Malaysia: A3R Aims to be Preferred Alternative Cigarette Maker

Source from:  Sun Daily (my)  03/26/2013

A3R Holdings Sdn Bhd, inventor of the tobacco industry's first smokeless, zero-tar cigarettes, strives to be the preferred alternative cigarette producer in the market and to one day grow to the size of the major tobacco players.

"In three years we aim to have a 0.2% share of the tobacco market, producing 14 million sticks," its operations controller Rowena Sy (pix) told a press conference to introduce the zero-tar cigarettes known as Victorian Cigarettes recently.
 
Victorian Cigarettes are essentially a one-stick electronic device that vaporises concentrated liquefied nicotine. Each Victorian stick is equivalent to 20 sticks of regular cigarette, and retails at RM15.
 
The zero-tar cigarettes were also announced by the prime minister on Jan 29, 2013 as one of the top 50 Innovation Business Opportunity by Agensi Inovasi Malaysia.
 
Founded in December 2011, Sy said A3R is targeting to achieve a revenue of RM6 million in its second year of operations and RM10 million in the third year.

Victorian Cigarettes were rolled out and tested in the market in May last year. The product is targeted at the 1.12 million youths who smoke as well as urban smokers, specifically in the Klang Valley.
 
A3R expects these target markets to grow by 5% to 8% in the next 12 to 36 months.

Sy said through its focused test period of three months with 100 selected outlets, which were mostly Indian Muslim restaurants, coffee shops and mini markets in the Klang Valley, A3R concluded that there is a market for zero-tar cigarettes.

She also said A3R wants its products to be available to the mass market through chain retail outlets.

"We're talking to the retailers now and hopefully we'll be in their outlets by the third quarter of this year. We aim to be in 500 outlets by then," Sy added.
 
It also aims to penetrate key Asean markets other than Malaysia and is in talks with two potential partners to export its products within the year.
 
"After gaining market recognition, acceptance and validation, we are confident that we have a product that truly addresses the needs of smokers who are looking for a better and safer alternative," A3R CEO Allan Foo said.
 
A3R is founded by Foo, Sy and another partner to focus on the manufacturing, marketing and distribution of Victorian Cigarettes. The technology is an innovation from an available technology (electronic cigarettes) which was redefined to encapsulate everything in a cylinder that is the size of a regular cigarette.
 
A one-time heavy smoker, Foo said he personally invested RM3 million for the development of Victorian Cigarettes.
 
He said this year, the company will focus on expanding Victorian's reach by engaging mass retailers, diversify its product portfolio and grow a sustainable and profitable business together with investors.
 
The fast moving consumer goods company also sells V-Juice, the new range of nicotine-free liquid vapour refills for rechargeable electronic cigarette devices. Enditem