KT International: Independent Agility Meets Global Competition in Travel Retail
5 minutes read
Introduction by: Peter Marshall
Travel retail remains a key retail channel for tobacco manufacturers, as premiumisation and next-generation products reshape the competitive landscape.
For independent player KT International, the channel offers a route to international expansion – but also presents challenges when competing against global majors with greater scale and resources. The company is responding by leveraging agility, accessible premium positioning and targeted operator partnerships to build momentum across key travel retail markets.
In conversation with TRunblocked.com’s Colleen Morgan, Commercial Director Stuart Buchanan outlines KT International’s strategy, the ongoing role of traditional tobacco, and explains how brands such as The King and Corset are driving growth as the company expands its travel retail footprint. That expansion drive continues in June, with KT International attending the ASUTIL Conference in Punta Cana for the first time as it targets further growth opportunities across Latin and South America.
Colleen Morgan (CM): From a commercial standpoint, where does travel retail really sit for KTI today – core growth driver or still a channel with untapped potential?
Stuart Buchanan (SB): KT International has built a strong and resilient business foundation across its domestic markets, particularly throughout Europe. This established presence remains the core driver of performance, underpinned by a diversified brand portfolio, consistent quality, and long-term partner relationships.
Against this backdrop, travel retail is becoming an increasingly important growth driver for international expansion, offering consumers the opportunity to discover and trial new products in a global environment. KT International has accelerated its engagement in the channel, using its independence and agility to respond quickly to commercial opportunities and evolving consumer dynamics.
While still developing, travel retail is already contributing to growth and remains a significant long-term opportunity. KTI views the channel as a platform to build brand visibility, strengthen operator partnerships and introduce targeted innovation for international travellers.
CM: You’re competing with significantly larger tobacco companies in duty free – what’s your strategy for winning with key operators and distributors?
SB: KT International’s strategy is built on flexibility, quality and innovation, while offering international brands at an accessible price point.
As an independent manufacturer, the company benefits from agility, allowing it to respond quickly to evolving market dynamics and the specific requirements of travel retail operators and distributors. This flexibility enables tailored solutions across product formats, portfolio selection and market needs – a key advantage when competing against larger, less agile players.
Quality remains a non-negotiable priority. From sourcing and production to final delivery, KT International applies strict standards supported by a global supplier network and advanced manufacturing capabilities. Innovation is another differentiator. By closely monitoring consumer trends, KT International continues to develop new concepts and product features that support partners in driving sales.
Rather than competing on scale, KT International focuses on being a responsive, commercially focused and value-adding partner for operators and distributors.
CM: How do you approach distributor and operator relationships in travel retail? Are you prioritising depth with key partners or breadth across multiple markets?
SB: KT International places long-term relationships with distributors and operators at the core of its travel retail strategy, focusing on depth with strategic partners while expanding selectively into new markets.
A clear example is KT International’s collaboration with Avolta, which has supported the company’s expansion from Europe into Africa, the Middle East and Asia. This reflects KT International’s approach of building long-term, scalable partnerships that enable structured growth.
By prioritising collaboration and shared development, KT International reinforces its position as a reliable and commercially agile partner across travel retail markets.
CM: Which brands are genuinely delivering in travel retail right now?
KT International’s global brands The King and Corset are performing strongly in travel retail, delivering consistent growth across the channel.
The King remains the company’s bestselling brand, built on carefully selected tobaccos and blending expertise to deliver a full-bodied and consistent experience. Positioned as a value-for-money proposition, it demonstrates that premium quality does not necessarily require a premium price. Following the 2025 redesign across more than 70 markets, volumes grew by 13%.
Corset, the company’s superslim brand, also continues to expand its footprint. With its Shellpack format – introduced in 2016 – the brand transformed everyday packaging into a distinctive statement. The 2025 Corset Elegance redesign delivered 18% volume growth. Present in 60+ countries across four continents, Corset combines accessible luxury, bold design, and multi-sensory experiences.
Innovation and design excellence remain central to Corset’s development, with the brand claiming international recognition at the WTME Tobacco Awards in Dubai: Corset Elegance for Best Packaging Innovation and Corset Fusion Flair for Best New Tobacco Product
Together, these brands provide a complementary portfolio, balancing strong core volume with innovation-led growth across travel retail markets.
CM: KTI has built its reputation in value segments. How do you translate that into a channel increasingly driven by premiumisation and trading-up?
SB: KT International leverages its heritage in the value segment by offering a strong balance between quality and price, ensuring products deliver more than expected at their price point.
In a travel retail environment increasingly driven by premiumisation, the company focuses on “accessible premium” positioning – combining high-quality blends, refined design and innovative features with competitive pricing. This allows KT International to meet the needs of consumers who are trading up, while still maintaining a clear value proposition.
Through continued investment in product development, packaging and innovation, the portfolio is evolving to align with premium trends without losing its core strength. This allows KT International to participate in premiumisation while maintaining its value-led competitive advantage.
CM: Let’s be candid: your business still relies heavily on traditional cigarettes. How sustainable is that – and where do next-generation products fit into your commercial future?
SB: Consumer choice and category balance remain key. Next-generation products represent an important and growing segment, offering alternatives for adult consumers seeking different experiences. However, traditional tobacco continues to demonstrate strong loyalty and steady demand across many regions.
At KT International, we see both categories developing in parallel rather than replacement. While reduced-risk products continue to evolve, traditional tobacco remains a significant driver of travel retail revenue.
To support this balanced approach, KT International has its LIV brand within the next-generation product category. The company sees the future of the category in coexistence, allowing travellers to choose products that match their preferences and expectations.
CM: What’s the hardest conversation you’re having with duty free partners right now?
SB: The most challenging discussions today centre on balancing regulatory pressure with evolving consumer and commercial growth expectations. Partners are increasingly focused on compliance, flavour and packaging restrictions, and the growing demand for next-generation products – while still expecting strong performance from traditional tobacco.
KT International approaches these discussions collaboratively, emphasising long-term partnership, flexibility, and tailored solutions. The focus is on maintaining growth while adhering to an increasingly complex regulatory and commercial environment.
CM: If we sit down again in five years’ time, what will KT International look like? And what role will travel retail have played in that transformation?
SB: KT International will continue its progressive growth, strengthening its position as a globally recognised independent manufacturer. We expect to maintain a strong focus on traditional tobacco while continuing to introduce innovation and product differentiation.
Travel retail will play a key role in this transformation, acting as a platform for international expansion, brand visibility and partnership development. By leveraging the channel’s global reach, KT International aims to accelerate international growth and reinforce its position in the competitive travel retail tobacco landscape.
