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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] KT&G Corp. announced on June 4 that no decision has been finalized regarding the reported acquisition of a Nordic nicotine pouch company.
In a regulatory filing, the company stated, “We are pursuing a diversification strategy in the 'modern products' category as part of our broader efforts to expand future growth momentum.” KT&G added that it is “exploring various possibilities, including new external partnerships, in-house development, and mergers and acquisitions (M&A).”
Industry sources have recently reported that KT&G is in discussions with multiple nicotine pouch manufacturers as potential acquisition targets. If completed, it would mark the company’s first major M&A deal in 14 years, following its KRW 140 billion acquisition of a 60% stake in Indonesian tobacco company Trisakti in 2011.
Nicotine pouches are a non-combustible, smoke-free tobacco product that delivers nicotine in solid form, typically absorbed through the gums. While the domestic market for nicotine pouches remains small, demand is growing rapidly in the U.S. and Europe. In 2022, Philip Morris International acquired Swedish Match—maker of the "ZYN" brand—for approximately KRW 22 trillion (USD 16 billion), signaling strong global interest in the category.
KT&G CEO Baek Bok-in also emphasized at the company’s annual general meeting in March that KT&G aims to solidify its position as a market leader by expanding beyond traditional cigarettes into a new generation of 'modern products'.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
