According to weekend Pravo daily, JT International is fighting aggressively on the Czech market with the price of its premium brand Camel, which is currently priced at CZK 64, while some of its competitors like BAT decided to follow its competitor and decreased price of Lucky Strike brand from CZK 70 to CZK 66 and Imperial Tobacco decreased price of Davidoff from CZK 74 to CZK 72 and R1 from CZK 74 to CZK 70. Our view: We see these efforts of JT International targeted mainly on BAT and Imperial Tobacco because PMCR is selling soft packs of Marlboro brand for CZK 66 and Marlboro brand smokers are among the most loyal smokers on the market. Although the situation on the market doesn’t seem to be very favourable in general, we believe that premium segment has lower importance in the current environment, when lower price segment represent some 50% of the market.