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Tag: IQOS

  • PMI Talks Smoke-Free Progress at CAGNY

    PMI Talks Smoke-Free Progress at CAGNY

    Today (Feb. 18), Philip Morris International outlined its long-term strategy at the Consumer Analyst Group of New York Conference, emphasizing its accelerated shift toward smoke-free products. CEO Jacek Olczak and CFO Emmanuel Babeau said more than 40% of current net revenues now come from smoke-free alternatives and reiterated its goal of reaching two-thirds of total revenue from these products by 2030. For 2026–2028, PMI projects 6%–8% organic revenue growth, 8%–10% operating income growth and 9%–11% adjusted EPS growth, driven by high single-digit to low-teen smoke-free volume increases, strong pricing power and margin expansion. Smoke-free products generated $17 billion in revenue and 180 billion units in volume, delivering more than double the revenue and gross profit per unit compared with combustibles, while operating cash flow is expected to reach about $45 billion over the period.

    “Somebody very recently interested in this category of smoke-free products, told me, ‘Jacek, your problem is not that there is too little science about this product. Your problem is that there is too much politics about these products,’” Olczak said. “Because the science is very indisputable what these products offer versus a cigarette. It just takes a while until it really starts penetrating and open the last, if I may say, closed minds in the world.”

    Operationally, PMI has smoke-free products available in 106 markets, exceeding the company’s 2025 target, with three of four regions deriving over half of their revenue from smoke-free categories. PMI highlighted early success in Taiwan, where IQOS captured a 6% share in Taipei within three months of launch, and said growth in smoke-free volumes is expected to offset combustible declines. The company is also engaging regulators to expand market access and address illicit trade in the e-vapor segment, while targeting a net debt-to-EBITDA ratio near 2x by end-2026 and increasing dividend growth toward a 75% payout ratio of net profit.

  • PMI launches IQOS Iluma i One in the UK

    PMI launches IQOS Iluma i One in the UK

    Philip Morris Limited (UK) launched the Iluma I One, the latest addition to its IQOS Iluma heat-not-burn device range, which now includes the Iluma I, Iluma Prime, and Iluma I One. The I One uses the bladeless Smartcore Induction System to deliver tobacco flavor with 95% fewer harmful chemicals than cigarettes and features a touchscreen, autostart, and Flex Puff technology for a personalized experience. The device works with TEREA tobacco sticks, including the new Pearls range, supporting PML’s strategy to provide adult smokers with satisfying, smoke-free alternatives and advance its “smoke-free future” mission in the UK.

  • India ‘Illogical’ in Keeping Alternative Ban

    India ‘Illogical’ in Keeping Alternative Ban

    India has ruled out easing its 2019 ban on e-cigarettes, confirming that the prohibition will continue to include heat-not-burn tobacco products. The Health Ministry said the government is not considering amendments to the law and remains committed to evidence-based tobacco control measures, reinforcing restrictions in one of the world’s largest cigarette markets, where more than 100 billion cigarettes are sold annually and tobacco use is blamed for over 1 million deaths each year.

    The decision is a setback for Philip Morris International (PMI), which had lobbied Indian officials for years to allow its IQOS heated tobacco device, a move analysts viewed as a significant IQOS driver of future expansion. By maintaining the ban, according to Reuters, India effectively blocks PMI from introducing its flagship smoke-free product into a high-volume market that the company had hoped would support its long-term transition strategy.

    In an interview with Reuters, Jacek Olczak, the firm’s chief executive, said he had engaged with various people in India, adding that it was “illogical” for the market to be closed to smoking alternatives such as heated tobacco and vapes, but not cigarettes.

  • PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.

    PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.

    Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.

    In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.

    “On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”

  • IQOS Curious X Debuts at Zamna

    IQOS Curious X Debuts at Zamna

    Philip Morris International (PMI) launched its global collaboration between IQOS and the Zamna music festival last week, according to Marvin magazine, with its IQOS Curious X platform debuting at Zamna 2026 in Tulum, Mexico. The engagement platform featured a dedicated IQOS experience zone aimed at adult smokers and adult nicotine users, aligning music and immersive environments with PMI’s smoke-free positioning.

    Leonardo de Alencar, director of smoke-free products at Philip Morris Mexico, said festivals such as Zamna provide a space to engage adult audiences and support the transition away from cigarettes, while Zamna executives described the partnership as part of a broader push for creative and cultural innovation. Zamna originated in Tulum, and this year will host additional music festivals in Egypt, Malta, and Türkiye.  

    PMI said IQOS now has more than 34 million adult users globally, including over 140,000 in Mexico.

  • IQOS Opens Flagship Boutique in Philippines

    IQOS Opens Flagship Boutique in Philippines

    PMFTC, the Philippine affiliate of Philip Morris International, opened a new IQOS Boutique in Glorietta, marking its latest flagship retail space in the country. The boutique, which opened on December 19, is designed as a multi-sensory environment showcasing IQOS smoke-free technology for legal-aged nicotine users.

