The Innovation Center
The tobacco industry is more dynamic than ever. The landscape which tobacco manufacturers have to deal with is changing rapidly. New technologies, different consumer demands, increased competiveness, and new regulations generate new standards in the product and therefore production. All of these factors drive tobacco manufacturers to seek new methods of improvement, aimed at efficiency in the production and new product features. Because of this, a symposium was organized in Surabaya by the ITMGroup. At the first Innovate The Market (ITM) symposium, the different perspectives on developing and innovating solutions and processes that will meet the needs of the future tobacco industry, were discussed.
This December symposium lasted two days and gathered representatives from Indonesia’s major tobacco manufacturers and also GAPPRI (The Indonesian Cigarette Producers Association), to witness the innovation power of the ITMGroup. The event included a Cangkrukan evening complete with Indonesian food and coffee interspersed with singing and dancing with music provided by a local Gamelan group. The evening was enjoyed by all, a truly family evening and provided a great atmosphere and background for this inaugural event.
Jerrie Yeap, area sales manager of ITMGroup says: “Indonesia is one of the last bastions of relative freedom in the tobacco industry and is the largest single market outside China. This market is dominated by the Kretek cigarette, a traditional cigarette containing cloves, and due to this tradition and consumers’ high demands for stability, the industry has stood relatively still in terms of development and innovation.”
Recent trends in products have largely been limited to the move to machine-made-cigarettes from hand rolling as technology has adapted to accept this relatively difficult product to manufacture. Acceptance of machine-made-kretek has taken its time but now we see increased volumes at the expense of hand rolling with improved quality throughout and also higher capacities. This is a major step for the future, where further changes will no doubt be driven by legislation as is the case in Europe and US. Indeed, some of the questions asked during the symposium have been asked elsewhere, for example how to promote products with advertising bans and the recent (2014) introduction of packet health warnings?
This was the basis of the event, “adopting the various limitations and legislation by adapting change through innovation to retain or gain market share” and the goal was to provide the answers through solutions.
Innovation in the industry is not new, but what we see now are much larger steps with completely new products being introduced into various global markets to win over consumers. Products such as e-cigarettes, next generation products, special filters, no additive primary, are here now and these were presented as an indication of what is possible as an alternative to the more traditional cigarette. Innovation comes from the producer not from the customer (W. Edwards Deming) and as machine suppliers to the industry; the ITMGroup builds partnerships with its customers to create new products that the consumer is unaware of at this time. This is true of all new innovations, creating and providing something that the consumer is unaware of and that they actually want when the new product hits the market.
This event was opened by Michiel van der Sluis (Member of ITMGroup Board) who presented the concept of continuous progress based on history, tradition and values with an emphasis on family ownership. From a family owned cigar company in 1892 to a total solution provider today, the ITMGroup has proven to be innovative and a proud part of the dynamic tobacco industry.
This event the first of its kind to be held by the ITMGroup, brought customers together, to join them in an opportunity to understand what ITMGroup has done and how working together can develop new processes and products. Innovation happens to fulfil a need and this need is identified not by the consumer but by the producer. ITM is a producer of machinery and services that meet its customer’s needs.
Tobacco control is here to stay and will be enforced further. It is up to all of us as partners to work together generating innovations that will not only satisfy the regulations that are being or will be applied, but also the consumers’ high demands.
ITMGroup has become one of the leading innovators and suppliers of technology and services for the global tobacco industry. Together with the Solaris, ITM’s filter combiner, and Genesis, ITM’s modular e-cig machine concept, the company now offers a complete portfolio of solutions for next generation products (NGP).
ITMGroup has production sites in the Netherlands, Poland, UK, Germany, Dominican Republic, and Luxembourg as well as sales and service centers around the world. The company is able to supply technology to different market segments within the tobacco industry. ITM supplies the cigarette industry, while SCM and GTS-SCM serve the cigar industry; TDC focuses on MYO/RYO, shisha dosing and packing, and e-cigarettes. IMAtec, with its latest innovative RYO multi-format booklet solution delivers innovative and value-added solutions in OTP (other tobacco products) packing and non-tobacco products.
“Leading innovator” and “passion to serve” are core values through which the ITMGroup successfully distinguishes itself in the market and the acquisition of Gemba Solutions is a further demonstration of this.
The ITM Asia team will present its latest innovations at WT Asia in Jakarta in April.