20 world’s most expensive cigarette brands are in the table. There are also 3 additional items with brands founded in Russia and Ukraine, that are also included in Top-50 («LD», «Yava» and «Priluki»). 14 brands from top 20 are exposed in Russia. Six of them belong to Phillip Morris International, four – to BAT, three – to JTI and one – to South Korean KT&G (ESSE brand). Not all brands increase their prices similarly. If we stay inside the top 20, the general value of Philip Morris International brands’ in it has grown from 2016 to 2017 by 3969 mln USD. Second place with huge breakaway - ESSE from KT&G which has become 77 mln USD more expensive. On the 3rd place – four BAT’s brands with only 61 mln USD growth. And the dynamics of the general cost of JTI’s three brands («Camel», «Winston» and «Mevius») is negative (-81 mln USD), because «Camel» has become much cheaper. However, things go a little more balanced keeping in mind the dynamics of Top-50. At the latter part of the rating BAT’s brands that are well-known in Russia become more expensive: «Lucky Strike» and «Viceroy», JTI’s «LD» brand. PMI’s «Next» and «Virginia Slims» become cheaper (PMI’s breakaway is obviously still huge).

Since the cigarettes ads are prohibited and the amount of sales outlets with hidden tobacco products grows, the sales and value of the strongest brands should grow. It’s the prediction of classic marketing. This is what happens in real life, at least on the global scale. There are exceptions – «Camel» or «Kent». Peculiar situations on some exact markets also play their role.

In Russia, for example, the rapid growth of excise duties has bigger influence on brands’ dynamics than the total ban, and only cheap and obscure brands can grow. Customer votes with his money, and high quality promised by famous brand is not such a strong argument for him.

There is no special research on cigarette brands’ volume and price dynamics on the Russian market.

Brand Value (mln USD, USA) 2017:

Source: Independent title for tobacco industry «Tabachniy Magazin» №10-12 (187-189) October-December 2017.