BAT s Souza Cruz controls about 84 percent of this domestic cigarette market. Philip Morris controls the rest. Brazil has enacted relatively strong controls. A 1996 law bans TV ads before 9 p.m. and allows no ads tying smoking to relaxation, sex or sport. The law bars smoking in enclosed public areas and on most public transport vehicles.
Brazil also bans free cigarette samples and purchases by children.
All ads, packages and retailer displays must carry health warnings. Cigarette taxes are about 78 percent, twice as high as in the United States. The taxes and ad restrictions have cut smoking by men, but the rate for women seems to be climbing. It was the first time a tobacco company had been ordered to pay damages outside the United States. BAT has appealed.