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Tuesday, December 16, 2003
Phillip Morris acquires four new cigarette brands
By Miko Santos
Philip Morris Philippines Manufacturing Inc. (PMPMI) has acquired four cigarette trademarks of Sterling Tobacco Corp. owned by the Sampoerna of Indonesia as part of its strategy to complete its lineup by venturing into low-priced cigarette brands.
PMPMI, a unit of Virginia-based Philip Morris International Inc., acquired Bowling Gold, Stork, Miller and Bowling Green. These brands are priced from P8 per pack to P10 per pack.
PMPMI currently manufactures and distributes the international premium brands Marlboro and Philip Morris Menthol 100s and the mid-price brand L&M.
PMPMI managing director Chris Nelson said the acquisition of the four brands complements the company's existing portfolio of international premium brands and would now enable it to compete in the low price segment of the cigarette business in the country.
The acquisition of the four local brands, Nelson said, is part of PMPMI's commitment to "partner in the growth of the Philippine economy by helping develop the local tobacco industry."
Nelson said the expansion of PMPMI's brand portfolio would be supported by PMPMI's $300-million state-of-the-art cigarette manufacturing facility in Tanauan City, Batangas, which commenced operation late last year.
The facility that started operations last year could produce 40 billion sticks per year.
The new factory is the single biggest investment of Phillip Morris International (PMI) in the Asian region.
Nelson added that the acquisition also provides the opportunity for the company to further develop and enhance the growth and quality of local cigarette trademarks.
Nelson explained that "as a business objective, PMPMI continues to look for opportunities to build its brand portfolio to compete in every significant price segment."
The four brands are strong in Mindanao, as well as in certain areas in the Visayas, including Cebu City.
PMPMI ended its tie-up with La Suerte Cigar and Cigarette Co. of Telengtan family after its license agreement expired the other year. La Suerte has been manufacturing and distributing Marlboro and Philip Morris brands cigarettes in the Philippines since 1955 but is concentrating on its own brands like Astro and Memphis.
(December 16, 2003 issue)
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