Tag: Philip Morris International

PMI Prevails in Investors’ Suit

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A U.S. appeals court on Dec. 26 dismissed a securities fraud class action brought by shareholders against Philip Morris International, reports Bloomberg Law.
Investors accused the tobacco manufacturer of misleading them about the methods and results of IQOS clinical studies presented to the U.S. Food and Drug Administration. PMI sought the approval so that its former parent company, Altria Group, could sell the device within the U.S.
Investors also targeted company statements about projected IQOS sales in Japan, the only country at that time where PMI sold the line of products nationwide.
The U.S. Court of Appeals for the Second Circuit ruled that statements by PMI and its executives that the IQOS studies were “rigorous,” “the best science,” and “very advanced” were inactionable puffery. The court rejected the investors’ argument that such statements could be proven true or false.
Optimistic remarks about sales performance in Japan, meanwhile, were allowable forward-looking statements, the court ruled.
December 27, 2023
PMI’s Strategy Multi-Pronged: Baker

Photo: PMI
Philip Morris International is set to introduce LEVIA, a tobacco-free product boasting a cellulose-based composition with nicotine, aiming to reduce harm significantly compared to conventional cigarettes.
In an interview with Daily News Egypt, Gizelle Baker, PMI’s vice president of global scientific engagement, emphasized the company’s commitment to offering satisfying alternatives to smokers, understanding the complexity of breaking the smoking habit. PMI’s strategy, she noted, involves varied device types, price points, flavors, and addressing rituals associated with smoking.
Designed as a nicotine-delivery system resembling e-cigarettes but without tobacco, LEVIA emits 99 percent fewer harmful chemicals than cigarettes, according to PMI. Paired with the ILUMA device, LEVIA aims to provide a sensory smoking experience while minimizing health risks. PMI’s approach to reducing secondhand smoke involves eliminating smoke production by not burning tobacco.
Bakes said PMI envisions a smoke-free future by eliminating combustion, not necessarily tobacco or nicotine. The company aims to diversify its portfolio beyond smoking-related products into wellness and healthcare sectors, leveraging expertise gained from tobacco research. This transition includes exploring new smoke-free products beyond oral, tobacco-heating systems and vape options, according to Baker.
The company’s acquisitions in drug manufacturing indicate a shift towards diverse offerings beyond tobacco. PMI foresees future innovative products based on scientific advancements and customer satisfaction across both device and consumable categories.
December 26, 2023
Gilchrist to Lead PMI Global Communications

Moira Gilchrist (Image: PMI)
Philip Morris International has promoted Moira Gilchrist to chief communications officer, effective Jan. 1, 2024. In her new position, she will report to CEO Jacek Olczak.
Also effective Jan. 1, 2024, Marian Salzman, currently senior vice president, global communications, will assume the position of senior vice president and chief corporate citizenship officer. After more than five years spent building the global communications function, Salzman will return to the U.S. to serve as a driving force in developing PMI’s business in the U.S. market.
“Moira has been an essential part of my team for more than five years, and I am delighted that she will take over the reins of the global communication function as I shift my focus to the U.S. market,” said Salzman in a statement. “She has been instrumental in shaping the strategy of PMI’s global communications function as we evolve the business and advance our smoke-free mission. I’m excited to see all she will accomplish as she steps up to lead the function.”
“Over the past 17 years, Moira has demonstrated an outstanding ability to build focused and high-performing teams, always seeking fresh perspectives and insights to drive a culture of curiosity and continuous improvement,” said Olczak. “Coupled with her superb communication skills, these attributes will serve the company well as we pursue our ambitious goal of being a substantially smoke-free company by 2030, with the aim of more than two-thirds of our total net revenues coming from smoke-free products.”
“It is a privilege to have been selected to take the baton from Marian and lead our communications function globally,” said Gilchrist. “Marian has changed everything about how we communicate as a company, and she has had a tremendous influence on me and the extended team. We are a far stronger and more dynamic function today, and I am excited to build on her achievements to continue to move us forward.”
Since joining PMI in 2006, Gilchrist has held several positions, including leading the reduced-risk products corporate affairs team, serving as director of scientific engagement within the R&D function, and working in both product development and commercialization.
Prior to joining PMI, Gilchrist worked in the pharmaceutical sector for more than a decade. She was a principal consultant within PwC’s and IBM’s pharmaceutical industry consulting groups and held positions within both industry and nonprofit organizations as a developer of drug formulations. Gilchrist holds a degree in pharmacy and a doctorate in pharmaceutical sciences, both from the University of Strathclyde in Glasgow, Scotland.
December 19, 2023
Firms Recognized for Sustainability

