Greece

At the most modern Oriental tobacco plant in the world, in Polykastro in northern Greece, the new wing has just been opened. Its state-of-the-art machinery, in many cases specifically designed for the processing of Oriental tobacco, is a dazzling symbol of the transformation that the fourth generation of Michailides family has brought to the company.

Founded in 1886 in what was then still part of the Ottoman Empire, A Michailides has grown to become the world's fourth largest leaf tobacco producer, generating over $150 million in turnover annually.

Although this company is some distance behind the top three global tobacco players in terms of sales, it has established a reputation for excellent quality, reliability and advanced technology, making it one of the industry's most coveted companies.

One needs only to look at its list of customers to be convinced: A Michailides supplies 106 clients in 66 countries.

Particularly important to the company is its long-standing relationship with Japan Tobacco International. "JTI is a company of the highest integrity and standards," explains Alexander Michailides, who now heads the company founded by his great grandfather. "It is not just a major economic player in the market, but also a force for stability in a creative sense."
Alexander Michailides, president and managing director of A. Michailides

"Working with JTI has allowed us to develop the very best quality of leaf tobacco, and ceaselessly improve our standards," he continues. "JTI is like an older brother to us." Today, after nearly 50 years of fruitful collaboration, JTI accounts for over 10 percent of A Michailides's total sales.

Alexander Michailides has played an important part in nurturing this relationship, while at the same time taking the company down the road of international expansion. Under his leadership, the company has established processing facilities in all major Oriental tobacco-producing countries.

Through greenfield investments or acquisitions of privatized state monopolies, the company is busy modernising plants and introducing Virginia and Burley varieties in Turkey, Bulgaria, Albania, Macedonia, Italy, Slovakia, Romania, Moldova and Algeria. Indeed, 50 percent of all sales now come from facilities outside Greece.

"When the investment climate is right, we are preparing to expand further into countries of the southern Mediterranean," he announces. That will no doubt be the work of the fifth generation of the family, which has already started work in the company.

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