MANILA, Philippines - London-based British American Tobacco (BAT) is biding its time on exploring partnership options as its low-tier Pall Mall brand continues to puff up sales.
BAT Philippines general manager James Lafferty said while the company is in no hurry to enter into partnerships on joint venture, it is open to anything that will benefit them.
Lafferty admitted they had engaged in talks with rival firm Bulacan-based Mighty Corp. but no agreement had been reached. “We held some informal talks but there’s nothing to disclose because no agreement has been signed. We’re open to working with other companies especially if its going to be beneficial to us.”
Forging into partnerships is just among the options BAT is considering to improve its market share, which currently stands at a mere one percent.
“We have a lot of options especially with the coming Asean economic integration. But that does not preclude us from entering into partnerships,” Lafferty pointed out.
He said business has been booming, mainly driven by the strong demand for its Pall Mall cigarettes to the extent that it is experiencing low inventory more people are shifting to this brand.
Pall Mall Boost and Pall Mall Switch are now two of the fastest-growing brands in convenience stores, allowing BAT to capture around 10 percent of the low-tier cigarette market.
BAT is currently the smallest player in the Philippine tobacco market, which is dominated by Philip Morris Fortune Tobacco Corp. (PMFTC), the joint venture between global giant Philip Morris and taipan Lucio Tan’s Fortune Tobacco.
PMFTC has approximately 71 percent share of the local market while its closest rival Mighty Corp. holds around 20 percent. Other major tobacco players include Japan Tobacco International (2.6 percent), La Suerte Cigar and Cigarette Factory Inc. and Anglo American.