Neman to increase cigarette production for British American Tobacco by 70% in 2009

In 2009 the Belarusian tobacco factory Neman plans to make around 4 billion cigarettes in line with the contract signed with British American Tobacco, Yuri Chernyshev, Director General of Grodno Tobacco Factory Neman, told a press conference on 7 July. 

Yuri Chernyshev remarked that in H1 2009 the company made 1.5 billion cigarettes for British American Tobacco, 61% up on the same period of last year. He said Neman was satisfied with cooperation with British American Tobacco. In July 2009 Neman started manufacturing Capri cigarettes, Superslim format (medium price range) for British American Tobacco. It confirms serious long-term cooperation with the foreign company. “We plan to further expand our cooperation,” added the Neman CEO. 

The Director General remarked that the factory had secured a certain breakthrough as far as proprietary products are concerned. In H1 2009 Neman increased the sales of proprietary brands by 11% in comparison with the same period of last year. In real terms in H1 2009 the sales totalled 4.3 billion cigarettes while in H1 2008 the figure stood at 3.8 billion. This year Neman plans to manufacture 13.4 billion cigarettes to increase its domestic market share up to 65% (in 2008 its share was 59%). Now the share is as large as 63.6%. The increase will be secured through proprietary products and a 70% increase in cigarette production for British American Tobacco. 

According to Yuri Chernyshev, every year Neman invests from Br20 billion to Br22 billion in development. In late 2008 – early 2009 the company bought two new cigarette packing lines worth over €10 million. 

In turn, Director of British American Tobacco Eduard Gramovich underscored that cooperation with Neman is very successful. Over four years the share of British American Tobacco in the Belarusian market increased from 5% to 20%. British American Tobacco is intent on increasing its share up to 25-30% — the share it has in neighbouring markets.