The Moroccan state has approved a decree law published on 31 July that extends the monopoly on the import and wholesale of tobacco products until 31 December 2010.

The monopoly was granted to Régie des Tabacs du Maroc (RTM), which is 80 per cent-owned by Altadis since 2003.
The decree law modifies law 46-02, which has governed the tobacco industry since April 2003. This law initially called for the elimination of the monopoly on the import and wholesale of tobacco products on 31 December  2007. Today’s decree law provides for a three-year extension.
The reason for this extension lies in the irreversible shift in demand from dark to blond cigarettes, which has affected local tobacco farmers, Altadis says. Most produce dark tobacco and will have to switch to blond.
In light of its experience in this area, RTM will provide technical support to Moroccan tobacco farmers until 31 December 2010 under the terms of the decree law, with the goal of deploying a plan to develop a variety of blond tobaccos.
To avert the risk of a price war, the decree law also includes a system to regulate the selling prices of tobacco products in Morocco.
The decree law’s approval triggers the sale of the Moroccan government’s 20 per cent interest in RTM to Altadis. The transaction, already planned for in June 2003, when Altadis acquired 80 per cent of RTM as part of the state-led privatisation process, amounts to 4.020 billion dirham (€ 370 million).
The extension of RTMs’ monopoly significantly enhances Altadis’ position in Morocco. In 2005, RTM’s economic sales rose to € 237 million, while EBITDA increased to € 129.4 million. Altadis’ unit sales in Morocco totaled 11.7 billion, in a total market of 13.4 billion units.
RTM has widened its market share since it was acquired by Altadis, from 85 per cent in 2003 to 88 per cent in 2005, thanks to improvements brought to its local Marquise brand and the successful introduction of the group’s international brands (Fortuna and Gauloises Blondes), which have performed very well, the company says. RTM currently leads the steadily growing blond cigarette market. (ci)