DENMARK The country profile is taken from "Tobacco and Health in the European Union- An overview" published by the European Bureau for Action on Smoking Prevention (e-mail BASP). The following version may differ slightly to the printed version. I. General Information Population at 1.1.93 : 5,180,600 Projection for year 2000 : 5,291,000 Population +15 years (1992) : 4,292,800 Area : 43,100 km2 Density per km2 : 120.3 Gross Domestic Product : 16,812 (EU average : 15,616) per capita in Purchasing Power Standard (PPS)1 in 1992 1 A unit of measure which makes it possible to eliminate the influence of differing price levels between countries and to make comparisons in real terms. II. Consumption of tobacco 1. Prevalence of smoking There has been no decrease in the prevalence of cigarette smoking (column B1) in Denmark since 1970. The decrease in the overall percentage of smokers (from 57% in 1970 to 43% in 1993) is accounted for by a decrease in the number of pipe and cigar smokers. A notable feature of the Danish population is the close parity in smoking rates of men and women. Percentage of smokers in Denmark 1970 to 1993 Year Male Male Female Female Total Total A B A B A B 1970 68.3% 42.2% 46.6% 36.2% 57% 39% 1975 60.4% 40.4% 45.5% 38.2% 53% 39% 1980 56.7% 41.9% 43.9% 38.3% 50% 40% 1985 50.9% 39.7% 41.8% 37.4% 46% 39% 1990 47.1% 38.3% 40.3% 37.8% 44% 38% 1991 47.3% 39% 40.6% 38.5% 44% 39% 1992 45.9% 38.6% 40.1% 38% 43% 38% 1993 44.7% 37.3% 39.1% 36.8% 42% 37% 1A = smokers of cigarettes, cigars and pipe tobacco B = smokers of cigarettes (factory-made and hand-rolled) Source : The Danish Council on Smoking and Health (Tobaksskaderaad) 1994. In the younger age group, however, there has been a more notable decrease in smoking rates (cigarettes) from 40% in 1970 to 20% in 1993. Percentage of teenage smokers (2) 1970 to 1992 (15 - 19 years) Year Male Female Total 1970 42% 38% 40% 1975 36.9% 39.7% 38% 1980 32.6% 32.3% 32% 1985 29.9% 28.3% 29% 1990 26.3% 22% 24% 1991 22% 19.8% 21% 1992 19.9% 26% 23% 1993 19.8% 20.5% 20% Source : Gallup and The Danish Council on Smoking and Health (Tobaksskaderaad) 1994 (2) Cigarettes (factory and hand-rolled) Smoking prevalence is 56% among unskilled workers and 40% for salaried employees in the upper pay bracket. The difference between socio-economic groups is more accentuated among men (61% and 39%) than among women (52% and 41%). 2. Consumption of tobacco Manufactured cigarette consumption 1985 to 1992 (millions) Year Overall Per capita 1985 7,943.6 1904 1986 7,739.6 1845 1987 7,325.5 1737 1988 6,925.6 1638 1989 6,728.4 1571 1990 6,737.6 1580 1991 6,648.3 1552 1992 6,757.9 1574 Source : Maxwell Report International/Eurostat Sales of other tobacco products 1990-1991 1990 1991 Fine-cut tobacco (> 1.5mm)(kg) 2,830,000 2,575,000 Fine-cut tobacco (< 1.5mm)(kg) 60,000 279,000 Cigars (million pieces) 6,475 6,087 Cigarillos (million pieces) 256,963 240,207 Cheroots (million pieces) 64,617 59,532 Source : TJI, April 1992; Danish Ministry of Taxation III. Price and Taxation 1. Price of the five most sold cigarette brands The five most sold brands in 1992 were Prince Filter, Prince Light, Cecil Plain, New Look Filter and New Look Light. The recommended retail selling price of these brands in September 1994 was as follows : Brand Price in DKr Price in ECU* Prince 28.50 3.76 Prince Light 28.50 3.76 Cecil Plain 28.50 3.76 New Look 29.50 3.89 New Look Light 29.50 3.89 Source : Maxwell Report International/EAC correspondent Denmark *1 ECU = 7.58DKR 2. Evolution of cigarette prices since 1987 The price of a pack of Prince cigarettes increased by 11% between 1987 and 1993 from 25.30Dkr to 28Dkr. In the same period, the real price of tobacco (taking account of the effect of inflation) increased by only 0.43%. The real price of tobacco increased by a total of 2.10% between 1985 and 1993. 3. Tobacco in the consumer price index Tobacco products were given a weighting of 2.73% in the consumer price index in 1991. 