Gold Leaf to set up manufacturing plant in Zim

Conrad Mwanawashe Business Reporter —
CIGARETTE manufacturer Gold Leaf Tobacco is planning to set up a multi-million dollar manufacturing plant in Zimbabwe within the next 18 to 24 months as it plans to use the country as the launch pad into the region.

GLT, a long-standing player in the tobacco industry within the southern African region has been producing out of South Africa but using 80 of its raw materials from Zimbabwe.

This is set to change as the company targets a market share of about 20 percent of the cigarette market in Zimbabwe which is expected to increase once the manufacturing plant is set up in the country.

“We are looking at setting up a manufacturing concern within the next 18 to 24 months in Zimbabwe. This is predominantly driven by the lag time between the time that you order machinery and the time it is delivered,” GLT the country manager Tanaka Matimbe said yesterday.

He said the capital expenditure budgeted for the plant will run into millions of dollars.

Mr Matimbe was speaking at a function to re-introduce the return to Zimbabwe of the Rudland and George cigarette brand.

The new developments come as the company has navigated the legal battle with a competitor over the use of ‘RG’ acronym as a brand name.

Mr Matimbe said the company had appealed to the Supreme Court against a court interdict which had led to the removal of its product from shelves.

“This is contrary to the previous reports which were publicised that we had lost the case. We still believe that we have no trademark case to answer but we shall let the law take its course. As a business we have however taken the decision to get back on track and not focus on the legal hiccups that we are going through,” said Mr Matimbe.

The decision to rebrand was also in recognition of the potential for confusion to customers due to what the company termed the “rise of imitation cigarette brands in the market”.

In that regard, GLT re-introduced the product under its full name ‘Rudland and George’ accompanied by new pack changes symbolising a departure from the old, according to Mr Matimbe said.

There are a few changes that have been made on the brand packaging but retains the quality of the cigarettes.

The Rudland and George cigarettes come in three main variants namely Rudland and George Toasted, Rudland and George Menthol and Rudland and George Blue.

Rudland and George Red is a Toasted American blend cigarette while Rudland and George Menthol is a Virginia blend cigarette with menthol and Rudland and George Blue is a plain Virginia blend cigarette.

GLT is targeting the mainstream consumers, middle class and premium segments.

“We are offering a premium quality product at an affordable price. We have a product that we believe has a good smoking quality, it has a good smoke and is one of the best in terms of quality.

“Our distribution will expand to all the towns, cities, rural centres and townships nationwide. We want to get our cigarettes into as many hands as possible as we will get the product to all corners of the country,” said Mr Matimbe.