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Jakarta Post

Consumers prefer cheaper cigarettes as purchasing power weakens: Sampoerna

  • Yunindita Prasidya


Jakarta   /   Thu, September 24 2020   /  01:00 am
A worker arranges sticks of the hand-rolled kretek brand, Dji Sam Soe, at the PT HM Sampoerna factory at Surabaya’s Rungkut Industrial Estate. JP/Wahyoe Boediwardhana(JP/Wahyoe Boediwardhana)

Consumers are looking for affordability when purchasing cigarettes as the increase in the tobacco excise and the economic impacts of the COVID-19 pandemic have hit people’s purchasing power, according to publicly listed cigarette maker PT HM Sampoerna.  Sampoerna president director Mindaugas Trumpaitis said consumers seemed to have a growing preference for products with higher tar concentrations, smaller packages and super-low prices.  “The pronounced impact of the COVID-19 pandemic has further eroded consumers’ purchasing power and has led to a shift in consumer behavior. In the cigarette industry, adult smokers are seeking bigger bang for their buck products,” Trumpaitis said during a virtual public expose on Friday.  “They are buying smaller packs because they are more affordable and they are buying higher tar products, including S...