Sampoerna has projected a two percent decline in its cigarette sales volume this year due to an excise-driven price hike, according to a story in The Jakarta Post based on the company’s third-quarter results.
The share of hand-rolled kreteks in Sampoerna’s total volume during the third quarter dropped to 6.6 percent from 7.4 percent during the same period of last year.
However, despite the soft performance in the hand-rolled kretek segment, the company does not plan to cease production of the labor-intensive product, Sampoerna president Paul Janelle said in a press statement released in Jakarta on Monday.
“Sampoerna is committed to the hand-rolled kretek segment and we are taking action to stabilize the decline, including through innovations to enhance our hand-rolled kretek products by offering our products at competitive prices and investing in the brand through marketing and sales support,” he said.
During the third quarter, the company held 34.5 percent of the cigarette market, up from 34.1 percent during the same period of last year.
Its white cigarettes have a 79 percent market share.