    PMFTC said the Glorietta location reflects its continued focus on smoke-free alternatives and premium retail experiences, featuring interactive elements such as scent and personalization zones, limited-time engraving services, and curated launch activities. Company executives said the boutique aims to provide adult smokers with a dedicated space to learn about and engage with smoke-free options as part of PMI’s broader smoke-free vision in the Philippines.

  • CEO Breaks Down PMI’s Smoke-free Future for Investors

    CEO Breaks Down PMI’s Smoke-free Future for Investors

    Philip Morris International used its appearance at the Morgan Stanley Global Consumer & Retail Conference yesterday (December 2) to reinforce that its smoke-free transition is a structural, irreversible shift, not a cyclical phase. CEO Jacek Olczak framed the dynamic succinctly, noting that smokers who switch to alternatives “very rarely” return to combustible cigarettes and that “smoke-free is essentially a one-way street.”

    Immediately before the event, PMI issued a brief communication to stabilize expectations, reaffirming the company’s guidance from Q3.

    Olczak said that PMI’s three-platform system—IQOS, ZYN, and vapor—is the most effective way to replace combustibles across all usage occasions. “Our objective is to equip the smoker with all three platforms. This is the best way to keep them away from smoking,” he said.

    ZYN remains PMI’s central U.S. growth engine. Following a one-time $100 million activation after supply shortages, “brand equity parameters of ZYN shot up by double-digits,” with the product capturing more than half of category growth despite maintaining a premium price.

    Internationally, IQOS is in its 11th consecutive year of expansion. Japan is nearing a 50/50 split between combustibles and smoke-free products, and prior category pauses were, Olczak said, “just a blip on the graph.” Upcoming Japanese tax equalization and European flavor bans are viewed as temporary disruptions rather than structural threats.

    PMI is also restructuring around a U.S./International dual-engine model, retiring its traditional regional setup. “We don’t really run the business by regions anymore,” Olczak said, positioning the company for future IQOS ILUMA authorization in the United States.

    Capital demands remain modest, with Olczak stressing that “adding extra capacity is only a few hundred million dollars — not a disturbing factor.” Overall, his message to investors was clear: the smoke-free shift is a one-way trajectory, and PMI believes it now has the platforms, structure, and regulatory environment to accelerate it.

  • PM Japan Launches Sentia Icy Red for IQOS

    PM Japan Launches Sentia Icy Red for IQOS

    Philip Morris Japan introduced a new heated tobacco product, Sentia Icy Red, for its IQOS ILUMA i device and the IQOS ILUMA-exclusive “SENTIA” sticks. The product will be available in Japan beginning today (December 1) at four IQOS stores nationwide, select Yamada Denki and Bic Camera locations, and IQOS corners in some Don Quijote-affiliated stores. Online sales begin December 4, with availability at tobacco and convenience stores nationwide from December 8.

    According to the company, Sentia Icy Red features a strong cold menthol sensation combined with delicate fruity red berry and floral aromas, expanding the Sentia portfolio to 17 brands. The product is priced at 530 yen ($3.39) for 20 sticks.

    This launch reflects Philip Morris Japan’s ongoing strategy to diversify flavors and experiences for heated tobacco consumers while promoting its IQOS ILUMA platform.

  • Malaysia to Study Effects of IQOS

    Malaysia to Study Effects of IQOS

    Malaysia’s Home Ministry recommended that the National Poison Center conduct a study on IQOS, Philip Morris’ heated tobacco product. Minister Datuk Seri Saifuddin Nasution Ismail said the health effects of the device are not yet known, but an initial study would help prepare the government for future legislation. Speaking at a seminar, he described the product as a “new innovation posing regulatory challenges.” He emphasized that laws on poisons and drug abuse must remain dynamic to address emerging substances.

    Saifuddin added that while the device’s marketing campaign advises non-smokers not to start and encourages smokers to quit or switch, the government must be proactive in assessing potential risks. He suggested that legal amendments could be drafted broadly to prevent loopholes.

  • FDA Establishes Closing Date for Public Comments on MRTP Renewal Applications for IQOS Products

    FDA Establishes Closing Date for Public Comments on MRTP Renewal Applications for IQOS Products

    Today (November 6, 2025), FDA established the closing date for the public comment period on the modified risk tobacco product (MRTP) renewal applications submitted by Philip Morris Products S.A. for several IQOS heated tobacco products. Public comments on these applications must be submitted to the appropriate docket by 11:59 p.m. ET on December 8, 2025, to ensure they are considered by FDA:

    The application materials, redacted in accordance with applicable laws, can be found on FDA’s website. Before making a final determination on an MRTP application, FDA takes into consideration all relevant information available to the agency, including public comments and recommendations from the Tobacco Products Scientific Advisory Committee (TPSAC).

    FDA held a TPSAC meeting to discuss these renewal applications on October 7, 2025. The public was able to attend virtually and present comments to the committee. Materials from the meeting are available on FDA’s website.

    For the latest updates on any MRTP applications under scientific review, sign up to receive email alertsExternal Link Disclaimer.