PMI and KT&G sign deal

Philip Morris International (PMI) will commercialize KT&G’s smoke-free products outside of South Korea under the terms of a new agreement.

“To achieve PMI’s vision of a smoke-free future, we must grow the smoke-free category worldwide, which requires multiple players providing a wide array of better choices for adult smokers,” said Andre Calantzopoulos, PMI’s CEO. “While IQOS continues to be the leading product in the smoke-free category, and we plan to broaden our portfolio by launching IQOS MESH in the coming months, we believe that increased collaboration will benefit adult smokers by providing greater choice and drive accelerated adoption of smoke-free products worldwide.”

The agreement will run for an initial period of three years, allowing PMI to distribute current KT&G smoke-free products and their evolutions on an exclusive basis. It does not restrict PMI from distributing its own or third-party products.

KT&G is the leading tobacco and nicotine company in South Korea. Its smoke-free products include heat-not-burn tobacco systems (Lil Mini and Lil Plus), hybrid technologies that combine heat-not-burn tobacco and e-vapor technologies (Lil Hybrid) and e-vapor products (Lil Vapor).

PMI and KT&G will seek any necessary regulatory approvals for products that may be required on a market-by-market basis.

The agreement does not pertain to combustible products. There are no current plans to commercialize KT&G products in the U.S.