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PHILIP MORRIS GOING TO EXPAND ACTIVITY IN ARMENIAN CIGARETTE MARKET
Hripsime Hayrapetyan
PanARMENIAN.Net
January 31, 2011
In 2010, Armenian government took some measures to regulate the
cigarette market and determine approaches to local manufacturers and
importers. Regional manager of Armenian representation of Philip Morris
Management Services B. V., the major cigarette importer in Armenia,
Mr. Sargis Tsaghikyan commented on the company's future plans in an
interview with PanARMENIAN.Net.
What performance indicators did the Company have by the end of 2010?
Does it manage to get the pre-crisis level of sales?
According Philip Morris Management Services B. V. Representative
Office (PMA) is an affiliate of Philip Morris International Inc
(PMI)3. With having strong and balanced brand portfolio in Armenia,
presented in most price segments and consumer preference categories,
we have responded to adult consumer needs. Our distribution partners
provided high level of service to our customers. We are pleased with
our business performance and will continue to work to grow our market
share in Armenia.
How do you estimate the tobacco market in Armenia? What is the share
of Philip Morris International in the Armenian market?
Armenia is a highly competitive and a very dynamic market. According
to AC Nielsen September â~@~P October 2010 retail audit, PMI brands'
share of market in Yerevan is 19.5%, the largest among international
tobacco manufacturers.
How many brands of PMI cigarettes are imported to Armenia? Are there
any plans to increase the given stock/volume? Which products of the
Company enjoy popularity in Armenia?
Currently PMI portfolio in Armenian market consists of 9 brand
families: Marlboro, Parliament, Virginia Slims, Muratti Ambassador,
Assos Slims, Chesterfield, L&M, Bond Street and Red&White. L&M brand
family is being the most sold among PMI brand portfolio.
Is the Armenian regulatory environment favorable for the tobacco
market? How do the recent amendments to the RA Law On Excise Tax affect
stiffening competition among the local and international manufacturers?
Armenia has a well-established legislative framework to regulate
tobacco products and we are keen to work with state authorities
and public health officials to agree on rules and regulations for
the industry. It is important that regulation is comprehensive,
evidenceâ~@~Pbased, is applied to all tobacco products and all tobacco
manufacturers and that adequate enforcement is in place. Such tobacco
regulation can help achieve government's public health objectives.
Philip Morris Management Services B.V. Representative office in Armenia
welcomes recent tax changes, provided that they are implemented in due
course without any further delays, and welcomes Armenian government
initiatives to amend Tobacco Products Taxation to bring it in line
with WTO and FTA requirements.
Does the Company consider the possibility of establishing a raw
material base of its own in Armenia and manufacturing tobacco in the
Armenian market?
Currently there is no such intention. We do not discuss our future
plans to that end.
Nowadays more and more people are giving up smoking all over the world,
and is this fact has been noticed by Philip Morris proceeding from its
production volumes? In this regard what campaigns and programs have
been conducted and implemented by the Company in Armenia, including
smoking preventive measures?
PMI is the leading international tobacco company, with products sold
in approximately 160 countries. In 2009, we held an estimated 15.4
percent share of the international cigarette market outside of the
U.S., or 26.0% excluding the People's Republic of China and the U.S.
There is no data on 2010 yet. For more information, see www.pmintl.com.
On October 21, 2010 the President of Armenia signed amendments to the
Law on Excise Tax and the Law on Presumptive Tax for Tobacco Products
which provide for annual gradual reduction of tax rate differences
for imported and locally produced tobacco products as of 01.01.2011
and for full unbundling of presumptive tax for tobacco products as
of 01.01.2014 thus establishing equal treatment for both locally
produced and imported cigarettes.
Cigarette smoking is addictive and causes serious diseases in smokers;
we recognize that there is no such thing as a safe cigarette and
support strong and effective tobacco regulation. We agree with public
health authorities that cessation should be an integral focus of a
comprehensive tobacco policy. We do not target non-smokers or underage,
and our marketing activities are directed to adult smokers in order
to encourage them to choose our brands instead of competitor's brands.
We believe that tobacco manufacturers can and should take action
to prevent youth smoking. Tobacco company actions can range from
supporting effective regulation to implementing their own youth
smoking prevention programs. Since 1999 Philip Morris Management
Services B.V. Representative office in Armenia has been implementing
youth smoking prevention programs informing trade about legislative
prohibition to sell cigarettes to minors and liability in case of
law infringement. In 2010 the program covered 2,500 trade outlets.
Tell about the plans the Company has for 2011...
We are confident that as a Company we have a strong potential and
we'll continue to work to grow our market share in Armenia through
further development in our brand portfolio, distribution system,
investments in brand building and development of our employees.
