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Europe's Tobacco Companies in 1991

Excerpts from Europe's Major Tobacco Companies 1993

Key features of the markets in terms of industry structure

 

The UK market is dominated by Gallaher, the subsidiary of American Brands, and Imperial Tobacco, the subsidary of the conglomerate Hanson. Gallaher accounts for some 43.5% of the market while Imperial having lost market leadership to Gallaher during the eighties, made up a little lost ground in 1991 raising its share from 33.5% to 34.3%. Rothmans accounts for some 14% of the market, RJ Reynolds for some 3%. Philip Morris brands are distributed by Rothmans.
Gallaher's main brands, all sector leaders, are Benson & Hedges Special Filter (full flavour). Silk Cut (low tar) and Berkeley (mid price). Imperial's main brands are Regal Lambert & Butler, John Player Superkings and John Player Special. The international companies' brands have not been successful in the UK, because of the national preference for Virginia, as opposed to American-blend tobacco. Thus Raffles and Dorchester, Rothmans and RJ Reynolds leading UK brands (Raffles was developed by Philip Morris) were developed specially for the UK market. Like Germany the UK has an important own/private brand segment. Important national own/private brand manufacturers are London Tobacco Company and Manchester Tobacco Company, the latter having been acquired by Japan Tobacco Inc.

 

UK: brand shares and volume sales by major market and manufacturer 1991

 

 

Market share

Sales

Market and brand

Manufacturer

(%)

(billion units)

B&H Special Filter

Gallaher

18.7

17.6

Silk Cut

Gallaher

10.9

10.3

Berkeley Superkings

Gallaher

10.2

9.6

Regal

Imperial

7.5

7.1

Lambert & Butler

Imperial

7.0

6.6

JP Superkings

Imperial

6.9

6.5

Embassy

Imperial

5.5

5.2

JP Special K/S

Imperial

4.5

4.2

Raffles 100s

Rothmans

2.8

2.6

Dorchester K/S

RJR

2.5

2.4

Rothmans K/S

Rothmans

2.5

2.4

Dunhill K/S

Rothmans

2.0

1.9

Marlboro K/S

Rothmans

1.8

1.7

Kensitas K/S

Gallaher

1.6

1.5

Others

 

15.6

14.7

Total

 

100.0

94.3


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