Tag: pmi

  • PMI to Further Expand U.S. Zyn Production

    PMI to Further Expand U.S. Zyn Production

    Photo: PMI

    Philip Morris International’s Swedish Match affiliate will invest $232 million to expand the production capacity of its Owensboro, Kentucky, USA, manufacturing facility, which produces the popular Zyn nicotine pouches.

    The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky.

    “Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” said Kentucky Governor Andy Beshear in a statement.

    Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.

    In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production, starting in the fourth quarter of this year.

    The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.

    In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colorado. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near term and midterm to meet the ferocious U.S. demand for Zyn.

  • PMI Accused of ‘Manipulating Science’

    PMI Accused of ‘Manipulating Science’

    Image: Xistudio

    Philip Morris International has been accused of “manipulating science for profit” through funding research and advocacy work with scientists, according to The Guardian.

    Leaked documents from PMI and its Japanese affiliate revealed plans to target politicians, doctors and the 2020 Tokyo Olympics as part of the company’s marketing strategy to attract nonsmokers to its IQOS heated-tobacco product. Japan is a launch market for IQOS.

    A Tobacco Control Research Group paper from the University of Bath stated that Philip Morris Japan (PMJ) funded a Kyoto University study into smoking cessation via a third-party organization. The researchers found no public record of PMJ’s involvement, however. According to a PMI spokesperson, the company’s involvement was attributed when the results were presented at a scientific conference in Greece in 2021.

    PMJ reportedly paid £20,000 ($25,287.48) a month to FTI-Innovations, which is a life sciences consultancy run by a professor from Tokyo University. The payments were for tasks like promoting PMI’s science and products at academic events, which, according to an internal email, a PMJ employee claimed they had been told “to keep it a secret.”

    The paper, which was published in Nicotine & Tobacco Research, is based on 24 leaked company documents from between 2012 and 2020.

    “These activities resemble known strategies to influence the conduct, publication and reach of science and conceal scientific activities,” the researchers said.

    “The manipulation of science for profit harms us all, especially policymakers and consumers trying to make potentially life-changing decisions,” said Sophie Braznell, one of the paper’s authors. “It slows down and undermines public health policies while encouraging the widespread use of harmful products.”

    The leaked documents undermined PMI’s claims to conduct “transparent science,” according to Braznell, who called for reforms to funding and governance of tobacco research “to protect science from vested corporate interests.”

    In a different report from Stopping Tobacco Organizations and Products (STOP), also based on leaked documents, PMJ appeared to lobby for IQOS to be permitted in places where smoking was banned.

    Entities like medical and hospitality groups and Japan’s Fire and Disaster Management Agency were targeted for endorsements, “which, if secured, could give the appearance of organic, widespread acceptance of IQOS,” said STOP.

    Moreover, the report stated that aiming for a presence at the Tokyo Olympics “echoes a known industry tactic of advertising addictive, harmful tobacco products at sports events—associating these products with health, misleading consumers and reaching children and young people.”

    “PMI’s intentions with IQOS seem to extend far beyond what they’ve stated,” said Jorge Alday, director of STOP. “This revelation adds weight to the mounting evidence questioning the credibility of PMI’s claims about their intentions and their products.

    “Disturbingly, it hints at a broader pattern of deceptive tactics, potentially laying the groundwork for a new chapter in the tobacco epidemic,” he said.

    “This is yet another specious story from an organization more interested in criticizing our company than helping reduce the harm from cigarettes,” said a PMI spokesperson. “Like any highly regulated multinational company, PMI regularly seeks to share our positions on issues that affect our consumers, our company and our communities. Not only is this type of engagement entirely legal and appropriate, [but] it is essential to the type of inclusive policymaking that will lead to better outcomes for the people affected by those policies.”

  • PMI to Support Female Empowerment

    PMI to Support Female Empowerment

    Image: Sanele Gobinduku/peopleimages.com

    Philip Morris International announced the launch of an extended partnership via its U.S. business to support female empowerment with a $5 million investment in the Women’s Business Development Council (WBDC), a 501(c)(3) charitable organization dedicated to providing tools and resources to help women entrepreneurs thrive in business throughout Connecticut.

    Beginning January 2025, in coordination with the WBDC, PMI’s U.S. business will contribute $1 million per year over a five-year period toward the Women’s Economic Empowerment Initiative to help remove barriers that prevent women from full participation in Connecticut’s entrepreneurial ecosystem.

    “Philip Morris International is committed to making positive impact throughout Connecticut communities and beyond. Our partnership with WBDC and investment through the Women’s Economic Empowerment Initiative enables us to better support Governor Ned Lamont’s vision of positioning our state as a catalyst for women and their families,” said Stacey Kennedy, president of the Americas region and CEO of PMI’s U.S. business, in a statement.

    Since 1997, the WBDC has educated and trained more than 18,900 clients in all of Connecticut’s 169 towns—helping women to launch, sustain and scale more than 14,170 businesses, create and maintain more than 31,400 jobs and access more than $57 million in capital.

    “This investment from PMI will enable us to continue the critical work we do to support economic independence through entrepreneurship for women in Connecticut,” said WBDC CEO Fran Pastore. “We are pleased that PMI has trusted us to use these funds to continue to help women access capital, education, and resources to support themselves and fuel employment within our state. Over the past few years, we have seen a 275 percent increase in the number of women who come to us seeking to launch or scale their business. Without the support of corporations in our community like PMI, this growth, and the growth we anticipate in the future, would not be possible.”

