Kohltrade Tobacco Trading Brazil and Star Tobacco International yesterday announced they will cooperate internationally in the fields of marketing and sales of each other’s products.
Kohltrade Tobacco Trading, headquartered in Santa Cruz do Sul, Brazil, becomes the exclusive marketing entity for Star tobaccos of African, Asian and European origins for the Latin American region.
Star Tobacco International, headquartered in Istanbul, Turkey, becomes the exclusive international marketing entity for all Kohltrade tobaccos of Latin American origin sold outside Latin America. Star said it will maintain a strategic stock of the most popular grades of Latin American FCV in its depot in Antwerp, Belgium, "to accelerate the commercialisation of these tobaccos" and offering its clients “just in time” delivery.
Prior commercial arrangements of Kohltrade and Star will not be affected, and the marketing alliance with Star does not involve Kohltrade´s international commercialisation and distribution of cut-rag products.
Commenting on the deal, Star’s CEO Dr. Iqbal Lambat said that the transformation of the largest tobacco exporting country in the world – Brazil – initiated in 2008 by MNCs vertical integration programmes had resulted in a significant change in supply-side dynamics, especially for small and medium-sized companies sourcing Brazilian tobaccos. "With Kohltrade’s strong direct sourcing and packing capabilities in Brazil, Star is now better positioned to offer its clients tobaccos of this origin at competitive terms and with the security of long-term supply,” he said.
Kohltrade Business Director, Hardy Kohl Jr., added that the agreement with Star places his company in a position where it can be more focused on qualifying vendors and on serving the Latin American market by adding tobaccos of international origin, especially from Asia and Africa, to enhance Kohltrade's portfolio. "With this agreement, we intend to substantially increase the originally planned volume of tobacco to be sold by Kohltrade in 2012,” he said. (ci)