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Tobacco Growers found Alternative JobsSmoking became an important problem even in Bulgaria. That’s why Bulgarian Government hopes to carry out the hindered sale of its main cigarette maker, Bulgartabak Holding BTHG.BB, by the end of this year. This is not the first attempt by the country to dispose of the former tobacco companies, but this will be the fourth attempt. The Bulgarian tobacco company "Sofia-BT" AD marked a 541% increase in exports for the first quarter of 2009 year-on-year. The company exported 610 tons of cigarettes, worth BGN 9, 5 M, compared to 94 tons (BGN 1 M) for the same period in 2008. Main export destinations of "Sofia-BT" are the Near and Far East, Balkans, and some EU countries. The company produced a total of 746 million cigarettes (BGN 11, 11 M) for the first three months of 2009, compared to the 314 million cigarettes (BGN 3, 64 M) for the same period in 2008. Traikov, the energy and economy minister, said: "The best moment for the sale of the company was irretrievably missed and at present the company is losing its market share. But we still can have a positive effect from the sale". He added that the holding could be sold at auction with open bidding, and bidders would have to agree to certain engagements, including certain levels of local tobacco purchases. Previous attempts to sell the tobacco company had failed due to political controversy and, some analysts said, because legal interests were benefiting from cigarette contraband and profitable state-financed contracts with Bulgartabak. And even though the British American Tobacco offered 200 million euros for the two mills in 2005, but the deal was blocked by the ethnic Turkish MRF party, a junior coalition partner in the former Socialist-led government, and BAT left its suggestion. Statistics show that the sale was also politically sensitive because many of the Balkan country's ethnic Turks, who make up about 10 percent of the population of 7.6 million, were tobacco growers. But now many of them have found alternative jobs. Bulgaria, where half of the adult population smokes, has also committed to ban smoking in all public places, including bars and restaurants as from next year. |
