Altadis assigns Asian distribution to Pacific Cigar Co

Gavin Lipsith

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The Franco-Spanish cigarette manufacturer grants Hong Kong based distributor Asian duty-free rights, DFNI Asia can exclusively reveal

Altadis global duty-free manager cigarettes division Jean-Philippe Aucher told DFNI Asia that the company had chosen to formalise its cooperation with the distributor after a long informal relationship. "Pacific Cigar has the expertise and contacts in the region to expand our business," he said. "As the exclusive distributor for Habanos' Cuban cigars they have relationships with all the Asian travel retailers. Our business at the moment is small and when you are challenging for market share you need the big companies to help.

The company's presence in the region has already benefited from its relationship with Pacific Cigar, before the official distribution agreement. The company was represented at Hong Kong International airport liquor and tobacco operator Sky Connection's French Fair in January and February, where it hosted a Gauloises and Gitanes gondola.

Pacific Cigar export and duty-free manager Raymond Ho said: "For us the agreement represents greater volume, and hopefully more profit. Altadis is the number three cigarette supplier in Europe, and in the future I think that with rising European traffic – and the retail price difference between the markets - they could be number three here too."

The companies said that expansion in the Chinese market would be a priority, as would establishing a presence at Singapore Changi airport, where Altadis brands are not currently represented.

For more details see Tobacco Products News and an in-depth profile of Pacific Cigar Co's business in DFNI April 15, out soon.