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Research and Markets: Get a Detailed Picture of the Tobacco Industry in Brazil

DUBLIN, Ireland-(Business Wire)-December 21, 2007 - Research and Markets (http://www.researchandmarkets.com/reports/c77954) has announced the addition of "Tobacco in Brazil" to their offering.

Euromonitors Tobacco in Brazil report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2001-2006), allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market — be they new legislative, distribution or pricing issues. Forecasts to 2011 illustrate how the market is set to change.

Product coverage includes: cigarettes, cigars and smoking tobacco.

Data coverage: market sizes (historic and forecasts), company shares and brand shares.

Why buy this report?

— Get a detailed picture of the tobacco industry;

— Pinpoint growth sectors and identify factors driving change;

— Understand the competitive environment, the market's major players and leading brands;

— Use five-year forecasts to assess how the market is predicted to develop.

With a network of over 600 analysts worldwide, we have the unique capability to develop reliable information resources to help drive informed strategic planning.

Executive summary

Despite Strict Anti-smoking Regulation, Smoking Population Increases

Brazil has the world's strictest governmental laws against smoking, consisting of highly visible anti-smoking campaigns, severe control on advertising, and very high taxes on smoking products. Despite these obstacles, the number of smokers in Brazil continues to grow. In 2006, there were approximately 44 million smokers in the country, up from 38 million in 1997. Factors driving this trend include the low price of cigarettes, which are among the lowest in the world; the easy access to tobacco products as well as the actions taken by the powerful tobacco companies to slow down the anti-smoking legislation in Brazil.

Souza Cruz Shows Positive Results and Philip Morris Re-organises Operations

Leading cigarette manufacturer Souza Cruz posted a high sales increase in 2006, resulting from decreases in the illegal market and successful enhancement of its product portfolio. Besides re-designing its Derby brand with new packages with names such as Green Forest and Silver showing nature elements like the sky and the ocean, a historical version of Lucky Strike 1916 brand was launched to highlight the tradition of the brand. Philip Morris, in second place, tried to expand on other brands besides its Marlboro brand, and in 2006 it hired a new president and a new brand manager.

Manufacturers Prioritising Female Consumers

Cigarette manufacturers continuously focus advertising campaigns with emotional appeal towards the female population, as they are expected to account for the majority of smokers in the country in the future. According to experts, women are beginning to smoke earlier than men are and are less likely to quit because there is greater tolerance from family members as well as society in general. Other forms of tobacco, such as cigars and pipe tobacco, are, on the other hand, expected to remain far more popular among men.

Tobacco Products Have Uncertain Future

Despite the slightly positive tobacco sales in 2006, the future is not expected to be so bright, as a result of the Brazilian ratification of the FCTC convention. Brazilian consumers will likely become increasingly aware of the potential risks associated with smoking and the government is expected to continue imposing stricter anti-tobacco regulations and higher taxes. In order to survive, tobacco manufacturers are expected to focus on the continuous creation of brand value by investing in less harmful products such as low tar cigarettes and investing on cigarettes with new flavours.

Companies Mentioned:

Sudamax Industria e Comercio de Cigarros Ltda

Menendez Amerino & Cia Ltda

Philip Morris Brasil Industria e Comercio Ltda

Souza Cruz SA

For more information, visit http://www.researchandmarkets.com/reports/c77954.

Source: Euromonitor International

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