STMA Delegation Inspects HongyunHonghe to Check Development of Brands

A delegation designated the State Tobacco Monopoly Administration (STMA) to conduct inspection on planning for the development of brands arrived in the HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province on March 3 to inspect the planning by HongyunHonghe for developing competitive cigarette brands.

Upon arrival in HongyunHonghe, the STMA delegation, led by Deputy Director Li Deyi of the Economic Operation Department of the STMA, held talks with top officials of HongyunHonghe, including Communist Party Committee Secretary Yao Qingyan, Vice-Presidents Wu Yi, Xu Liwei and Feng Bin, and Presidential Assistant Dai Wei, as well as leaders of the relevant centers, departments and offices of HongyunHonghe. Li Deyi said that the inspection by the STMA delegation was mainly intended to understand the planning by HongyunHonghe for developing competitive cigarette brands and specific measures adopted by HongyunHonghe to implement the STMA's big competitive brands development strategy, known as the 532 development strategy, hear opinions and suggestions of HongyunHonghe on the 532 development strategy, and get to know the policy support needed by HongyunHonghe. Speaking on the same occasion, Wu Yi briefed the STMA delegation on HongyunHonghe's definition of and planning for the development of the Yunyan and Honghe cigarette brands in the 2010-2015 period, which prescribes the development of big competitive cigarette brands as an indispensable approach and fundamental support for sustainable development of HongyunHonghe, in light of the situation of intense competition among different tobacco manufacturers to rapidly develop big and powerful cigarette brands, and in accordance with the requirement of the tobacco industry to promote cigarette production to a higher level. In a separate address, Xu Liwei said that the STMA's formulation of the 532 development strategy was in conformity with the trend of development of the tobacco industry, and was an inevitable choice and indispensable approach for realizing smooth and health development of the tobacco industry. Xu Liwei said that both Yunyan and Honghe cigarette brands were of advantages and a reliable basis in terms of marketing and raw materials supply, and that Yunyan should be playing a leading role in the intense competition with the tobacco industry. Because of this reason, HongyunHonghe has modified its planning and targets for the development of cigarette brands, Xu Liwei said. In future, HongyunHonghe will manage to strengthen efforts to reform the structure of its existing cigarette brands, strive to achieve some success in the ongoing inter-provincial structural reform of the tobacco industry, seek integration of scope and efficiency, focus its energy on the development of products of Yunyan brand and high-grade cigarette products, attach greater importance to overseas markets, and strive to achieve some success in the new round of competition with the tobacco industry, Xu Liwei said. Summing up in conclusion, Li Deyi said that both Yunyan and Honghe cigarette brands should become an important part of the 532 development strategy, and praised HongyunHonghe for practically making preparations for implementing this strategy, for clear understanding and thorough analysis of it, and for adopting specific measures for its implementation. On realization of the targets for the development of brands, Li Deyi said that quality, marketing and policymaking were three key factors. He pledged that the Economic Operation Department of the STMA would do all it could to support future development of HongyunHonghe, and assist it in realizing its targets for the development of big competitive cigarette brands. Enditem