14:00 | 10/10/2021 Companies
(VEN) - Facing the challenges of the complicated Covid-19 pandemic, officials and staff of the Thanh Hoa Tobacco Company Limited have united to maintain market share, production and business activities.
Maintaining market share
Nguyen Duy Phan, Director of the Thanh Hoa Tobacco Co., Ltd, said that the company's sales of cigarettes in June 2021 reached 0.8 million packs. In the first six months, cigarette sales reached 5.15 million packs, down 1.57 million packs over the same period in 2020 (23.4 percent) due to difficulties stemming from the pandemic. Cigar sales during the six-month period reached 142,400 pieces, up 145.8 percent over the same period last year.
However, the company's current production capacity is still limited, and has yet to meet demand. In considering its best strategy, the company determined that maintaining market share was a key task at this time. In the southern market, cigarette sales reached 827,570 packs in the first half of this year, down 165,430 packs year-on-year. The company has adjusted some types of products to market conditions. For example, while the sale of Trump Gold products declined, Trump Silver sold better following price adjustments. Bong Sem Demi and Super Slim products continued to sell in Ho Chi Minh City’s Cu Chi District, and Long An and Binh Duong provinces, initially showing a positive result with 14,620 packs sold in June.
In Quang Ninh Province, total sales reached 1,544,980 packs, up 207,030 packs (15.50 percent) over the same period last year. Sales of Bong Sen and Blue Bird products were stable; while that of Trump Demi and Can Son fell because of an isolation period in neighboring Hai Duong Province. Sea 99 products have started to enter the market, but it has been tough going.
In Hai Phong City, total sales reached 725,540 packs, up 158,040 packs (27.8 percent) year on year, mainly due to new types of cigarettes while the sale of traditional products has tended to decrease. As for Thanh Hoa agent, the company continued to sell a variety of products with accumulated sales reaching 393,625 packs, a year-on-year increase of 150,885 packs (63.20 percent).
Export orders have been stable. However, due to high freight rates, some orders have been hard to fill. The export of Super Slim has resumed, but because the tobacco had not been processed, there were no goods for delivery. The company continues to offer new brands.
Ensuring production and business
To ensure production and business targets, the company has tried to provide sufficient materials for domestic production and export, developed appropriate purchase and production plans, reduced inventory and liabilities, and met delivery needs.
According to Nguyen Duy Phan, the company will continue to focus on sales and market expansion, implement approved business plans assigned to each agent, group and individual and coordinate with key distributors to promote sales.
The company will also continue research to evaluate a number of new flavors and ingredients, especially low-cost ones. At the same time, it will offer compact products to new markets like the Middle East, South America, Africa, Europe, and negotiate with shipping lines on delivery schedules in line with production schedules. The company will review and develop standards for filter cigarettes 27; research reduction of tobacco weight; re-examine the recipe of raw materials, flavorings and spices of domestic and export brands; research production of pipe tobacco, and packaging for export markets like the Czech Republic, Europe, Ghana, and the Middle East.
The company will soon complete a feasibility report on a project to produce 400 packs per minute, on
building a new 2,500sq.m warehouse, and repairing warehouses to best serve the production process.