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Philip Morris International and Japan Tobacco and British American Tobacco have been recognized for their sustainability efforts.
Philip Morris International has been included in the Dow Jones Sustainability World Index for the first time and for the fourth consecutive year in the Dow Jones Sustainability North America Composite Index.
The Dow Jones Sustainability World Index measures the sustainability performance of companies as identified by S&P Global through the annual Corporate Sustainability Assessment. The World Index includes the top 10 percent of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental and social criteria.
“Investors and other financial stakeholders place increasing value on reliable, robust and timely measures of sustainability performance,” said Emmanuel Babeau, chief financial officer at PMI, in a statement.
“ESG ratings are one part of the input dataset for many institutional investors. Through our annual integrated report, and the ever-strengthening processes and initiatives that underpin it, we aim to provide a holistic and extensive view of our performance across the most material sustainability issues for our business.”
PMI scored 85 out of 100 in the 2023 S&P Global CSA, reflecting a significant increase of 21 points since it first began engaging with the ranking in 2018. This is the first year PMI has recorded the highest CSA score out of 13 companies assessed in the tobacco industry by S&P.
Earlier this month, ISS ESG Corporate Rating qualified PMI as “Prime” status according to their rating methodology. Prime status is awarded to companies with an ESG performance above a sector-specific threshold, which means that they fulfill ambitious absolute performance requirements. According to ISS, the Prime rating classification qualifies companies for responsible investment. To date, PMI is the only tobacco company to have received Prime status qualification.
Japan Tobacco has been included in the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) for the 10th consecutive year.
“We are honored that the JT Group has been selected in the DJSI Asia Pacific for the 10^th consecutive year,” said Hisato Imokawa, senior vice president and chief sustainability officer, in a statement.
“We are very pleased that our sincere and continuous efforts to address social and environmental issues throughout the entire value chain continue to be recognized at the highest level. We remain dedicated to fostering transparent and precise communication of nonfinancial information, a key focus in our recent agenda. We acknowledge the significance of this initiative in promoting engagement and dialogue with stakeholders, recognizing it as a crucial endeavor.”
The JT Group scored 79/100 in the 2023 S&P Global Corporate Sustainability Assessment (based on the score data as of Dec. 9, 2023).
that BAT was included in 2023 DJSI for the 22nd consecutive year, specifically listed in the Dow Jones Sustainability Europe Index, with a S&P Global CSA score of 80/100 (as of Dec. 8, 2023).
December 12, 2023
PMI to produce BAT cigarettes in Switzerland

Photo: PMI
Philip Morris International and BAT have entered into a contract manufacturing agreement for cigarette production in Neuchatel, Switzerland, reports Le Temps.
“[L]imited volumes of BAT cigarettes will take place in the PMI factory located in Neuchatel,” BAT wrote in a press note cited by the newspaper. “This is an agreement specific to the Swiss domestic market.”
Only part of the cigarette volumes intended for the Swiss market will be produced in Neuchatel; the rest, as well as previously exported volumes, will be manufactured in other BAT factories.
Six positions will be added at the Boncourt site, according to BAT, bringing the total number of positions at the site to about 20.
BAT Switzerland announced this summer that it would maintain its warehouse and shipping department in Boncourt. The company’s head office remains in the canton of Jura.
December 4, 2023
PMI Names U.S. Communications Officer

