Tobacco Return Analysis 2013

ASH NEW ZEALAND
Tobacco Returns Analysis 2013
TOBACCO RETURNS ANALYSIS 2013
Tobacco manufacturers and importers in New Zealand are required to file their annual tobacco returns pursuant to section 35 of the
Smokefree Environments Act 1990. The tobacco returns consist of two components – Schedule A and Schedule B. Schedule A is the
information about ingredients and amounts used in their tobacco products. Schedule B is the company list of all their products, retail price
and sale quantity
We analysed data from Schedule B in order to understand the brand positioning of the major tobacco companies. This includes analysis
of retail price, sale volume and estimated sales returned of all tobacco brands. Market share also is estimated based on this data. This
analysis accounted for cigarette and loose leaf tobacco products sold within New Zealand (or domestic market).
Information provided by tobacco companies may vary and hence the results of the analysis. British American Tobacco New Zealand
(BATNZ) provided recommended retail prices as at January 2013 while Imperial Tobacco New Zealand and Philip Morris provided theirs
as at December 2013. This had resulted in artificially higher estimates of average retail price and sale return for BATNZ products due to
the January 2014 tax increase. Having considered this, most of the results on overall tobacco market in this analysis were presented
according to the sale quantity and hence better accuracy.
Fourteen companies filed their tobacco returns in 2013. As this analysis only included cigarette and loose leaf tobacco products, three
companies were excluded as they sold cigar or other tobacco products.
Tobacco Returns 2012 can be accessed through the National Drug Policy New Zealand website
(http://www.ndp.govt.nz/moh.nsf/indexcm/ndp-tobacco-returns-2012).
Abbreviations: BATNZ – British American Tobacco New Zealand; ITNZ – Imperial Tobacco New Zealand; PMNZ – Philip Morris New Zealand
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
BRITISH AMERICAN TOBACCO NEW ZEALAND (BATNZ)
BRAND POSITIONING (CIGARETTE)
BRITISH AMERICAN TOBACCO NZ
TOBACCO RETURN (CIGARETTE) 2013
50%
$1.40
45%
$1.16
$1.20
40%
35%
30%
(%)
$0.94
$0.87
$0.82
$0.92
$0.97
$1.00
$0.99
$0.99
$1.00
$1.00
$0.77
$0.80
25%
20%
31.1%
15% 32.5%
10%
5%
26.4%
NZD ($)
$0.60
$0.40
26.0%
11.4%
11.1% 9.0%
6.5% 4.3%
12.5% 10.1%
8.3% 6.6%
3.6%
0%
$0.20
$0.00
Brand
PERCENTAGE OF COMPANY SALE QUANTITY BY BRAND (%)
PERCENTAGE OF COMPANY SALE RETURN BY BRAND (NZD$)
AVERAGE RETAIL PRICE (NZD$) PER STICK
Figure 1 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by
the tobacco companies. Date of recommended retail price for BAT products was January 2014 (after tobacco tax increase in January 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
BRITISH AMERICAN TOBACCO NEW ZEALAND (BATNZ)
BRAND POSITIONING (CIGARETTE)
In 2013, BATNZ released 14 different brands for sale in NZ cigarette market. The average price per stick for the company products ranged
from $0.77 to $1.16. The median price per stick of BATNZ cigarette brand was $0.97. The average price per stick for Pall Mall and Holiday
and Benson & Hedges were $0.82, $0.87 and $0.77 respectively in 2013. Freedom was the cheapest BATNZ brand ($0.77 per stick) while
Vogue was the most expensive BATNZ brand ($1.16 per stick).
Pall Mall (31.07% of company sale quantity) remained the most popular cigarette brands sold in NZ in 2013. This is followed by Holiday
(26.36% of company sale quantity) and Benson & Hedges (11.38% of company sale quantity).
Around two-third per cent of sale quantity of the Pall Mall brand came from the variants Baseline. The average retail price per stick of
Baseline was $0.78 in 2013. Table 2 gives a breakdown of the Pall Mall brand by its major variants.
BRAND
AVERAGE
RETAIL PRICE
(NZD$) PER
STICK
SALE QUANTITY BY
BRAND (STICKS)
PERCENTAGE OF
COMPANY SALE
QUANTITY BY BRAND
(%)
ESTIMATED SALES
RETURN BY BRAND
(NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN BY BRAND
(NZD$)
PALL MALL
$0.82
440,523,000
32.52%
$355,988,070
31.07%
HOLIDAY
$0.87
352,589,000
26.03%
$302,071,953
26.36%
FREEDOM
$0.77
168,747,000
12.46%
$130,430,966
11.38%
BENSON & HEDGES
$0.94
137,338,700
10.14%
$126,641,491
11.05%
WINFIELD
$0.92
112,334,000
8.29%
$103,011,836
8.99%
DUNHILL
$0.97
88,940,000
6.57%
$74,233,510
6.48%
ROTHMANS
$1.00
49,281,000
3.64%
$49,059,319
4.28%
LUCKY STRIKE
$0.99
2,181,000
0.16%
$2,148,285
0.19%
VOGUE
$1.16
1,196,000
0.088%
$1,387,360
0.121%
KENT
$0.99
561,000
0.041%
$552,585
0.048%
SPORTSMAN
n/a
300,600
0.022%
n/a
n/a
STATEEXPRESS 555
$1.00
222,000
0.016%
$220,890
0.019%
TOPAZ
n/a
132,800
0.010%
n/a
n/a
CAMEO
n/a
120,400
0.009%
n/a
n/a
BATNZ TOTAL
1,354,466,500
100%
$1,145,746,265
100%
Table 1 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Date of recommended retail price for BAT products was January 2014 (after tobacco tax increase in January 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
BRITISH AMERICAN TOBACCO NEW ZEALAND (BATNZ)
BRAND POSITIONING OF PALL MALL (CIGARETTE)
BRAND VARIANT
AVERAGE
RETAIL PRICE
(NZD$) PER
STICK
SALE QUANTITY BY
BRAND VARIANT
(STICKS)
PERCENTAGE OF
COMPANY SALE
QUANTITY (%)
ESTIMATED SALES
RETURN BY BRAND
(NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN (NZD$)
PALL MALL
$0.88
145,980,000
10.78%
$124,287,170
10.85%
PALL MALL BASELINE
$0.78
294,543,000
21.75%
$231,700,900
20.22%
PALL MALL TOTAL
$0.82
440,523,000
32.52%
$355,988,070
31.07%
Table 2 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Date of recommended retail price for BAT products was January 2014 (after tobacco tax increase in January 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
IMPERIALTOBACCO NEW ZEALAND (ITNZ)
BRAND POSITIONING (CIGARETTE)
IMPERIAL TOBACCO NEW ZEALAND
TOBACCO RETRUN (CIGARETTE) 2013
50%
$0.85
45%
40%
$0.89
$0.76
$0.79
$0.93
$1.00
$0.78
$0.76
$0.73
$0.80
35%
(%)
30%
25%
$0.90
$0.70
$0.60
48.5%
$0.50
49.5%
20%
$0.40
29.3%
15%
$0.30
28.7%
13.8%
14.0%
10%
5%
$0.20
4.6% 5.3% 2.5%
0%
BRAND
NZD($)
JPS
HORIZON
2.3%
JOHN
PETER
BRANDON JACKSON
$0.10
0.5%
0.6%
WEST
0.3% 0.3%
CAMEL
$0.00
DAVIDOFF
Brand
PERCENTAGE OF COMPANY SALE QUANTITY BY BRAND (%)
PERCENTAGE OF COMPANY SALE RETURN BY BRAND (NZD$)
AVERAGE RETAIL PRICE (NZD$) PER STICK
Figure 2 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Date of recommended retail price for ITNZ products was 31 December 2013 (before tobacco tax increase in 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
IMPERIALTOBACCO NEW ZEALAND (ITNZ)
BRAND POSITIONING (CIGARETTE)
ITNZ released 8 different cigarette brands for sale in NZ cigarette market in 2013. The average retail price per stick for ITNZ products ranged
from $0.73 to $0.93. The median average price per stick was $0.78. The new brand, WEST, was the cheapest brand that cost $0.73 per stick
on average. Davidoff remained the most expensive brands ($0.93 per stick on average).
