May 28, 2015

PMI Comments on KPMG’s Latest Report on the Illegal Cigarette Market in the EU

Following the release of the 2014 KPMG report on the illicit cigarette market in the EU, Switzerland and Norway, Alvise Giustiniani, Vice President, Illicit Trade Strategies & Prevention, Philip Morris International commented:

“The illegal cigarette market is a complex and significant problem in the EU and around the world. While collective efforts in the EU have made progress to help stabilize the size of the black market and reduce the contraband of genuine products, ongoing collaboration between the public and private sector is still needed.

“The dynamics of the illegal market in the EU are changing. There is a significant increase in the volume of illegal products arriving from non EU countries, and a marked rise in the sale of so called illicit whites, cigarettes that are generally legally produced in a country and smuggled into another country where they have limited or no legal distribution. The criminals and organized crime fueling this activity are finding new and creative ways to circumvent the checks and measures in place, further harming the economy and local communities.

“Fighting illicit trade is a top priority for PMI and we continue to invest significant resources to ensure strong controls in our supply chain, raise awareness, and enhance our understanding of the issue. No tobacco company, government, or law enforcement agency alone can eradicate this problem, it requires effective policies, continued focus, and coordinated actions by all.”

More information about KPMG’s report is available here.