CRT026736 Project SUN COMBINED v10 - page 10

10
PROJECT SUN
EXECUTIVE SUMMARY
EUROPEAN MARKET OVERVIEW
C&C from non-EU countries continued to increase. In 2014, non-EU
countries contributed over 85% of all C&C, compared with less than 60%
in 2009
C&C volume by source - 2009-2014
(1)
Sources: (1) EU Flows Model 2009 - 2014 (2) Communication from the Commission to the Council and the European Parliament
Stepping up the fight against cigarette smuggling and other forms of illicit trade in tobacco products - A comprehensive
EU Strategy, Section 2.5 p.8.
0
10
20
30
40
50
60
70
2009
2010
2011
2012
2013
41.9
37.3
43.7
45.4
23.9
40.6
61.1
64.2
65.3
65.7
58.6
21.6
22.2
20.3
14.6
3.4
2014
44.6
56.6
8.3
3.7
Counterfeit
Non-EU
EU
Volume (bn cigarettes)
© 2015 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity.
• The growth in non-EU sourced C&C came largely from brands with no country-specific labelling, as well as from
Belarus and Algeria
• The decline of intra-EU C&C since 2009 has been partially attributed to improved supply chain controls
implemented under Cooperation Agreements with the European Commission:
“The measures implemented by the four big manufacturers under the Cooperation Agreements, such as tracking
and tracing of tobacco products, due diligence in relation to customers and prevention of money laundering, have
clearly led to a significant reduction in the presence of these companies’ products on the illicit market”
European
Commission
(2)
1,2,3,4,5,6,7,8,9 11,12,13,14,15,16,17,18,19,20,...336
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