Cheap Cigarettes Are Winning in World's Second-Biggest Market
- Gudang Garam shares rise; premium brand Sampoerna’s fall
- Taxes have pushed up prices, prompting smokers to trade down
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In Indonesia, the world’s second-largest cigarette market, higher sin taxes have prompted cost-conscious smokers to move from premium brands to cheaper ones. That’s hurting Philip Morris International Inc.’s unit there more than rivals who offer a wider range of lower-priced products, analysts say.