Drop in cigarette sales in the Balearics as result of new law

TOBACCO consumption (cigarettes, cigars and loose tobacco) dropped by 1.2 per cent in the Balearics in the first 11 months of the year, even though more low-cost brands had come on to the market. According to a recent report, consumption of cigarettes in the islands dropped to 186'843'700 units (a fall of 0.8 per cent compared to the first 11 months of last year). The total cost was 438.9 million euros, representing a drop of 0.7 per cent. Cigar sales dropped by 4.9 per cent to 32'043'044 units, valued at 14.3 million euros.
Cigarette paper sales dropped by 3.7 per cent to 9.2 million units, valued at 28.9 million euros.
This contrasts with figures for the whole of Spain, where consumption rose by 0.50 per cent.
According to industry sources, sales in Spain had dropped earlier in the year by as much as six per cent, but started to recover from September.
This was attributed to the launch of low-cost brands to counteract the effects of Spain's tough new anti-smoking law which comes into effect on January 1. The drop in the Balearics is due to the fact that the region's own anti-tobacco law is already in force.
The central government is studying the possibility of introducing new taxes to prevent the proliferation of the low cost brands.
Sales rose in six Spanish regions in the first 11 months of the year: the Basque Country (by 6.2 per cent, the biggest increase), Navarre, Catalonia, Castille-La Mancha, Murcia and Andalucia. Sales dropped in La Rioja (by 3.5 per cent, the biggest decrease), Madrid, Asturias, Castille-Leon, Cantabria, Extremadura, Galicia, Aragon, the Balearics and Valencia. Catalonia tops the list for the biggest cigarette sales (820 million packets), followed by Andalucia (775 million packets).
Catalonia also tops the list for cigar sales with 227 million units, followed at a distance by the Basque Country (120 million units) and Andalucia (112 million units). The most popular brand of cigarettes is Marlboro (16.9 per cent of sales) followed by Fortuna (14.74pc).
Low cost brands launched to counteract anti smoking law