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Chapter 14. Tobacco Companies.Pdf Imperial British American LEADING TOBACCO MANUFACTURER CHAPTER Tobacco Tobacco: London, UK By country, 2006 TOBACCO COMPANIES Group: Bristol, UK Imperial Tobacco/ “In the tobacco business, big is beautiful.” SWEDEN FINLAND Altria/Philip Morris None NORWAY Altadis 14 ESTONIA —RONALD WILDMANN, AN ANALYST AT ZURICH’S BANK LEU AG, British American State Monopoly No data ON THE ROTHMANS/BAT MERGER, 1999 UNITED DENMARK LATVIA KINGDOM LITHUANIA Tobacco Location of NETHERLANDS RUSSIAN FED. BELARUS Japan Tobacco Other headquarters of IRELAND POLAND International/Gallaher GERMANY major transnational BELGIUM tobacco companies Philip Morris CZECH REP. UKRAINE SLOVAKIA n recent years, dozens of cigarette manufacturing International: AUSTRIA SWITZ. REP. RUSSIAN HUNGARY MOLDOVA Lausanne, SLOVENIA FEDERATION companies have consolidated under four major private CANADA Switzerland FRANCE CROATIA ROMANIA BOSNIA AND HERZEGOVINA corporations: Altria/Philip Morris, British American SERBIA ITALY BULGARIA I Altadis: MONTENEGRO Tobacco, Japan Tobacco International, and Imperial Tobacco. FYR MACEDONIA Madrid, Spain ALBANIA State monopolies are also major cigarette manufacturers. The PORTUGAL SPAIN GREECE KAZAKHSTAN largest state monopoly is China National Tobacco Corporation, with a global cigarette market share that exceeds that of any UZBEKISTAN Altria: Richmond, GEORGIA KYRGYZSTAN private company. Because the European Union intends to AZERBAIJAN DPR UNITED STATES OF AMERICA Virginia, USA TURKEY TURKMENISTAN KOREA ARMENIA JAPAN Japan Tobacco restrict further mergers and acquisitions that increase a tobacco SYRIAN REP. MALTA KOREA International: CYPRUS ARAB CHINA TUNISIA LEBANON REP. IRAQ ISL. REP. Tokyo, Japan company’s market-share dominance, industry consolidation MOROCCO ISRAEL JORDAN OF IRAN trends may have peaked. NEPAL LIBYAN PAKISTAN The tobacco industry includes some of the most powerful ALGERIA ARAB KUWAIT JAMAHIRIYA EGYPT MEXICO UAE transnational corporate entities in the world. Tobacco CUBA INDIA SAUDI BANGLADESH HONG KONG conglomerates have diversified into many other industries, such DOMINICAN REP. ARABIA LAO JAMAICA MYANMAR PDR as financial services, food and beverages, pharmaceuticals, real HONDURAS SENEGAL THAILAND VIETNAM estate, hotels, restaurants, communications, and apparel, among GUATEMALA SUDAN YEMEN EL SALVADOR NICARAGUA CAMBODIA PHILIPPINES others. The tobacco industry is expected to continue increasing COSTA RICA TRINIDAD AND TOBAGO NIGERIA VENEZUELA COTEˆ in size and power. PANAMA D’IVOIRE ETHIOPIA SRI LANKA GHANA CAMEROON The global tobacco market, valued at $378 billion, grew by COLOMBIA TOGO MALAYSIA 4.6 percent in 2007. By the year 2012, the value of the global KENYA SINGAPORE ECUADOR DEM. REP. tobacco market is projected to increase another 23 percent, OF CONGO reaching $464.4 billion. If Big Tobacco were a country, it would UNITED REPUBLIC PERU OF TANZANIA INDONESIA have the 23rd-largest gross domestic product in the world, BRAZIL surpassing the GDP of countries like Norway and Saudi Arabia. ANGOLA ZAMBIA BOLIVIA MOZAMBIQUE ZIMBABWE MADAGASCAR PARAGUAY MAURITIUS CHILE AUSTRALIA NEW ZEALAND S. AFRICA URUGUAY ARGENTINA GLOBAL CIGARETTE MARKET SHARE, 2007 TOBACCO COMPANY PROFITS, 2008 OR LATEST AVAILABLE YEAR Imperial Tobacco/ Altadis China National 5.6% Tobacco Altadis $800,350,106 (US$) Corporation Japan Tobacco “If I were to describe any 32.0% moment in my life as perfect, International Imperial Tobacco $2,611,669,320 (US$) 10.8% this would be it.” —Andrew Schindler, chief executive and chairman of British American $5,223,338,640 (US$) R. J. Reynolds Tobacco, on the Tobacco merger between R. J. Reynolds Others and Brown & Williamson Tobacco Japan Tobacco 15.8% Corporation, 2004 International $7,692,000,000 (US$) Philip Morris International Altria/Philip British 18.7% Morris $13,400,000,000 (US$) American Tobacco 17.1% 50 51.
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