AUSTRIA: CIGARETTE PRICES TO RISE
Article Abstract:
If the new Austrian government increases the tobacco tax, Austria Tabak will have to pass the increase on to consumers in order to remain profitable. A price increase by Sch 3 is expected for a pack of cigarettes. Since cigarette prices in eastern Europe are already Sch 18-20 lower than in Austria, Austria Tabak fears private cigarette imports to increase further and affect sales in the home country. The government is also planning to privatise the tobacco company completely. Austria Tabak fears that a possible takeover by a large international competitor might affect production and jobs in Austria. However, Austria Tabak is to increase production from 27bn to 30bn cigarettes in 2000. The company relies on production in Sweden and on increasing exports.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2000
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AUSTRIA: LICENCE DEALS NO HINDRANCE TO AT SALE
Article Abstract:
According to director Heinz Schiendl, the licence agreements of Tabak Austria (AT) with international tobacco companies cannot block the privatisation of the company. The former tobacco monopoly is to be privatised entirely, but the privatisation is unlikely to take place in year 2000. Mr Schiendl says that the licence agreements that run another 8 years or more involve an extraordinary termination right in year 2001. On the other hand, the international tobacco companies such as Philip Morris and BAT are entitled to give notice of the agreements if a competitor buys more than 15% of Austria Tabak's stock. Austria Tabak generates about 40% of its tobacco turnover with cigarettes produced under licences of the international groups.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2000
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AUSTRIA: CIGARETTE SMUGGLING ON THE INCREASE
Article Abstract:
In 1999, 38mn illegally imported cigarettes were detected by customs officers on the eastern border of Austria, which is more than ever before. Cigarettes are smuggled through Austria especially into Germany and the UK by organised east European smuggler gangs.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2000
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