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Tag: Philip Morris Fortune Tobacco Co.

  • New President at PMFCT

    New President at PMFCT

    Photo: motortion

    Gijs Lambert Johan de Best will take over as president of Philip Morris Fortune Tobacco Co. (PMFTC) in the Philippines, succeeding Denis Gorkun who has been the company’s president since September 2019, reports The Philippine Star.

    Gorkun will step down at the end of this month, concluding a nearly 30-year career at PMI.

    De Best is currently Philip Morris International’s vice president strategy and program delivery for South and Southeast Asia, the Commonwealth of Independent States and Middle East and Africa.

    After starting as a financial analyst at PMI’s Netherlands office in August 2004, he held managerial positions in Belgium, Spain, Switzerland, Germany, eventually becoming director of business development during his time in Hong Kong.

    PMFTC is a partnership between PMI and LT Group’s Fortune Tobacco Corp., which owns 49.6 percent of PMFTC. In 2023, the firm held 55.2 percent share of the Philippines’ tobacco market.

    PMFTC’s net income declined 26 percent last year to PHP11.38 billion ($198.05 million). LT Group attributed the drop to an industry-wide price increase in the first quarter of last year, which depressed sales.

    Rising illicit cigarette trade incidence and trade inventory movements also contributed to the lower income, according to LT Group.

  • PMI Eyes Philippines Leaf for Smoke-Free

    PMI Eyes Philippines Leaf for Smoke-Free

    Photo: Philip Morris Fortune Tobacco Co.

    Philip Morris International may start using Philippine tobacco in its smoke-free products following the expansion of a factory operated by a local affiliate, reports The Philippine Star.

    “We’re also thinking about starting using the Philippine tobacco in the smoke-free products,” said PMI CEO Jacek Olczak during the inauguration of Philip Morris Fortune Tobacco Co.’s (PMFTC) factory in Tanauan City, Batangas.

    Olczak stated that the quality of the Philippines’ tobacco leaves is “getting better and better.”

    “They require even better quality, consistency, etc. But I believe the farmers, the tobacco growers in the Philippines can deliver on that quality,” Olczak added.

    PMFTC is a 50-50 partnership between PMI and Lucio Tan’s Fortune Tobacco Corp. The expanded factory will produce PMI’s heated-tobacco sticks under the Blends brand for its smoke-free Bonds product.

    PMFTC mixes local tobaccos with international varieties in its products.

    “You will find the Philippine tobacco in our products in every country in which we operate,” Olczak said. “So in more than 100 markets, you will find the Philippine tobaccos in the product.”

    “We’re very happy with the regulatory environment and the business environment in the Philippines, and we decided to locate this manufacturing here,” he added.

  • Philippine Law Paves Way for Alternatives

    Philippine Law Paves Way for Alternatives

    Photo: Balint Radu

    The enactment of a new vape law in the Philippines last year has paved the way for products that provide smokers with better alternatives to cigarettes, according to Philip Morris Fortune Tobacco Co. (PMFTC) President Denis Gorkun.

    In addition to moving regulation of vapes from the Philippine Food and Drug Administration to the Department of Trade and Industry, Republic Act 11900 lowered the purchase age for e-cigarettes and heated tobacco products from 21 to 18, removed a two-flavor limit on product flavors and allows companies to conduct corporate social responsibility-related activities.

    In an interview with the Manila Bulletin, Gorkin said PMFCT would soon launch IQOS Luma, which uses induction technology to heat tobacco, and ZYN nicotine pouches in the Philippines. Made by Swedish Match, which was acquired by PMFTC’s parent company, Philip Morris International in 2022, ZYN is the best-selling nicotine pouch in the United States today.

    Since PMFTC launched IQOS in the Philippines, around 75,000 local smokers had switched away from cigarettes, according to Gorkun.

    Gorkun said PMI aims to eliminate cigarette consumption in line with its vision to deliver a smoke-free future. “We will continue to work towards our smoke-free future vision with products that are found by numerous international health authorities to be far better compared to continuing to smoke cigarettes.”

    He said the passage of the landmark Vape Law a year ago is a “win” for public health. While providing smokers with less harmful options, the law also contains provisions to deter underage consumption, according to its proponents.

    One of the authors of the vape law, former Representative Sharon Garin, said Republic Act 11900 provides that vaping isn’t made appealing to minors. “We don’t want non-smokers to pick up the habit of vaporized or electronic cigarettes,” she was quoted as saying. “What we want is a less harmful alternative for current smokers.”

  • Philippines: Partnership Against Illicit Trade

    Philippines: Partnership Against Illicit Trade

    Photo: sebra

    The Philippines Bureau of Customs (BOC) has partnered with tobacco companies to help combat illicit trade in the country, reports the Philippine News Agency

    “These groups [smugglers and illicit traders] have been very creative and aggressive in entering our markets,” said Bienvenido Rubio, BOC commissioner. “Accordingly, close cooperation with tobacco companies is aimed at addressing their various modus (operandi) with even more comprehensive methods.”

    The BOC met with Philip Morris International and Philip Morris Fortune Tobacco Corp. executives. Rubio said they will work together to ensure public health safety and fair tobacco trade.

    “That has always been our goal and our mandate—to put these smugglers away and make them accountable, answerable and ultimately face the consequences of their nefarious activities,” he said.

    “It is important for us to recognize that these (schemes) are not only very real threats but well-orchestrated plans aimed at circumventing our laws,” said Verne Enciso, customs intelligence and investigation service director.