STMA Holds Symposium on Brand Licensing for Cigarette Production

Source from:  TobaccoChina Online 09/17/2010

The State Tobacco Monopoly Administration (STMA) - the regulator of China's tobacco industry - held a symposium in Beijing on September 7 on brand licensing for cigarette production, in which STMA Director-General Jiang Chengkang urged Chinese tobacco manufacturers to promote brand licensing for the production of famous-brand cigarettes. Attending the meeting were top leaders from 18 provincial-level tobacco manufacturing enterprises and leaders of the relevant departments and units of the STMA. In an address to the meeting, Jiang said that in promoting brand licensing for cigarette production, the owners of famous cigarette brands and the enterprises that want to use the brands in producing cigarettes need to pay attention to the following points: Firstly, proper plans should be made for cigarette production in accordance with orders placed for the supply of products. Secondly, the owners of famous cigarette brands and the enterprises licensed to produce cigarettes using the brands should, on the basis of willingness by both sides, make unified arrangements for cigarette production under license, and ensure that the production technology, technical equipment and management at the enterprises licensed will meet the demand of the brands to be used. Thirdly, the leaf tobacco needed for cigarette production under license should be supplied under unified control by the owners of the famous cigarette brands to be used. And fourthly, the scope of production should be generally in keeping with the market demand, and production should be carried out in accordance with the orders placed. Jiang also recalled that from January to August, key cigarette brands of China's tobacco industry kept growing rapidly, with the scope of famous brands keeping enlarging. In the eight-month period, the brands of low-tar-level cigarettes continued to maintain a favorable trend of development while remarkable achievements were made in efforts to lower the content of tar and other harmful substances in cigarette products. In the same period, high-grade cigarette brands showed a favorable trend of accelerated development, with their value obviously increasing, according to Jiang. Enditem