Cigarette competition

The Sin Tax Reform Law, which restructured the excise tax on alcohol and cigarette products, has opened the market for new players, according to a tobacco executive.

Japan Tobacco Inc. general manager Manos Koukourakis said the sin tax law diversified the market and led to the influx of new foreign brands.

Koukourakis said the influx of foreign brands led consumers to try new brands of cigarettes.

“Because of the influx, consumers have more choices,” he said.

Data from an independent research firm showed consumers started to change cigar brands, following the enactment of the Philippine excise tax bill.

Philip Morris Fortune Tobacco Corp. Inc., which used to control at least 90 percent of the market prior to the passage of the law, saw its share shrink to 76.2 percent as of June 2013.

JTI covers about 3.2 percent, while Mighty had a 18.7-percent share. British American Tobacco, maker of Lucky Strike, had less than 2 percent.

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