In November Philip Morris will launch Parliament Reserve cigarettes in Moscow, a pack of which costs 200 rubles, said a source familiar with the plans of the company.

The cigarettes are already being made at Philip Morris Izhora (the Leningrad region). Korea Tobacco & Ginseng came up with its Esse (120 rubles to 125 rubles) some time earlier. The ultra-premium segment suits well to promote the basic brand, analysts explain.
Parliament Reserve won’t be sold through traditional retail but delivered by mailing with a block of cigarettes chosen as a minimal consignment. Parliament Reserve is purely an image project, Fredrik Stahle, Philip Morris Sales & Marketing director in Russia, said when asked to confirm the data.
Philip Morris is the cigarette leader in Russia. It covers 26.7 per cent of the market in terms of the volume, according to Business Analytica. It owns two factories in Russia – in the Leningrad region and Krasnodar. The key brands are Marlboro, Parliament, L&M, Chesterfield.
The analysts speak of a few reasons when explaining the desire of the tobacco major to introduce noncommercial product in Russia. One of them is that in time of Parliament's appearance, the demand for the premium segment was not as strong as today and consumers do not think Parliament premium any longer. So, the launch of Parliament Reserve could improve the company’s status in general. Besides, a pack is an ideal advertising carrier in the environment when tobacco companies do not have many chances to advertise in Russia. (pi)