MORRISVILLE, N.C., March 11, 2015 /PRNewswire/ -- Alliance One International, Inc. (NYSE: AOI) announced today that the company's subsidiary, Alliance One Brasil Exportadora de Tabacos ("AOB"), has been selected to provide Brazilian burley leaf tobacco to Philip Morris International Management SA ("PMIMSA"), as PMIMSA adopts a new leaf supply arrangement in Brazil. Previously, Philip Morris Brasil Indústria e Comércio Ltda directly contracted and purchased a portion of its burley tobacco requirements from Brazilian growers. Beginning with the 2016 crop, PMIMSA will purchase these processed burley tobacco requirements directly from AOB. This arrangement is expected to provide enhanced supply chain efficiencies while reducing sourcing complexity, and reflects PMIMSA's and AOI's commitment to Brazilian growers and their communities as well as PMIMSA's intent to remain a major purchaser of Brazilian tobacco. AOI and its predecessor companies have operated in Brazil for over 60 years.
"Alliance One is committed to developing solutions that enhance efficiencies and reduce complexity in our customers' supply chains, while providing increased value to our stakeholders. This arrangement with PMIMSA illustrates that dedication," said Pieter Sikkel, President and Chief Executive Officer of AOI. "As a result of this arrangement with PMIMSA, we expect to see benefits for our company beginning in FY2017.
"The sustainability of our grower communities is vital to the success of Alliance One and our customers, and we are excited to further support the tobacco supply chain in Brazil through this new leaf supply arrangement. From working with farmers during the growing season through processing and delivery, we focus on providing customers with a high-quality product that is produced in a compliant manner. We will continue to help growers implement the principles of Good Agricultural Practices as well as our Agricultural Labor Practices code. Alliance One is committed to achieving safe and fair working conditions on farms where we contract."
About Alliance One International, Inc.:
Alliance One International is a leading independent leaf merchant which selects, purchases, processes, packs, stores, and ships leaf tobacco to customers in more than 90 countries across the globe. Committed to helping farmers become more sustainable and produce higher yielding and higher quality tobacco, food and cash crops, the company also provides agronomy expertise and financing to suppliers. For more information, visit www.aointl.com.
Forward-Looking Statements
This press release contains forward-looking statements. Actual results may differ materially from those reflected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained under the heading of "Risk Factors" listed from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alliance-one-international-announces-agreement-with-philip-morris-international-to-supply-brazilian-burley-tobaccos-300049237.html
SOURCE Alliance One International, Inc.
Investors: Joel L. Thomas, Executive Vice President - Chief Financial Officer, Alliance One International, Phone: +1 (919) 379-4300, Media Contact: Jennifer Fair, Corporate Communications & Compliance Manager, Alliance One International, Phone: +1 (919) 379-4300
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