4. Level and structure of taxation Taxes on cigarettes (VAT & excise duties) are presently the highest in the EU representing 84.56% of the final retail selling price (RSP). The structure of taxation on tobacco products in Denmark on 1.1.94 was as follows: Product Specific Ad Valorem VAT as % excise excise as % of RSP of RSP Cigarettes (per 1000 pieces) 78.64 21.22% 20% (per 1000 pieces) Cut tobacco (<1.5mm) 45.36 - 20% (per kg) Cut tobacco (> 1.5mm) 35.64 - 20% (per kg) Cigars and cigarillos 25.66 10% 20% (per 1000 pieces) Before July 1991, there was a significant difference in taxation levels between fine-cut (<1.5mm) and less fine-cut tobacco (>1.5mm) (Dkr531 per kg and Dkr128.90 per kg respectively). This led to consumers using the less fine-cut tobacco for rolling cigarettes and accounts for the much higher sales in this category. Since July 1991, the Ministry of Taxation has significantly changed the taxation of cut tobacco in order to reduce the difference between the two categories and reorientate demand towards the finer cut tobacco. 5. Government tax revenue Government revenue from tobacco taxes was estimated at 1,249 MECU in 1992 representing 2.3% of total central government tax revenues (3). 6. Price of tobacco in relation to one hour of work The average hourly gross salary for an industrial worker in 1992 was 13.42 ECUs - enough to buy 3.9 packs of cigarettes (20) of the most popular price category. 7. Tobacco as a percentage of the household budget Tobacco expenditure as a percentage of annual household expenditure 1986 - 1991 Year Expenditure Final consumption Tobacco on tobacco of households as % of (mio ECUs) (mio ECUs) overall expenditure 1986 1,409 45,610 3.1% 1987 1,361 47,222 2.9% 1988 1,355 48,141 2.8% 1989 1,321 43,421 2.7% 1990 1,405 49,421 2.7% 1991 1,485 52,413 2.7% IV. Market Profile 1. Characteristics of the market The five most popular cigarettes brands and their respective markets shares were as follows in 1992 : Brand Market share Company Prince Filter 34.3% Skandinavisk Tobak. Prince Light 19.2% Skandinavisk Tobak. Cecil Plain 9.7% Skandinavisk Tobak. New Look Filter 7.9% Skandinavisk Tobak. New Look Light 7.7% Skandinavisk Tobak. Source : Maxwell Report International The Danish market is dominated by domestic brands which account for a massive 97.6% of the market. The Skandinavisk Tobakskompagni, enjoys a near monopoly position and its well-known Prince cigarettes have been the country's number one selling cigarettes since 1967. The Danish non-filter segment accounted for 19% of cigarettes sales (4) in 1990 and hand-rolled cigarettes represented approximately 20% of overall cigarette sales. 2. Tobacco retail outlets In 1991, there were 14,086 tobacco sales outlets in Denmark and approximately 60 tobacco wholesalers (5). This represents a concentration of one retail outlet for every 304 persons over the age of 15. Given that 37% of these are smokers, this means one retail outlet for every 112 smokers. 3. Expenditure on tobacco advertising Not available V. The costs of smoking 1. Number of tobacco related deaths In 1990, tobacco was responsible for 11,900 deaths in Denmark (7,500 men and 4,400 women). Tobacco related deaths 1990 Male Female Total All Cancer 3,000 1,300 4,300 Lung cancer 2,100 900 3,000 Vascular disease 2,300 1,500 3,800 Respiratory disease 1,400 1,000 2,400 Other 800 600 1,400 Source : Peto, Lopez et al, 1992,1994. The 5,200 persons who die in the age group between 35 and 69 years are estimated to have lost 21 years of life because of tobacco use. 2. Evolution of the number of tobacco-related deaths Tobacco was responsible for 1,500 deaths in 1955 and 12,000 deaths in 1990. It is estimated that deaths from tobacco will reach 12,900 in 1995. Although the number of tobacco-related deaths among males is beginning to decrease, the number of deaths among women is predicted to continue increasing. Source : Peto, Lopez et al, 1992, 1994. VI. Legislation 1. Advertising The advertising of tobacco products in Denmark is regulated by voluntary agreement between the Ministry of Health and the tobacco industry. The latest agreement was concluded in November 1991 and covers all tobacco products contrary to the former agreement (1986) which covered cigarettes only. The agreement sets out requirements for the size of warnings on tobacco ads and the declaration of product contents (at least 10%). It also places restrictions on the location and size of ads. The places in which tobacco advertising is allowed are listed in the agreement. It is prohibited in all other areas (eg. TV, radio, cinema). Tobacco advertising is, specifically prohibited in publications aimed specifically or mainly at young persons or in spots publications or sports pages of others publications. There are a number of restrictions on the content of tobacco advertising. This