Cigarette manufacturer Philip Morris International said it has collaborated with a South Korean tobacco and nicotine manufacturer, KT&G, to continue to commercialize KT&G's smoke-free devices and consumables on an exclusive, worldwide basis, excluding South Korea.
The agreement gives Philip Morris continued exclusive access to KT&G's smoke-free brands and product-innovation pipeline, including offerings for low- and middle-income markets.
According to the company, the agreement covers fifteen years, to January 29, 2038, with performance-review cycles and associated commitments, based on volume, to be confirmed for each three-year period, to allow flexibility for evolving market conditions.
Philip Morris and KT&G expect the 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.
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