‘PMI Considered Selling Marlboro Business’

Philip Morris International considered selling its Marlboro business to exit the cigarette industry, CEO Jacek Olczak told The Daily Mail.

In the end, however, the company decided to keep the business to help finance its growth in “wellness” products, according to the British tabloid.

“Yes, we had this discussion [about selling Marlboro]. Our conclusion was, if we retained cigarettes, actually it would accelerate our journey [from traditional tobacco revenues] because I can allocate resources,” Olczak was quoted as saying.

According to Olczak, three-quarters of PMI’s resources go to finding cigarette alternatives.

Olczak’s comments come as PMI faces a growing backlash from health campaigners over its plans to buy British inhaler company Vectura. Earlier this month, the board of Vectura said it would support PMI’s £1.1 billion ($1.5 billion) takeover offer after the cigarette manufacturer had outbid private equity firm Carlyle.

Medics and health experts have warned that the deal could spoil Vectura’s key contracts and government grants. A group of 35 health experts wrote an open letter earlier this month saying a takeover by the tobacco company would “significantly hamper” Vectura’s strategy of operating as a research-focused pharmaceutical company.

PMI has said its bid for Vectura is part of its shift from cigarettes to a “smoke-free” future where it sells less harmful e-cigarettes and “wellness” products. The cigarette manufacturer aims to generate 50 percent of its income from smoke-free products by 2025.

Philip Morris needs more than 50 percent of shareholders to support its Vectura bid by Sept. 15.