<strong>China: Provincial Tobacco Industry Unifies Marketing, Integrates Businesses</strong>

Source from:  TobaccoChina Online 11/05/2013

China Tobacco Yunnan Industrial Co., Ltd. in southwest China's tobacco-producing Yunnan Province is in the process of unifying marketing, research and development of Hongta Tobacco Group and HongyunHonghe Tobacco Group under its management, and also integrating the brands and enterprises in business diversification of the two tobacco groups.

On October 24, China Tobacco Yunnan Industrial Co., Ltd. held in Beijing a symposium on unification of marketing, research and development of Hongta Tobacco Group and HongyunHonghe Tobacco Group and integration of the brands and enterprises in business diversification of the two tobacco groups (hereinafter referred to as "unification and integration").

The symposium was attended by Director-General Ling Chengxing and Deputy Directors-General Zhao Hongshun, He Zehua, Li Keming and Yang Peisen of the State Tobacco Monopoly Administration (STMA), STMA Communist Party Discipline Inspection Group chief Gao Lin and chief accountant Zhang Yuxia, et al.

In particular, Ling Chengxing and Zhao Hongshun delivered addresses at the meeting.

At the meeting, the official reply by the STMA on the "unification and integration" was read out. According to the official reply, the STMA and China National Tobacco Corporation have agreed in principle the launch of the work of "unification and integration" by China Tobacco Yunnan Industrial Co., Ltd., which is intended to further optimize the distribution of resources of the two tobacco groups and realize sustainable, healthy and stable development of them.

China Tobacco Yunnan Industrial Co., Ltd. has adopted the idea of "unification and integration" in striving to establish general domestic and international marketing systems; develop well-known cigarette brands with international competitiveness; unify research and development; integrate resources of brands, to realize a shift from the pattern of efficiency of scale onto the pattern of efficiency of structure; further define the development orientation of the four major cigarette brands of Yunyan, Hongtashan, Yuxi and Honghe, which will in turn contribute to promoting concentration of other brands onto the four major brands; and integrate enterprises in business diversification, to make exploration for reform of the system of investment for business diversification at higher levels and on larger scales, to establish favorable financing platforms, to enhance the financing capacity, and to improve both the quality and efficiency of investment.

In addressing the meeting, Ling Chengxing emphasized that the entire tobacco industry shall exert all efforts to support the work of "unification and integration" by China Tobacco Yunnan Industrial Co., Ltd.

Firstly, China Tobacco Yunnan Industrial Co., Ltd., with unification of marketing, research and development and integration of brands and enterprises in business diversification as a landmark, has launched a new major drive of deepening reform, which will be in the interest of enabling it to give play to its advantage in terms of resources of leaf tobacco in Yunnan on an overall basis, give play to its advantage in terms of the annual cigarette production quotas for Yunnan on an overall basis, give play to its advantage in terms of well-known cigarette brands on an overall basis, and lower the cost of marketing.

And secondly, efforts shall be made to ensure that China Tobacco Yunnan Industrial Co., Ltd. will be able to realize steady development and promote its level in the process of reform.

The participants in the meeting also included leaders of all departments and units of the STMA and China National Tobacco Corporation, and leaders of the units directly affiliated to the tobacco industry of China. Enditem