JAPAN TOBACCO TO COURT RUSSIAN SMOKERS WITH PREMIUM BRANDS

TOKYO, Jul 03, 2008 (AsiaPulse via COMTEX) -- FFF | Quote | Chart | News | PowerRating -- Japan Tobacco Inc. (TSE:2914) will step up its cigarette marketing efforts in Russia, focusing on upscale brands to woo local consumers, whose incomes are rising.

In May, JT released a premium brand in Russia that is part of the Winston product family. JT sells Winston after it acquired the non-U.S. cigarette operations of American firm RJR Nabisco Inc. The new brand is "off to a strong start," according to Executive Officer Akira Saeki.

Winston is the most popular cigarette brand in Russia, commanding close to 10 per cent of the market. Winston cigarettes are generally sold for 22-23 rubles (US$1.00) per pack, while the new premium version comes with a price tag of 30-31 rubles .

JT expects its profits to grow if Russian smokers who enjoy Winston shift to the new upscale brand, says Saeki.

Other premium brands JT offers in Russia include Camel and Mild Seven, which are generally sold for 30-31 rubles and 35-36 rubles per pack respectively. With the purchase of U.K. firm Gallaher Group Plc, the Japanese company now also has the Sobranie premium brand, which is sold for 37-39 rubles a pack. JT hopes that its extensive lineup of upmarket brands will encourage Russian customers to move to such products.

JT will hold events featuring the Winston brand at such venues as hotels, restaurants and cafes to improve name recognition. It will also ask cigarette stores to employ more attention-grabbing displays of its products.

(Nikkei)

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