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Big Tobacco Sets Its Sights on Africa 

Jump to full article: TIME Magazine, 2009-07-24
Author: Jeffrey Kluger

Intro:

In recent years, the world has increasingly been cleaving into two zones: smoking and nonsmoking. In the U.S. and other developed countries, Big Tobacco is in retreat, chased to the curbs by a combination of lawsuits, smoking bans, rising taxes and advertising restrictions. Fewer than 20% of adult Americans now smoke -- the lowest rate since reliable records have been kept -- and a tobacco crackdown is under way in Europe, Canada and elsewhere. In April, Congress boosted federal cigarette taxes threefold, from 32 cents a pack to $1. In June, President Barack Obama signed a law giving the FDA the power to regulate cigarettes like any other food or drug.

But the West is not the world, and elsewhere smoking is exploding. In China, 350 million adults are hooked on tobacco, which means the country has more smokers than the U.S. has people. Smoking rates in Indonesia have quintupled since 1970. In Russia, boys as young as 10 start lighting up. This year, tobacco companies will produce more than 5 trillion cigarettes -- or 830 for every person on the planet.

It's in Africa, however, that the battle for the hearts, minds and lungs of new smokers is being waged most aggressively -- and Nigeria offers a telling look at how the fight is unfolding. . . .

Big Tobacco's footprint in Africa has been hard to miss for a while. British American markets its wares — which include Dunhill and Pall Mall — in a vast crescent sweeping from South Africa to Congo and west to Ghana, as well as throughout North Africa. In 2003 the company planted its stakes deeper, building a $150 million factory in Nigeria. Philip Morris, whose brands include Marlboro and Chesterfield, has a smaller presence on the continent. "We are a minor, minor player," says spokesman Greg Prager. But that could change. The company does no business in Nigeria, but it controls about 15% of the market across North Africa and has a scattered 10% share elsewhere. It has also built a new factory in Senegal.

That expansion increasingly happens through the single-stick model, and that's the traffic that causes the most worry.

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