As a result of the above, more than 25 new tobacco trade marks were developed and introduced. They could establish themselves in the domestic market due to the successful implementation of the program for development and improvement of existing trade marks and creating of new trade marks ( combined with a modern and stimulating advertising ).

In the conditions of free market, the establishment of Bulgartabac Holding AD as a main tobacco producer in the domestic market and the main tobacco exporter is due to the speedy and efficient change of production structure in accordance with the world trends in the development of tobacco market.

INCREASE IN SALES OF CIGARETTES IN BOXES

The share of the sales of cigarettes in boxes has increased from 36 % in 1996 to 38 % in 1999. The tendency for increase is kept in 2000 as well and the it is forecasted to reach 70 %.

Implementation and establishing of light versions of the main consumer cigarette trade marks ( type "lights", "medium", "super lights" and "ultra lights" )

Only for the last two years (1997 and 1998) the above versions managed to gain almost 1/4 of the total consumption cigarettes in the country. By this indicator Bulgaria approaches to the indicators and requirements of the countries, members of EU.

Bulgartabac Holding AD has been one of the leaders among tobacco producers in Central and Eastern Europe since its founding. The changes in the last ten years led to alteration both to the export structure and main markets of Bulgartabac.

In order to keep and increase its market share on the territory of the ex-Soviet Union republics, Bulgartabac created and made operational four joint ventures: 3 in Russia and 1 in Ukraine. Their total annual capacity exceeds 25 thousand tons of cigarettes.The development and implementation of up-to-date versions of cigarettes in the recent years gave Bulgartabac the opportunity to become a modern company, oriented to export to new markets. The main directions for tobacco export of Bulgartabac companies, based in Bulgaria are as follows: Europe, The Near and The Middle East, Latin America, North America and Africa.

The most recent and up-to-date equipment of the cigarette plants ensures production of a great range of cigarettes: American, Virginia, European and Oriental blends in all their varieties: full flavour, medium, lights, super lights, ultra lights and menthol with respectively the size of 84 mm
( king size) and 100 mm, soft package or box. In order to satisfy even the most pretentious markets and consumers, a production line for manufacturing of filter cigarettes, size 69 mm, was put into operation.

The production of cigarettes of cigar type is the most recent challenge to Bulgartabac. In 1999 the most recent product of this type, "Orient Express De Luxe 100 mm" was introduced and already well-accepted in many markets all over the world.

The flexibility of Bulgartabac export policy in tobacco industry is achieved by production of modern cigarette trade marks compliant with all world trends and requirements and priced in accordance to the relevant market conditions.