New Zealand's tobacco industry
Major tobacco companies
There are three major tobacco companies in New Zealand that account for 97 percent of the total cigarette market in New Zealand. The other three percent comes from smaller companies or specialty import products.
The three major tobacco companies (in order of market share) are:
British American Tobacco (New Zealand) Ltd (BATNZ), Imperial Tobacco New Zealand Ltd (ITNZ) and Philip Morris (New Zealand) Ltd. British American Tobacco is the dominant company in the New Zealand market with a reported market share of 75 percent for factory made cigarettes and 79.3 percent for roll your own (RYO).
The New Zealand market is dominated by the low price ‘value’ cigarette brands. Smoking rates are highest in the most deprived communities. The BAT 2007 annual report even describes New Zealand as having ‘strong competition in the low price segment’ and Imperial Tobacco describes the NZ ‘low value segment as increasingly competitive’. It is clear the industry continues to shamelessly target the poor.
Tobacco company profits
All of the major tobacco companies in
New Zealand are part of large multi-national companies. BAT NZ is part of British American Tobacco and ITNZ is part of Imperial Tobacco, both of which are based in the
United Kingdom. PMNZ is part of Philip Morris International which belongs to the Altria group of companies, and is based in the
United States. Altria Group is the parent company of Kraft Foods, Philip Morris International, Philip Morris USA and Philip Morris Capital Corporation.
Pre-tax profits in New Zealand
British American Tobacco (NZ) $144 Million in 2008.
Philip Morris (NZ) $1 Million in 2008.
Imperial Tobacco (NZ) $16.1 Million in 2008.
The New Zealand government collected a total of $1063 million in 2008/09.
Profits from Youth Smokers
According to the 2002 Youth Lifestyle Study, more than a third of all youth smokers were able to purchase tobacco products, primarily from dairies and service stations. It is illegal for retailers to sell tobacco products to under 18s. The total value of the illegal sales to all smokers under 18 years was estimated to be in excess of $24 million, of which $17million would have been collected by the NZ government as taxes.
Websites and Head Offices of the New Zealand Tobacco industry
British American Tobacco (New Zealand) Limited
13th Floor
Gen-i Tower
66 Wyndham Street
Auckland
http://www.bat.co.nz/
Phillip Morris (New Zealand) Ltd
Level 3, Building D
Ascot Office Park
95 Ascot Avenue
Greenlane
Auckland
www.philipmorrisinternational.com
Imperial Tobacco New Zealand Limited
PO Box 39 400
124-130 Richmond Street
Petone
Wellington
www.imperial-tobacco.com
