The Sarajevo Tobacco Factory was founded in 1880, only two years after the occupation of Bosnia and Herzegovina by the Austro-Hungarian Empire in 1878.

The first products of FDS were the cut tobacco packets produced manually in the device called “avan”.

The production and packing of the cut tobacco and several brands of oval and round cigarettes continued also in this period.

At the very beginning of the World War II the cut tobacco production decreased due to lower market demand.

Ever since its foundation, for more than one century now, FDS has experienced many turbulent periods caused by the change of government and different social and political systems, but it has never stopped operating and producing.

FDS achieved success, not only in the market of SR Bosnia and Herzegovina, but also abroad including Egypt, Russia, Turkey and Japan.

In order to extend and modernize the facilities, a new factory complex was built in 1960 in the Pofalići area, occupying about 40 000 m2.

All the activities intended for the upgrade of the production process and education of the employees resulted in the signing of a contract with Philip Morris to make Marlboro cigarettes in 1970.