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BAT targets 50% market share by 2010

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14.07.2008, 18:42 52

British American Tobacco (BAT), one of the three largest players on the domestic tobacco market, targets a 50% market share by 2010, against a current market share of 42.5%, company data reveals.
The targeted share should be attained with the support of a two-digit increase in BAT sales this year, which should take the company's business towards one billion euros. BAT would therefore be the first fast moving consumer goods (FMCG) manufacturer to hit this mark, given that, as Nielsen market research company's data shows, cigarettes are the most important FMCG segment and surpass sales of beer and soft drinks.
In the first quarter, the company's revenues witnessed a significant increase, put at 30%, compared with the same time last year, while sold volumes increased by more than 10%.
"BAT's business stood at 824 million euros in 2007 and reached a 41% market share. The 45% increase in revenues was because of higher prices, both due to the rise in excise duties and to the growth of the premium segment. All in all, we saw an over 10% increase in the volumes sold on the local market," said Bart Maas, managing director of BAT Romania.
The growth driver of the BAT sales remains the Kent brand, whose increase is helped by the global trend to go for light cigarettes.
"Kent is the best-selling brand, with a market share that stands at 20%. Kent generates about half of BAT's sales on the local market, considering our market share is 42.5%," Maas added.
The top 10 best-selling cigarette brands on the local market also include Pall Mall, whose market share stands at 10% and Viceroy, 6%, while the fastest growing brands include premium and super premium brands like BAT's Dunhill, according to company data. "These segments will largely be the growth driver in the coming years," Maas added.
Whereas the premium brands witnessed significant growth, price increases and smuggling have affected the lower segments of the market.