RICHMOND, Va., March 2, 2015 /PRNewswire/ -- George C. Freeman, III, Chairman, President and
Chief Executive Officer of Universal Corporation (NYSE: UVV)
("Universal"), announced today that the Company's subsidiary,
Tabacos del Pacifico Norte S.A. ("TPN") will be increasing its
purchases of leaf tobaccos in Mexico, as part of a new leaf supply
arrangement for Mexico with Philip
Morris International Management SA ("PMIMSA"). Previously, the
purchase and processing of these tobaccos was handled directly by a
subsidiary of Philip Morris International Inc. Starting with
the upcoming 2015 crop, PMIMSA will purchase processed grades of
tobacco from TPN. The new arrangement is expected to provide
important supply chain efficiencies and is indicative of PMIMSA's
and Universal's strong commitment to the grower communities in
Mexico and PMIMSA's intent to
remain a major purchaser of Mexican-grown leaf tobacco. Universal
has managed operations in Mexico
since the 1960s.
Mr. Freeman stated, "This new arrangement is a meaningful
example of our efforts to implement tailored solutions that benefit
our company, our longstanding global business partners, and our
grower communities. We are very excited to be a part of this
undertaking and welcome the opportunity to more efficiently support
the tobacco supply chain in Mexico. We believe that global
leaf suppliers add efficiencies to the markets through economies of
scale as well as through the vital role we play in finding buyers
for all styles and leaf grades of tobacco.
"As a global leader in the supply of leaf tobacco, we are
committed to the sustainability of our grower communities.
The strength, efficiency, and security of the supply chain is vital
to our success and to the success of our customers. We work
diligently to preserve the quality and integrity of our tobacco
from the time it is planted, through processing and delivery to our
customers. We will continue to employ the high standards of Good
Agricultural Practices, including our commitment to the
Agricultural Labor Practices code ('ALP'). ALP is designed to
further our corporate goals and the goals of our customers' of
progressively addressing and eliminating concerns found in
agriculture with child and other labor issues, and achieving safe
and fair working conditions on all farms from which we source
tobacco.
"As a result of PMIMSA's changes to their leaf acquisition
models in both the United States,
as announced in November 2014, and
now in Mexico, we expect financial
benefits for our North America
segment beginning in fiscal year 2016."
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30
countries. Its revenues for the fiscal year ended
March 31, 2014, were $2.5 billion. For more information on Universal
Corporation, visit its website at www.universalcorp.com.
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SOURCE Universal Corporation