Chinese tobacco giant to test Spectra Systems authentication technology

The AIM-traded firm said it was the first of two expected orders is from Zhejiang Tobacco Company - one of the leading tobacco companies in China.

It said the launch of TruBrand, to be incorporated into between six million and eight million cigarette packs to be sold in China, was aimed at gauging acceptance of the technology, and further refining the product for use in “potentially billions” of units for larger volume brands in the future.

Spectra said the first orders were specifically for one of the highest value cigarettes brands in China manufactured by Zhejiang Tobacco, the ‘Liquan Yunduan Series’, which retailed for CNY 120 (£13.79) per pack.

Lower-priced brands sold for less than one third of that price, and were typically in the billions of packs annually, according to Spectra.

About 60% of the price was believed to go to government tariffs.

“We are delighted that Zhejiang Tobacco has decided to increase their commitment to the technology from large scale manufacturing testing to introducing the technology to the market with a very sought after high end tobacco product for sale primarily in China,” said Spectra Systems chief executive officer Nabil Lawandy.

“This is particularly good news in light of the existing strained trade relations between the US and the People’s Republic of China.

“We are optimistic that this first launch with one of the highest value cigarette brands in China will lead to the adoption of TruBrand across larger volume product lines, that could downstream result in over a billion units annually from this supplier alone,” Dr Lawandy added.