Philip Morris paid almost $3 billions for cigars

Altria corporation, which owns cigarettes company Philip Morris, paid $2,9 billions for cigar producer John Middleton, Associated Press reports. About $700 millions from this sum account for tax remissions. It is expected that the bargain would be finished by the end of the year. John Middleton producers big cigars, made by machine. The volume of corresponding market in 2007 amounted to $5,3 millions. It is expected by the end of the year the gain of John Middleton would amount to $360 millions, and the operational profit would amount to $182 millions. Altria hopes that the purchasing will compensate digressive demand on cigarettes in United States of America. Earlier with the same purpose the company began to produce chewing tobacco under Marlboro brand name. At the same time Altria corporation prepares to get rid of international department of Philip Morris. It is proposed that the division of the companies will take place at 30th of January. It will permit Philip Morris to work more active at the markets of developing countries without any restrictions, imposed by the American legislation.

Electronic cigarettes - Gamucci

The Russia cigarettes prices are expected to double

The Russian government decided to index excises for tobacco products: since 2009 they will rise about 28% for pipes and about 20% for cigarettes.

“I think, the government really wants to make it difficult for population to access the tobacco products. I think that this action will be not so visible, but it will have a positive effect. I think, that will reduce a little the cigarette utilization, on account of who came into this market recently, on account of teenagers. The children will not start to smoke if the pipes will become expensive” – considers Pavel Medvedev, the member of DUMA committee for financial market.

But, it’s clearly, that these measures even if they are good, aren’t sufficiently popular among usual smokers.

According to expert’s evaluation, the similar tax rising for tobacco products will lead up to double prices for tobacco products.

“According to stuff reading, it’s happening exactly in this way. The excises are rising depending on the increase of wholesaler’s exports which are promoted from other dealers as more they are on the list. And, at the end – till they reach the customer, the cigarettes come not with 20% rising such as was announced but with half-two times more” – told us the General Director of Political Information Centre, Alexei Muhin.

According to experts, Russia is a country with the cheapest cigarettes in Europe – the tourists are very shocked by our cigarettes’ prices and smoke more cigarettes than in their country. In every European country smoking is an expensive pleasure.

According to experts, first of all, the impact will be felt by people who smoke cheap brands of cigarettes. Maybe, it will be unprofitable to make the products with this new price for tobacco manufacturers – it can’t be purchased by customers.

According to Alexei Muhin, it’s possible that the fake cigarettes products will appear on the Russian market.

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