Morocco Tobacco industry profile

MOROCCO Tobacco industry profile COUNTRY PROFILE INDUSTRY Trends  The volume and value of tobacco products increased throughout 2015 despite price increases (1).  Waterpipe tobacco (shisha) had the strongest growth in volume for 2013 (1).  31.5% of males and 3.3% of females aged 15–74 years are current tobacco smokers (2). Domestic Société Marocaines des Tabacs  Owned 83% of retail volume in cigarettes, 99% for smoking tobacco in 2015 (9).  Distribution mainly focuses on kiosks, grocery retailers and van and truck sales (1).  Owned by Imperial Tobacco Group (9). International North Africa Tobacco Co.  Founded in 2010 and responsible for the distribution of Japan Tobacco International’s products (10).  Ranked number 2 for cigarette sales for 2015, with a volume share of 5.3% of the cigarette market (10). British American Tobacco Middle East and North Africa (11)  Founded in 2010, the company focuses on the importation and distribution of cigarettes throughout the country (12).  A subsidiary company of British American Tobacco (12).  Ranked number 3 among cigarette companies in the country (12). Phillip Morris International  In 2009, Phillip Morris International signed a license agreement with Altadis Maroc to manufacture Marlboro (13).  Philip Morris Maroc S.A.R.L., a new Phillip Morris International affiliate, was established in July 2009 (14). Products Products  Cigarettes (27.4% of men, 0.2% of women) (2)  Cigars  Waterpipe, shisha Smokeless products remain unavailable in retail channels (3). $ Finance  In 2015, sales of cigarettes increased by 3% in retail volume from the previous year (4).  In 2014, total tax revenues on tobacco products amounted to approximately 10 billion Moroccan dirhams (5).  Total expenditure on health per capita was US$ 447, in 2014 (6).  5.9% of gross domestic product was allocated to expenditure on health in 2014 (6). Mortality  Heart disease is the most common cause of smoking-related deaths (6).  In 2004, 8% of deaths were attributable to tobacco (7).  Noncommunicable diseases are estimated to account for 75% of deaths, with tobacco smoking as a leading factor (8). BY THE NUMBERS Global brand owner Market share, cigarettes [retail volume (%)] (13) 2010 2012 2014 Imperial Tobacco Group Plc 81.70 73.80 75.30 Philip Morris International Inc. 6.50 7.60 6.60 Japan Tobacco Inc. 1.60 2.80 3.90 British American Tobacco Plc 1.50 1.10 1.40 Others 8.80 14.80 12.90 “Cigarettes in Morocco are still virtually a monopoly. The category is essentially controlled by Société Marocaines des Tabacs (SMT), which is owned by Imperial Tobacco Group (4).” 9.5% Percentage of youth aged 13–15 years who use any tobacco product according to the latest survey conducted in 2010 (2). One in five Students living in homes where others smoke (15). 4500 Hectares out of 9000 total farm land for the tobacco farming industry as of 2003, which is considered to be small (16). TRADE INDUSTRY INTERFERENCE Import and export 2015 Trade value in million (US$) (17) Export Cigarettes 2.0 Unmanufactured tobacco – Import Cigarettes 81.33 Unmanufactured tobacco 44.20 Main trade partners, 2015 (17) Export Import  Spain  France  Switzerland  Turkey  France  Brazil  Portugal  The tobacco industry is intertwined with the Government of Morocco, Régie des Tabacs, the national tobacco distribution company, has exclusive rights on the distribution of tobacco products (1). “...In Morocco ... [we] initiated a tax study which we expect will lead to structural changes in the future” (18). Philip Morris, 1986 MARKETING CORPORATE SOCIAL RESPONSIBILITY Point-of-sale advertising is not prohibited under law (2). As a result, retailers carry posters and photographs of the most well- known cigarette brands. Tobacco manufactures offer retailers commissions to promote certain brands. Despite efforts to ban direct tobacco advertising (2), seven in 10 people had seen pro-cigarette advertisements on billboards and two thirds of students aged 13–15 had seen pro-cigarette advertisements in newspapers or magazines in 2010 (15). Corporate social responsibility is an inherent contradiction, as the industry’s core functions are in conflict with the goals of public health policies with respect to tobacco control. Corporate social responsibility activities have been reported. However, countries are encouraged to abide by Article 5.3 of the WHO Framework Convention on Tobacco Control, protecting public health policies with respect to Tobacco control from commercial and other vested interests of the tobacco industry, through banning corporate social responsibility activities by the tobacco industry, often used to circumvent laws regulating the industry. © World Health Organization 2017 WHO-EM/TFI/164/E NEXT STEPS FORWARD Morocco is not yet a party to the WHO Framework Convention on Tobacco Control (WHO FCTC), however this will not prevent the country from taking the steps needed to control the tobacco industry. A few steps are suggested:  fully operationalize the Guidelines of Article 5 of the WHO FCTC at national level;  introduce a multisectoral approach to the implementation of Article 5.3, within the implementation of the WHO FCTC;  put in place a mechanism to monitor the tobacco industry activities and report publicly on that if and when possible. References 1. Euromonitor Passport Database. Industry overview: tobacco in Morocco 2016. London: Euromonitor International; 2016. 2. WHO report on global tobacco epidemic, 2015. Country profile: Morocco 3. Euromonitor Passport Database. Category Briefing: Smokeless Tobacco in Morocco. (London: Euromonitor International; 2016. 4. Euromonitor Passport Database. Category Briefing: Cigarettes in Morocco. London: Euromonitor International; 2016. 5. WHO report on the global tobacco epidemic, 2015, Appendix VIII 6. WHO country statistics: Morocco 7. WHO global report: mortality attributable to tobacco 8. WHO noncommunicable diseases country profiles, Morocco 9. Euromonitor Passport Database. Local Company Profile: Société Marocaines des Tabacs. London: Euromonitor International; 2016. 10. Euromonitor Passport Database. Company Profile: North Africa Tobacco Co. (Morocco. London: Euromonitor International; 2016. 11. British American Tobacco: Africa and Middle East 12. Euromonitor Passport Database. Local Company Profile: British American Tobacco Middle East and North Africa (Morocco). 13. Euromonitor Passport Database. Statistics: Cigarettes, Company Shares (Morocco). London: Euromonitor International; 2016. 14. Philip Morris International: Morocco 15. Global Youth Tobacco Survey. country fact sheet: Morocco 16. Analysis of the economics of tobacco in Morocco 17. UN Comtrade Database 18. Philip Morris International corporate affairs memorandum See also Voice of truth (vol. I) and Voice of truth, 2nd ed