China: STMA Deputy Chief Urges Creation of Favorable Environment for Development of Yunyan

12/10/2012

Deputy Director-General He Zehua of the State Tobacco Monopoly Administration (STMA) has recently called for attaching greater importance to the development of brands of cigarettes made in Yunnan, and urged efforts to create a favorable environment for the development of the Yunyan cigarette brand of HongyunHonghe Tobacco Group – the largest Chinese tobacco manufacturer.

He made the statement at a meeting to mark the enlargement of the annual production capacity of cigarettes of its time-honored competitive Yunyan brand of HongyunHonghe to a total of 3 million cases (150 billion cigarettes), and also on the development of big competitive cigarette brands of Yunnan, which was held at the headquarters of HongyunHonghe in southwest China's tobacco-producing Yunnan Province on December 4.

Besides He, the dignitaries attending the meeting also included Zhang Hui, president of the council of China Tobacco Society, Zhang Tianxin, member of the Standing Committee of the Chinese Communist Party Yunnan Provincial Committee and secretary of the Chinese Communist Party Kunming City Committee, and Ding Shaoxiang, deputy governor of Yunnan Province.

In an address delivered at the meeting, He pointed out that over recent years, cigarette brands of Yunnan Province have shown a continued favorable trend of development, with steady growth of both production and marketing, with sustained improvement of the structure, with powerful realization of breakthrough in the development of high-end products, and with rapid growth of both taxes and profits.

As a traditional key brand of the tobacco industry of China, Yunyan has shown a robust trend of rapid development, and has kept an annual growth rate of 30 percent for consecutive years. As a result, Yunyan has been playing an increasingly important role in the tobacco industry of China, with the influence turning increasingly far-reaching, He said.

He finally urged the commercial sector of the national tobacco industry to show care and extend support to cigarette brands of Yunnan and also the Yunyan brand family of HongyunHonghe, well handle the relationship between common development and priority development, create a favorable environment for the development of Yunyan, and lay a solid foundation for the tobacco industry to realize its brands development strategy.

Also speaking at the meeting, General Manager Zhu Shaoming of China Tobacco Yunnan Industrial Co., Ltd. said that Yuxi, Yunyan and Hongtashan are all backbone brands and leading brands of China Tobacco Yunnan Industrial Co., Ltd., and that after Hongtashan realized the enlargement of its annual production capacity to 3 million cases (150 billion cigarettes) in 2011, Yunyan succeeded in enlarging its annual production capacity to a total of 3 million cases (150 billion cigarettes) in 2012 as well on its course to advancing toward a higher start point.

He said that China Tobacco Yunnan Industrial Co., Ltd. will, closely in accordance with its brands development target, go all out in "focusing on a core and promoting four innovations" – focusing on the core of brands development to upgrade the overall structure and embody the value, to seek breakthrough in the development of high-end products and embody leadership, to develop low-tar cigarette markets and embody the orientation of development, to enlarge the annual production capacity of brands and embody influence, and to shift the basis for promoting development onto improvement of quality and promotion of efficiency; and promoting the innovation of models, innovation of science and technology, innovation of marketing and innovation of cultures, in order to develop driving forces by relying on innovation, strengthen the development momentum, unswervingly embark on the path of sustainable development, and promote the development of brands to higher levels. Enditem