Gallaher - Competitors

Gallaher Competition

Now Viewing Gallaher's competition in: Tobacco Manufacture (primary)

Recent Developments

House Passes FDA Regulation of Tobacco - The House approved legislation allowing the FDA to regulate the tobacco industry. The legislation would give the agency broad authority over cigarette makers, including the power to ban marketing cigarettes to children, require disclosure of tobacco ingredients, and mandate larger, more specific health warnings. The legislation is supported by Philip Morris USA, the nation's biggest cigarette maker, but is opposed by the rest of the tobacco industry.

Study Shows that Smoking Bans Improve Public Health - Hospital admissions in Scotland for heart attacks and acute coronary problems fell 17 percent the year after the country banned smoking in public places, according to a study in the New England Journal of Medicine. Experts say that the study provides the strongest evidence yet that bans on smoking in public places improve health. The decline in hospital admissions for heart attacks and acute coronary problems included both smokers and non-smokers.

Billionaires Commit Funding to Smoking Cessation - Billionaires Bill Gates and Michael Bloomberg say that they'll spend $500 million to try and rid the planet of smoking. Tobacco manufacturers are likely to be negatively impacted by such attempts. Smoking will kill 10 times more people in the 21st century than it did in the 20th, according to the WHO.

Competitive Landscape

Demand is driven by discretionary consumer spending and awareness of the health effects of smoking. The profitability of individual companies depends on effective marketing. Large companies have advantages in economies of scale in manufacturing and product loyalty. Small companies can compete effectively through heavy discounting, clever branding and packaging, and by exploiting niche categories such as pipe tobacco and additive-free cigarettes. The industry is highly capital-intensive: average annual revenue per worker for a typical company is $1.5 million.

Full Industry Overview For Tobacco Manufacture

Tobacco Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US tobacco products manufacturing is forecast to grow at an annual compounded rate of 0.8 percent between 2008 and 2013.

Tobacco Manufacturing Growth Weakens

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.