KT&G Establishes Uzbekistan Subsidiary to "Strengthen Eurasian Competitiveness"

270 Million ESSE Cigarettes Sold in Uzbekistan Last Year
"Local Workforce to Be Quadrupled and Sales Network to Be Established"

KT&G announced on the 13th that it has established a corporation in Uzbekistan and is strengthening its competitiveness in the Eurasian region.

Earlier in 2023, KT&G set up an office in Uzbekistan and pioneered the market by exporting locally customized products of the global best-selling ultra-slim cigarette brand ‘ESSE’.

KT&G has established a corporation in Uzbekistan. Members of KT&G Uzbekistan corporation are taking a group photo. Photo by KT&G

As a result, last year, seven products under the ‘ESSE’ brand recorded total sales of 270 million sticks in Uzbekistan. Among them, KT&G’s steady seller ‘ESSE Change’ accounted for 64% of the export volume, receiving a positive response from the market.

KT&G plans to enhance its competitiveness in the Eurasian region in the long term through the conversion of the Uzbekistan office into a corporation. Accordingly, it intends to increase the local workforce by more than four times and strengthen its market position by expanding distribution coverage through detailed sales network establishment.

Additionally, in the Uzbekistan market where the share of ultra-slim cigarettes is steadily rising, KT&G aims to develop ESSE as the representative brand and expand sales and profits through active market expansion.

Last year, KT&G established regional CICs (Company-In-Company) in the Eurasian and Asia-Pacific regions and is expanding its global business. The company currently operates in 132 countries worldwide with six sales corporations and three branches, and plans to continue strengthening its direct business system through continuous overseas corporation expansion and efforts to improve profitability.

A KT&G official stated, “The establishment of the Uzbekistan corporation is a continuation of the leap to become a ‘global top tier,’ following the establishment of the Kazakhstan corporation in 2023, and part of our investment and innovation efforts,” adding, “We will continue to sustain global business growth by strengthening the local business system.”