Philip Morris International or PMI (NYSE: PM) enters into a long-term collaboration with KT&G, a South Korean tobacco and nicotine manufacturer, to continue commercializing KT&G’s innovative smoke-free devices and consumables on an exclusive, worldwide basis (excluding South Korea).
It builds on three years of successful cooperation in which PMI commercialized KT&G products in more than 30 markets. The contract is for fifteen years, until January 29, 2038.
Products sold under the agreement will be subject to assessment to ensure they meet the regulatory requirements of the market in which they are launched.
“Since we started our transformation, millions of smokers have switched to our smokeless products and quit smoking altogether. KT&G’s lil products play a complementary role to IQOS, the world’s leading no-heat product, and our continued collaboration will provide adult smokers around the world with more options to quit smoking. Korea is a global leader in science and innovation, and today marks an important milestone that paves the way for a better future. With KT&G’s technology and speed of innovation and PMI’s scientific and commercial infrastructure, we believe our partnership will accelerate our shared vision of a smoke-free future.” said Jacek Olczak, Chief Executive Officer of PMI.