Tobacco Asia

Volume 20, Number 5

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26 tobaccoasia / Issue 5, 2016 November / December Tsogtsaikhan Otgontsetseg, r&d manager, Mongol Tobacco SO Co. Ltd. No. Brand Name Format Nicotine Tar (English / Mongolian) (mg/stick) (mg/stick) 1 Red Falcon / Ulaan Shonkhor KS 1.1 11 2 Golden Leaves / Altan Navchis KS 1.3 13 3 Dubliss Blue KS 0.8 9 4 Dubliss Black KS 0.8 9 5 White House / Tsagaan Urguu KS 1.2 12 6 Golden Falcon / Altan Shonkhor KS 0.8 9 7 Totem / Suld KS 0.6 7 8 Spirit / Hiimori loose pipe n/a n/a tobacco 9 Red Falcon / Ulaan Shonkhor SS 0.5 5 10 Dubliss SS 0.4 4.5 (Source: Mongol Tobacco SO Co. Ltd.) Mongol Tobacco's Top 10 Best-Selling Brands (2016) "From our portfolio [in Mongolia], the most popular brand is West Red, [but] our Dunza pipe tobacco also remains a firm favorite with adult smokers," said Din- mukhamed Aisautov, Imperial Tobacco's corporate affairs manager for Central Asia & Mongolia. He also confirmed Otgontsetseg's assertion that while the king size format is still very popular in Mongolia, sales of superslims have continuously gained further ground over the last few years. Aisautov likewise confirmed Mongolian smokers' pref- erence for filtered cigarettes. "Cigarettes with filters are the preferred choice of adult smokers in Mongolia, [as] brands with no filters are viewed by consumers as being a less premium offering and are not perceived to have the same quality as brands with filters," he said. Feeling up the market All of Imperial Tobacco Tobacco's brands currently marketed in Mongolia are imported and the company has no immediate plans to set up any manufacturing plant in the coun- try. But that doesn't mean that Imperial Tobacco is not very keenly monitoring market trends and scouting for additional new opportunities. Aisautov: "We are always monitor- ing market trends to ensure our brands remain relevant and reflect evolving consumer preferences. We also have plans to introduce some innovative launches [in] the Mon- golian market over the next year, but we can't reveal any details at present as they are commercially sensitive." Favorable market share gains According to Aisautov, Imperial Tobacco's domestic market share has risen to just over 16% in 2016, compared to the 11% the company held in 2015. "Due to the allocation of increased resources and investments in the Mongolian market we have managed to develop our volumes by more than 30% over the past year, which has also seen our market share increase from 11% to over 16%," Aisautov claimed. This promising market development seemingly provides Imperial Tobacco with a very comfortable position, prompting Aisautov to conclude: "We welcome any com- petition in the markets in which we operate as this ensures [that] consumers have a wide range of brands and products from which to choose. In Mongolia we compete with JTI and the local company, Mongol Tamkhi." Japan Tobacco International – sweeping in from Kazakhstan Arriving on the scene somewhat later than Imperial Tobacco, Japan Tobacco Inter- national (JTI) has since 2003 maintained a distribution partnership with local outfit Voltam Co. Ltd., an arrangement that dates back to an earlier time when cigarette manufacturer Gallaher in neighboring Kazakhstan had supplied its products to Mon- golia. In 2007, Gallaher was acquired by JTI. Subsequently, the new JTI Kazakhstan subsidiary established a representative office in Ulaanbaatar under the moniker JTI Kazakhstan LLC Mongolia. According to Alena Stepanichsheva, external communica- tions manager of JTI in Kazakhstan, Central Asia, and Mongolia, this quite intriguing Packing line at Mongol Tobacco's facility in Ulaanbaatar Courtesy of Mongol Tobacco SO Co. Ltd. Courtesy of Mongol Tobacco SO Co. Ltd. Cigarette rack at an Ulanbaataar tobacconist's Courtesy of JTI Kazakhstan LLC Mongolia

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