CRT026736 Project SUN COMBINED v10 - page 6

EXECUTIVE SUMMARY
KEY FINDINGS
• C&C consumption declined from 58.6 billion to 56.6 billion, equating to 10.4% of total consumption in 2014
• C&C remained high in countries which border lower-priced non-EU markets
• The UK, Greece and Italy all saw significant C&C growth
• Flows from outside the EU grew by 10% in 2014 largely offsetting an intra-EU decline
• Prices within the EU, especially in the Eastern EU, grew rapidly in order to meet the EU minimum excise
requirements by latest 2018
• Flows of C&C between countries within the EU has fallen, equating to less than 15% of total illicit flows
• IllicitWhites brand flows grew by 8% to 21.2 billion cigarettes in 2014 and accounted for 37% of total
C&C
• Fest, American Legend and Jin Ling are the most prevalent IllicitWhite brand flows
• IllicitWhites brand flows consumption was most prevalent in Poland, Italy, Spain and Greece
6
PROJECT SUN
EXECUTIVE SUMMARY
© 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.
Counterfeit and contraband
(C&C) consumption
declined 3.3% in volume
in 2014
As prices have risen in the EU,
illicit flows from outside of the
EU increased from 37.3 billion
in 2009 to 44.6 billion in 2014
IllicitWhites grew in volume
and are proliferating across
the EU
1,2,3,4,5 7,8,9,10,11,12,13,14,15,16,...336
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