KOREA:'Foreign Cigarettes Regaining Pre-Crisis Share' (fwd)

[Robert Weissman <rob@essential.org>]

(forwarded by ASH Thailand)

KOREA
'Foreign Cigarettes Regaining Pre-Crisis Share'

Sales of foreign brand cigarettes are rising fast despite a general drop in
tobacco consumption.

According to the Ministry of Finance and Economy (MOFE) yesterday, a total
of 1.639 billion packs of domestic brands were puffed up in the January to
May period this year.

This amount represents a 15.3 percent drop from the 1.935 billion packs
consumed in the same period last year.

In comparison, foreign brands recorded a 16.1 percent rise to 101 million
packs.

Foreign cigarette sales particularly rose last month, posting an increase of
31.2 percent over a year ago.

The country's total tobacco consumption was at 1.74 billion packs in the
January to May period, down 14 percent from 2.022 billion packs in the
corresponding period last year, but the share of foreign brands' has risen
to 5.8 percent of the total, compared with 4.3 percent in the same period
last year.

 The foreign brands' share in the market recorded 12.5 percent in 1995, 11
percent in 1996, 11.2 percent in 1997 but nosedived to 4.9 percent last year
as a result of the financial crisis.

``I believe that it is only a matter of time before foreign cigarettes
recover the level of sales prior   to the onset of the currency crisis,'' a
MOFE official said.

At present, a total of 260 foreign brands are on sale in Korea with the top
10 best sellers occupying 88 percent of foreign brands' total sales, MOFE
officials said.

The best selling foreign brands include Mild Sevens of Japan, Virginia
Slims, PM Super Lights, and Dunhill Lights.

In the sales rankings of cigarettes, including local brands, best foreign
sellers Mild Sevens and Virginia Slims place 13th and 15th respectively.

The best selling cigarettes are, in order, THIS, SIMPLE, 88 Lights, THIS
Plus, Esse, and Hanaro Lights.

SOURCE: 'Foreign Cigarettes Regaining Pre-Crisis Share', Korea Herald
(online edition), 25th June 1999.