In 2013, JPS remained the most popular brand of ITNZ (49.47% of company sale quantity) followed by Horizon (28.65% of company sale
quantity) and John Brandon (14.01% of company sale quantity). The average retail price per stick for JPS, Horizon and John Brandon were
$0.76, $0.79 and $0.76 respectively.
BRAND
AVERAGE
RETAIL PRICE
(NZD$) PER
STICK
PERCENTAGE OF
COMPANY SALE
QUANTITY BY
BRAND (%)
SALE QUANTITY BY
BRAND (STICKS)
ESTIMATED SALES
RETURN BY BRAND
(NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN BY BRAND
(NZD$)
JPS
$0.76
186,099,503
49.47%
$140,472,107
48.48%
HORIZON
$0.79
107,783,355
28.65%
$84,770,106
29.26%
JOHN BRANDON
$0.76
52,688,290
14.01%
$39,871,548
13.76%
PETER JACKSON
$0.85
17,354,715
4.61%
$15,223,721
5.25%
WEST
$0.73
9,348,560
2.49%
$6,777,706
2.34%
CAMEL
$0.89
1,977,400
0.53%
$1,759,886
0.61%
DAVIDOFF
$0.93
942,760
0.25%
$872,053
0.30%
SUPERKINGS
$0.78
560
0.00015%
$436.80
0.00015%
ITNZ TOTAL
376,195,143
100%
$289,747,564
100%
Table 3 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Date of recommended retail price for ITNZ products was 31 December 2013 (before tobacco tax increase in 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
PHILIP MORRIS NEW ZEALAND (PMNZ)
BRAND POSITIONING (CIGARETTE)
PHILIP MORRIS TOBACCO NZ
TOBACCO RETURN (CIGARETTE) 2013
$1.00
100%
$0.90
90%
$0.90
80%
(%)
$0.71
$0.80
$0.70
70%
$0.70
60%
$0.60
50%
$0.50
40%
$0.40
30%
57.2%
$0.30
62.2%
20%
36.5%
$0.20
32.2%
10%
6.4%
0%
BRAND
NZD($)
MARLBORO
$0.10
5.5%
$0.00
LONGBEACH
Brand
PERCENTAGE OF COMPANY SALE QUANTITY BY BRAND (%)
PERCENTAGE OF COMPANY SALE RETURN BY BRAND (NZD$)
AVERAGE RETAIL PRICE (NZD$) PER STICK
Figure 3 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by
the tobacco companies. Date of recommended retail price for PMNZ products was 31 December 2013 (before tobacco tax increase in 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
PHILIP MORRIS NEW ZEALAND (PMNZ)
BRAND POSITIONING (CIGARETTE)
PMNZ released 3 cigarette brands for sale in NZ cigarette market in 2013. The average retail price per stick of PMNZ products ranged from
$0.70 to $0.90. GT was the cheapest of PMNZ brands and Marlboro was the most expensive brand.
Marlboro (57.19% of company cigarette sale) was the most popular brand of PMNZ followed by Longbeach (36.45% of company cigarette
sale). The two brands comprised of 93.6% of the cigarette sale quantity of PMNZ.
TOBACCO
COMPANY
BRAND
AVERAGE RETAIL
PRICE (NZD$)
PER STICK
SALE QUANTITY
BY BRAND
(STICKS)
PERCENTAGE OF
COMPANY SALE
QUANTITY BY
BRAND (%)
ESTIMATED
SALES RETURN
BY BRAND (NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN BY
BRAND (NZD$)
PMNZ
MARLBORO
$0.90
76,443,000
57.19%
$66,845,095
62.23%
PMNZ
LONGBEACH
$0.71
48,721,000
36.45%
$34,617,885
32.23%
PMNZ
GT
$0.70
8,498,000
6.36%
$5,948,600
5.54%
PMNZ TOTAL
133,662,000
100%
$107,411,580
100%
Table 4 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Date of recommended retail price for PMNZ products was 31 December 2013 (before tobacco tax increase in 2014)
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
ALL TOBACCO MANUFACTURERS AND IMPORTERS 2013
TOBACCO
COMPANY
BATNZ
ITNZ
PMNZ
HEALTHLINK
BRAND
AVERAGE
RETAIL PRICE
PER STICK
PALL MALL
HOLIDAY
FREEDOM
BENSON & HEDGES
WINFIELD
DUNHILL
ROTHMANS
LUCKY STRIKE
VOGUE
KENT
SPORTSMAN
STATEEXPRESS 555
TOPAZ
CAMEO
JPS
HORIZON
JOHN BRANDON
PETER JACKSON
WEST
CAMEL
DAVIDOFF
SUPERKINGS
MARLBORO
LONGBEACH
GT
DOUBLE HAPPINESS
FU RONG WANG
YUXI
LESSER PANDA
HUANGHELOU
GOOD LUCK
$0.82
$0.87
$0.77
$0.94
$0.92
$0.97
$1.00
$0.99
$1.16
$0.99
n/a
$1.00
n/a
n/a
$0.76
$0.79
$0.76
$0.85
$0.73
$0.89
$0.93
$0.78
$0.90
$0.71
$0.70
$0.72
$0.79
$0.83
$0.79
$0.83
$0.77
SALE QUANTITY
(STICKS)
PERCENTAGE OF
SALE QUANTITY
OF NZ
CIGARETTE
MARKET
ESTIMATED SALE
RETURN (NZD$)
PERCENTAGE OF
SALE RETURN OF
NZ CIGARETTE
BRAND
440,523,000
352,589,000
168,747,000
137,338,700
112,334,000
88,940,000
49,281,000
2,181,000
1,196,000
561,000
300,600
222,000
132,800
120,400
186,099,503
107,783,355
52,688,290
17,354,715
9,348,560
1,977,400
942,760
560
76,443,000
48,721,000
8,498,000
40,000
30,000
140,000
30,000
320,000
80,000
23.26%
18.62%
8.91%
7.25%
5.93%
4.70%
2.60%
0.12%
0.063%
0.030%
0.016%
0.012%
0.007%
0.006%
9.83%
5.69%
2.78%
0.92%
0.49%
0.10%
0.050%
0.000030%
4.04%
2.57%
0.45%
0.0021%
0.0016%
0.0074%
0.0016%
0.017%
0.0042%
$355,988,070
$302,071,953
$130,430,966
$126,641,491
$103,011,836
$74,233,510
$49,059,319
$2,148,285
$1,387,360
$552,585
n/a
$220,890
n/a
n/a
$140,472,107
$84,770,106
$39,871,548
$15,223,721
$6,777,706
$1,759,886
$872,053
$437
$66,845,095
$34,617,885
$5,948,600
$28,600
$23,700
$115,500
$23,700
$264,000
$61,600
22.72%
19.28%
8.32%
8.08%
6.57%
4.74%
3.13%
0.14%
0.089%
0.035%
n/a
0.014%
n/a
n/a
8.97%
5.41%
2.54%
0.97%
0.43%
0.11%
0.056%
0.000028%
4.27%
2.21%
0.38%
0.0018%
0.0015%
0.0074%
0.0015%
0.017%
0.0039%
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ASH NEW ZEALAND
Tobacco Returns Analysis 2013
JTI
NEW WORLD
(NEW
ZEALAND) LTD
NEW ZEALAND
TOBACCO
GROUP LTD
SCANINAVIAN
TOBACCO
GROUP
TOTAL
CAMEL FILTER
CHUNGWA
DOUBLE HAPPINESS
GD
EASY
REEF
TRADITION
$0.90
$0.83
$0.72
$0.71
$0.73
$0.74
$0.74
12,000,000
2,907,000
2,250,000
2,130,000
8,370,700
869,960
320,220
0.63%
0.15%
0.12%
0.11%
0.44%
0.046%
0.017%
$10,800,000
$2,412,810
$1,620,000
$1,501,650
$6,110,611
$639,421
$236,963
0.69%
0.15%
0.10%
0.10%
0.39%
0.041%
0.015%
DJARUM
$1.06
139,590
0.0074%
$147,965
0.0094%
1,893,951,113
100%
$1,566,891,929
100%
Table 5
• The ten most popular cigarette brands sold in New Zealand in 2013 are highlighted in the table above.
