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.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
