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Stephen Bailey, Macro-Thematic – Warning: smoking may damage your wealth!

The tide of opinion in emerging markets – the growth engine that has preserved tobacco companies’ business over the last decade – seems to be turning in favour of anti-tobacco legislation. If we see a similar scale of attitude shift to that which took place in developed markets over the last generation, will this mean that the sector can finally be consigned to the ex-growth bucket?

In developed markets, tobacco companies have seen their volumes come under pressure from government health campaigns, the spread of smoking bans in public places and, most recently, the introduction of a ban on cigarette branding in Australia and Ireland (and its consideration in the UK).

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