Tobacco Asia

Volume 19, Number 3

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24 tobaccoasia / Issue 3, 2015 (July/August) By Allen Liao At a time when the Chinese government is about to implement a set of stringent regulations over smoking in public places nationwide, slim ciga- rettes, which used to be neglected by Chinese smokers, are, against all odds, enjoying increased sales in the country. Under the current, somewhat unfavorable, situation brought about by increased tobacco con- trol efforts, the Chinese tobacco industry gener- ally expects slim cigarette production and sales to become a new driving force for growth, help meet demand for more consumers, and lead to a change in the nature of cigarette products in China. Since 2010, slim cigarette sales have grown at an annual rate of 40%, with the sales of slim ciga- rettes dubbed a "blue sea of value" that represents a "unique landscape". In 2014, domestic slim production contin- ued the trend of five consecutive years of robust growth, with the output reaching 310,000 cases* (15.5 billion cigarettes), up 99% year on year, and with the sales volume hitting 279,600 cases, up 102.1% year on year. By the end of December 2014, 16 of the 18 China Tobacco provincial-level corporations, except Shanghai Tobacco Group and China Tobacco Fujian Industrial Co., Ltd., all had slim cigarette brands, with the total number of slim cigarette brands reaching 20 and the total number of specifications of slims reaching 40. In its capac- ity as a leading slim manufacturer, China Tobacco Jiangsu Industrial (CTJI) from China's eastern Ji- angsu Province, produced 7.58 billion slims in 2014, accounting for 48.9% of the segment's output in that year, followed by China Tobacco Hubei Indus- trial (CTHI) with 4.915 cigarettes or 31.7% of total output, and China Tobacco Shandong Industrial (CTSI) with 1.525 billion cigarettes or 9.9% of the total output. The other 13 manufacturers produced China's Slim Cigarette Segment Fattens Up * 1 case = 50,000 cigarettes Mount Tai slim cigarettes of China Tobacco Shandong Industrial Co., Ltd. Nanjing (12 Beauties Mint) of China Tobacco Jiangsu Industrial Co., Ltd.

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