• Estimation of sale return by brand was the sum of sale returns of variants under the brand (i.e, the sale quantity of variant was multiplied by the
average retail price per stick of the respective variant).
• Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Healthlink Distributors Ltd, JT International, New World (New Zealand) Ltd and Scandinavian Tobacco Group – end of
December 2013 (before tobacco tax increase in January 2014)
- NZ Tobacco Group Ltd - not specified
10
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
TEN MOST POPULAR CIGARETTE BRANDS IN NEW ZEALAND
2012 and 2013
$0.94
500,000,000
450,000,000
$0.82
$0.87
$0.77
400,000,000
350,000,000
$0.88
$0.78
$0.92
$0.80
$0.86
$0.97
$0.90
$0.90
$0.76
$0.79
$0.90
$0.76
$0.80
$0.79
$0.75
300,000,000
$0.68
$0.70
$1.00
$0.70
$0.60
$0.67
$0.50 (NZD$)
(Sticks) 250,000,000
$0.00
FREEDOM
BATNZ
ITNZ
MARLBORO
0
JOHN BRANDON
$0.10
HORIZON
50,000,000
JPS
$0.20
DUNHILL
100,000,000
WINFIELD
$0.30
BENSON & HEDGES
150,000,000
HOLIDAY
$0.40
PALL MALL
200,000,000
PMNZ
SALE QUANTITY (STICKS) 2012
SALE QUANTITY (STICKS) 2013
AVERAGE RETAIL PRICE PER STICK (NZD$) 2012
AVERAGE RETAIL PRICE PER STICK (NZD$) 2013
Figure 4 Average retail price per stick and estimation of company sale return were based on the value of recommended retail price provided by the tobacco
companies. Dates of recommended retail price of each company are
are: BATNZ – January 2014 (after tobacco tax increase in
n January 2014); ITNZ & PMNZ –
December 2013 (before tobacco
cco tax increase in January 2014
2014).
11
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
TEN MOST POPULAR CIGARETTE BRANDS IN NEW ZEALAND 2010 – 2013
The ten most popular cigarette brands sold in New Zealand in 2013 are shown in Figure 4 and Table 6. Pall Mall of BATNZ remained the
most popular brand in NZ and this was mainly due to a high sale volume of the cheaper variant, Baseline (around two-third of the total sale
volume of Pall Mall brands). The overall sale volume of the Pall Mall brand has dropped slightly but remained relatively stable in 2013.
Holiday of BATNZ remained the second most popular brand in NZ cigarette market and the sale quantity of the brand has declined from
411,199,000 sticks in 2012 to 352,589,000 in 2013.
JPS of ITNZ was the third most popular brands sold in NZ cigarette market in 2013 and the sale quantity of the brand has dropped from
190,352,780 sticks in 2012 to 186,099,503 in 2013.
Strong growth remained in the ultra low-cost brand, Freedom of BATNZ, and the sale quantity of Freedom has increased from 136,269,200
sticks in 2012 to 168,747,000 sticks in 2013.
For PMNZ, Marlboro was the only PMNZ brand that remained to be the most popular brand in New Zealand and sale quantity of Marlboro
brand has increased.
AVERAGE RETAIL PRICE PER STICK (NZD$)
TOBACCO
COMPANY
PERCENTAGE OF SALE QUANTITY OF NZ
CIGARETTE MARKET
BRAND
2012
2013
BATNZ
2012
2013
PALL MALL
$0.78
$0.82
23.28%
22.72%
HOLIDAY
$0.80
$0.87
20.46%
19.28%
FREEDOM
$0.75
$0.77
6.78%
8.32%
BENSON & HEDGES
$0.88
$0.94
7.42%
8.08%
WINFIELD
$0.86
$0.92
6.42%
6.57%
DUNHILL
$0.90
$0.97
4.45%
4.74%
ITNZ
JPS
$0.68
$0.76
9.47%
8.97%
HORIZON
$0.70
$0.79
6.38%
5.41%
JOHN BRANDON
$0.67
$0.76
2.98%
2.54%
PMNZ
MARLBORO
$0.79
$0.90
3.78%
4.27%
Table 6 Average retail price per stick and estimation of company sale return were based on the value of recommended retail price provided by the tobacco
companies. Dates of recommended retail price of each company are: BATNZ – January 2014 (after tobacco tax increase in January 2014); ITNZ & PMNZ –
December 2013 (before tobacco tax increase in January 2014).
12
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET (SHARE)
ESTIMATED CIGARETTE MARKET SHARE FROM TOBACCO ANALYSIS 2013
BATNZ, ITNZ and PMNZ remained the three tobacco companies with the highest cigarette sale quantity and also cigarette sale return in
2013. BATNZ had 71.52% of cigarette sale quantity in New Zealand market which generated around 73.12% of all cigarette sale returns in
New Zealand. ITNZ comprised of 19.86% of cigarette sale quantity in New Zealand Market and PMNZ comprised of 7.06% of cigarette sale.
