Marlboro maker Philip Morris said the consumption of counterfeit cigarettes rose 38% in the EU last year.
Photo: Luke Sharrett/Bloomberg NewsPhilip Morris International Inc. said Thursday there is still a need for collaborative efforts against illicit cigarette trade, as a new report produced by KPMG underlined the changing nature of the problem in the European Union.
A KPMG annual study, commissioned by Philip Morris International, found that in 2019 the consumption of illicit cigarettes continued to decline in the EU, reaching an all-time low since the study first took place in 2006. In total, 38.9 billion illicit cigarettes were consumed, representing 7.9% of total cigarette consumption, a 0.7 percentage point reduction compared with the previous year.
The company said that despite the overall decline of illicit cigarette consumption, which continued for the seventh consecutive year, the consumption of counterfeit cigarettes continued to grow, reaching 7.6 billion, a 38% increase compared with 2018 and the highest level recorded to date.
The first ever EU-wide tracking and tracing system that was introduced last year under the European Tobacco Products Directive is an important tool for law enforcement and one that companies should continue to enhance through close collaboration and information-sharing to remain highly vigilant on emerging risks, Philip Morris International said. It said illicit trade undermines efforts to reduce smoking prevalence and makes unregulated tobacco products easily accessible.
The company said counterfeit cigarettes represent almost 20% of total illicit cigarette consumption. The countries with the largest volumes of illicit cigarette consumption in the EU were France, with 7.2 billion illicit cigarettes, and the U.K., with 5.5 billion illicit cigarettes.
Philip Morris International said it invests significantly in supply chain controls through preventive and protective measures, implements track-and-trace solutions world-wide in line with strict regulatory requirements, and applies comprehensive due diligence of customers and suppliers.
Write to Chris Wack at chris.wack@wsj.com
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