- Philip Morris International Inc PM announced a long-term collaboration with KT&G, a South Korean tobacco and nicotine manufacturer, to continue commercializing KT&G's smoke-free devices and consumables on an exclusive, worldwide basis (excluding South Korea).
- The new arrangement builds on three years of collaboration that has seen PMI commercialize KT&G's products in more than 30 markets.
- The agreement covers fifteen years, to Jan. 29, 2038, with performance-review cycles and associated commitments, based on volume, to be confirmed every three years 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.
- "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," said CEO Jacek Olczak.
- Price Action: PM shares are trading lower by 0.83% at $102.90 in premarket on the last check Monday.
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