KT&G and PMI Extend Global E-cigarette Collaboration

Jan.30.2023

KT&G and PMI renewed a 15-year contract to sell their non-combustible products globally, helping with KT&G's overseas market position.

According to a report by Yonhap News Agency on January 30th, Korea Tobacco & Ginseng Corporation (KT&G) and Philip Morris International (PMI) have extended a supply contract for 15 years. KT&G will distribute its three types of non-burning heated products through PMI's global sales network, except in South Korea.

The products include the Lil Solid, Lil Hybrid, and Lil Aible devices, as well as their corresponding proprietary pods named Fiit, Miix, and Aiim.

During a press conference, KT&G CEO Baek Bok-in stated that this collaboration will help strengthen KT&G's position for smokeless products in international markets. The extension of the three-year strategic agreement signed with PMI in 2020 will also lay the foundation for stable growth in their global business.

KT&G Corporation recently announced during an investor event that it aims to double its sales by 2027, reaching a total of 10 trillion Korean won (approximately $8.1 billion USD). The company plans to obtain more than half of these revenues from their overseas businesses, while also strengthening their next-generation product (NGP) division, which includes heated non-burning (HnB) products and functional health foods.

According to reports, 90% of KT&G's current revenue comes from cigarette sales and the remaining 10% comes from their HnB products. The company has four tobacco manufacturing plants located in South Korea, Russia, Turkey, and Indonesia with a yearly production capacity of 13.6 billion units. Since signing an agreement with Philip Morris International in 2020, KT&G has expanded the export of their HnB products to over 30 countries.

Sources:

KT&G has set a goal of generating 50% of its sales from overseas markets by 2027.

KT&G and PMI have extended their partnership to expand their presence in global markets with e-cigarettes.

#PMI #Global #E-cigarette #E-cigarettes and Tobacco

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