JTI revamps premium product packaging; reinforces tobacco’s role as a cross-category sales driver – 06/11/08

The new-look Winston range signals “a new era” says JTI


INTERNATIONAL. Japan Tobacco International has upgraded the packaging of some of its premium cigarette lines, with an emphasis on targeting the duty free market. And the company has also released an impressive set of results for the first nine months of the year.

The company has unveiled a new look for its Winston, Camel, Glamour and Mild Seven lines, as well as Benson & Hedges in duty paid markets.

The new look for Winston appears this month, as part of the drive to make the brand the world’s top-selling cigarette. It is currently one of the fastest growing premium brands worldwide and is number two by volume.

The new design – with rounded corners and the iconic eagle – aims to “convey freedom” and reinforce the “premium quality, modernity and sophistication” of the brand, said JTI.

“The pack signals a new era of expansion for Winston,” said JTI Worldwide Duty Free Vice President Consumer & Trade Marketing Ming Lee Foo. “The famous blend remains the same, yet the pack strengthens the Winston proposition in the travel retail environment by exceeding smokers’ expectations. Winston is a leader, and the new packaging will make it the leading cigarette for adult smokers. Winston Super Slims was launched in travel retail early this year and is a huge success – proof of the brand’s potential.”

A worldwide roll-out of the new pack has begun, with France, Greece, Italy and Spain scheduled to sell the new look by year-end.

Glamour Pinks and Menthol join the Super Slims range


Among the key new offerings, JTI is also to launch Glamour Pinks and Menthol variants for its Super Slims line in early 2009. Glamour is the fastest growing 99mm Super Slims cigarette, said JTI, and aims to become the category leader for female adult smokers.

Super Slims was initially launched in 2005 in Russia, Ukraine and Kazakhstan, followed by Bulgaria a year later. Some 13 new markets came on stream in 2007, while this year it has debuted in Albania, Azerbaijan, Kyrgystan, Poland and Serbia as well as worldwide duty free.

“Glamour is a high performing brand that will further push performance in duty free,” said Ming Lee Foo. “Female adult smokers want to enjoy smooth-tasting and feminine cigarettes at a competitive price – and Glamour fulfils their requirements.”

Speaking to The Moodie Report in Cannes, JTI Acting Worldwide Duty Free General Manager David Francis said: “Travel retail is a key focus for our new packaging and brands. We will also complement them with new showcases for those brands. We want tobacco to match the standards of merchandising set by categories such as perfumes & cosmetics. The key to succeeding in tough times is to improve penetration and tobacco has a prime responsibility to engage with retailers to make that happen.”

JTI also outlined the next steps in the roll-out of its acclaimed Smoking Lounges programme. The company has revamped its lounges at Frankfurt Airport, and opens this month in partnership with Eurotrade at Munich Airport; and it will open at Moscow Vnukovo in the next couple of months, with further developments planned.

Strong set of results
In other news, in the first nine months ending September 30, 2008, JTI increased its sales volume by +25.2% to 342.9 billion cigarettes compared to the same period last year. Gallaher results have been incorporated from April 18, 2007 onwards.

Global Flagship Brands’ (GFB) sales volume increased by +27.1% to 185.5 billion cigarettes compared to the same period last year.

Total sales volume for Winston grew by +17.9% due to robust sales in Russia, Ukraine, Turkey, Spain, the Near East, France and Italy.

Total sales volume for Camel rose +10.2%, supported by strong sales in Italy, Russia and Spain; and total sales volume for Mild Seven increased +12.4% during the period with gains in Korea, Taiwan and Russia.

GFB performance also reflected the additional contribution of Benson & Hedges and Silk Cut in the UK and Ireland; and LD, Sobranie, and Glamour in Russia, Ukraine and Kazakhstan.

Net sales excluding tax amounted to US$8.198 billion, an increase of +44.1% from the previous year. Net sales per thousand cigarettes, excluding tax, rose +15.2% to US$23.90.

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