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A-Brands

Philip Morris Extends Collaboration With South Korea's KT&G

By Dayeeta Das
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Philip Morris Extends Collaboration With South Korea's KT&G

Philip Morris International has announced a long-term collaboration with South Korean tobacco and nicotine manufacturer, KT&G.

The announcement follows three years of partnership between the companies, which has seen PMI commercialise KT&G’s products in more than 30 markets.

As part of the new deal, the tobacco giant will continue to commercialise KT&G’s smoke-free devices and consumables globally on an exclusive basis, excluding South Korea.

The agreement covers fifteen years, to 29 January 2038, with performance-review cycles and associated commitments, based on volume, to be confirmed for each three-year period, to allow flexibility for evolving market conditions, PMI noted.

Both companies expect these commitments to increase over the full duration of the agreement, starting with a total commitment for the first three-year period equivalent to 16 billion consumables.

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Long-Term Collaboration

Jacek Olczak, PMI chief executive officer, said, "We have been pleased with the success of our cooperation with KT&G so far and believe a long-term collaboration will accelerate the achievement of a smoke-free future.

"We want everyone who does not quit smoking to switch to a better alternative, for the benefit of their own health, public health, and society at large.”

The agreement also includes offerings for low- and middle-income markets, adding to PMI's existing portfolio of smoke-free products.

KT&G will have continued access to PMI’s global commercial infrastructure and experience commercialising smoke-free products to allow the expansion of its smoke-free business outside South Korea.

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Products sold under the agreement will be subject to assessment to ensure they meet the regulatory requirements in the markets where they are launched.

PMI and KT&G will seek any necessary regulatory approvals on a market-by-market basis.

'A Smoke-Free Future'

Olczak added, "We will achieve a smoke-free future faster if all people who smoke have access to better alternatives and accurate information about these innovative products.

"Together with KT&G we are calling on regulators, scientists and health professionals everywhere, including in Korea, to embrace the potential of these technological innovations to shift smokers away from cigarettes."

© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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