During the second half of the eighteenth century the Spanish Crown monopolised the tobacco industry in its American colonies, creating vertically integrated organisations which included factories for the production of cigars and cigarettes. A detailed analysis of the regulations, organisation and policies applied during the Peruvian viceroyalty suggests that Bourbon officials were effective managers. The monopoly was successful at curbing contraband and extracting rents. The evolution of monopoly policies, however, reflected political constraints on the Crown's efforts to raise revenues. The archival evidence suggests that Bourbon officials closed the tobacco factories in Peru in 1791 as a result of public opposition.
