Philip Morris CR - Parliament passes a law banning tobacco advertisement

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Investiční bankovnictví KB

      Lower house of Parliament approved a proposed law that bans tobacco advertising. Starting on 1 July 2004 tobacco advertisement will be allowed only in specialized shops and magazines and motor sports (until the end of 2006). The law still has to be approved by the Senate and president.

       We consider the tobacco advertising ban as positive for Philip Morris CR. The company holds the largest market share (80%) and strong distribution network is one of its most powerful marketing weapons. On the contrary, the lack of advertisement would significantly erode the abilities of the company’s competitors to grab its market share. We expect that the tobacco advertising ban would lead to a saving of operating costs with little impact on sales.

      

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.