KT&G leverages Incheon duty-free success to enter Bahrain, Kyrgyzstan and Istanbul airports
South Korean tobacco firm KT&G is expanding its airport duty-free cigarette offerings beyond Incheon to new locations in Bahrain, Kyrgyzstan and Istanbul.
Since Incheon Airport opened in 2001, KT&G has sold roughly 100 cigarette products there and was the leading duty-free brand for three consecutive years, with 2017 sales of 159 billion won, nearly twice the runner-up. Boosted by a surge in foreign tourists to Korea and expanding duty-free sales, the company leveraged its long-term buyer network at the TFWA World Exhibition in Cannes to break into new markets, securing placements at Bahrain's Muharraq and Kyrgyzstan's Bishkek airports.
In August, KT&G launched five Esse items at Istanbul Airport, which handles about 84 million passengers annually. Overseas revenue rose 18.9 % to 557.7 billion won in the latest quarter, while operating profit grew 18.5 % to 414.5 billion won. The firm has raised its full-year outlook, targeting 5-7 % revenue growth and 10-13 % profit growth.
