KT&G Partners with PMI to Launch 'Lil' E-Cigarette in Global Markets

Contract Signed by Both Companies on the 29th, 3-Year Product Supply ... First Step to Securing Global Distribution Network

[Asia Economy Reporter Lee Seon-ae] KT&G is entering the overseas market in earnest for its next-generation electronic cigarette ‘lil’ through a strategic partnership with global major tobacco company Philip Morris International (PMI).

On the 29th, KT&G and PMI held the ‘KT&G-PMI Global Collaboration’ event at the Four Seasons Hotel in Gwanghwamun, Seoul, where they signed a product supply contract for the overseas sales of the electronic cigarette ‘lil’. The event was attended by senior executives from both companies, including KT&G President Baek Bok-in and PMI CEO Andre Calantzopoulos, with a signing ceremony and commemorative photo session.

Under this agreement, KT&G will supply ‘lil’ products to PMI, and PMI will be able to sell them in all countries worldwide except South Korea. In this regard, both companies agreed to establish a global cooperation system to launch products in more countries while verifying market performance, and to make efforts to quickly sell the products within this year. The initial contract period is three years, but if the results are favorable, a long-term partnership will be established.

The products include four types currently released by KT&G in Korea: the heated tobacco electronic cigarettes ‘lil Hybrid’, ‘lil Plus’, and ‘lil Mini’, as well as the liquid-type electronic cigarette ‘lil Vapor’. Innovative products to be released in the future are also included. Both companies are reviewing options to co-brand the products sold overseas with the current brand names ‘lil’ and ‘IQOS’.

Since its debut in 2017, KT&G’s ‘lil’ has established itself as an influential electronic cigarette brand in the domestic market, receiving positive reviews from consumers for convenience and portability. In particular, ‘lil Hybrid’ is a differentiated product that embodies KT&G’s proprietary technology and has been highly recognized for its innovation. Last year, it was showcased at various international exhibitions, receiving enthusiastic responses from overseas buyers.

Accordingly, KT&G selected global major tobacco company PMI as a partner to secure distribution channels and promote the full-scale overseas expansion of ‘lil’, which has been recognized for its product quality both domestically and internationally. PMI also chose KT&G as a strategic partner, enabling it to further strengthen its portfolio of innovative products through ‘lil’.

President Baek Bok-in stated, “This strategic partnership with global leader PMI is an important opportunity to once again recognize KT&G’s brand competitiveness and innovative product development capabilities,” adding, “We will lead the tobacco industry more proactively by setting new market standards for the future tobacco market.”

PMI CEO Andre Calantzopoulos said, “We are pleased to sign the contract with KT&G,” and added, “This agreement, which allows us to utilize PMI’s resources, knowledge, and infrastructure together with KT&G’s electronic cigarette products, will expand the satisfaction and choices of smokers worldwide.”

KT&G, the number one tobacco company in Korea, aims to become one of the ‘Global Big 4’ companies by 2025. It is focusing on overseas market expansion to complete a balanced business portfolio not only domestically but also globally, and plans to increase the number of countries it has entered from about 80 to over 100 by this year through aggressive new market development.

This content was produced with the assistance of AI translation services.