Breaking Barriers, Building Bridges: Inside Pangea’s Partnership with China Tobacco

About China Tobacco: China National Tobacco Corporation (CNTC) is the world’s largest tobacco company, responsible for nearly half of global cigarette production. As a state-owned enterprise, it holds a monopoly in China’s domestic market, supplying a wide range of tobacco products, including traditional cigarettes and emerging alternatives like Heated Tobacco. In recent years, CNTC has focused on expanding internationally, seeking strategic partnerships to navigate foreign markets and meet evolving consumer preferences worldwide.

Interview with Kostas Bareikis – Co-Founder of Pangea Alliance and Leading Figure in China-Europe Tobacco Trade

Expanding into a new market is never easy – especially when cultural differences, strict regulations, and fierce competition stand in the way. For China Tobacco, entering Europe required the right partner – one with global expertise, local insights, and the ability to bridge East and West. Enter Pangea. In this interview, Pangea shares how the partnership came to life, the challenges they faced, and the milestones that made all the difference.

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Opening & Context
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Let’s start with the big picture – how did Pangea become the exclusive partner for China Tobacco in Europe? What’s the story behind this partnership?

‍Our long-standing relationships in China have connected us with top-tier manufacturers. You could say the door was already open, and on the other side waited China Tobacco, except – it wasn't that easy (smiles). Building on this momentum, we expanded into the HNB (Heat-Not-Burn) product market in Europe. This significant breakthrough earned us China Tobacco’s trust as their exclusive distributor.
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China Tobacco is a giant in the industry. What made them choose Pangea over other potential partners?

Pangea is a multinational company with a unique advantage: our local teams drive sales across Europe, while our Chinese team connects directly with resources in China. You could say we’re the bridge between East and West – something not many companies can pull off.

Tobacco exports can be a complex business, especially with regulations and shifting market trends. What’s the biggest challenge of bringing China Tobacco products into Europe?

The biggest challenge? Bridging cultural differences. Western markets aren’t always familiar with Chinese brands, and Chinese product teams sometimes struggle to position their products for Western consumers. But that’s where we come in. By acting as the bridge, we’ve made communication more effective, aligning both sides on product development and market strategies.

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Pangea’s Role & Expertise

Let’s talk strategy – what does it actually take to bring a brand like China Tobacco into a regulated market like Europe?

Entering Europe’s tobacco market isn’t easy – giants have dominated the space for years. The first step is building a highly competitive distribution system. From there, success depends on having global reach and a local team that understands the market firsthand – one that knows how to shape the brand and drive sales.
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Beyond logistics, what kind of hands-on role does Pangea play in making sure these products succeed?

We do more than move products – we shape how consumers see them. Take KUNGFU and KUANZHAI. We helped redefine their brands, putting them front and center at polo matches, music festivals, and racing events. It’s all about building awareness and shaping perception. Meanwhile, our local teams make sure everything runs smoothly – organizing distribution, monitoring performance, and staying competitive at the retail level. If the market shifts, we move fast to stay ahead.
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"If the market shifts, we move fast to stay ahead"

Regulations around tobacco are getting stricter. How does Pangea navigate compliance while still ensuring a competitive market entry?

Regulations are tough, no doubt about it. But we’ve got China Tobacco backing us up – supporting everything from legal compliance to product adaptation. Plus, we never go in blind. Before we launch in any market, we do our homework, working closely with local partners who know the landscape inside and out. You could say preparation is half the battle – and we make sure we’re ready before we step in.
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Tobacco is evolving – Heated Tobacco, changing consumer habits, sustainability concerns. How does Pangea help China Tobacco adapt to these shifts?

Change is constant in this industry. China National Tobacco Corporation (CNTC) is a giant – its sheer size can make it slower to react to international trends. That’s where we come in. We’re more agile, with direct access to market insights. We’ve helped CNTC evolve its products, offering feedback that’s shaped everything from product design to positioning. Let’s just say when we spot a shift, we make sure China Tobacco knows how to move with it.

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Challenges & Problem-Solving

What’s a challenge in this partnership that caught you off guard? Something that wasn’t in the original playbook?

Competition. We knew it would be tough, but the intensity was even higher than we expected. Then there’s the EU TPD (Tobacco Products Directive). Just when you think you’ve got it figured out, the rules shift. But that’s part of the game – and we’re ready for it.
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What are some misconceptions people have about tobacco exports? Anything people assume that’s far from reality?

People underestimate just how regulated this industry is. Customs clearance, transportation requirements – they’re stricter than most imagine. Let’s just say exporting tobacco isn’t like shipping any other product. Every detail matters.

Challenges & Problem-Solving

What’s one achievement in this partnership that you’re particularly proud of?

The strategic partnerships we’ve built across Europe are some of our proudest achievements. Tobacco Queen is a great example. That collaboration helped us break into the European market faster, showing that we could deliver results while aligning with China Tobacco’s long-term goals.
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How has this partnership changed Pangea as a company? Have you had to evolve in any way?

Partnerships evolve – and so do we. As our work with China Tobacco deepened, our role shifted from distributor to strategic advisor. Coordinating between teams in Europe and China isn’t always easy, but that collaboration has made our approach more agile and adaptable.

What feedback have you received from distributors and retailers about China Tobacco products?

Quality and innovation – those are the words we hear most often. Take Tobacco Queen: its unique blend and high-quality tobaccos have earned great reviews. It stands out from competitors, and that differentiation has driven sales. The takeaway? Consumers notice quality – and they come back for it.

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The Future & Vision

Where do you see this partnership going in the next five years?

The next five years are all about growth. Together with China Tobacco, we’re doubling down on market promotion and brand building. And we’re not stopping with Europe – new markets are on the horizon.
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Do you see Pangea expanding this model to other global markets beyond Europe?

Absolutely. GCC, Southeast Asia, Africa, Latin America – you name it. The model works, and we’re ready to scale it globally.

If you had to sum up Pangea’s role in one sentence – why should brands like China Tobacco trust Pangea with their global expansion?

We’re the bridge between East and West – connecting cultures, markets, and opportunities in a way few companies can match.