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"Further higher increase for 'king size filter tip' segment implies increased risk of consumer downtrading to cheaper variants and may also induce an increase in offtake of illicit cigarettes," it said.Industry sources confirmed that cigarettes of shorter length would see lesser hikes (5-10%) compared to the longer ones (20-30%)
Jie Liang, sector lead for S&P Global Ratings structured finance ratings, noted that S&P's criteria include a set of stress runs, such as the cigarette volume decline test, the NPM adjustment stress test and the PM bankruptcy test
There are specific cigarette smoke sensors and air quality sensors designed to sniff out tobacco smoke, even when its subtle
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