Japan Tobacco will spark competition in the U.S. tobacco market with its new discount cigarette brand.

Japan Tobacco Inc. is working to quietly enter the lucrative U.S. tobacco industry by offering its own discount line of cigarettes.

According to a recent report from The Wall Street Journal, Japan Tobacco’s line of LD cigarettes are now being sold in one Valero gas station near Greensboro, N.C. The brand was given prime placement among well-established cigarette brands, but their price tag is what really makes these new packs stand out. At $2.81 per pack, these red, blue, green and silver packs not only challenge top cigarette brands, but they are also in a position to challenge discount brands.

Currently, almost all of Japan Tobacco’s sales occur outside the U.S., but these new LD branded cigarettes are part of a strategic plan for the world’s second-largest tobacco company to gain a foothold in the U.S. market. According to The Wall Street Journal, LD, which was introduced to the U.S. in March, was the first global brand that Japan Tobacco introduced in the U.S. The company plans to test the appeal of the new brand in North and South Carolina, after which the company may launch the brand nationwide as early as next year, depending on the product’s performance, with 10 style variations.