New York-By 2025, smokeless products will account for half of Philip Morris International's (PMI) total net income, higher than the previous target of 38% to 42%.
The Marlboro cigarette manufacturer held an investor day event in early February. Please refer to its website for details. In part of the speech, PMI management including CEO Andre Calantzopoulos and COO Jacek Olczak focused on the progress of the company's heat-not-burn equipment IQOS and the next generation version IQOS ILUMA's plan.
Carenzopoulos said: “Changing the product and shifting smokers from cigarettes to less harmful alternatives is the greatest contribution we can make to society and public health.”
The U.S. Food and Drug Administration (FDA) announced in July that Philip Morris Products could market IQOS as a modified risk tobacco product (MRTP). The heated tobacco system allows adult smokers to use tobacco by heating instead of burning.
Altria Group, located in Richmond, Virginia, signed an exclusive license agreement with PMI to commercialize IQOS and its accompanying compressed tobacco heating rods in the United States. Altria subsidiary Philip Morris USA is adding IQOS to Altria’s product portfolio for adult smokers looking for alternatives to cigarettes.
The FDA cited scientific research as saying that a complete switch from traditional cigarettes to the IQOS system can significantly reduce exposure to harmful or potentially harmful chemicals; however, this does not mean that the product is safe or FDA approved.
Calantzopoulos said that IQOS has 64 markets, but COVID-19 has hindered its launch in the United States. It is sold in more than 500 retail stores in Atlanta and Richmond, but due to the pandemic, its launch in Charlotte, North Carolina was delayed. PMI predicts that IQOS will reach 100 markets by the end of 2025.
It has been five years since its full launch.
Calanzopoulos said: "I think we have achieved success in IQOS, but also have a first-mover advantage." "Obviously, IQOS still needs to work hard to build its brand equity, but I think we are on the right path. We are on the right path. The goal is that in a few years, we will have the upper hand in the minds of consumers like Marlboro and other iconic brands."
The next generation product IQOS ILUMA will be launched in the second half of 2021. PMI stated that the product has an internal heating function based on Smartcore induction technology, which replaces the heating blades of IQOS.
It also plans to launch IQOS VEEV, an electronic steam product with MESH technology, in more than 20 markets this year.
According to its website, New York PMI sells tobacco products in more than 180 markets. Its top brands include Marlboro, Parliament, Virginia Slims, IQOS, etc.
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