Czech Senate apporoved yesterday stricter bans for tobacco products in order to put it in-line with EU requirements. This bill still needs President’s approval.
The ban for advertisments of tobacco products have been introduced already in 2006, when these ads were limited only for the point of sale and motorsport racing. New bill should limit the advertisment only for the point of sale. As this bill doesn’t substantially change advertisment environment of tobacco products, we expect only minor negative effects for tobacco business. In fact we believe the stronger regulatory framework undermines the ability of smaller companies to compete, thereby supporting market position of larger players like PM