The two companies have agreed to a market entry plan aimed at expanding into strategic markets within the Western European region.

KT&G and KT International have announced an exclusive manufacturing license agreement to manufacture and distribute KT&G’s products in Europe.

KT&G is a tobacco manufacturer in South Korea and the fifth-largest in the world by sales volume, with an annual sales revenue of approximately ₩6 trillion (£3.4bn).

Established in 2008, KTI said it is one of Europe’s fastest growing independent tobacco companies, having earned recognition for its footprint across Europe, along with production facilities within the European Union.

“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 Europe Office.

The agreement between the two companies was signed on 20 October, 2023, and 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.

ESSE, a flagship brand of KT&G, is its best-selling super-slim cigarette brand, and while the two companies will initially focus on ESSE products, the product range expansion will be discussed and announced in due course.

“After three years of collaborative efforts leading to the signing of this agreement, we see a strong cultural fit between our two companies,” noted Stuart Buchanan, Chief Commercial Officer of KTI, who continued: “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.”

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