– Thoughts on Strategy and Management

Smoking numbers

A new year is coming. In Germany a lot of regulations (e.g. tax issues, financial subsidies) will be object to change. Another issue is that advertising for cigarettes will be forbidden in newspapers, journals and electronic media, beginning on January 1, 2007. Let’s look at some related figues:

– 82 billion cigarettes were consumed per year in Germany, 5 years ago the figure was higher (125 billion cigarettes)
– Tax on tobacco is also a source of revenues for the government: 12 billion EUR tax on tobacco was received in 2006
– The turnover of the tobacco industry was 20 billion EUR. Nearly 9000 employees work within this industry.
– The industry spends 600 million EUR for adverting campaigns. Among this amount 118 million EUR have been spend for “traditional” advertising in newspapers, journals and electronic media.

(Source: Giersberg, G. (2006): Die verdammte Lust am Laster, in FAZ, 30.12.2006, volume 303, page 15)

Due to this new regulation, tobacco advertising has to focus on poster walls, advertising pillars and cinemas.

I have serious doubts about the success of this measure. In the former countries of the Eastern Bloc there was no advertising in general, and of course no advertising for tobacco products in particular. However, people also consumed tobacco products….

Happy New Year!

Comments are closed.