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Tag: Philip Morris

  • Illicit Market Threatens Harm Reduction Progress

    Illicit Market Threatens Harm Reduction Progress

    The growing illicit nicotine market is creating risks for brand protection, consumer safety and tobacco harm reduction, speakers said at GTNF 2026 in Lisbon during the “Playing Defense – Brand Protection and its Impact on Harm Reduction and Consumers” panel. Following a keynote address, Lillian Ortega, founder and chief regulatory strategist at WOW Solutions, moderated the panel and said the U.S. unauthorized vape market is already significant and warned that “you can’t enforce your way out of it.” Ortega said an estimated 70% of the U.S. vape market is unauthorized, although the figure does not capture online sales and some vape shops, and argued that regulatory delays and gaps in FDA oversight can leave demand to illicit suppliers. She called for timely and predictable product authorization, better tracking of products entering the U.S. and greater information sharing throughout the supply chain.

    Michael Horowitz, managing counsel at RAI Services Company, said an entrenched illegal market is difficult to reverse, particularly when consumers may not realize they are purchasing unauthorized products. He also pointed to fragmented enforcement and the difficulty of distinguishing unauthorized products from products that are genuinely illicit.

    Abel Vecino, head of illicit trade prevention for Southwest Europe at Philip Morris International, said brand protection is also about protecting consumers as they move away from combustible products. He said criminal organizations are scaling production, moving closer to consumer markets and exploiting enforcement gaps, while adapting to demand for lower-priced products. Vecino called for greater cooperation with law enforcement and proactive partnerships before problems emerge.

    Stevan Vranes, global head of corporate affairs at Imperial Brands, said illicit products are increasingly visible in local communities and legitimate retail channels, while distinguishing legal from illegal products has become more difficult in newer nicotine categories. He said illicit cigarette factories across Europe can now produce up to 1 million cigarettes an hour and that illicit sales are increasingly moving online. Vranes called for a holistic approach, including greater pressure on social media and stronger action against online sales, while acknowledging that authorities cannot physically inspect every container entering global ports.

  • Climate Policy and Sustainability Take Center Stage at GTNF 2026

    Climate Policy and Sustainability Take Center Stage at GTNF 2026

    GTNF 2026’s “Innovative Responses to Climate Change & Global Climate Policy” panel examined how the nicotine industry is responding to environmental pressures through sustainability strategies, regulation, and industry-government cooperation. Moderator Ben Dessart, vice president of external affairs at Universal Corporation, opened by stressing the need for industry to “be part of the conversation.”

    Nicole Austin, director of sustainability engagement and strategic partnerships at Philip Morris International, said sustainability must be integrated across business decisions rather than treated as a separate initiative. She identified combustible products as the company’s largest negative environmental impact and smoke-free products as its largest positive contribution, with PMI’s strategy focused on making cigarettes obsolete by addressing both supply and demand. Austin said, “Reacting is much more expensive than predicting,” emphasizing long-term planning to mitigate risk.

    Aylèn Van Isseldyk, founder and director of THR, Ethics and Sustainability, focused on the environmental challenges posed by disposable vaping products. She said the industry cannot allow advances in nicotine delivery to create a new source of environmental harm and argued for proportional policies that consider both human and environmental health while protecting vulnerable populations. Miranda Kinney, senior vice president and global head of corporate affairs and impact at Pyxus, emphasized the need for industry and governments to work together and said environmental efforts should begin with farmers rather than at the manufacturing stage. She said educating farmers about why environmental practices matter can change how they handle materials such as plastic. Tadas Lisauskas, president and co-founder of Greenbutts, said regulation and compliance will be key to driving adoption of biodegradable products, arguing that large companies need regulatory certainty to justify allocating budgets to solutions that consumers may not yet demand.

  • PMI Raises 2026 Full-Year EPS Forecast on Currency

    PMI Raises 2026 Full-Year EPS Forecast on Currency

    Philip Morris International raised its 2026 full-year reported diluted EPS forecast to $7.28-$7.43, citing currency effects. Adjusted diluted EPS is now expected at $8.35-$8.50, representing growth of 10.7%-12.7% from $7.54 in 2025, or 7.5%-9.5% excluding currency. PMI also raised its third-quarter adjusted diluted EPS forecast to $2.29-$2.34.

    CEO Jacek Olczak addressed investors today (Sept. 8) at the 2026 Barclays Global Consumer Conference in Boston. The company said all other 2026 forecast assumptions remain unchanged from its July 22 update.

