HONG KONG. Gold Bond Enterprises, the exclusive European agent for Shanghai Tobacco (Group) Corp brands, has high hopes for new European markets.
Showing at the TFWA World Exhibition in Cannes for the first time this year, Gold Bond says some of the growth figures it is seeing are “phenomenal” as the number of Chinese nationals travelling increases around the world.
“This is the first time we have joined a show outside Asia,” Gold Bond commercial director John Polo told The Moodie Report. “We want to place Chungwha in more European airports. The Chinese consumers are very brand loyal, so in the places where it is located, the retailers are very happy and it is a straight sell with good margins.”
Polo joined the company in December 2002, entrusted with the task of making the Shanghai Tobacco brands more visible in the travel retail trade outside southeast Asia through advertising and exhibitions. The biggest brand in the portfolio, Chungwha is already sold in duty free at major US airports such as New York, Chicago and Los Angeles and it is available throughout Asian duty free and at London Heathrow, Amsterdam Schiphol, Milan and certain other European airports.
Chungwha (pictured) is a golden virginia cigarette, regarded as one of the top ten brand names in China with annual turnover of US$2.5 billion. It has gradually developed into a series of multiple packs and multiple-strength products. Its export volume has grown steadily since the late 1980s and it is sold in a total of 30 countries duty free and duty paid.
Chungwha Filter Kings cartons are priced at US$29 compared to typically US$31 for Marlboro Red.
Gold Bond also handles Panda Cigarettes the special edition super premium line, originally created by the former Shanghai No 2 Cigarette Factory in 1956 for Mao Zedong and still sold only to VIPs at the rate of 1,000 cases per year. Other brands of the Shanghai Tobacco (Group) Corp are Double Happiness, Peony and Mudan.
Gold Bond says its Chinese masters are still cautious about what they want to sell in international markets and their approach is very structured. For example, although Hong-Kong and Milan-based Gold Bond represents Shanghai Tobacco in Europe, the manufacturer has other exclusive distributors for Asia, for the US and for Latin America and this can be problematic.
“For example we expect new listings in Switzerland with Nuance this year,” said Polo. “And they would like to deal with one party for their global business, so it can be a problem.”
Travel retail enquiries to John Polo at email: agedpolo@aol.com
