Philip Morris has transferred manufacturing of Marlboro brand from Russia to Germany
Reduction of sales volumes of Marlboro brand has forced Philip Morris International (PMI) to stop their production on the plant of Saint Petersburg. Now these cigarettes will be imported to Russia from Germany. As experts consider this decision may have beneficial influence on sales of cigarettes of this brand as Russian consumers prefer products of international manufacturers for higher quality.
According to source data for transferring manufacturing process from Russia to Germany Company will spent about 1 billion USD annually. Import of Marlboro tobacco products to Russia has stopped in 2000 after Philip Morris opened plant outside Saint Petersburg under the name Philip Morris Izhora. But all calculations of the manufacturer for this brand on Russian market haven't met expectations. As compared to the dominating position of Marlboro brand on many world markets, in Russia it appeared to be behind the second brand of this Company Parliament.
According to research results from Nielsen, Marlboro brand takes the third place on Russian market ceding to such brands as Kent and Parliament, in spite of the fact that the last years are not quite successful for these cigarettes. Their sales are falling steadily.
All 14 types of cigarettes that are sold in Russia under this brand have taken only 1.6% of total market of tobacco products.
In the meantime Philip Morris plans to phase down production in Australia as well. Closure of production that was in operation during almost 60 years will cause lost of 180 working places, informs BBC. Company has declared that changes in the norms of cigarettes' production initiated by Australian government are the main reason. Production of cigarettes for Australian market will be transferred to South Korea.