DOMESTIC CIGARETTE MARKET SHARE
(PERCENTAGE OF SALE QUANTITY OF NZ MARKET)
2010 - 2013
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
40%
30%
DOMESTIC CIGARETTE MARKET SHARE
(PERCENTAGE OF SALE QUANTITY OF NZ MARKET)
2010 - 2013
70.6%
74.2%
50%
71.5%
40%
72.0%
10%
19.9%
17.9%
0%
BATNZ
ITNZ
73.1%
74.8%
30%
20.2%20.4%
20%
73.6%
75.2%
6.9% 7.7% 7.1%
6.4%
PMNZ
20%
17.9%
18.5%
17.0% 18.1%
10%
1.0%1.5%1.2%1.6%
0%
OTHERS
BATNZ
PERCENTAGE
PERCENTAGE
PERCENTAGE
PERCENTAGE
PERCENTAGE OF SALE QUANTITY OF NZ CIGARETTE MARKET IN 2010
PERCENTAGE OF SALE QUANTITY OF NZ CIGARETTE MARKET IN 2011
PERCENTAGE OF SALE QUANTITY OF NZ CIGARETTE MARKET IN 2012
PERCENTAGE OF SALE QUANTITY OF NZ CIGARETTE MARKET IN 2013
OF SALE
OF SALE
OF SALE
OF SALE
6.8%7.2%6.0%6.9%
0.9% 1.3%1.1% 1.5%
ITNZ
PMNZ
RETURN OF NZ CIGARETTE MARKET
RETURN OF NZ CIGARETTE MARKET
RETURN OF NZ CIGARETTE MARKET
RETURN OF NZ CIGARETTE MARKET
OTHERS
IN 2010
IN 2011
IN 2012
IN 2013
Figure 5 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided
by the tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Healthlink Distributors Ltd, JT International, New World (New Zealand) Ltd and Scandinavian Tobacco Group – end of
December 2013 (before tobacco tax increase in January 2014)
- NZ Tobacco Group Ltd - not specified
13
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
ESTIMATED CIGARETTE MARKET SHARE FROM TOBACCO ANALYSIS 2010 – 2013
BATNZ
ITNZ
PMNZ
OTHERS
2010
PERCENTAGE
COMPANY
OF SALE
SALE
QUANTITY OF
QUANTITY
NZ
(STICKS)
CIGARETTE
MARKET
1,660,739,700
74.17%
401,450,000
17.93%
154,183,000
6.89%
22,594,930
1.01%
2011
PERCENTAGE
COMPANY
OF SALE
SALE
QUANTITY OF
QUANTITY
NZ
(STICKS)
CIGARETTE
MARKET
1,472,611,200
70.61%
420,973,000
20.19%
161,154,000
7.73%
30,777,675
1.48%
2012
PERCENTAGE
COMPANY
OF SALE
SALE
QUANTITY OF
QUANTITY
NZ
(STICKS)
CIGARETTE
MARKET
1,445,944,400
71.95%
409,900,320
20.40%
129,447,520
6.44%
24,344,850
1.21%
2013
PERCENTAGE
COMPANY
OF SALE
SALE
QUANTITY OF
QUANTITY
NZ
(STICKS)
CIGARETTE
MARKET
1,354,466,500
71.52%
376,195,143
19.86%
133,662,000
7.06%
29,627,470
1.56%
TOTAL
2,238,967,630
2,085,515,875
2,009,637,090
1,893,951,113
TOBACCO
COMPANY
100%
100 %
100%
100%
2010
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ
RETURN
CIGARETTE
(NZD$)
MARKET
2011
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ
RETURN
CIGARETTE
(NZD$)
MARKET
2012
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ
RETURN
CIGARETTE
(NZD$)
MARKET
2013
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ
RETURN
CIGARETTE
(NZD$)
MARKET
BATNZ
ITNZ
PMNZ
OTHERS
$981,815,078
$221,721,166
$89,313,183
$12,007,352
75.24%
16.99%
6.84%
0.92%
$1,076,152,841
$261,139,877
$105,072,843
$19,067,943
73.64%
17.87%
7.19%
1.30%
$1,177,753,426
$284,508,932
$94,844,306
$16,724,097
74.83%
18.08%
6.03%
1.06%
$1,145,746,265
$289,747,564
$107,411,580
$23,986,520
73.12%
18.49%
6.86%
1.53%
TOTAL
$1,304,856,780
100%
$1,461,433,503
100%
$1,573,830,761
100%
$1,566,891,929
100%
TOBACCO
COMPANY
Table 7 Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the
tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Healthlink Distributors Ltd, JT International, New World (New Zealand) Ltd and Scandinavian Tobacco Group – end of December
2013 (before tobacco tax increase in January 2014)
- NZ Tobacco Group Ltd - not specified
14
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
TREND IN CIGARETTE SALE QUANTITY 2004 – 2013
COMPANY CIGARETTE SALE QUANTITY BY WEIGHT (KG)
2004-2013
1,400,000
1,279,954
1,262,572
1,187,366
1,200,000
1,042,002
936,514
1,000,000
800,000
BATNZ
(KG)
ITNZ
PMNZ
OTHER COMPANY
600,000
400,000
284,356
292,117
293,816
281,326
93,363
105,083
122,051
114,962
17,164
22,931
28,814
21,005
200,000
0
2004
2005
2006
2007
2008
15
2009
2010
2011
270,910
92,256
20,914
2012
2013
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (CIGARETTE)
TREND IN CIGARETTE SALE QANTITY 2004 – 2013
The total cigarette sale quantity of most tobacco companies continued to fall in 2013. The combined sale volume of the other companies has
increased from 16,716 kg in 2012 to 20,914 kg in 2013. Such growth was mainly driven by the increased sale quantity of JT International Ltd
that released one cigarette brand, Camel Filter, for sale in New Zealand market.
SALE QUANTITY (KG)
2008
2009
TOBACCO COMPANY
2004
2005
2006
2007
2010
2011
2012
2013
BATNZ
ITNZ
PMNZ
COSMIC
HEALTHLINK
DISTRIBUTORS LTD
JT INTERNATIONAL
LTD S.A.
KINGS
KOREA TOBACCO
LIMITED
MODERNA TRADING
CO LTD
NEW WORLD (NEW
ZEALAND) LTD
NEW ZEALAND
TOBACCO GROUP
SWEDISH MATCH
LIMITED
SOUTH AFRICAN
CAFFEE
SOUTH AMERICAN
TOBACCO GROUP
(NZ) LTD
VE LOGISTICS
SCANINAVIAN
TOBACCO GROUP
OTHER COMPANIES
TOTAL
TOTAL
1,291,460
285,111
101,525
n/a
n/a
1,279,954
284,356
93,363
n/a
584
1,295,860
281,532
104,289
n/a
816
1,262,572
292,117
105,083
n/a
576
1,263,233
278,221
102,632
n/a
704
1,187,366
293,816
122,051
n/a
849
1,155,490
283,011
119,887
n/a
317
1,042,002
281,326
114,962
62
2,940
1,050,787
294,119
92,509
66
2,119
936,514
270,910
92,256
n/a
449
6,534
7,440
5,655
5,338
2,588
2,962
2,409
2,680
1,807
8,400
776
716
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
602
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
683
2,055
4,890
6,870
9,420
8,220
14,290
2,940
3,150
n/a
83
4,402
3,500
3,402
4,480
4,483
5,803
4,666
3,545
5,101
n/a
2,683
3,777
6,745
13,866
10,992
7,918
7,698
5,996
6,884
n/a
n/a
n/a
n/a
58
112
170
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
19
34
n/a
n/a
n/a
n/a
n/a
465
594
n/a
n/a
n/a
n/a
1,472
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
80
10,264
1,688,360
17,164
1,674,837
18,638
1,700,319
22,931
1,682,703
31,581
1,675,667
28,814
1,634,056
30,908
1,589,296
21,005
1,459,295
16,716
1,454,131
20,914
1,320,594
Table n/a – not available; some tobacco companies provided the sale quantity as number of cigarette sticks released. These data were converted into
weight according to the information on the website of Ministry of Health. The weight of a cigarette stick is estimated to be 0.7 grams.
16
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
BRITISH AMERICAN TOBACCO NEW ZEALAND (BATNZ)
BRAND POSITIONING (LOOSE LEAF TOBACCO)
BRITISH AMERICAN TOBACCO NEW ZEALAND
TOBACCO RETURN (LOOSE LEAF TOBACCO) 2013
50%
45%
$0.66
$0.65
$0.59
40%
$0.80
$0.63
$0.60
35%
(%)
$0.70
30%
$0.50
25%
$0.40
20%
39.5%
40.4%
$0.30
31.7%
15%
NZD($)
32.0%
$0.20
10%
15.1%
5%
14.1%
13.7%
13.5%
0%
$0.10
$0.00
BRAND
PORT ROYAL
PARK DRIVE
Brand
WINFIELD
PERCENTAGE OF COMPANY SALE QUANTITY BY BRAND (%)
PERCENTAGE OF COMPANY SALE RETURN BY BRAND (NZD$)
AVERAGE RETAIL PRICE PER STICK 0.5g (NZD$)
Figure 6 Average retail price per kg and estimation of company loose leaf tobacco sale return were based on the value of recommended retail price
provided by the tobacco companies. Date of recommended retail price of BAT was January 2014 (after tobacco tax increase in January 2014).
17
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
BRITISH AMERICAN TOBACCO NEW ZEALAND (BATNZ)
BRAND POSITIONING (LOOSE LEAF TOBACCO)
In 2013, BATNZ has released 4 brands for sale in NZ loose leaf tobacco market. The average price per kilogram for the company products
ranged from $1,190 to $1,315 ($0.59 to $0.66 per stick of 0.5g). The median price per kilogram of BATNZ loose leaf tobacco products were
$1,284 ($0.64 per stick of 0.5g).