may not include images : of persons who appear to be under the age of 30; of personalities (real or fictitious) who through their achievements or profession (ie. entertainment business) have achieved the status of a youth idol; or of persons employed in the health sector (doctors, nurses, etc.). It may not be aimed specifically at young people or imply any connection between smoking and sport. These rules apply also to the indirect advertising of tobacco products and any violation of them may lead to a blockage of deliveries of the brand in question to wholesale or retail dealers in the country. Tobacco advertising is banned on television (Order of the Ministry of Culture Nø416 of 18 June 1987) and on local radio services (Order of 26 July 1988). 2. Public places A Ministry of Health Circular, of 23 March 1988, provides for the restriction of smoking on governmental premises. The circular applies to state-owned premises only (administrative offices and state-owned hospitals, day-care centres, residential institutions and educational establishments). It does not apply to regional authorities. Two other circulars state that smoking should not take place on premises frequented by children or on premises where food is being prepared for resale (Ministry of Social Affairs Circular of 26 October 1990 and Ministry of Environment Order Nø121 of 28 March 1980). These restrictions are more limited than the EC Recommendation in this area. 3. Labelling and tar content Law Nø426 of 13 June 1990 on the labelling of tobacco products and maximum tar yield of cigarettes and Ministry of Health Order Nø507 of 28 June 1990 implement the EC Directives in this area. 4. Sales to children There are no existing measures for the prevention of sales of tobacco products to children. VII. Tobacco industry 1. Structure of tobacco industry The tobacco industry in Denmark is dominated by the Skandinavisk Tobakskompagni which enjoys a near monopoly position in terms of both national production and domestic sales. This company owns both the House of Prince and the Orlik Tobacco company. Prince cigarettes, produced by the House of Prince, have maintained their position as market leader since 1967 and have now also become established in a number of other countries (principally Norway, Sweden, Germany and Greece). More than 60% of Prince sales were made outside Denmark in 1991(6). House of Prince is not just Prince, however, and the company manufactures a wide range of brands including Cecil and New Look. The smoking tobacco market is dominated by Orlik Tobacco Company (50% owned by Skandinavisk Tobakskompagni) which holds more than 80% of this segment. In 1991, BAT had a 32% interest in Skandinavisk Tobakskompagni. 2. Production Production of cigarettes 1988 to 1993 (million pieces) 1988 1989 1990 1991 1992 1993* 11,144 11,205 11,387 11,407 11,439 11,400 Source : Tobacco Journal International * Forecast 3. Imports/Exports Denmark is a net exporter of tobacco products. Imports of cigarettes 1989 to 1993 (million pieces) 1989 1990 1991 1992 1993* 126 141 160 156 150 Source : Tobacco International *Forecast Exports of cigarettes 1989 to 1993 (million pieces) 1989 1990 1991 1992 1993* 3,326 3,479 3,525 3,278 3,500 Source : Tobacco International *Forecast 4. Employment In 1990, there were estimated to be 1,807 persons employed in the tobacco manufacturing sector in Denmark representing 0.06% of the active population in the same year. VIII. Agriculture 1. Imports/Exports of leaf tobacco Denmark is not a tobacco producing country. Imports /Exports of leaf tobacco 1989 to 1993 (tonnes) 1989 1990 1991 1992 1993 Imports 15,727 17,219 16,168 15,955 15,800 Exports 1,408 762 493 891 800 Source : Tobacco Journal International, 2/94. IX. Comments Denmark is the only country in the European Union in which there is little or no difference in smoking prevalence according to gender. It also has the highest overall percentage of smokers, perhaps partly due to this strong parity between the sexes. A particularly worrying factor is the increase in the number of lung cancer cases among women. Although the tobacco control movement is relatively active in the area of health education and public information campaigns this is not counterbalanced by sufficient political and legislative action. 3 CECCM 4 Tobacco International, May 1992. 5 Die Tabak Zeitung, 26 June 1992. 6 Tobacco International, May 1992.