Photo: PMI
Philip Morris International has appointed Travis Parman as vice president and chief communications officer of the U.S.
“We are thrilled that Travis is joining us in our bold ambition to deliver a smoke-free future in the United States. We’re on a mission to replace cigarettes—the most harmful form of nicotine consumption—as soon as possible with science-based smoke-free alternatives that are a better choice than continued cigarette use,” said Stacey Kennedy, president of the Americas region and CEO of PMI’s U.S. business, in a statement. “With his passion for positive change and deep communications experience in the U.S. and internationally, Travis will be a valuable addition to our leadership team.”
Parman joins PMI from AppHarvest, a tech-driven sustainable food company based in Kentucky, where he served as chief communications officer since 2020. He previously held multiple roles with the Renault-Nissan-Mitsubishi Alliance in Paris; Nashville; and Yokohama, Japan—most recently as vice president of international communications and global engagement.
Prior to his work with the alliance, he held public relations and communications leadership roles at General Motors, Ally Financial and PulteGroup. Parman holds a master’s degree in communications management from the Newhouse School of Public Communications at Syracuse University and a bachelor’s degree in communications from the University of Tennessee.
“Joining PMI at such a pivotal moment in the company’s journey toward a smoke-free future provides the perfect opportunity to drive meaningful change, which has been a hallmark throughout my career as a communicator,” said Parman.
November 27, 2023
Policymakers Must Keep Up With Innovation: Poll
Photo: Minerva Studio
Policymakers must keep up with innovative breakthroughs to benefit public health, according to respondents to an international survey carried out by Povaddo and commissioned by Philip Morris International. Seventy-four percent of participants agreed that governments’ failure to act in a timely fashion has negative consequences for public health.
Fielded among 30,591 general population adults aged 21 or older in 15 countries, the survey included the following results:
63 percent of respondents support harm reduction as an appropriate approach to help move adult consumers who do not quit smoking away from cigarettes to less harmful alternatives such as e-cigarettes and heated tobacco.
Over half of respondents (56 percent) believe their governments need to consider the role that smoke-free alternatives can play in eradicating cigarette use in their country.
Respondents overwhelmingly agree that impacted people’s voices must be heard, with 81 percent stating that governments need to consider the views of adults who smoke or use other nicotine products when deciding how to regulate different nicotine products.
According to PMI, the results reinforce the call to put an end to inaction and accelerate progress on a smoke-free future.
“In a world that demands change, it is imperative that regulators and public health officials hear from those most impacted by a policy of inaction,” said Gregoire Verdeaux, senior vice president, external affairs at PMI, in a statement. “In the case of cigarettes, those paying the highest price are adult smokers in need of better options. Their voices, needs, and aspirations must be central to the strategies and policies crafted to create a better future.”
November 8, 2023
Philip Morris granted partial VAT refund

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The Philippines Court of Tax Appeals (CTA) granted part of a refund claim by Philip Morris Philippines Manufacturing in the amount of PHP32.04 million ($564,407), which represents its unused input value-added tax (VAT) traced to zero-rated sales in 2015, reports Business World Online.
The court ruling stated that Philip Morris was able to prove its entitlement to the amount by proving that sales invoices were actual shipments from the Philippines to foreign countries for export sales.
“The court finds that even without the reopening of the trial at the division level, the submissions made by Philip Morris clarifying certain tabular presentations/summaries of its alleged zero-rated sales may already be reconsidered,” Associate Justice Catherine T. Mahan said in the ruling.
Zero-rated sales are transactions made by VAT-registered taxpayers that do not translate to any output tax. Taxpayers must present official receipts that are attributable to a specific fiscal period, with the term “zero-rated” being written on them to qualify for a 0 percent rating.
Philip Morris previously sought a refund of PHP90 million covering excess input VAT for 2015, which was partially granted by the CTA Third Division—the commissioner of internal revenue (CIR) was ordered to issue a refund of PHP31.18 million to Philip Morris.
The CTA said the CIR failed to present new arguments that would call for a dismissal of the case while the CIR argued that the CTA should have rejected Philip Morris’ appeal since the export sales were not proven to be paid in acceptable foreign currency in line with the applicable rules. The CTA disagreed, stating Philip Morris has submitted acceptable bills showing that the shipments were paid for in acceptable foreign currency.
October 24, 2023
IQOS and Zyn boost PMI quarter