Port Royal (39.5% of company sale quantity) remained the most popular loose leaf tobacco brands of BATNZ in 2013 followed by Park Drive
(31.7% of company sale quantity). The average retail prices per kg of Port Royal and Park Drive in 2013 were $1,315 and $1,302 respectively
($0.66 and $0.65 per stick of 0.5g).
BRAND
AVERAGE RETAIL
PRICE PER KG
(NZD$)
AVERAGE RETAIL
PRICE PER STICK
0.5g (NZD$)
SALE QUANTITY
BY BRAND (KG)
PERCENTAGE OF
COMPANY SALE
QUANTITY BY
BRAND (%)
ESTIMATED
SALES RETURN
BY BRAND (NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN BY
BRAND (NZD$)
PORT ROYAL
$1,315
$0.66
157,179
39.51%
$207,120,557
40.35%
PARK DRIVE
$1,302
$0.65
126,057
31.68%
$164,333,049
32.02%
WINFIELD
$1,190
$0.59
59,978
15.08%
$72,458,440
14.12%
HOLIDAY
$1,266
$0.63
54,633
13.73%
$69,359,693
13.51%
BATNZ
397,847
100%
$513,271,739
100%
Table 8 Average retail price per kg and estimation of company loose leaf tobacco sale return were based on the value of recommended retail price provided
by the tobacco companies. Date of recommended retail price of BAT was January 2014 (after tobacco tax increase in January 2014).
18
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
IMPERIAL TOBACCO NEW ZEALAND (ITNZ)
BRAND POSITIONING (LOOSE LEAF TOBACCO)
IMPERIAL TOBACCO NEW ZEALAND
TOBACCO RETURN (LOOSE LEAF TOBACCO) 2013
$0.80
50%
45%
$0.70
40%
35%
(%)
$0.53
$0.54
$0.60
$0.57
$0.55
$0.59
$0.60
$0.50
30%
NZD($)
$0.40
25%
20%
39.7%
38.5%
15%
$0.30
26.5%
27.2%
10%
18.6%
$0.20
17.9%
5%
8.9% 9.6%
$0.10
5.1% 5.6%
1.1% 1.2%
POCKET
EDITION
DRUM
0%
BRAND
RIVERSTONE
JPS
HORIZON
$0.00
Brand
PERCENTAGE OF COMPANY SALE QUANTITY BY BRAND (%)
PERCENTAGE OF COMPANY SALE RETURN BY BRAND (NZD$)
AVERAGE RETAIL PRICE PER STICK 0.5g (NZD$)
Figure 7 Average retail price per kg and estimation of company loose leaf tobacco sale return were based on the value of recommended retail price
provided by the tobacco companies. Date of recommended retail price of ITNZ was December 2013 (before tobacco tax increase in January 2014).
19
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
IMPERIAL TOBACCO NEW ZEALAND (ITNZ)
BRAND POSITIONING (LOOSE LEAF TOBACCO)
ITNZ released 6 brands for sale in NZ loose leaf tobacco market. The average price per kilogram for the company products ranged from
$1,051 to $1,190 ($0.53 to $0.60 per stick of 0.5g). The median price per kilogram of ITNZ loose leaf tobacco products were $1,161 ($0.56
per stick of 0.5g).
Riverstone and JPS were the most popular loose leaf tobacco brands of ITNZ in 2013. They comprised of 39.75% and 27.19% respectively of
the company sale quantity. The sale quantity of both brands has gone up from the previous year. For Riverstone, the sale quantity has gone
up from 52,684 kg in 2012 to 63,367 kg in 2013. JPS has gone up from 32,029 kg in 2012 to 43,342 kg in 2013.
The average retail price per kilogram of Riverstone in 2013 was $1051 ($0.53 per stick of 0.5g) and JPS was $1,080 ($0.54 per stick of 0.5g).
BRAND
AVERAGE
RETAIL PRICE
PER KG
(NZD$)
AVERAGE
RETAIL PRICE
PER STICK 0.5g
(NZD$)
SALE
QUANTITY
BY BRAND
(KG)
PERCENTAGE
OF COMPANY
SALE QUANTITY
BY BRAND (%)
ESTIMATED SALES
RETURN BY
BRAND (NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN BY
BRAND (NZD$)
RIVERSTONE
$1,051
$0.53
63,367
39.75%
$67,537,132
38.54%
JPS
$1,080
$0.54
43,342
27.19%
$46,387,685
26.47%
HORIZON
$1,144
$0.57
28,488
17.87%
$32,677,974
18.65%
POCKET EDITION
$1,177
$0.55
14,217
8.92%
$16,742,625
9.55%
DRUM
$1,190
$0.60
8,200
5.14%
$9,774,746
5.58%
VIRGINIA
$1,177
$0.59
1,813
1.14%
$2,133,714
1.22%
ITNZ TOTAL
159,427
100%
$175,253,876
100%
Table 9 Average retail price per kg and estimation of company loose leaf tobacco sale return were based on the value of recommended retail price
provided by the tobacco companies. Date of recommended retail price of ITNZ was December 2013 (before tobacco tax increase in January 2014).
20
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
PHILIP MORRIS NEW ZEALAND (PMNZ)
BRAND POSITIONING (LOOSE LEAF TOBACCO)
In 2013, the PMNZ has released only one loose leaf tobacco brand, Marlboro, for sale in the market. The PMNZ brand was first introduced
into New Zealand loose leaf tobacco market in 2013. The average retail price per kilogram of Marlboro was $1,167 ($0.58 per stick of 0.5g).
The sale quantity of sole PMNZ brand in 2013 was 14kg.
BRAND
SALE QUANTITY
(KG)
AVERAGE
RETAIL PRICE
PER KG (NZD$)
AVERAGE
RETAIL PRICE
PER STICK 0.5g
(NZD$)
PERCENTAGE OF
COMPANY SALE
QUANTITY (%)
ESTIMATED
SALES RETURN
(NZD$)
PERCENTAGE OF
COMPANY SALE
RETURN (NZD$)
MARLBORO
14
$1,167
$0.58
100%
$16,333
100%
PMNZ TOTAL
14
$1,167
$0.58
100%
$16,333
100%
Table 10 Average retail price per kg and estimation of company loose leaf tobacco sale return were based on the value of recommended retail price
provided by the tobacco companies. Date of recommended retail price of PMNZ was December 2013 (before tobacco tax increase in January 2014).