  • PMI U.S. Launching Campaign Around Zyn’s ‘Click’

    PMI U.S. Launching Campaign Around Zyn’s ‘Click’

    Philip Morris International’s U.S. businesses are launching “When It Clicks,” a national Zyn brand campaign built around the sound of the nicotine pouch’s signature click and the idea of staying present in everyday moments. Following a soft launch this summer, the campaign will scale nationally in the fourth quarter across point-of-sale, digital, out-of-home, and cultural events targeting legal-age adult nicotine consumers.

    The campaign will be introduced to retailers and distributors at the National Association of Convenience Stores Show in October, followed by activations spanning music, entertainment, sports, and art. Zyn also plans to launch limited-edition metal cases featuring artwork from American and U.S.-based artists in the fourth quarter; the accessories will not contain nicotine pouches.

  • PMI CEO Speaking at Barclays  

    PMI CEO Speaking at Barclays  

    Philip Morris International announced it will participate in the 2026 Barclays Global Consumer Conference on September 8, with Group CEO Jacek Olczak scheduled to take part in a live fireside chat at approximately 9:45 a.m. ET. The session will be webcast live, with an archived version available for six months following the event.  

    The appearance will provide investors and the broader market with an opportunity to hear directly from PMI’s CEO on the company’s business outlook and strategic priorities. The webcast will be accessible through PMI’s investor relations platform and its mobile IR app.  

  • Altria, PMI Strike Manufacturing Deal to Boost U.S. Tobacco Operations

    Altria, PMI Strike Manufacturing Deal to Boost U.S. Tobacco Operations

    Altria Group Inc. and Philip Morris USA announced that they have entered into a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International (PMI), aimed at improving the efficiency of PM USA’s traditional tobacco operations. The companies have operated independently since their 2008 separation.

    Altria said the agreement supports its 2028 Enterprise Goals by enhancing manufacturing capabilities, generating economic benefits to support investment in its broader strategy, and strengthening capabilities that could eventually be transferred to its international nicotine efforts. “The arrangement supports our 2028 Enterprise Goals by enhancing operational capabilities, generating economic benefits to support investment in our vision, and strengthening capabilities that could be transferable to our international nicotine efforts,” Altria said. The company does not expect the deal to have a material impact on its 2026 financial results.

    The arrangement does not change the companies’ independence. “Altria and PMI will continue to operate independently and maintain responsibility for their own commercialization, distribution, and regulatory activities,” Altria said. The agreement comes as Altria continues its push to expand beyond cigarettes while maintaining PM USA’s traditional tobacco business. The company said the manufacturing capabilities developed through the arrangement could support its longer-term international nicotine ambitions.

  • FDA authorizes 11 additional ZYN nicotine pouches

    FDA authorizes 11 additional ZYN nicotine pouches

    Today (Aug. 21), the U.S. Food and Drug Administration authorized 11 new nicotine pouch products from Swedish Match USA under the Zyn Ultra brand through the premarket tobacco product application pathway. The products include 10 9-milligram varieties and one 11-milligram variety, covering flavors such as Chill, Citrus, Cool Mint, Deep Freeze, Menthol, Peppermint, Smooth, Spearmint, and Wintergreen.

    The FDA said its review found the products contain lower levels of most harmful and potentially harmful constituents than other oral and smokeless tobacco products. The agency also said product-specific data indicated the pouches appeal primarily to adults who currently smoke cigarettes or use smokeless tobacco and could provide sufficient nicotine to reduce cravings and withdrawal symptoms, potentially supporting switching among adult tobacco users.

    “We are delighted with the FDA’s decision to authorize a range of ZYN ULTRA products, which will build on ZYN’s position as America’s leading smoke-free product brand,” said Stacey Kennedy, PMI U.S. CEO. “We look forward to expanding our portfolio of better choices for the 45 million Americans who consume nicotine products.” 

    The authorizations bring the number of FDA-authorized nicotine pouch products to 43, including 23 approved through the agency’s nicotine pouch pilot program. The FDA said the pilot has streamlined PMTA reviews and reduced the time needed to resolve deficiencies, with efficiencies now being applied to other tobacco-product applications.

  • PMI to Launch VEEV E-Vapor Product in South Korea

    PMI to Launch VEEV E-Vapor Product in South Korea

    Philip Morris Korea announced that it will launch its VEEV e-vapor product in South Korea on Aug. 26 as the company expands its smoke-free portfolio in the country. KT&G currently leads South Korea’s non-combustible tobacco segment with a 48% market share, followed by Philip Morris and British American Tobacco.

    Philip Morris International said 42% of its $11 billion in second-quarter revenue came from smoke-free products. The company has invested 22.5 trillion won ($16 billion) in research and development for smoke-free products since 2008 and is targeting a two-thirds share of sales from smoke-free products by 2030.