Photo: Swedish Match
Philip Morris International reported net revenues of $9.14 billion in the third quarter of 2023, up 13.8 percent from the comparable 2022 quarter. Its operating income rose 13.5 percent to $3.37 billion.
PMI sold 193.6 billion cigarettes and heated-tobacco units in the third quarter of 2023, up 2.2 from the 2022 quarter. Shipments of heated-tobacco units alone increased 18 percent to 32.5 billion. Oral product shipments jumped 100 percent to 209 million cans, largely as a result of PMI’s 2022 acquisition of Swedish Match.
Smoke-free products generated $3.3 billion in net revenues during the quarter, an increase of 35.6 percent over the comparable 2022 period. Smoke-free products now account for 36.2 percent of the company’s total net revenues.
PMI estimated the total number of IQOS users at approximately 27.4 million by the quarter’s end. Approximately 19.7 million of those had switched to IQOS and stopped smoking, according to the company.
Zyn nicotine pouch shipment volume in the U.S. totaled 105.4 million cans, representing growth of 65.7 percent versus third-quarter 2022 Swedish Match shipments of 63.6 million cans.
“We delivered a very strong performance in the third quarter, surpassing $9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS [earnings per share] of $1.67, representing currency-neutral growth of 20.3 percent,” said PMI CEO Jacek Olczak in a statement.
“This reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends and the exceptional growth of Zyn, which has surpassed our expectations yet again.”
October 23, 2023
PMI Applies to Sell IQOS Iluma in the U.S.

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Philip Morris International Oct. 20 submitted premarket tobacco product applications (PMTAs) and modified risk tobacco product applications (MRTPAs) for IQOS Iluma heated tobacco products with the U.S. Food and Drug Administration (FDA).
IQOS Iluma products are PMI’s most-innovative heated tobacco products. They deliver substantially similar reductions in the formation of harmful and potentially harmful constituents as earlier versions of IQOS products authorized by FDA
According to PMI, IQOS Iluma has demonstrated higher rates of full switching by adults who smoke and improved consumer satisfaction in many countries.
IQOS Iluma products rely on a fundamentally different heating technology from previous versions of IQOS products and contain numerous technological advancements including improved device and battery longevity.
IQOS Iluma products are currently available in 27 markets internationally
PMI’s applications are supported by a thorough scientific assessment, including aerosol chemistry, in vitro toxicology, a pharmacokinetic study, and consumer perception and behavior studies, as well as the comprehensive scientific dataset generated with previous versions of the IQOS system
The IQOS Iluma devices operate on the Smartcore Induction System that heats tobacco from within Terea Smartcore Sticks—heated tobacco sticks designed to be used only with IQOS Iluma devices
PMI has submitted applications for three Iluma devices and five variants of the tobacco sticks: Terea Blue, Terea Green, Terea Sienna, Terea Bronze, Terea Amber

Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S.
Stacey Kennedy, president Americas and CEO of PMI’s U.S. business
“Tens of millions of American adults today smoke cigarettes and will likely continue to do so. They should have a range of scientifically substantiated better alternative nicotine products to choose from, and PMI is committed to providing them with new choices,” said Stacey Kennedy, president Americas and CEO of PMI’s U.S. business, in a statement.
“Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S. and drive a rapid decrease in smoking rates among adults. These are strong applications, and we urge the FDA to prioritize them for review.
“Since 2008 PMI has invested more than $10.5 billion to scientifically research, develop, and commercialize smoke-free products, an investment that was further bolstered last year through our acquisition of Swedish Match. We are focused on providing adults who smoke with alternatives that can reduce their risks compared with smoking and help make America cigarette-free.”
PMI will have the full rights to commercialize all IQOS products in the U.S. as of April 30, 2024, per the terms of an agreement with Altria Group, Inc. ending the companies’ commercial relationship covering IQOS in the U.S.
October 21, 2023