10.6 Market share and brand share

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The tobacco market in Australia can be understood and quantified in a number of ways, and data are collected and analysed by a number of different market research groups. Market share can be assessed either by looking at sales figures (from various industry sources) or at the proportions of smokers who regularly smoke various sorts of products (from surveys of smokers).

Data on sales in grocery stores is compiled by Retail World magazine and published annually in its end-of-year reports, based on a survey of supermarkets and grocery outlets about sales for previous 12 months up to the month of (roughly) September each year.1 The Nielsen group on the other hand compiles data on sales of products in convenience outlets. This is only occasionally published in publicly available sources but is available for purchase.2 Euromonitor International sells data on the total market across all outlets.3

Market share can be calculated on the basis of the dollar value of products sold, or on the volume of products sold.

10.6.1 Market share by company and brand: cigarettes

10.6.1.1 Sales figures relevant to market share

Cigarettes in Australia have almost exclusively been manufactured by three major industry groups: British American Tobacco Australia, Philip Morris Limited, and Imperial Tobacco.

Table 10.6.1
Market share for cigarettes in 2013—by manufacturing company (% volume and millions of sticks)

Company

% of volume

Millions of sticks

British American Tobaaco Plc

45.5

8,153.0

Philip Morris International Inc

33.1

5,942.1

Imperial Tobacco Group Plc

20.4

3,652.7

Others

1.0

185.3

Total

 

17,933.1

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco.

Table 10.6.2
Market share for cigarettes, 2013—by brand and manufacturing company (volume)

Global Brand Name

Global Brand Owner

%

Units (millions)

Winfield

British American Tobacco Plc

22.2

3,987.7

Longbeach

Philip Morris International Inc

16.1

2,890.4

Horizon

Imperial Tobacco Group Plc

13.4

2,395.1

Peter Jackson

Philip Morris International Inc

12.2

2,184.5

Benson & Hedges

British American Tobacco Plc

9.1

1,623.0

Holiday

British American Tobacco Plc

4.0

715.0

Dunhill

British American Tobacco Plc

3.3

592.4

John Player Special

Imperial Tobacco Group Plc

2.9

511.6

Choice

Philip Morris International Inc

2.4

434.7

Marlboro

Philip Morris International Inc

2.2

389.4

Pall Mall

British American Tobacco Plc

0.9

167.3

Peter Stuyvesant

Imperial Tobacco Group Plc

0.8

139.3

Alpine

Philip Morris International Inc

0.2

39.5

Escort

Imperial Tobacco Group Plc

0.1

24.8

Others

Others

10.3

1,838.4

Total

 

100.0

17,933.1

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco.

The Australian cigarette market has a number of differentiating features including variations on flavour or blend, pack size, and price. Data on changes in market share over time for cigarettes of various tobacco blend, pack size or price segment are also available from Euromonitor.

Sales data over time in the grocery-only sector indicates a steady decline since 2009 in sales of premium brands (including Alpine, Benson & Hedges, Dunhill, Marlboro and Peter Styvesant) and mainstream brands (including Winfield, Longbeach and Peter Jackson). Sales of value brands such as Horizon, Holiday, Choice, Pall Mall and Bond St however have increased.4-11

  Figure 10.6.1

Figure 10.6.1
Sales (millions of sticks) of premium, mainstream and value brands.

Source: Retail World annual reports, 2006 to 20134-11

10.6.1.2 Survey data on brand preferences

While data on brand preferences among adults has been collected from surveys in Victoria and South Australia, neither the Australian Bureau of Statistics Health Survey or the Australian Institute of Health and Welfare’s National Drug Strategy Household Survey have asked about brand preferences, and so only limited data are available at the national level.

Data from the Australian arm of the International Tobacco Control policy evaluation study from 2011 show a pattern of use similar to that evident in the sales data tabulated above, with Winfield, Longbeach, Peter Jackson and Horizon the brands most preferred by Australian adult smokers.

Table 10.6.3
Percentage of adults smoking each brand in each pack size, 2011 Australian smokers 18+

  Number of sticks per pack

Brand%

20

25

30

35

40

50

% in each pack size for each brand

Winfield

12.8

85.7

0.0

0.7

0.0

0.8

18.2

Longbeach

6.3

0.8

22.1

0.0

70.9

0.0

17.3

Peter Jackson

10.5

7.4

80.0

0.0

1.1

1.1

13.0

Horizon

5.3

1.8

14.2

0.0

15.0

63.7

15.4

Benson & Hedges

6.0

91.6

2.4

0.0

0.0

0.0

11.3

Holiday

6.9

5.6

27.8

0.0

5.6

54.2

9.8

Alpine

2.8

94.4

0.0

2.8

0.0

0.0

4.9

Dunhill

15.9

81.8

0.0

2.3

0.0

0.0

6.0

Marlboro

44.0

56.0

0.0

0.0

0.0

0.0

3.4

Escort

50.0

25.0

0.0

25.0

0.0

0.0

0.6

Size %

9.8

39.5

19.4

0.6

15.3

15.4

 


Source: 2011 International Tobacco Control Policy Evaluation Study, n=732, unpublished data

10.6.2 Market share by brand: roll-your-own tobacco

Imperial Tobacco Australia accounted for a 62.8% volume share in the roll-your-own market in 2013. British American Tobacco’s share was 29.3%.

