South Korean tobacco specialist KT&G Corporation (KT&G) has entered an exclusive license agreement with Bulgaria’s KT International (KTI) 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 KRW6 trillion (approximately €4.1 billion). KTI was established in 2008 and is regarded as one of Europe’s fastest-growing independent tobacco companies.
Under the terms of the agreement, which was signed in October last year, KTI has been granted exclusive rights to manufacture and distribute KT&G’s products within the European Union for three years. The two companies have agreed to a market entry plan aimed at expanding into strategic markets in the Western European region, with a focus on KT&G’s Esse products. According to the partners, Esse ranks as the world’s best-selling super-slim cigarette brand.
Product range expansion will be discussed and announced by KT&G and KTI in due course.
KT&G Europe Office General Manager Chad Sul 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.”
KTI Chief Commercial Officer Stuart Buchanan added: “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.” ✈