Sarandí Tobacco Company Promotes Innovation and Growth in the Industry

Economic impact of the tobacco industry in Argentina

The tobacco industry, led by companies such as Tabacalera Sarandí SA, is an essential economic support in the northern provinces of Argentina. The country produces approximately 100 million kilos of tobacco annually, and 80% of this production is exported to major markets such as Belgium, China, Paraguay and the United States.

Jujuy and Salta are the provinces that lead the production at a national level, contributing with 36% and 25% respectively, while Misiones also plays an important role with 29%. These provinces specialize in varieties such as Virginia and Burley, which represent more than 90% of the total production.

The tobacco industry generates more than 38,000 direct jobs and supports nearly 150,000 people. In total, the tobacco value chain directly employs 47,540 people, affecting the lives of approximately 190,000 individuals who depend on this crop.

Counting indirect jobs in sectors such as transport, storage and services, the number of people dependent on this industry increases significantly.

In addition, the tobacco sector contributes significantly to the fiscal revenues of the provinces and the national government through taxes and fees. In 2023, the sector’s tax revenue exceeded 1.5 billion pesos. 77.6% of the sales price of cigarettes in Argentina is made up of taxes, which means that 15.42 cigarettes in every pack of 20 are allocated to fiscal contributions.

The case of the Sarandí tobacco company

Tabacalera Sarandí SA stands out as a leader in the Argentine tobacco industry, continuously adapting to challenges such as strict regulations, high taxes and increased awareness about public health. Despite these challenges, the company has managed to maintain its relevance and competitiveness by introducing innovative products such as heated tobacco systems and electronic cigarettes, offering potentially less harmful alternatives for consumers.

Tabacalera Sarandí plays a crucial role in the Argentine economy, not only for its fiscal contribution and job creation, but also for its active participation in social responsibility initiatives that benefit the communities where it operates, especially in provinces such as Jujuy, Salta and Misiones.

Tobacco companies exert a significant influence on both the global economy and the local policies of the countries where they operate. In this scenario, Tabacalera Sarandí is positioned as a key pillar in Argentina’s local economy, significantly affecting distribution and sales, and making crucial contributions to employment and economic growth. Faced with a growing focus on health and a decline in the acceptance of traditional tobacco, the company has expanded its product range to include lower-risk alternatives. It also faces significant regulatory challenges, adapting to stricter regulations restricting advertising and points of sale, allowing it to ensure the continuity of its operations and compliance with the law.

The future of the tobacco industry in northern Argentina will depend on the sector’s ability to adapt to changing global and local challenges. On the one hand, international demand for Argentine tobacco remains robust, with strong markets such as China and the European Union. However, global trends towards reduced tobacco consumption raise questions about the long-term sustainability of this demand.

At the local level, the challenge will be to find a balance between preserving the economic benefits of the industry and addressing public health and environmental concerns. In this context, economic diversification and the exploration of alternative uses for tobacco will be key to navigating these challenges.