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

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.