NEW YORK (Yosefardi) – Philip Morris International (PMI)’s estimated total market in Indonesia increased by 0.4% in the second quarter of 2015, due to a soft economic environment.
The decline in PMI’s cigarette shipment volume in the quarter mainly reflected U Mild’s crossing a critical price point ahead of competition earlier in the year, and the impact of the softer macro-economic environment. The increase in PMI’s cigarette shipment volume year-to-date mainly reflected market share growth.
PMI’s market share growth in the quarter and year-to-date was driven by a strong performance from its machine-made kretek brands, notably Sampoerna A, Dji Sam Soe Magnum and Dji Sam Soe Magnum Blue, partly offset by U Mild and a decline in its hand-rolled kretek portfolio, notably due to Sampoerna Hijau in “Others,” down by 0.5 points to 2.9%, largely reflecting the decline of the total segment.
While Marlboro’s market share decreased slightly by 0.1 point to 5.1%, its share of the “white” cigarettes segment, which represented 6.2% of the total cigarette market, increased by 2.0 points to 81.3%. The machine-made kretek segment, representing 75.0% of the total cigarette market, increased by 1.6 points and PMI’s share of the segment increased by 1.1 points to 30.7%.
The hand-rolled kretek segment, representing 18.8% of the total cigarette market, decreased by 1.3 points. PMI’s share of the segment decreased by 1.1 points to 37.9%.