Pacific grows in local tobacco market

Business Reporter
TOBACCO processor Pacific Cigarette Company (PCC) registered a phenomenal growth in local market share last year and managed to establish a strong presence in export markets.

PCC, previously known as Savanna Tobacco before rebranding saw the market share of its brands growing by 65 percent compared with the previous year and now enjoys 35 percent of the local market, Global chief executive (PCC) Mr Nick Hales said.

Underpinning the growth was increased distribution of its broader product portfolio throughout the country, modernisation of packaging of its Pacific flagship brands as well as the introduction of the high value Remington Gold brand during the year.

“The culminations of these activities resulted in our market share growing by over 65 percent,” said Mr Hales during the event to mark the company’s 15th anniversary and rebranding.

During the event, the company also received ISO certification Occupational Management System, Safety and Assessment Processes and Environmental Management System.

Mr Hales said the company would continue exploring export markets, having already established itself in Zambia, South Africa, Mozambique and Jamaica.

“Our brands have been incredibly well received,” said Mr Hales adding more export opportunities would be sought in West and central Africa and the Caribbean, taking advantage of its presence in Jamaica.

The company will also explore markets in Central America.

The company entered South Africa through a contract manufacturing agreement and this has allowed it to grow the market share in the “highly profitable” market.

In Zambia, PCC purchased a majority equity in a cigarette manufacturer, helping it to capture a sizable market share while negotiations are at an advanced stage to increase its interests in Mozambique to grow its presence.

“2016 has built a foundation from which we are going to grow from strength to strength over the coming years,” he said.

The company will continue building up capacity in the medium term as it looks at doubling annual output to 6 billion sticks to meet the growing demand for its brands.