Imperial Brands and China National Tobacco (CNTC) established a joint venture to broaden marketing of their cigarette brands and cooperate on next generation products, the UK company said.
Initially Global Horizon Ventures Ltd (GHVL) will promote Imperial’s West and Davidoff cigarette brands in China by using resources of the state monopoly’s Yunnan Tobacco unit. In return Imperial will promote Yunnan brands Jadé and Horizon in markets outside China. Jadé will be made a one of Imperial’s specialist brands.
GHVL will be based in Hong Kong, where it also will evaluate potential merger and acquisition opportunities, Imperial said. Imperial and Yunnan have been cooperating since 2003, Imperial said.
“We’re excited by the growth potential offered by this new business opportunity and look forward to seeing our co-operation with our Chinese partners flourish for many years to come,” said Imperial Chief Executive Officer Alison Cooper.