Alliance One International said yesterday that the company’s subsidiary, Alliance One Brasil Exportadora de Tabacos (AOB), was to supply Brazilian Burley to Philip Morris International Management (PMIMSA), as PMIMSA adopted a new leaf supply arrangement in Brazil.
Previously, Philip Morris Brasil Indústria e Comércio had directly contracted and purchased a portion of its Burley tobacco from Brazilian growers. But beginning with the 2016 crop, PMIMSA would purchase this processed Burley directly from AOB. The arrangement was expected to provide enhanced supply chain efficiencies while reducing sourcing complexity. It was said to reflect PMIMSA and AOI’s commitment to Brazilian growers and their communities, and PMIMSA’s intention of remaining a major purchaser of Brazilian tobacco.
AOI and its predecessor companies have operated in Brazil for more than 60 years.
“Alliance One is committed to developing solutions that enhance efficiencies and reduce complexity in our customers’ supply chains, while providing increased value to our stakeholders,” said Pieter Sikkel, president and CEO of AOI. “This arrangement with PMIMSA illustrates that dedication. As a result of this arrangement with PMIMSA, we expect to see benefits for our company beginning in FY2017.
“The sustainability of our grower communities is vital to the success of Alliance One and our customers, and we are excited to further support the tobacco supply chain in Brazil through this new leaf supply arrangement. From working with farmers during the growing season through processing and delivery, we focus on providing customers with a high-quality product that is produced in a compliant manner. We will continue to help growers implement the principles of Good Agricultural Practices as well as our Agricultural Labor Practices code. Alliance One is committed to achieving safe and fair working conditions on farms where we contract.”