21
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
ALL TOBACCO MANUFACTURERS AND IMPORTERS 2013
TOBACCO COMPANY
BRAND
AVERAGE
RETAIL
PRICE
PER KG
BATNZ
PORT ROYAL
PARK DRIVE
WINFIELD
HOLIDAY
RIVERSTONE
JPS
HORIZON
POCKET EDITION
DRUM
VIRGINIA
MARLBORO
AMERICAN SPIRIT
$1,315
$1,302
$1,190
$1,266
$1,051
$1,080
$1,144
$1,177
$1,190
$1,177
$1,167
$1,249
$0.66
$0.65
$0.59
$0.63
$0.53
$0.54
$0.57
$0.55
$0.60
$0.59
$0.58
$0.62
157,179
126,057
59,978
54,633
63,367
43,342
28,488
14,217
8,200
1,813
14
93
PERCENTAGE
OF SALE
QUANTITY OF
NZ LOOSE
LEAF
TOBACCO
MARKET
27.88%
22.36%
10.64%
9.69%
11.24%
7.69%
5.05%
2.52%
1.45%
0.32%
0.0025%
0.017%
DOMINGO
EASY
REEF
ASHFORD
MANITOU
KNIGHT
SUNNY'S
NICKY'S
RASTA
BALI
COLTS
$850
$1,04
$997
$1,077
$1,140
$904
$890
$890
$875
$1,033
$983
$0.43
$0.52
$0.50
$0.54
$0.57
$0.45
$0.45
$0.45
$0.44
$0.52
$0.49
40
2,432
593
303
104
439
88
21
22
831
1,606
563,862
0.007%
0.43%
0.11%
0.054%
0.019%
0.078%
0.016%
0.0037%
0.0039%
0.15%
0.28%
100%
ITNZ
PMNZ
COSMIC
MODERNA TRADING
CO LTD
NEW ZEALAND
TOBACCO GROUP
LTD
R&S KING LTD
AVERAGE
RETAIL
PRICE PER
STICK OF
0.5g
SALE
QUANTITY
(KG)
$207,120,557
$164,333,049
$72,458,440
$69,359,693
$67,537,132
$46,387,684
$32,677,974
$16,742,625
$9,774,746
$2,133,714
$16,333
$116,683
PERCENTAGE
OF SALE
RETURN OF
NZ LOOSE
LEAF
TOBACCO
BRAND
29.79%
23.64%
10.42%
9.98%
9.71%
6.67%
4.70%
2.41%
1.41%
0.31%
0.0023%
0.017%
$34,000
$2,537,898
$591,452
$326,424
$119,062
$391,452
$77,537
$18,600
$19,250
$858,700
$1,579,233
$695,212,239
0.0049%
0.37%
0.085%
0.047%
0.017%
0.056%
0.011%
0.0027%
0.0028%
0.12%
0.23%
100%
ESTIMATED
SALE RETURN
(NZD$)
SCANINAVIAN
TOBACCO GROUP
TOTAL
Table 11
• The six most popular loose leaf tobacco brands sold in NZ in 2013 are highlighted in the table above.
• Estimation of sale return by brand was the sum of sale returns of variants under the brand (ie the sale quantity of variant was multiplied by the
average retail price per kg of the respective variant).
22
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
•
•
Average retail price of loose leaf tobacco products and estimation of company loose leaf tobacco sale return were based on the value of
recommended retail price provided by the tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Cosmic, JT International, Moderna Trading Co Ltd – December 2013 (before tobacco tax increase in January 2014)
- R&S King Ltd and NZ Tobacco Group Ltd – not specified
For better comparison with cigarette products, the average retail price for loose leaf tobacco per stick was also calculated. For calculation, the
weight of a loose leaf tobacco stick was assumed to be 0.5 grams (Source: Laugesen M. Epton M, Frampton C, Glover M. Lea RA. Hand-rolled
cigarette smoking patterns, compared with factory-made cigarette smoking in New Zealand men. BMC Public Health 2009, 9:194.
http://www.biomedcentral.com/1471-2458/9/194 )
23
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
SIX MOST POPULAR LOOSE LEAF TOBACCO
BACCO BRANDS IN 2013
SIX MOST POPULAR LOOSE LEAF TOBACCO BRAND IN NZ
2012 and 2013
200,000
$0.66
$0.65
$0.59
180,000
160,000
$0.70
$0.63
$0.59
$0.54
$0.53
$0.59
$0.57
140,000
$0.50
$0.54
$0.51
$0.48
120,000
$0.60
$0.40
(KG) 100,000
NZD($)
$0.30
80,000
60,000
$0.20
40,000
$0.10
20,000
0
$0.00
PORT ROYAL
PARK DRIVE
WINFIELD
HOLIDAY
BATNZ
RIVERSTONE
JPS
ITNZ
SALE QUANTITY (KG) 2012
SALE QUANTITY (KG) 2013
AVERAGE RETAIL PRICE PER STICK OF 0.5g (NZD$) 2012
AVERAGE RETAIL PRICE PER STICK OF 0.5g (NZD$) 2013
Figure 8 Average retail price and estimation of company sale return were based on the value of recommended retail price provided by the tobacco
companies. Dates of recommended retail price of each company are
are: BATNZ – January 2014 (after tobacco
cco tax increase in January 2014); ITNZ & PMNZ –
December 2013 (before tobacco tax increase January 2014
2014).
24
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
SIX MOST POPULAR LOOSE LEAF TOBACCO BRANDS IN 2013
In 2013, the three most popular loose leaf tobacco brands sold in New Zealand were Port Royal, Park Drive and Winfield. All three products
belonged to BATNZ and made up of 60.88% of all loose leaf tobacco products released for sale in NZ in 2013. Riverstone of ITNZ has
replaced Holiday of BATNZ becoming the forth most popular loose leaf brand. Riverstone comprised of 11.24% of sale quantity of NZ loose
leaf market.
TOBACCO
COMPANY
AVERAGE RETAIL PRICE PER STICK OF
0.5g (NZD$)
BRAND
PERCENTAGE OF SALE QUANTITY OF NZ
LOOSE LEAF MARKET (%)
2012
2013
2012
2013
BATNZ
PORT ROYAL
PARK DRIVE
WINFIELD
HOLIDAY
$0.60
$0.59
$0.54
$0.57
$0.66
$0.65
$0.60
$0.63
29.91%
23.78%
10.02%
10.07%
27.88%
22.36%
10.64%
9.69%
ITNZ
RIVERSTONE
$0.49
$0.53
9.04%
11.24%
JPS
$0.51
$0.54
5.49%
7.69%
Table 12 Average retail price and estimation of company sale return were based on the value of recommended retail price provided by the tobacco
companies. Dates of recommended retail price of each company are: BATNZ – January 2014 (after tobacco tax increase in January 2014); ITNZ & PMNZ –
December 2013 (before tobacco tax increase in January 2014).
25
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
ESTIMATED LOOSE LEAF TOBACCO MARKET SHARE FROM TOBACCO ANALYSIS 2013
BATNZ and ITNZ remained two tobacco companies with the highest loose leaf tobacco sale quantity as well as the highest sale returns in
New Zealand in 2013. BATNZ had 70.56% of loose leaf tobacco market in NZ whereas ITNZ shared 28.27% of the New Zealand loose leaf
tobacco market in 2013.
