Vietnam
On June 16, British American Tobacco Vietnam (BAT) signed a joint venture agreement for the manufacture of its international brands with Vinataba, Vietnam’s state-owned tobacco company.
“This joint venture further strengthens our strategic partnership with Vinataba and puts British American Tobacco Vietnam in a very solid long term position in this growing market,” said Andrew O’Regan, the company’s general manager. BAT is the largest international tobacco company in Vietnam with over 20% market share and a focus on the premium and sub-premium segments.
When operational, the manufacturing facility will produce BAT’s international brands including State Express 555 and Dunhill. The agreement also allows for the future development of jointly owned brands between both parties.
Equity in the manufacturing joint venture company will be held on a 49 to 51% basis, with BAT holding the minority stake.
“This signifies much more than a shared responsibility for the production of our international brands,” said O’Regan. “It is a symbol of a growing strategic partnership by both companies. It is a long term commitment to work together in one of the most dynamic tobacco markets in the world.”
This joint venture follows a successful primary manufacturing joint venture between BAT and Vinataba which has been operational since 2004. Vietnam is the fourteenth largest tobacco market in the world and the sixth largest in Asia Pacific with volumes of approximately 80 billion sticks per annum.
The facility is expected to be operational from January 1, 2011.
On June 16, British American Tobacco Vietnam (BAT) signed a joint venture agreement for the manufacture of its international brands with Vinataba, Vietnam’s state-owned tobacco company.
“This joint venture further strengthens our strategic partnership with Vinataba and puts British American Tobacco Vietnam in a very solid long term position in this growing market,” said Andrew O’Regan, the company’s general manager. BAT is the largest international tobacco company in Vietnam with over 20% market share and a focus on the premium and sub-premium segments.
When operational, the manufacturing facility will produce BAT’s international brands including State Express 555 and Dunhill. The agreement also allows for the future development of jointly owned brands between both parties.
Equity in the manufacturing joint venture company will be held on a 49 to 51% basis, with BAT holding the minority stake.
“This signifies much more than a shared responsibility for the production of our international brands,” said O’Regan. “It is a symbol of a growing strategic partnership by both companies. It is a long term commitment to work together in one of the most dynamic tobacco markets in the world.”
This joint venture follows a successful primary manufacturing joint venture between BAT and Vinataba which has been operational since 2004. Vietnam is the fourteenth largest tobacco market in the world and the sixth largest in Asia Pacific with volumes of approximately 80 billion sticks per annum.
The facility is expected to be operational from January 1, 2011.
