Indonesia's Sampoerna plans to license cigarette brands<\/p>\n
Agence France-Presse
\nJakarta<\/p>\n
Major Indonesian cigarette-maker Sampoerna said on Wednesday that
\nit plans to license the sale of its cigarette brands in markets
\noverseas while selling the brands of its parent Philip Morris.<\/p>\n
U.S. firm Philip Morris paid US$5.2 billion for a 97.95
\npercent stake in Sampoerna earlier this year as it seeks out new
\nconsumers in one of the world's only expanding tobacco markets.<\/p>\n
Sampoerna said in a published prospectus that it will provide
\nlicenses to produce and distribute its cigarettes overseas to
\naffiliated companies under the Philip Morris International group.<\/p>\n
\"HMS (Sampoerna) may gain revenue in the form of royalties
\nfrom the sale of HMS group cigarettes abroad without having to
\ninvest significantly to enter the overseas markets and without
\nhaving to share the risk of failure,\" it said.<\/p>\n
It said it will sign license agreements with affiliated
\ncompanies under the Philip Morris group, allowing them to enter
\nsub-licensing agreements for the production and sale of Sampoerna
\ncigarettes overseas.<\/p>\n
Philip Morris will do the same with its own units.<\/p>\n
Sampoerna's main brands are Dji Sam Soe, Sampoerna A Mild and
\nSampoerna Hijau.<\/p>\n
Sampoerna said it will also seek to obtain the license to
\nproduce and distribute Philip Morris cigarette brands such as
\nMarlboro and Longbeach in Indonesia.<\/p>\n
The Indonesian company said it plans to hold an extraordinary
\nshareholders' meeting on Jan. 27 to obtain approval for the plan.<\/p>\n
Indonesia, where pungent kretek cigarette made locally from
\ncloves are smoked by up to 70 percent of the country's male
\npopulation, is one of the world's most profitable tobacco
\nmarkets.<\/p>\n
Smoking accounts for at least 57,000 deaths per year among
\nIndonesia's 220-million strong population.<\/p>",
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