DOMESTIC LOOSE LEAF TOBACCO MARKET
(PERCENTAGE OF SALE QUANTITY OF NZ LOOSE
LEAF TOBACCO MARKET)
2010 - 2013
DOMESTIC LOOSE LEAF TOBACCO MARKET
(PERCENTAGE OF SALE QUANTITY OF NZ LOOSE LEAF
TOBACCO MARKET)
2010 - 2013
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40% 79.0%75.6%
76.3%
73.8%
72.2% 70.6%
76.6% 73.8%
30%
30%
20%
20%
25.5% 28.3%
22.8% 24.9%
10%
0.1%
0.1%
10%
1.2%
2.3%
0.6%
1.3%
PERCENTAGE
2010
PERCENTAGE
2011
PERCENTAGE
2012
PERCENTAGE
2013
ITNZ
PMNZ
0.1%
0.1%
0.4%2.1% 1.1% 1.0%
0%
0%
BATNZ
25.2%
22.2%
22.6%
20.5%
BATNZ
ITNZ
PMNZ
OTHERS
PERCENTAGE OF SALE RETURN OF NZ LOOSE LEAF TOBACCO MARKET IN
2010
OTHERS
OF SALE QUANTITY OF NZ LOOSE LEAF TOBACCO MARKET IN
OF SALE QUANTITY OF NZ LOOSE LEAF TOBACCO MARKET IN
PERCENTAGE OF SALE RETURN OF NZ LOOSE LEAF TOBACCO MARKET IN
2011
OF SALE QUANTITY OF NZ LOOSE LEAF TOBACCO MARKET IN
PERCENTAGE OF SALE RETURN OF NZ LOOSE LEAF TOBACCO MARKET IN
2012
OF SALE QUANTITY OF NZ LOOSE LEAF TOBACCO MARKET IN
PERCENTAGE OF SALE RETURN OF NZ LOOSE LEAF TOBACCO MARKET IN
2013
Figure 9 Average retail price of loose leaf tobacco products and estimation of company loose leaf tobacco sale return were based on the value of
recommended retail price provided by the tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Cosmic, JT International, Moderna Trading Co Ltd – December 2013 (before tobacco tax increase in January 2014)
- R&S King Ltd and NZ Tobacco Group Ltd – not specified
26
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
ESTIMATED LOOSE LEAF TOBACCO MARKET SHARE FROM TOBACCO ANALYSIS 2013
2010
PERCENTAGE
OF SALE
COMPANY
QUANTITY OF
SALE
NZ LOOSE
QUANTITY
LEAF
(KG) IN 2010
TOBACCO
MARKET IN
2010
2011
PERCENTAGE
OF SALE
COMPANY
QUANTITY OF
SALE
NZ LOOSE
QUANTITY
LEAF
(KG) IN 2011
TOBACCO
MARKET IN
2011
2012
PERCENTAGE
OF SALE
COMPANY
QUANTITY OF
SALE
NZ LOOSE
QUANTITY
LEAF
(KG) IN 2012
TOBACCO
MARKET IN
2012
2013
PERCENTAGE
OF SALE
COMPANY
QUANTITY OF
SALE
NZ LOOSE
QUANTITY
LEAF
(KG) IN 2013
TOBACCO
MARKET IN
2013
BATNZ
ITNZ
PMNZ
OTHERS
579,892
172,356
588
4,271
76.59%
22.77%
0.08%
0.56%
477,079
168,399
307
14,990
72.20%
25.49%
0.05%
2.27%
430,128
145,035
316
7,526
73.78%
24.88%
0.05%
1.29%
397,847
159,427
14
6,574
70.56%
28.27%
0.0025%
1.17%
TOTAL
757,106
100%
660,775
100%
583,005
100%
563,862
100%
TOBACCO
COMPANY
TOBACCO
COMPANY
BATNZ
ITNZ
PMNZ
OTHERS
2010
PERCENTAGE
OF SALE
ESTIMATED
COMPANY
RETURN OF
NZ LOOSE
SALE
LEAF
RETURN
(NZD$) IN
TOBACCO
2010
MARKET IN
2010
2011
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ LOOSE
RETURN
LEAF
(NZD$) IN
TOBACCO
2011
MARKET IN
2011
2012
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ LOOSE
RETURN
LEAF
(NZD$) IN
TOBACCO
2012
MARKET IN
2012
2013
PERCENTAGE
ESTIMATED
OF SALE
COMPANY
RETURN OF
SALE
NZ LOOSE
RETURN
LEAF
(NZD$) IN
TOBACCO
2013
MARKET IN
2013
$537,014,893
$139,496,720
$452,760
$3,030,772
$510,482,830
$150,155,358
$257,880
$14,100,724
$502,230,785
$148,632,478
$335,732
$6,972,983
$513,271,739
$175,253,876
$16,333
$6,670,291
78.97%
20.51%
0.07%
0.45%
75.63%
22.25%
0.04%
2.09%
TOTAL
76.31%
22.58%
0.05%
1.06%
73.83%
25.21%
0.0023%
0.96%
$679,995,145
100%
$674,996,792
100%
$658,171,979
100%
$695,212,239
100%
Table 13 Average retail price of loose leaf tobacco products and estimation of company loose leaf tobacco sale return were based on the value of
recommended retail price provided by the tobacco companies. Dates of recommended retail price of each company listed are as follow:
- BATNZ – January 2014 (after tobacco tax increase in January 2014)
- ITNZ, PMNZ, Cosmic, JT International, Moderna Trading Co Ltd – December 2013 (before tobacco tax increase in January 2014
- R&S King Ltd and NZ Tobacco Group Ltd – not specified
27
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
TRENDS IN LOOSE LEAF TOBACCO
OBACCO SALE QUANTITY 2004 – 2013
COMPANY LOOSE LEAF SALE QUANTITY BY WEIGHT 2004
2004-2013
2013
800,000
666,073
700,000
644,261
632,118
600,000
477,079
500,000
BATNZ
ITNZ
PMNZ
OTHER COMPANY
397,847
(KG) 400,000
300,000
200,000
168,399
158,921
145,378
143,838
159,427
100,000
3,394
777
0
2004
2005
2006
2007
5,948
1,013
921
2008
28
2009
2010
14,990
307
2011
6,574
14
2012
2013
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
DOMESTIC MARKET SHARE (LOOSE LEAF TOBACCO)
TRENDS IN LOOSE LEAF TOBACCO SALE QUANTITY 2004 – 2013
The total sale quantity of loose leaf tobacco products in New Zealand market in 2013 has declined from 613,451 kg in 2012 to 563,862 kg in
2013. The sale quantity of ITNZ in has slightly increased while the sale quantity of BATNZ has declined from 461,172 kg in 2012 to 397,847
kg in 2013. The sale quantity of PMNZ in the loose leaf market has reduced to 14 kg.
The combined sale quantity of other companies has slightly increased from 3,604 kg in 2012 to 6,574 kg in 2013.
TOBACCO COMPANY
BATNZ
ITNZ
PMNZ
COSMIC CORNER
HEALTHLINK
DISTRIBUTORS LTD
ISLA SERVICES LIMITED
JT INTERNATIONAL LTD
S.A.
KOREA TOBACCO
LIMITED
MODERNA TRADING CO
LTD
NEW WORLD (NEW
ZEALAND) LTD
NEW ZEALAND
TOBACCO GROUP
NZ TOBACCO COY
STUART ALEXANDER
VE LOGISTICS
R&S KING
SCANINAVIAN
TOBACCO GROUP
OTHER COMPANY
TOTAL
TOTAL
SALE QUANTITY (KG)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
646,281
175,919
0
n/a
666,073
143,838
0
n/a
670,023
145,475
0
n/a
644,261
145,378
1,013
14
630,567
143,464
821
n/a
632,118
158,921
921
n/a
579,891
151,280
568
46
477,079
168,399
307
53.6
461,172
148,359
316
83.3
397,847
159,427
14
93
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
47
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
170
10,000
204
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
125
153
129
257
157
289
40
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2,948
5,883
5,569
3,628
4,379.5
3,027.5
3,434
n/a
243
7
n/a
428
302
n/a
n/a
1,396
354
n/a
n/a
n/a
308
n/a
n/a
n/a
289
n/a
n/a
n/a
250
n/a
n/a
n/a
170
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
570
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2,437
251
777
1,750
3,394
6,324
5,948
4,271
14,990
3,604
6,574
822,451
810,688
817,248
794,046
781,176
797,908
736,010
660,775
613,451
563,862
Table 14 n/a – not available
29
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
TRENDS IN TOBACCO SALE QUANTITY 2004 – 2013
TOTAL SALE QUANTITY OF TOBACCO PRODUCTS IN NZ
2004-2013
3,000,000
2,500,000
2,510,811 2,485,524 2,517,568 2,476,749
2,456,843 2,431,964
2,325,306
2,120,070
2,067,582
1,884,456
2,000,000
1,688,360 1,674,837 1,700,319 1,682,703 1,675,667
1,634,056 1,589,296
1,459,295 1,454,131
(KG) 1,500,000
1,000,000
1,320,594
822,451
810,688
500,000
817,248
794,046
781,176
797,908
736,010
660,775
613,451
563,862
ALL CIGARETTE BRANDS
ALL LOOSE TOBACCO BRANDS
TOTAL (ALL CIGARETTE & LOOSE LEAF TOBACCO BRANDS)
0
2004
2005
2006
2007
2008
Figure 10
30
2009
2010
2011
2012
2013
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
TRENDS IN TOBACCO SALE QUANTITY 2004 – 2013
PERCENTAGE OF CHANGE OF SALE QUANTITY
Sale quantity of the overall tobacco market in 2013 has seen a rapid drop by 8.9% from 2012. Both cigarette market and loose leaf tobacco
market have rapidly declined by 9.2% and 8.1% respectively from the previous year. Such a trend that sale quantity of tobacco market rapidly
decline was notable after the ongoing increase in tobacco excise tax since 2010. This pattern of decline (between 2010 and 2013) is not as
rapid in the cigarette market.
