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Cigars in Germany

Germany cigars market forecast to expand in 2014

Cigar and cigarillo (excluding eco-cigarillos) smoking has a long history in Germany but has suffered from the public smoking bans in the foodservice channel and other public places, which were imposed in 2007 and later. The introduction of an excise tax on cigars in May 2011 has additionally hampered cigar sales.

Cigars and cigarillos remains quite a fragmented category in Germany, with only one company managing a double-digit volume share – Dannemann. The company's position can primarily be attributed to its well-performing Dannemann Moods brand, which is widely recognised and available almost everywhere. The company, however, lost nearly one percentage point in share in 2012 due to stiffer competition in cigarillos.

The wider category is expected to grow in volume and value terms until 2014. Most categories are expected to achieve positive volume growth, with the exception of large cigars. The volume growth of the overall category, however, will come to a halt in 2015 when new regulations will come into effect which will classify as cigarettes all those cigarillos which have a wrapper made from reconstituted tobacco.

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Cigars in Germany

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