JTI's Share Of Value-For-Money Market Falls Due To Illegal Local Brand

Source from:  Bernama.com 08/14/2012

Cigarette maker JT International Bhd (JTI)'s share of the Malaysian value-for-money (VFM) market has declined due to the growing presence of an illegal local brand. OSK Research said an illegal brand by the name of 'John' is gaining a foothold among the cost-conscious smokers. "This local brand has been canabalising volume from the VFM segment," it said in a research note. Meanwhile, the research house said JTI is also looking to rebrand its 'Mild Seven' as 'Mevius' from February next year to make a mark outside Asia. The rebranding would involve higher advertising and repackaging costs, but JTI hopes this will boost sales volume and brand awareness, OSK Research said. It has maintained a 'Buy' call on the cigarette maker with a fair value of RM7.54. Enditem