Capital, Earnings & M&A
What Is the Cost of a 65-Yuan Pack of Zhonghua Cigarettes? You Won't Believe It
China is the world's largest producer and consumer of tobacco, with a smoking rate above 38%. Despite the strictest smoking ban last year, the number of smokers continues to grow, reaching 350 million. A pack of 65-yuan Zhonghua costs less than 3 yuan to produce, but high taxes and monopoly profits drive up the price, while counterfeit cigarettes thrive in this environment.
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