2023-01-29 19:51:33 PM Philip Morris
01/29/23 01/2919:51 01/29/2319:51 | Philip Morris announces agreement to extend, deepen collaboration with KT&GPhilip Morris announces a long-term collaboration with KT&G, South Korea's leading tobacco and nicotine manufacturer, to continue to commercialize KT&G's innovative smoke-free devices and consumables on an exclusive, worldwide basis. It builds on three years of successful collaboration that has seen PMI commercialize KT&G's products in more than 30 markets. The agreement covers fifteen years, to January 29, 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 and KT&G 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. The agreement gives PMI continued exclusive access to KT&G's smoke-free brands and product-innovation pipeline, including offerings for low- and middle-income markets, that will enhance PMI's existing portfolio of smoke-free products. It gives KT&G continued access to PMI's global commercial infrastructure and experience commercializing smoke-free products to support the further expansion of KT&G's smoke-free business outside South Korea. Products sold under the agreement will be subject to assessment to ensure they meet the regulatory requirements in the markets where they are launched, as well as PMI's high standards of quality and scientific substantiation. PMI and KT&G will seek any necessary regulatory approvals that may be required on a market-by-market basis. |
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