Godfrey Phillips initiates new strategy to push up cigar sales

Godfrey Phillips India Ltd (GPI), the country's second largest cigarette manufacturer, has embarked on a plan to become the leader in the Indian cigar market, which is growing at a rate of over 25 per cent annually.

The company, which has tied up with Altadis of the US, has already garnered over 35 per cent market share. As per the agreement with Altadis, GPI imports and markets Altadis cigars in India.

Under the new marketing initiative, Godfrey Phillips intends to extend its distribution channel to all metros and semi-metros soon.

The strategy will not only to ensure product availability but also to grow the market in each of these areas through cigar appreciation programmes. This year, so far, the company has made inroads into Kolkata, Hyderabad and Vishakapatnam.

"Godfrey Phillips intends to develop and grow the cigar market in India, with support from Altadis on marketing strategies, " Arun Joshi, general manager, cigars, Godfrey Phillips India told Business Standard on Thursday. The company began marketing cigars in 2003.

"The brands that have been introduced by Godfrey Phillips in India includes Don Diego. These cigars are artfully blended and hand made in the Dominican Republic and are known to be one with generation of history and heritage," Joshi said.

"Santa Damiana is another cigar that comes from the Dominican Republic. Santa Damiana is famous for its stunning flavour and superior construction.

"We also have Hav-a-Tampa, which is renowned as America's most preferred cigars. Hav-a-Tampa is a century old brand with a global presence. It is the largest selling brand in Asia too, Joshi said.

The company is also distributing Phillies, which is available in various flavors such as vanilla, cognac, strawberry and chocolate.

The brands Godfrey Phillips markets in India are priced between Rs 15 and Rs 450 per piece.

"The tobacco that is used in the different blends is cultivated in accordance with the most ancient traditions, in the richest soils and ideal climatic conditions of carefully selected fields. The choicest leaves from various harvests undergo four years of aging, which imparts Altadis cigars their rich aroma and consistently smooth taste. All Altadis cigars are handmade in the Dominican Republic," said Joshi.

Though Godfrey Phillips does not intend to begin manufacturing cigars, the company has plans to export cigars to Saarc countries.

GPI, is now also all set to export its own brand of cigarettes to the Middle-East and African countries. The company has already dispatched the first consignment of cigarettes to the Republic of Guyana.

The new international brand 'Force 10' will be officially launched in Guyana on June 10, this year.

This is for the first time that the company will be exporting cigarettes under its own brand, while it used to export cigarette to the Middle East and African countries for other brands under contract manufacturing basis.

The company is targeting to tap over 10 per cent of Guyana's market in the first year of the launch of 'Force 10.'