Sampoerna launches regular cigarettes<\/p>\n
JAKARTA (JP): Publicly listed cigarette producer PT Hanjaya
\nMandala Sampoerna Tbk launched on Thursday its first regular
\ncigarettes which it produces under a licensing agreement with the
\nParis-based ST Dupont.<\/p>\n
Sampoerna's managing director Sugiarta Gandasaputra said that
\nthe company, which previously produced and sold mainly clove-
\nblended cigarettes (known locally as kretek cigarettes), expected
\nto sell about three billion ST Dupont cigarettes this year.<\/p>\n
\"The Dupont sales will account for about 10 percent of the
\ntotal market for regular cigarettes in the country this year,\" he
\ntold reporters after the launching of the new cigarette brand.<\/p>\n
He said that Sampoerna was the first company in the world
\nwhich had been licensed to produce and distribute cigarettes
\nusing the ST Dupont brand name.<\/p>\n
ST Dupont, which was previously known only as a producer of
\nmen's accessories such as lighters, pens, leather goods, watches,
\nand eyewear, entered into a cooperation agreement with Sampoerna
\nin 1999 to produce cigarettes using its name.<\/p>\n
Sudi also said that Sampoerna, the second largest cigarette
\nproducer in the country, would also export part of its Dupont
\ncigarette production to Malaysia, Singapore, and Taiwan.<\/p>\n
\"We're optimistic we'll be able to compete with established
\ncigarette brands,\" he said, adding that ST Dupont would compete
\nin the same market segment as popular international brands such
\nas Marlboro and Lucky Strike.<\/p>\n
Sudi said that Sampoerna had invested about $5 million in
\nbuilding a new plant in Sidoarjo, East Java for ST Dupont
\nproduction. He added that Sampoerna used Italian tobacco and
\nAustralian cigarette paper for the new cigarette brand.<\/p>\n
At present, Sampoerna operates several cigarette plants in
\nMalang, Surabaya, and Pasuruan, all in East Java. All the plants
\nare used to produce both its hand-rolled and machine-rolled
\nclove-blended cigarettes.<\/p>\n
In addition, it operates factories in Malaysia, Myanmar,
\nVietnam, the Philippines and Brazil to produce its kretek brands
\nin each of those countries.<\/p>\n
Last year, Sampoerna's net profit fell 28 percent to Rp 1.02
\ntrillion (US$97.1 billion) from Rp 1.41 trillion in the previous
\nyear due to foreign exchange losses and an increase in its tax
\nburden.<\/p>\n
Sampoerna said that its market share in the domestic cigarette
\nmarket was 19.7 percent at the end of last year, compared to 13.9
\npercent at the end of 1999.(05)<\/p>",
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