A subsidiary of VCT International, HNB Center began to work with granule-filled consumables provided by Yunnan Tobacco, which holds the patents for the sticks and corresponding device, almost two years ago, first trying them on a traditional device. “The taste was already better,” says Gorter. “You can smoke the sticks with a blade device, but this of course will perforate the membrane and create waste. We didn’t want that, so we thought of using airflow.” While airflow has been around for some time, the technology has improved considerably in recent years, according to Gorter.
Gorter believes that airflow-heated granule-filled sticks provide consumers with an experience that is closer to traditional smoking than other systems. “Two years ago, we did a survey with smokers on our traditional heat sticks and included two packs of the granule-filled prototypes,” he recalls. “These instantly went to No. 1 in the perception of the participating consumers. The taste is fuller. It’s also our answer to the flavor ban on HTPs, which will be effective in the European Union from May 2024, allowing only tobacco flavor. We want to provide a heat stick that comes close to traditional tobacco smoking. We cannot add any flavors, but we can play with different sorts of tobacco and blends as well as with the number of grams of the granules in the stick; a higher grammage will result in fuller flavor.”
The device, which is called My Choice NOVA, has a battery capacity of 15 sticks, making it suitable for the average smoker, who typically consumes 13 cigarettes a day. Gorter is convinced that his technology will make a significant change. “You can also put any stick in this device; the whole system of airflow is giving you a better smoke experience.”
The company started its business in 2019, when it obtained the European distribution rights for the heat sticks from Yunnan Tobacco. HNB Center created the brands, designed the packaging and developed a marketing narrative. “At that time, PMI was the only HTP manufacturer in the European market,” says Gorter. “In 2019, we launched MC, which is the heat stick brand, and My Choice, which is the device. We started with traditional heat sticks similar to PMI’s Heets. What makes us different in this market dominated by the big four is that we work with independent players—distributors, wholesalers and agents who do the sales and marketing in the countries where we are present.”
Currently, the company sells its products in seven countries, including Italy—Europe’s largest HTP market—Portugal, Spain and some Eastern European countries, and it aims to expand into new markets.
Due to the flavor ban, Gorter expects the entire EU HTP market, where flavored heat sticks account for 70 percent of sales, to change. Flavored sticks also represent a big share of HNB Center’s business. The company is betting that its tobacco-flavored granule-based consumables will help offset declining sales of flavored products following the EU ban.
HNB Center plans to launch its MC Cosmic consumables and device in several countries, starting in Italy, where HTP consumption currently stands at 6 billion sticks annually.