The Mlada Fronta daily reported that the increase of excise tax in April did not lead to a reduction in smoking but substitution to cheaper brands. The news is largely neutral for PMCR, as the cigarette consumption trend towards cheaper brands where PM CR has a weaker market position likely contributed to the 4pps decrease in PM CR's market share in the CR in H1 2004 to 75.5%.
Tomáš Gatěk