TYPE OF TOBACCO
PRODUCTS
SALE QUANTITY (KG)
(Percentage of change from previous year %)
2007
2008
2009
2010
2004
2005
2006
1,688,360
1,674,837
(-0.8%)
1,700,319
(+1.5%)
1,682,703
(-1.04%)
1,675,667
(-0.4%)
1,634,056
(-2.5%)
ALL LOOSE TOBACCO
BRANDS
822,451
810,688
(-1.4%)
817,248
(+0.8%)
794,046
(-2.8%)
781,176
(-1.6%)
TOTAL NZ MARKET
2,510,811
2,485,524
(-1.0%)
2,517,568
(+1.3%)
2,476,749
(-1.6%)
2,456,843
(-0.8%)
ALL CIGARETTE BRANDS
Table 15
31
2011
2012
2013
1,589,296
(-2.7%)
1,459,295
(-8.2%)
1,454,131
(-0.4%)
1,320,594
(-9.2%)
797,908
(+2.1%)
736,010
(-7.8%)
660,775
(-10.2%)
613,451
(-7.2%)
563,862
(-8.1%)
2,431,964
(-1.0%)
2,325,306
2,120,070
2,067,582
1,884,456
(-4.4%)
(-8.8%)
(-2.5%)
(-8.9%)
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
CHANGES IN SALE QUANTITY IN DIFFERENT PRICE SEGMENTS
The New Zealand government has increased excise tax of tobacco products since 2010. The first one was a 10% tax increase on
manufactured cigarettes and 25% increase on loose tobacco in 2010, and was followed by subsequent annual increases of 10% that will
continue until 2016.
To compare the changes in sale quantity in different price segments after the first tax increase in 2010, we have categorised cigarette brands
of the three main companies (BATNZ, ITNZ and PMNZ) into four price segments – budget (or ultra low-cost), value, mid-price and premium.
All cigarettes of the three companies were categorised into these segments which were based on the price segments used by Ernest &
Young in their report1 in reference to the price of the representative brands in the report.
Budget brands include Freedom, Pall Mall Baseline, JPS and Longbeach. Value brands include Holiday, Pall Mall and Horizon. Mid-price
brand includes Winfield. Premium brands include Benson & Hedges, Dunhill and Marlboro (Table 16).
TOBACCO COMPANY
BRAND
BATNZ
FREEDOM
BATNZ
PALL MALL BASELINE
ITNZ
WEST
ITNZ
JOHN BRANDON
ITNZ
JPS
PMNZ
GT
PMNZ
LONGBEACH
BUDGET/ULTRA LOW-COST
BATNZ
HOLIDAY
BATNZ
PALL MALL
ITNZ
SUPERKINGS
ITNZ
HORIZON
VALUE
BATNZ
WINFIELD
ITNZ
PETER JACKSON
MID-PRICE
BATNZ
BENSON & HEDGES
BATNZ
DUNHILL
BATNZ
LUCKY STRIKE
BATNZ
KENT
BATNZ
STATEEXPRESS 556
BATNZ
ROTHMANS
BATNZ
VOGUE
AVERAGE RETAIL
PRICE PER STICK
SALE QUANTITY
(STICKS) IN 2013
PERCENTAGE OF SALE
QUANTITY OF THREE
COMPANIES COMBINED IN
2013
$0.77
$0.78
$0.73
$0.76
$0.76
$0.70
$0.71
168,747,000
294,543,000
9,348,560
52,688,290
186,099,503
8,498,000
48,721,000
768,645,353
352,589,000
145,980,000
560
107,783,355
606,352,915
112,334,000
17,354,715
129,688,715
137,338,700
88,940,000
2,181,000
561,000
222,000
49,281,000
1,196,000
9.05%
15.80%
0.50%
2.83%
9.99%
0.46%
2.61%
41.24%
18.92%
7.83%
0.00%
5.78%
32.53%
6.03%
0.93%
6.96%
7.37%
4.77%
0.12%
0.03%
0.01%
2.64%
0.06%
$0.87
$0.88
$0.78
$0.79
$0.92
$0.85
$0.94
$0.97
$0.99
$0.99
$1.00
$1.00
$1.16
32
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
ITNZ
ITNZ
PMNZ
PREMUM
TOTAL
CAMEL
DAVIDOFF
MARLBORO
$0.89
$0.93
$0.90
1,977,400
942,760
76,443,000
359,082,860
1,863,769,843
0.11%
0.05%
4.10%
19.27%
100%
Table 16
Average retail price per stick and estimation of company cigarette sale return were based on the value of recommended retail price provided by the tobacco
companies. Date of recommended retail price for BATNZ was January 2014 (after tobacco tax increase in January 2014). For ITNZ and PMNZ, it was end
of December 2013 (before tobacco tax increase in January 2014)
33
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
CHANGES IN SALE QUANTITY IN DIFFERENT PRICE SEGMENTS
Table 17 and Figure 11 compare the changes in the sale quantity by price segments between 2009 and 2013, i.e., before and after the first
round of tobacco excise tax in 2010. The sale quantity of the budget segment has rapidly increased from 8.5% in 2012 to 41.2% in 2013.
Such an increase was due to the introduction of a new variant, Pall Mall Baseline of BATNZ and the increase in the sale quantity of other
budget brands, in particular, JPS of ITNZ. The sale quantity of premium segment has dropped from 23.4% in 2009 to 19.3% in 2013 but the
rate of change is relatively stable compared with other price segments.
2009
SALE QUANTITY
(STICKS) BY
SEGMENTS
2012
BUDGET/ULTRA LOWCOST BRAND
VALUE
MID-PRICE
PREMIUM
178,658,177
PER CENT OF
SALE QUANTITY
OF ALL THREE
COMPANIES
8.45%
1,221,152,580
219,699,000
494,136,300
57.77%
10.39%
23.38%
ALL THREE COMPANIES
2,113,646,057
2013
SALE QUANTITY
(STICKS) BY
SEGMENTS
754,467,960
PER CENT OF
SALE QUANTITY
OF ALL THREE
COMPANIES
38.00%
699,386,950
129,242,600
402,194,730
35.23%
6.51%
20.26%
1,985,292,240
SALE QUANTITY
(STICKS) BY
SEGMENTS
PER CENT OF
SALE QUANTITY
OF ALL THREE
COMPANIES
768,645,353
606,352,915
129,688,715
41.24%
32.53%
6.96%
359,082,860
19.27%
1,863,769,843
Table 17
(%)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PER CENT OF SALE QUANTITY (THREE COMPANIES
COMBINED) BY PRICE SEGMENTS
23.38%
10.39%
20.26%
19.27%
6.51%
6.96%
35.2%
32.5%
38.0%
41.2%
57.8%
8.5%
2009
BUDGET
2012
VALUE
MID-PRICE
2013
PREMIUM
Figure 11 Percentage of sale quantity by price segments 2009, 2012 and 2013
34
YEAR
ASH NEW ZEALAND
Tobacco Returns Analysis 2013
1. Ernst & Young Limited. Out of the shadows: an independent report of New Zealand's illicit tobacco market, 2010.
35