KT&G has begun its expansion into Europe, starting with Romania in April, followed by Portugal, Andorra, and Spain with its representative superslim brand ESSE. KT&G is South Korea's leading company holding the No. 1 position in each of its Next Generation Products (NGP), Health Functional Foods, and Combustible Cigarettes (CC) businesses.
To further consolidate its position as a global top-tier player, KT&G is accelerating overseas growth in its three core growth business areas, NGP, Health Functional Food, and Global CC. To this end, KT&G is currently focusing on expanding its global business with subsidiaries or offices in 10 countries around the world, including Europe, Indonesia, Taiwan and Kazakhstan. Last year, the company introduced a company-in-company (CIC) system for each region with the aim of expanding overseas markets more aggressively and expanding local distribution coverage, and is accelerating growth in Eurasia and Asia-Pacific.
As of the end of '23, KT&G sold about 717 brands with 5,184 employees in 143 countries around the world, strengthening its positions as a global top-tier company. In particular, KT&G is expanding direct management from production to marketing and sales by building a localized value chain centered on CICs in each overseas region. To this end,KT&G began construction of a new factory in Almaty, Kazakhstan, last year and has begun construction of the second and third factories in Indonesia, in addition to its existing factories there, speeding up its efforts to secure a global production base.
In particular, once the construction of the second and third manufacturing base for KT&G's business and a key growth engine for achieving its mid- to long-term vision. The fruits of growth investments for global business expansion efforts are already being realized. Last year, KT&G's overseas sales of cigarettes reached 53.2 billion pieces, a new record for the company.
This year's second quarter was also the largest quarterly sales quarter, and according to analysts' forecasts, overseas cigarettes are expected to break the record again in the third quarter.