KT&G brands make inroads in U.S., Africa, Latin America

Nearly 40 percent of tobacco manufacturer KT&G’s sales abroad last year were in relatively new markets such as the U.S., Africa, South America and Asia-Pacific, according to the company Wednesday.

KT&G said that of the 46.5 billion cigarettes sold abroad in 2015, 39.6 percent (18.4 billion cigarettes) were sold in these markets.

These markets’ share of sales has increased 2.5 times since 2010.

The most notable surge was in Africa, where aggressive distribution strategies and the introduction of super-slim cigarettes boosted sales by 70 times. Sales increased by 2.5 times in the U.S., sevenfold in South America and double in Asia-Pacific.

Preferences for KT&G brands differed across regions.

U.S. consumers showed a preference for TIME, while African and South American consumers bought the export-only brand PINE. Consumers in Asia-Pacific snapped up ESSE cigarettes.

In trend-sensitive Taiwan, the Bohem Cigar line, made with cigar leaves, came out on top.

These markets represent a new opportunity for KT&G, whose export focus had previously been on the Middle East, Central Asia and Russia.

By Won Ho-jung (hjwon@heraldcorp.com)