Super premium smoke rises cigarettes sales

March 29, 2007 As became known, American Cigarette Tobacco Company (ACTC) begins to produce SAMURAI super premium. Company invests $5 million in this project and is planning to take up to 1 percent of super premium market during 2 years. Experts say that the given segment is the most dynamically developed as helps tobacco sellers to promote less expensive brands.

As was told in the office of American Cigarette Tobacco Company they use the potential of Russian tobacco factory “Nevo Tabak” and they are planning to produce a new brand of cigarettes, SAMURAI. We hope to conquer up to 1 percent of super premium Russian tobacco market segment during 2 years. Investments will take up to 5 million dollars, told general director of ACTC Oleg Krylov.

After Business Analytics company researches, for 9 month of this year premium and super premium segment make such strong brands as Kent (16,7 percent, brand belongs to British American Tobacco), Marlboro (16,5 percent) and Parliament (13,6 percent) produced by Philip Morris.

After ACNielsen Russia’s data, super premium tobacco branch develops dynamically. From January till November 2006 the segment rose about 13 percent as against analogical period of 2005. In the present it takes 9,6 percent of tobacco market in natural and 24.4 percent in cost expression. Active rise of the segment happens because of redistribution of consumer demands to the side of more expensive cigarettes .

The deal is not only on consumer’s demand. Premium brand is a good method to clear the way for promoting less expensive brand, consider marketing specialists. As ACTC says, it will go further and after SAMURAI it is going to produce two more new brands of middle price. The same aim have leaders of the market, developing super premium sub brands. So, Philip Morris launched Parliament Reserve this year. Some time before Korea Tobacco & Ginseng launched Esse in tin pack. And JTI company announced about launching a new lux brand called Lucia on the Russian market .