From: A. Papazian
Hripsime Hayrapetyan
PanARMENIAN.Net
January 31, 2011
In 2010, Armenian government took some measures to regulate the
cigarette market and determine approaches to local manufacturers and
importers. Regional manager of Armenian representation of Philip Morris
Management Services B. V., the major cigarette importer in Armenia,
Mr. Sargis Tsaghikyan commented on the company's future plans in an
interview with PanARMENIAN.Net.
What performance indicators did the Company have by the end of 2010?
Does it manage to get the pre-crisis level of sales?
According Philip Morris Management Services B. V. Representative
Office (PMA) is an affiliate of Philip Morris International Inc
(PMI)3. With having strong and balanced brand portfolio in Armenia,
presented in most price segments and consumer preference categories,
we have responded to adult consumer needs. Our distribution partners
provided high level of service to our customers. We are pleased with
our business performance and will continue to work to grow our market
share in Armenia.
How do you estimate the tobacco market in Armenia? What is the share
of Philip Morris International in the Armenian market?
Armenia is a highly competitive and a very dynamic market. According
to AC Nielsen September â~@~P October 2010 retail audit, PMI brands'
share of market in Yerevan is 19.5%, the largest among international
tobacco manufacturers.
How many brands of PMI cigarettes are imported to Armenia? Are there
any plans to increase the given stock/volume? Which products of the
Company enjoy popularity in Armenia?
Currently PMI portfolio in Armenian market consists of 9 brand
families: Marlboro, Parliament, Virginia Slims, Muratti Ambassador,
Assos Slims, Chesterfield, L&M, Bond Street and Red&White. L&M brand
family is being the most sold among PMI brand portfolio.
Is the Armenian regulatory environment favorable for the tobacco
market? How do the recent amendments to the RA Law On Excise Tax affect
stiffening competition among the local and international manufacturers?
Armenia has a well-established legislative framework to regulate
tobacco products and we are keen to work with state authorities
and public health officials to agree on rules and regulations for
the industry. It is important that regulation is comprehensive,
evidenceâ~@~Pbased, is applied to all tobacco products and all tobacco
manufacturers and that adequate enforcement is in place. Such tobacco
regulation can help achieve government's public health objectives.
Philip Morris Management Services B.V. Representative office in Armenia
welcomes recent tax changes, provided that they are implemented in due
course without any further delays, and welcomes Armenian government
initiatives to amend Tobacco Products Taxation to bring it in line
with WTO and FTA requirements.
Does the Company consider the possibility of establishing a raw
material base of its own in Armenia and manufacturing tobacco in the
Armenian market?
Currently there is no such intention. We do not discuss our future
plans to that end.
Nowadays more and more people are giving up smoking all over the world,
and is this fact has been noticed by Philip Morris proceeding from its
production volumes? In this regard what campaigns and programs have
been conducted and implemented by the Company in Armenia, including
smoking preventive measures?
PMI is the leading international tobacco company, with products sold
in approximately 160 countries. In 2009, we held an estimated 15.4
percent share of the international cigarette market outside of the
U.S., or 26.0% excluding the People's Republic of China and the U.S.
There is no data on 2010 yet. For more information, see www.pmintl.com.
On October 21, 2010 the President of Armenia signed amendments to the
Law on Excise Tax and the Law on Presumptive Tax for Tobacco Products
which provide for annual gradual reduction of tax rate differences
for imported and locally produced tobacco products as of 01.01.2011
and for full unbundling of presumptive tax for tobacco products as
of 01.01.2014 thus establishing equal treatment for both locally
produced and imported cigarettes.
Cigarette smoking is addictive and causes serious diseases in smokers;
we recognize that there is no such thing as a safe cigarette and
support strong and effective tobacco regulation. We agree with public
health authorities that cessation should be an integral focus of a
comprehensive tobacco policy. We do not target non-smokers or underage,
and our marketing activities are directed to adult smokers in order
to encourage them to choose our brands instead of competitor's brands.
We believe that tobacco manufacturers can and should take action
to prevent youth smoking. Tobacco company actions can range from
supporting effective regulation to implementing their own youth
smoking prevention programs. Since 1999 Philip Morris Management
Services B.V. Representative office in Armenia has been implementing
youth smoking prevention programs informing trade about legislative
prohibition to sell cigarettes to minors and liability in case of
law infringement. In 2010 the program covered 2,500 trade outlets.
Tell about the plans the Company has for 2011...
We are confident that as a Company we have a strong potential and
we'll continue to work to grow our market share in Armenia through
further development in our brand portfolio, distribution system,
investments in brand building and development of our employees.
From: A. Papazian