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Indonesia 2015 | Brand Profiles | 12 | Gudang Garam

Company: Gudang Garam Tbk PT

Brand value: US$1,625 million

Headquarter city: Kediri

Industry: Tobacco

Year formed: 1958

Heritage brand still strong despite decline in category

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. 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. 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. 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 U.S., 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.