According to a report from PR Newswire on November 7th, South Korean tobacco company KT&G announced that it has initiated its expansion plan in Europe. In April of this year, the company entered the Romanian market, followed by the launch of its flagship ultra-thin cigarette brand "ESSE" in Portugal, Andorra, and Spain.
KT&G has stated that it is currently focused on expanding its global business by setting up 10 multinational subsidiaries or offices, with a focus on regions including Europe, Indonesia, Taiwan, and Kazakhstan.
As of the end of 2023, KT&G sells approximately 717 brands in 143 countries globally and has 5,184 employees. KT&G is establishing a localized value chain centered around CIC in each overseas region. Last year, KT&G began constructing a new factory in Almaty, Kazakhstan and started building its second and third factories on the existing base in Indonesia to speed up the layout and construction of its global production base.
Particularly, after the completion of the second and third factories in Indonesia, the country will become KT&G's largest overseas production base and key growth engine in achieving its long-term vision.
KT&G's growth investment in expanding global business is starting to pay off. According to reports, last year, KT&G's overseas cigarette sales reached 53.2 billion units, with the company claiming the second quarter of this year also set a record for sales. Analysts predict that overseas cigarette sales in the third quarter are likely to once again break records.
The company emphasizes that it will adhere to the newly established "2027 KT&G Vision" in 2023, with the key business KPIs for 2027 being "50% of sales from overseas operations" and "60% of sales from non-tobacco businesses." They aim to surpass their position as Korea's number one company and achieve a spot in the top four globally.
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