Table 10.6.4
Market share for roll-your-own tobacco—by manufacturing company (volume)

Company

% of volume

Tonnes

Imperial Tobacco Group Plc

62.8

1166.8

British American Tobacco Plc

29.3

544.5

Scandinavian Tobacco Group A/S

0.4

6.8

Others

7.5

140.0

Total

100 

1858.1

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco.

Leading brands of RYO tobacco in Australia are Champion, Drum and White Ox produced by the Imperial Tobacco Group and Winfield produced by British American Tobacco.

Table 10.6.5
Sales of roll-your-own tobacco brands in Australia, 2013

Brand/product

Manufacturer

%

Tonnes

Champion

Imperial Tobacco Group Plc

 28.1  522.5

Winfield

British American Tobacco Plc

 26.7  495.6

Drum

Imperial Tobacco Group Plc

 13.3  246.8

White Ox

Imperial Tobacco Group Plc

 10.7  198.2

John Player Special

Imperial Tobacco Group Plc

 5.9  109.0

Port Royal

British American Tobacco Plc

 2.6  48.9

Dr Pat

Imperial Tobacco Group Plc

 1.2  23.2

Log Cabin

Imperial Tobacco Group Plc

 0.6  11.5

Stockmans

Imperial Tobacco Group Plc

 0.6  10.9

Bank

Imperial Tobacco Group Plc

 0.5  8.9

Borkum Riff

Scandinavian Tobacco Group A/S

 0.4  6.8

Amphora

Imperial Tobacco Group Plc

 0.3  6.0

Borkum Riff

Swedish Match AB

   

Others

Others

 9.1  169.8

Total

  100.0
 1,858.1

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco

10.6.3 Market share by brand: cigars

All cigars sold in Australia are imported, and apart from British American Tobacco, the major Australian tobacco companies do not have substantial engagement in the cigar market.

Table 10.6.6
Market share for cigars, Australia 2013—by manufacturing company (volume)

Company

% of volume

Millions units

Stuart Alexander & Co Pty Ltd

35.6

22.9

Scandinavian Tobacco Group A/S

31.0

19.9

British American Tobacco Plc

25.8

16.6

Burger Group, The

0.8

0.5

Swisher International Group Inc

0.3

0.2

Others

6.5

4.2

Total

100

64.3

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco.

The most popular brands of cigars are Willem II produced by Stuart Alexander and Co, Captain Black produced by British American Tobacco and Café Crème produced by the Scandanavian Tobacco Group.

Table 10.6.7
Sales of cigars in Australia, 2013

Brand/product

Manufacturer

%

Units (millions)

Willem II

Stuart Alexander & Co Pty Ltd

35.6 22.9

Captain Black

British American Tobacco Plc

25.6 16.5

Café Crème

Scandinavian Tobacco Group A/S

14.3  9.2

Henri Wintermans

Scandinavian Tobacco Group A/S

7.6  4.9

Old Port

Scandinavian Tobacco Group A/S

7.5  4.8
Schimmelpenninck

Scandinavian Tobacco Group A/S

 1.0  0.6

Ritmeester

Burger Group, The

 0.8  0.5
Macanudo

Scandinavian Tobacco Group A/S

 0.4 0.3

King Edward

Swisher International Group Inc

 0.3  0.2

White Owl

Scandinavian Tobacco Group A/S

 0.2  0.1
Dunhill

British American Tobacco Plc

 0.2  0.1

Others

Others

6.5  4.2

Total

   100.0 64.3

Source: Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco

References

1.    Anon. Discussion with Retail World staff, in Retail World 2014.

2.    Convenience & Impulse Retailing. Nielsen convenience and impulse sales report. Balmain, NSW: Berg Bennett, 2009. Available from: http://www.c-store.com.au/industry/acn/acn2009.pdf

3.    Euromonitor International. Tobacco in Australia—2008 to 2013, Available for purchase. London: Euromonitor International, 2014. Available from: http://www.euromonitor.com/tobacco.

4.    Retail World Annual Report 06. Market sizes and shares. Retail World, 2006; December:83.

5.    Retail World Annual Report 07. Market sizes and shares. Retail World, 2007; (December):30.

6.    Anon. Retail World Annual Report 2008.  Market sizes and shares. Retail World, 2008; December:30.

7.    Anon. Retail World Annual Report 2009.  Market sizes and shares. Retail World, 2009; December:30.

8.    Anon. Retail World Annual Report 2010.  Market sizes and shares. Retail World, 2010; December:30.

9.    Anon. Retail World Annual Report 2011.  Market sizes and shares. Retail World, 2011; December:30.

10.   Anon. Retail World Annual Report 2012.  Market sizes and shares. Retail World, 2012; December:30.

11.   Anon. Retail World Annual Report 2013.  Market sizes and shares. Retail World, 2013; December:30.

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