    PMI Korea consumer experience director Kim Tae-hyung said the company ultimately aims to replace combustible cigarettes with smoke-free products.

  • PMI Launches Airport-Exclusive IQOS

    PMI Launches Airport-Exclusive IQOS

    Philip Morris International launched a limited-edition IQOS ILUMA i Prime Skylens, its first device created exclusively for airport travel retail. Inspired by aviation and the “above the clouds” experience, the premium device features a metallic blue design and is being introduced through activations at selected duty-free locations.

    The launch debuted at Tokyo’s Narita International Airport with a pop-up featuring product discovery, augmented reality, and a lounge-style environment. PMI has since expanded Skylens to selected airports across Europe, including Germany, Italy, Spain, Greece, Switzerland, and Serbia, as well as South Korea, Qatar, Saudi Arabia, Egypt, Morocco, Lebanon, and Malaysia.

    Beste Ermaner, PMI’s vice president of global travel retail, said the initiative is designed to make smoke-free products more accessible to adult smokers in travel environments. PMI said IQOS is used by more than 35 million adults worldwide who would otherwise continue to smoke.

  • A Needed Course Correction on Tax Stamping—And a Blueprint for Other States

    A Needed Course Correction on Tax Stamping—And a Blueprint for Other States

    By Dan Mulvaney, PMI U.S.

    For decades, tax stamping has been a cornerstone of most state excise tax systems for cigarettes. The stamping works, in part, because of the per unit tax and packs of cigarettes are uniform in size and distribution. By requiring wholesalers to purchase and affix tax stamps before products reach retail, states have created an efficient, centralized model for tax collection—one that depends on the wholesale channel to function effectively.

    What is often overlooked is the role wholesalers actually play. They are not passive participants—they are, in effect, the state’s tax collection agents. They purchase stamps, invest in specialized equipment, manage inventory controls, and maintain strict compliance and reporting protocols. This is not theoretical; it is an operational reality requiring significant time, labor, and capital.

    That is why stamping allowances have historically existed: to offset the cost of collecting and remitting excise taxes on behalf of the state.

    Yet in recent years, policymakers have moved in the wrong direction. Across the country, stamping allowances have come under pressure—often viewed as a revenue opportunity rather than compensation for a mandated service. In some cases, policymakers have even considered eliminating them altogether, disregarding the real costs imposed on wholesalers.

    Fortunately, the Louisiana Legislature understands the importance of stamping allowances and  what a modern, risk-aligned tax framework should look like. The state has reduced the excise tax rate by 65% for certain products that meet the high bar of being an FDA-authorized Modified Risk Tobacco Product (MRTP). Currently, two unique products – Philip Morris International’s (PMI’s) heated tobacco product, IQOS, and 22nd Century Group’s low nicotine cigarette, VLN – have received this designation, recognizing their distinct profile from traditional cigarettes.

    Just as important, Louisiana paired this approach with practical supply chain incentives. Wholesalers will receive a 10% discount on MRTP tax stamps, while the existing cigarette stamp discount increases from 5% to 6.5%. This preserves operational stability while creating a clear differential that favors modified-risk alternatives.

    Together, these changes reinforce the right market signals—supporting state revenue, maintaining system integrity, and accelerating the transition from traditional cigarettes to modified-risk alternatives.

    By increasing the cigarette stamping allowance, policymakers have taken an important step toward restoring balance—acknowledging that the system only works when the entities responsible for executing it are properly supported.

    This outcome did not happen in a vacuum. It reflects sustained engagement by manufacturers, such as PMI, to ensure that wholesalers and retailers have a voice in the policymaking process. At a time when many stakeholders remain focused solely on tax rates or product restrictions, PMI has consistently focused on the operational realities facing the trade.

    More importantly, PMI has demonstrated leadership as a true partner to the wholesale and retail community. This new law is a clear example of that commitment translating into tangible economic value.

    This is more than a policy update. It is a recognition of the essential role wholesalers play in maintaining efficient, compliant tax systems—and proof that collaboration between policymakers and industry can deliver better outcomes.

    In an environment where allowances have too often been reduced or overlooked, this represents a meaningful course correction. It strengthens the supply chain, supports compliance, and reinforces a simple truth: when policymakers and industry partners work together—and when manufacturers are willing to lead—the entire system benefits.

    Dan Mulvaney is director of industry engagement for Philip Morris International Inc. (PMI) U.S. The businesses of PMI U.S. are on a mission to improve public health in America by providing the roughly 30 million legal-age consumers who still smoke traditional cigarettes with better, smokefree alternatives. PMI U.S. is committed to responsible marketing practices that help prevent access to its products by people under the age of 21.