The Karelia Tobacco Company remains a symbol of Greece’s business history and a name entwined with tradition since its establishment in 1888.
As Greeks used to be avid smokers, the name Karelia and the emblematic packs became a big part of Greece’s culture. The Greek tobacco company has been a family business for 136 years.
Even though that has changed in the past two decades and fewer Greeks smoke, the company continues, moving with the changes, still at the top of cigarette manufacturing and exporting in the country, with several subsidiaries around the world.
Today, they sell Karelia cigarettes in more than 65 countries. According to company statistics, one in 300 cigarettes smoked in the world is Karelia.
Furthermore, Karelia is at the top of the “best employers” list every year, taking good care of its employees. At the end of 2024, the tobacco manufacturer gave its employees an extra monthly salary and a 5 percent raise, along with the standard gold and blue bonuses for families with children. Karelia also funds charitable causes.
George Karelias and the History of the Karelia Company
The tobacco company’s origins go back to 1888, when the Karelia family set up a small tobacco business in Kalamata, in the Peloponnese. Initially, their business catered to regional people, as the country’s economy would not allow for big enterprises. That lasted until the end of World War II, and later the Greek Civil War (1946-1949).
In the 1950s, when the political situation became stable and Greece recovered, the Karelia family started to expand its brands into more national markets. Since the economic outlook started to look promising, more Greeks picked up smoking and cigarette sales increased. Soon the Karelia brands became popular all across Greece.
In 1959, at the age of 30, George Karelias returned to Greece from the United States, where he had studied Economics and Business Administration. He brought innovative ideas to promote the tobacco company and expand operations with him. A new Karelia manufacturing plant, covering 80,000 square meters was built in Kalamata in 1971. The sales and marketing offices were established in Athens.
The tobacco company entered the Athens Stock Exchange in 1976 and was publicly traded under the Karelia Brothers name. Karelia became the Greek licensed manufacturer for RJ Reynolds (currently Japan Tobacco International) the same year, producing and distributing the Winston brand. Karelia started producing and distributing the Camel brand in 1981.
In the 1990s, the Greek tobacco company expanded internationally, exporting Karelia and producing international brands. The company adopted its current name, the Karelia Tobacco Company Inc., in 1991. Karelia established an office in Sofia, Bulgaria three years later.
The Karelia name branched out by wholly owning subsidiary Meridian Duty-Free Specialists, a ship-handling company after previously acquiring it in 1995. The Karelia Belgium and the Karelia Investment were established in 1997.
The Greek tobacco company Karelia in the New Century
Karelia expanded to more markets and started new ventures in the new millennium, buying other businesses and developing its trademark brands. They ceased cooperation with Japan Tobacco International. A UK subsidiary called Karelia Tobacco Company (UK) Ltd was established to distribute its brands in that market in 2003.
The Bulgarian subsidiary was upgraded to a commercial import company called Karelia Bulgaria EOOD in 2007, followed by establishing its subsidiary GK Distributors EOOD.
Another subsidiary was established in 2008, Karelia Tütün ve Tiçaret A.S. Karelia acquired the Backwoods cigar brand from Altadis S.A. the same year to distribute in Greece and duty-free markets.
Today, Karelia Tobacco Company is Greece’s largest cigarette manufacturer and exporter. More than 87 percent of production is directed to international markets, making Karelia one of Greece’s largest export businesses. With offices throughout Greece, its brands reach over 26,000 sales points. Its current annual sales turnover is an estimated 876 million euros.
George Karelias’s son, Andreas, is the Managing Director, while his mother, Victoria Karelias is president and his brother, Stathis, is vice president.
The George and Victoria Karelia Foundation
Other than his business savvy, George Karelias was an art lover with a talent for painting. He also loved literature and history. He consistently contributed to educational and cultural initiatives in Messenia, where he resided until his death in April 2000.
Karelias’ sensitivity and vision led him to found along with his wife the “George and Victoria Karelias Foundation” in 1993. The foundation significantly supports initiatives for economic development, education, culture, literature, and arts, preserving Greek traditions, and assisting the needy.
After his death, his wife and president of the foundation, Victoria Karelia, took over. She champions preserving and promoting Greek folk traditions, culture, arts, and the values of respect, creativity, and healthy competition.
Victoria Karelia is the President of Karelia Tobacco Company, the Greek Girls’ High School of Kalamata, and the Honorary President of the Association of Friends of Music of Kalamata.
