Grodno tobacco factory

Grodno tobacco factory "Neman", JSC (Belarusian: ААТ «Гродзенская тытунёвая фабрыка "Нёман"»; Russian: ОАО «Гродненская табачная фабрика "Нёман"») is the largest cigarette producer in Belarus located in Hrodna (Grodno). Its market share in Belarusian market of tobacco products is estimated at 72%[1] and production share — at 80%.[2]

Pack of cigarettes "Luxury" (Russian: Роскошь, Polish: Rozkosz) made by "I.L.Shereshevsky" factory in the late XIX — early XX century

History

Tobacco factory was established in Hrodna in 1861 by merchants Leyba Shereshevsky and Abram Gordon. The factory became one of the largest in the Russian empire; it continued production in Poland and in the Soviet Union. In 2007, it was organized as JSC, but it continues to be state-owned.[3][4]

In 1990s and early 2000s, the factory produced cheap low-end cigarettes. Evolution of consumer preferences and rise of salaries in 2000s forced factory to buy equipment and start production of average-class cigarettes.[5]

Production

In 2016, the factory produced 24.4 billion cigarettes, having 914.3 mln BYN (circa 455 mln USD) of revenue and 100.1 mln BYN (50 mln USD) of net profit.[3]

The factory produces both its own brands (FEST, NZ, Minsk, Portal, VIP, Magnat, and others) and licensed production for British American Tobacco (Kent, Pall Mall, Lucky Strike, Vogue, Capri, Alliance, Viceroy).[3][6]

In 2016, 83.2% of produced cigarettes were sold on domestic market, 16.8% were exported.[3]

References
  1. Open Joint Stock Company «Grodno Tobacco Factory «Neman»
  2. Tobacco market — 2015 (in Russian)
  3. Информационный меморандум на сайте Госкомимущества Республики Беларусь
  4. История табачной фабрики Гродно
  5. В Беларуси грядет табачный передел?
  6. О компании


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