Universal Corporation Announces Agreement with Philip Morris International Inc. to Supply U.S. Tobaccos

 

(PRNewswire) George C. Freeman, III, Chairman, President and Chief Executive Officer of Universal Corporation (NYSE: UVV) ("Universal"), announced today that the Company's subsidiary, Universal Leaf North America U.S., Inc. ("ULNA") will increase its direct purchases of flue-cured and burley tobaccos, expanding its support of United States tobacco growers, as part of a new leaf supply agreement with Philip Morris International Inc. ("PMI"). PMI's decision to adopt a new leaf buying model for their U.S. leaf purchasing operations, announced separately today, provides for a transition from a direct farmer contracting model to purchasing processed grades of tobaccos through two global leaf suppliers in the United States. The transition is expected to provide important supply chain efficiencies and is indicative of PMI's and Universal's strong commitment to the grower communities and PMI's intent to remain a major purchaser of U.S.-grown leaf tobacco. The change will be effective for the 2015 crop and will include the assignment of certain grower contracts and use of receiving station operations. Continued

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