BAT and Taban Trafik to supply Hungary’s retailers

The Hungarian government announced yesterday that British American Tobacco would join forces with a Hungarian tobacco trader to supply tobacco shops in the country, according to a Dow Jones story.

BAT and Taban Trafik would jointly pay 600 million forints ($2.2 million) for the license, Janos Lazar, head of the prime minister’s office, was reported to have said at a press conference.

Hungary monopolized the retail trade of tobacco in 2013 and, in doing so, radically reducing the number of retail tobacco outlets.

Market experts estimate Hungary’s retail tobacco market is worth about 500 billion forints ($1.81 billion) a year.

In December last year, parliament, which is dominated by the governing Fidesz party, approved legislation to introduce a single firm licensed by the state as the only tobacco wholesaler.