Euromonitor: Tobacco Industry’s Outlook Dims in Latin America as Countries Take Strong Action
Chile Is Region’s Latest Country to Enact Tough Measures
Posted by: Editor | Apr 18, 2013
Thanks to strong government action to reduce tobacco use, the tobacco industry's outlook in Latin America is dimming according to new analysis by Euromonitor International, a strategy research group for consumer products.
The analysis cites the example of Chile, which recently became the 14th Latin American country to go smoke-free. In February, Chile implemented a comprehensive tobacco control law that makes restaurants, bars and other public places smoke-free; restricts tobacco advertising, promotion and sponsorship; and prohibits the use of additives, including menthol, in tobacco products.
Chile joined a growing number of Latin American countries that have taken strong action in a region viewed by the tobacco industry as a growth market.
Chile's new laws "are emblematic of a diminished outlook for the industry, and even herald the end of Latin America as a reliable growth region for tobacco players," Euromonitor writes.
Among other things, Chile's law prohibits the use of menthol capsules in cigarettes that provide an extra burst of flavor when crushed. According to Euromonitor, capsule technology has helped drive growth in cigarette sales in Chile and other countries.
"Chile's ban is also a major blow in symbolic terms — it represents an increasing willingness on the part of legislators to strike at the heart of the industry's ability to generate value," Euromonitor writes.
Euromonitor's conclusion: "[T]he future for the industry in the region is one of unstable and ever diminishing returns."
We applaud the commitment of Latin American governments to reducing tobacco use and saving lives.