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.
A customer buys a pack of KT&G’s TIME cigarettes at a store in the U.S. (KT&G)
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)