Altadis, owner of the Yaroslavl-based tobacco plant Balkan Star, has announced a new strategy for its international brands Gauloises and Gitanes on the Russian market.

According to a report by the Russian daily Business, the two brands will be distributed to all cities with a population of half million and more as from 1 August. Simultaneously, Altadis is marking down the price of Gauloises notably, to RUR 19 (Euro 0.55) per pack from RUR 24 at which the brand is retailed today. The volume of the medium segment where Gauloises is being moved is estimated at a good 18 billion cigarettes per year, but the French brand will face tough competition of the market leaders, Winston, L&M, Chesterfield, Pall Mall and West. Altadis representatives hope that the expansion will help increase sales of Gauloises and Gitanes by 60 and 20 per cent correspondingly. (vt)