<strong>China''s Low Tar Cigarette Develops Fast in First Three Months</strong>

The tobacco industry of China, under promotion of the policy of active development of low-tar-level cigarette products and increasing growth in consumer demand for the supply of low-tar-level cigarettes, registered favorable development of rapid growth in both the production and marketing of low-tar-level cigarettes in the first three months in 2013.

From January to March 2013, the tobacco industry reached record highs over 100 billion cigarettes (2 million cases) in both the production and marketing of low-tar-level cigarettes (with a tar level of 8mg or lower), and among it, the output and sales volume of cigarette with a tar level of 6mg or lower reached 10 billion cigarettes (0.2 million cases).

Judged by the situation of development of low-tar-level cigarettes production and marketing in China in the first 3 months in 2013, key cigarette brands were the leading forces in the development of low-tar-level cigarettes production and marketing. From January to March 2013, there are 34 low-tar cigarette brands, among it, 26 are key brands. Output and sales volume of key bands both reached 80 billion cigarettes (1.6 million cases), accounted to 80 percent of total volumes of low tar cigarettes.

Judged by output and sales volume of single brand, the top three brands, Changbaishan, Huanghelou and Lanzhou, were key brands, with the output of Huanghelou and Huanghelou both reaching 15 billion cigarettes (0.3 million cases), and sales volume of Huanghelou, over 15 billion cigarettes (0.3 million cases). The top three brands, a tar level of 6mg or lower, Changbaishan, Huanghelou and Lanzhou, with the output and sale volume of Lanzhou, over 3 billion cigarettes (0.06 million cases).

From January to March 2013, both the production and marketing of low-tar-level cigarettes went up relatively sharply over 25 percent, with the output and sale volume of cigarette with a tar level of 6mg or lower, going up by 220 percent year-on-year. Enditem