Tobacco Asia

Volume 18, Number 5

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Page 57 of 83

58 tobaccoasia Strengthening of foreign cooperation in terms of production, marketing, and upgrading of overseas operations has contributed to China's tobacco in- dustry achieving higher levels of cigarette exports. Over the past few years, the tobacco industry has made giant steps in developing international mar- kets, driving up its total cigarette sales overseas. In 2013 alone, the tobacco industry sold nearly 70 billion cigarettes (7 million boxes) overseas, including 44 billion cigarettes (4.4 million boxes) produced and sold overseas. The rapid growth in cigarette exports is a result of substantial progress made in cooperation between Chinese tobacco manufacturers and its foreign counterparts. Cooperation in production and marketing Last July 3, a ceremony to kick off the cooperation in production and marketing of Zhongnanhai (To- tem) cigarettes in Mongolia was held at Shanghai Tobacco Group's (STG) Beijing Cigarette Factory (STG is the owner of the brand). Present were leaders of China Tobacco Shaanxi Industrial Co., Ltd., Mongolia Tobacco Company, and China To- bacco Shanghai Import-Export Co., Ltd. At the signing ceremony, representatives from all par- ties signed agreements on trademark sharing and production and processing of the shared cigarette brand. To realize local production and marketing of Zhongnanhai cigarettes in Mongolia was an im- portant first step taken by STG in localizing the brand overseas, which will be of great significance in its effort to develop new models for overseas processing of tobacco products. In reality, localization of Zhongnanhai in Mon- golia is not the first foreign cooperation project for STG. Previously, after many rounds of nego- tiations with overseas dealers, STG eventually de- cided to authorize production of Gold Deer brand cigarettes in the United States by means of trade- mark license, for sales overseas. To make sufficient use of the technological and geographical advantages brought about by li- censed production of Gold Deer in the US, STG, for the first time ever, adopted the method of si- multaneously cooperating with two dealers: while maintaining cooperation between the existing dealer and local cigarette factories in US licensed production, it had a dealer in charge of market- ing in Central and South America participate in the project of licensed production. In the execution of the project, STG made sufficient early-stage mar- ket surveys, and made completely new designs for taste and packaging. It has also actively promoted the status of Gold Deer. As a result, STG realized Foreign Cooperation Sends Chinese Cigarette Exports Higher Technicians of China Tobacco Guang- dong Industrial Corp. exchanged ideas with experts from BAT. The foundation stone laying ceremony of the relocation and technological transformation program of Viniton Tobacco Co. The logo of CTBAT. By Allen Liao

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