ANALYSIS
PMI Creates Joint Venture with
State Owned Company
EM chats with Stacey Kennedy, Area Vice President South East Europe, Phillip Morris
International (PMI) about her company’s decision this May to sign a partnership agreement
with Tutunski Kombinat Prilep (TKP), a Macedonian State-owned cigarette manufacturer.
EM: What are the main goals of your strategic
partnership agreement?
EM: How will this agreement affect TKP’s local
suppliers and partners?
Kennedy: I am very pleased that we have signed this
strategic partnership agreement with TKP. The partnership that we have embarked on together will
result in the formation of a new legal entity - a joint
venture company that will focus on the commercialization of both international PMI brands and strong
local TKP brands on the Macedonian market.
Kennedy: The joint venture will be a brand new company that will soon start operations. PMI and TKP
will cooperate to develop brand strategies, marketing plans and distribution networks. Developing a
supply chain to support upcoming business needs is
certainly a key part of this process.
Having a business partner with such a long tradition
and comprehensive experience in the cigarette manufacturing business is a great advantage. We have
the utmost respect for the TKP team, which makes
me fully confident that together we will create a solid
foundation for the future of the Macedonian tobacco
industry.
EM: What does this agreement mean for PMI’s
position in the region?
Kennedy: With this partnership, we will expand the
presence of PMI brands on the Macedonian market. At the same time, we will apply our international
know how to add value to already well-established
local TKP brands. By strengthening our business in
Macedonia we are further developing our presence
in the region as part of our ambitious development
plan for South Eastern Europe as a whole.
PMI brings very relevant know-how from its entities
in other regional markets. This includes our experience transforming a factory acquired in Serbia into a
state-of-the-art manufacturing facility. By adding a
strong presence in Macedonia, we will be well on our
way to forming a solid basis for increasing the competitiveness of South East Europe within PMI’s global
network.
Emerging Macedonia Summer 2014 Issue 42
EM: Which of PMI’s brands will
TKP eventually produce?
Kennedy: New brand
launches are subject to
further review, so it’s too
early for me to comment
on this. However, there is
a growing trend toward
international brands
in the Macedonian
marketplace and
PMI’s are very well
suited to compete.
Any new launches
will be driven by
trends and adult
smoker preferences. We will
carefully analyze the needs of
our adult smokers in Macedonia over time
to determine if,
and when, we
should launch
new brands.
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