<strong>China: STMA Reports Key Brands Cultivation Conditions of Tobacco Industry in 2013</strong>

Source from:  Eastobacco.com 01/23/2014

In order to maintain sustained and healthy development of tobacco industry, on January 15, the State Tobacco Monopoly Administration reported key brands cultivation conditions of tobacco industry in 2013, and made requests on the brand cultivation in the next stage.

The notification ananlyzed 28 key brands, including top 15 brands on sales volume and sales income respectively, and 12 encouraging foster brands, from cigarette sales, sales revenue and single case wholesale price, etc. According to the notification, in 2013, key brands cultivation condition was good, these key brands showed characters as following: brand scale continued to expand, brand value continued to increase, brand structure continued to improve, and high-end brands continue to grow.

The notification required, business units of tobacco industry should follow principles of "brands to become bigger, specifications to finer, the price will rise", and the industry should try to maintain smooth development on cigarette marketing. To adhere to policy of "controlling total amount and keeping a tight balance", tobacco industry to ensure that the cigarette price stability; regulating cigarette trade behavior strictly, to safeguard the normal cigarette distribution order, to create a fair competition market environment for key brands; insisting on the development direction of high-end low tar cigarette, and strengthen to cultivate high-end market, at the same time cultivating low-tar brands combined with the optimized structure, strengthening technical innovation, guiding consumption, keeping the development of low tar cigarette market. Enditem