KT&G Corporation(KT&G) and KT International(KTI) have announced they have entered into an exclusive manufacturing license agreement for the manufacturing and distribution of KT&G’s products in Europe.
KT&G is a leading tobacco manufacturer in South Korea and the fifth-largest in the world by sales volume, with an annual sales revenue of approximately KRW 6 trillion (approximately €4.1 billion). KTl, established in 2008, has built its reputation as one of Europe’s fastest growing independent tobacco companies. The company has also earned recognition for its strong and credible footprint across Europe, along with world-class production facilities within the European Union.
The agreement between the two companies was signed on October 20, 2023. Under the terms of the agreement, KTI has been granted exclusive rights to manufacture and distribute KT&G’s products within the EU region for three years. The two companies have agreed to a market entry plan aimed at expanding into strategic markets within the Western European region, with a specific focus on KT&G’s Esse products. Esse is a KT&G flagship brand renowned for its premium quality and holds the distinction of being the world’s best-selling super-slim cigarette brand. While the two companies will initially focus on Esse products, the product range expansion will be discussed and announced in due course.
Chad Sul, General Manager of KT&G Europe Office said, “We are delighted to join hands with KTI, a company with a robust footprint across Europe. Having already established a strong market presence in Asia, AMEA, and Latin America, we believe that the agreement with KTI will serve as a pivotal step in accelerating our footprint across Europe.”
Stuart Buchanan, KTI’s Chief Commercial Officer, commented, “After three years of collaborative efforts leading to the signing of this agreement, we see a strong cultural fit between our two companies. Also, we expect the synergy between our complementary brand portfolios to strengthen the market position of both companies. A significant amount of time had been taken to structure a competitive business model and to develop an innovative and consumer relevant product portfolio that is consistent to the global objectives and standards of KT&G. We thus look forward to a long and fruitful partnership between our companies.”
