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KT&G Expands Airport Duty-Free Footprint to Istanbul and Gulf Hubs

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KT&G Expands Airport Duty-Free Footprint to Istanbul and Gulf Hubs

KT&G has secured new duty-free retail space across international airport hubs in Istanbul, Bahrain, and Kyrgyzstan. The rollout builds on its 25-year retail tenure at Seoul’s Incheon International Airport.

Management is targeting high-traffic transit corridors. Global passenger volumes are recovering, and overseas demand for the group’s flagship cigarette brand Esse continues to climb.

Istanbul Airport handles roughly 84 million passengers annually as a key transfer nexus between Europe, Asia, and the Middle East. KT&G rolled out five Esse products across terminal duty-free shops there in August. Esse generated approximately 2 trillion won in total sales last year. More than 1 trillion won of that came from international markets. New supply contracts also placed KT&G product lines into duty-free outlets at Muharraq in Bahrain and Bishkek in Kyrgyzstan after negotiations at international travel retail trade events.

This push into Eurasian and Middle Eastern travel retail builds on KT&G’s position at Incheon International Airport, where it has operated continuously since the terminal opened in March 2001. The manufacturer lists roughly 100 product variations at the hub today. Between 2015 and 2017, the company ranked as the top-selling brand by value across Incheon’s entire retail floor. Sales reached 159 billion won ($118 million) in 2017, outbilling second-place Louis Vuitton by nearly two to one, according to Incheon International Airport Corp data.

That domestic track record gives the company use when negotiating concession shelf space with multinational operators. 2 percent in the first half of the year against the previous six months. 7 million foreign tourist arrivals during that period, providing steady cash flow to fund overseas distribution buildouts.


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