[Intl-tobacco] Thai Tobacco Co. Teams Up With US Farmers

[Robert Weissman]

TTM links up with US firm to make premium cigarette
Bangokok Post
2 February 2004
New brand to be sold locally and abroad

Wichit Chantanusornsiri

The Thailand Tobacco Monopoly has joined hands with US tobacco growers
in a
programme aimed at producing premium grade cigarettes to compete with leading
international brands.

Suchon Watanapongvanich, TTM managing director, said the state agency
would launch
its new premium-brand cigarette in the fourth quarter, priced at 50 baht
per pack
and available in ``American'' and ``Virginia'' flavours.

Tobacco leaf imported from Virginia will be the main raw material for
the new
cigarette, to be positioned for both the local and export markets.

The TTM already uses imported tobacco for its current brands, but
usually as a
filler blended with Thai tobacco.

The agency has seen its market share drop sharply in recent years due to the
preference of local smokers to smoother tasting, imported cigarettes
such as
Marlboro or Mild Seven. Despite higher prices due to tax barriers, foreign
cigarettes currently hold a 20% share of the local market.

Mr Suchon said US tobacco growers had approached the TTM earlier to
raise concerns
about the steady decline in leaf imports by Thailand over the past
several years.

He said the new venture with US growers would benefit both sides, with Thailand
benefiting from foreign technical expertise to improving its cigarette
quality and
product mix.

Mr Suchon said on Feb 10, an association of US growers would bring a
cigarette made
from Virginia leaf grown in Thailand and blended with US leaf for
testing by the
TTM.

If approved, the TTM would then begin preparations to produce the cigarette
locally, with a market launch planned by the end of the year.

***************************
Ross Hammond, Consultant
242 Edna Street
San Francisco, CA 94112-1807
USA
Tel.      1-415-452-9322
Fax.      1-415-680-2364
http://www.fctc.org