KT&G is set to bolster its
presence in the Eurasian market by establishing a legal subsidiary in
Uzbekistan. This move aims to facilitate the company’s overseas market
expansion and improve profitability through
a robust local business system.
In 2023, KT&G launched an office
in Uzbekistan and began pioneering the market by exporting localized versions
of its flagship ultra-slim cigarette brand ESSE, which holds the world’s
best-selling ultra-slim cigarette title.
As a result, seven variations of the
ESSE brand achieved cumulative sales of 270 million cigarettes in Uzbekistan last
year, with the “ESSE Change” variant—a long-standing bestseller—accounting for
64% of the total exports to the region.
KT&G plans to strengthen its
competitiveness in the Eurasian market over the long term by converting its
Uzbekistan office into a full-fledged corporate entity. The company aims to
scale up its local workforce by more than fourfold and expand its distribution
network by establishing detailed sales channels, further solidifying its market
presence.
KT&G also plans to position ESSE
as a leading brand in the Uzbekistan market, where the preference for
ultra-slim cigarettes continues to rise. The intention is to drive revenue and
profit growth through proactive market expansion efforts.
As part of its global business
strategy, KT&G established a regional company-in-company (CIC) in Eurasia
and Asia-Pacific last year to accelerate its international growth. The company
currently operates in 132 countries worldwide, with six sales subsidiaries and
three branch offices. Moving forward, KT&G will continue reinforcing its
direct business system and enhancing profitability by expanding its global
subsidiary network.
An official from KT&G stated, “The establishment of the Uzbekistan subsidiary marks a continuation of our journey toward becoming a ‘global top-tier’ company, following the establishment of our Kazakhstan subsidiary in 2023. Through ongoing investment and innovation, we will sustain our global business growth by reinforcing our local business systems.”
The above photo shows KT&G members discussing in the Uzbekistan office.