Domestic tobacco monopoly China National Tobacco Corp (CNTC) said it is planning to consolidate its cigarette brands in the next year as part of a bid to break into the top five global brands, the South China Morning Post reported. CNTC plans to produce more than five million cases annually of its Double Happiness (Shuangxi) and Hill of the Red Pagoda (Hong Ta Shan) brands, which would make them bigger than Japan Tobacco’s (2914.TYO) Mild Seven and Winston brands, the current second- and third-largest brands, respectively. CNTC will cut the number of brands it produces down to less than 20 next year as part of an industry consolidation.
Correction: An earlier version of this story erroneously referred to Winston as a Reynolds American (RAI.NYSE) brand. Winston is in fact marketed worldwide by Japan Tobacco, with the exception of the US market, where it is marketed by Reynolds American subsidiary R.J. Reynolds Tobacco.