Camus launches Chunghwa Cognac via DFS; hot cigarette line extension listed in Singapore – 08/02/05

Chunghwa, here being sold in a Japanese duty free store to Chinese travellers, has become one of Asian travel retail’s hottest properties; Picture: Hui Min Neo

ASIA. Camus has launched a new Cognac under the Chunghwa label, through DFS Group.

Chunghwa, the flagship brand of mainland Chinese tobacco company Shanghai Tobacco, is one of the hottest cigarette brands in duty free. Its dramatic rise in popularity has coincided with the upsurge in outbound Chinese travel of recent years.

Extending the brand into a Cognac is a canny move and the line is certain to prove popular with Chinese travellers abroad – a key target group for the resurgent DFS.

Chunghwa XO is already on shelf with DFS Singapore at Singapore Changi Airport, where it is being promoted as a “premium Cognac”¦ rich and complex with a rounded, smooth palate”.

According to an article in the Oriental Morning Post, Shanghai Tobacco Group has “counter attacked” the prevailing trend for foreign companies to enter the Chinese market.

Chunghwa
Chunghwa XO is being promoted as a “premium Cognac”¦ rich and complex with a rounded, smooth palate”.

It said the initiative was the first example of the Chinese tobacco industry diversifying into spirits.

Camus is the largest family-owned independent Cognac house and the world’s fifth-largest overall.

A Shanghai Tobacco spokesperson told the newspaper: “As the tobacco market is slowly opening up in China and overseas brands are competing to enter, the Shanghai Tobacco Group is accelerating its effort to build up an international brand.”

The spokesman added: “We are taking the initiative to attack overseas markets through working with a large international company.”

Chunghwa XO will be introduced simultaneously in 17 DFS outlets, including Hawaii, Guam, Saipan, New Zealand, and Hong Kong during a first quarter roll-out. Depending on its success, it could be introduced to domestic markets eventually.

Footnote: As part of its continued push into travel retail, Chunghwa cigarettes will be exhibiting at the TFWA Asia Pacific exhibition in May in Singapore. Its senior management will be attending.

MORE ON CHUNGHWA

Chunghwa sales soar as more Chinese travel – 19/10/04

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