KTI to Make and Distribute KT&G Products in Europe

KT International (KTI) will be manufacturing and distributing KT&G’s products in Europe.

Under the terms of an Oct. 20, 2023, agreement, KTI will have exclusive rights to manufacture and distribute KT&G’s products within the EU for three years. KT&G and KTI have agreed to a market entry plan aimed at expanding into strategic markets within the Western European region, with an initial focus on KT&G’s flagship Esse brand, which is the world’s bestselling super-slim cigarette.

“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,” said Chad Sul, general manager of KT&G’s Europe office.

“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,” said Stuart Buchanan, chief commercial officer of KTI.

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 ($4.34 billion). Established in 2008, KTI is one of Europe’s fastest growing independent tobacco companies.