027 19.2 5,026 18.8 - 37.4 Smokeless Tobacco 505 1.2 285 1.1 - 43.6 Pipe Tobacco 345 0.8 216 0.8 - 37.4 Cigars & C~gat'fllos 352 0.8 191 0.7 - 45.7 TOTAL 41,744 100.0 26,798 100.0 - 35.8 So urce: Note: NB: ERC estimates based on CTMC, Statistics Canada. ~*~ 50.9 billion pieces 1988, 33 billion pieces 1993 (estimate). =) 271 million pieces 1988, 147 million pieces 1993. Excludes smuggled product sales. Tor~ consumpr2on of smoking and smokeless tobacco stood at 5,527 tonnes in 1993, some 37.7% below 1988 levels and equivalent to 242 grammes per adult. All sectors of the market have declined at broadly similar rates, with smokeless tobacco conr.rac-.ing faster. However, actual consumption of cigarette tobacco is higher than officially listed, with conu-aband cutting demand for domestic products. 0 0 1994 ERC Sta,d-tics Interua~oaaJ pie " 3 - Cut Tobaecot94 "-4 BATCo document for PFSFC 1 March 1999

Canada Market Size Consumption of Smoking & Smokeless Tobacco, 1988-1993 Index Per Capita Tonnes 1988 • 100.0 Grammes I988 8,87"7 100.0 444. 1989 8,479 95.5 418 1990 7,278 82.0 350 1991 6.910 77.8 321 1992 7,112 80.1 320 1993 5.527 62.3 242 ERC based on CTMC, S~atisdcs Canada, u'ade sources. m Adult population. C:) ¢ 1994 ERC Sta~tlcs l,',cemabon~ plc - 4 - Cut Tolmcco/94 r~ m Co BATCo document for PFSFC 1 March 1999