Company:GudangGaramTbkPT Brand value:US$1,983 million Year on year change: 22% Headquarter city:Kediri Industry:Tobacco Year formed:1958
Gudang Garam is a brand of clove cigarettes known in Indonesia as kretek. This is a traditional product and tends to appeal to older smokers. Hand-rolled and machine-rolled varieties are produced, with the more expensive, hand-rolled product seen as premium, and the machine-produced cigarettes having a more mainstream audience.
The brand launched a new variant, Gudang Garam Signature Mild, in 2015, and increased its investment in advertising across the portfolio over the year. As in most markets, advertising of tobacco products is highly restricted, but television advertising at selected times of day is still possible in Indonesia, though exactly what can be shown is limited. Since late 2015 there have also been restrictions on indoor promotions and displays. Price increases have helped maintain sales value for Gudang Garam despite a decline in volume, and declines in the cost of raw materials have contributed to a 19 percent profit rise last year.
Demand for hand-rolled kretek has been declining in recent years, but Gudang Garam Gold hand-rolled cigarettes were successfully launched in 2014, with black and gold packaging and premium positioning. The brand takes its name from the parent company, which has a stable of successful cigarette brands.
Gudang Garam cigarettes are exported to Malaysia, Brunei, Japan, Australia, Germany, the US and the Netherlands. The parent company is listed on the Indonesia Stock Exchange but remains majority-owned by the Wonowidjojo family, which founded the business.