  • PMI Clarifies Zyn Marketing Practices

    PMI Clarifies Zyn Marketing Practices

    Philip Morris Global Chief Communications Officer Moira Gilchrist has clarified in a video presentation PMI’s marketing practices and facts relating to Zyn nicotine pouches, which recently came under fire by Senate Majority Leader Chuck Schumer.

    Schumer asked the U.S. Food and Drug Administration and the Federal Trade Commission to take action on PMI’s marketing practices and the health effects of Zyn, calling the product the next “trend in addiction for teens.”

  • Appeals Court Affirms Dismissal of PMI Suit

    Appeals Court Affirms Dismissal of PMI Suit

    Image: BillionPhotos.com

    The United States Court of Appeals for the 2nd Circuit on Dec. 26, 2023, affirmed a district court’s dismissal of a putative class action asserting claims against Philip Morris International that the company made false or misleading statements regarding both the scientific studies it conducted in support of an application to the Food and Drug Administration and the outlook for the company’s sales growth in Japanese markets, according to Lexology.

    The district court held that the plaintiffs failed to adequately prove falsity or scienter. The 2nd Circuit affirmed the dismissal, holding that the plaintiffs failed to adequately plead falsity.

    The court decided two questions of first impression in the 2nd Circuit, holding a securities fraud defendant’s statement that its scientific studies comply with a methodological standard that is published and internationally recognized, but stated in general and inherently subjective terms, is properly analyzed as a statement of opinion rather than a statement of fact, and holding that, whereas a securities fraud defendant’s statement expresses an interpretation of scientific data that is ultimately endorsed by the FDA, such a statement is per se “reasonable” (i.e., supported by “meaningful inquiry”) as a matter of law. 

    The plaintiffs alleged that PMI made misrepresentations in securities filings and public statements about clinical studies it conducted in support of an application to the FDA to sell IQOS in the U.S. and market IQOS as reduced risk. The plaintiffs also alleged that PMI made misleading statements about its growth projections in Japan regarding IQOS. The district court found that none of the challenged statements were false or misleading because all the challenged statements were true, inactionable puffery or inactionable statements of opinion. Furthermore, the district court found that the plaintiffs failed to establish the required strong inference of scienter, either by alleging facts showing motive and opportunity to commit fraud or strong circumstantial evidence of conscious misbehavior or recklessness. Accordingly, the district court granted the defendants’ motion to dismiss the plaintiffs’ first amended complaint and denied the plaintiffs’ motion for reconsideration. After the district court dismissed the plaintiffs’ second amended complaint, this time with prejudice, the plaintiffs appealed.

  • Nicotine Market Shares Flat in December

    Nicotine Market Shares Flat in December

    Tobacco Reporter Archive

    Consumer demand for nicotine products has fluctuated due to inflation and rising cigarette prices over the past 13-19 months. However, the Neilsen report covering the four-week period ending Dec. 30 shows that market shares are holding steady for both next-generation and traditional tobacco brands.

    The market share of R.J. Reynolds’ top-selling Vuse e-cigarette remained flat at 42 percent in December at convenience stores, according to the report. While Vuse’s market share was unchanged, No. 2 Juul dropped from 24.3 percent to 24.2 percent for the report covering the four-week period ending Dec. 30.

    As recently as May 2019, Juul held a 74.6 percent share in the U.S. electronic cigarette market. That’s when a series of regulatory actions led to product-reduction concessions, according to media reports.

    Meanwhile, Altria Group’s ownership of No. 3 NJoy hasn’t resulted in a meaningful market-share increase so far. Nielsen cited a research error by why it did not include an update for NJoy in the latest report. It was at 2.6 percent in the previous report.

    Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, was unchanged at 1.2 percent.

    The overall e-cigarette category was down 9.9 percent.

    In traditional cigarettes, Philip Morris’ top market share was at 50.6 percent in the latest Nielsen report with top-selling Marlboro representing 45.6 percent of overall market share.

    Meanwhile, Reynolds was at 33.2 percent with Newport at 12.9 percent and followed by Camel (7.8 percent), Natural American Tobacco (3.7 percent) and Pall Mall (3.7 percent).

    ITG was at 8.5 percent overall, although ITG has said its market share is closer to 10 percent. Its No. 7 Winston brand remained at 2 percent, while Kool and Maverick remained tied for No. 8 at 1.8 percent.

    Goldman Sachs analyst Bonnie Herzog said that “in terms of specific company trends, total nicotine sales declines improved across the board for Altria, BAT, Imperial and Juul, while decelerating for all other manufacturers broadly in the latest period.”

    The decline in cigarette sales continues at a strong pace, said David Sweanor, an adjunct law professor at the University of Ottawa and the author of several e-cigarette and health studies.

    “Yet, as Altria results showed and Barclays recently highlighted, much of this is due to cross-category migration,” Sweanor said.

    “People are switching to far lower-risk options. But disposable vaping products appear to currently be the greatest factor in this migration.”

    TD Cowen analyst Vivian Azer said consumers’ cigarette “downtrading to discount and deep discount continues to benefit Imperial’s share trends.”

  • PMI Expands IQOS in Middle East

    PMI Expands IQOS in Middle East

    Image: TRITOOTH

    Philip Morris International has launched IQOS Iluma in Saudi Arabia, Kuwait and Bahrain, with a goal of creating a smoke-free future in the Gulf Cooperation Council region, according to the Saudi Gazette.

    “Adult smokers may be unaware of the choices they are making, largely due to the lack of information and knowledge on products that bring them harm, versus scientifically backed products that reduce the likelihood of smoking-related disease,” said Tarkan Demirbas, area vice president of the Middle East at Philip Morris Management Services (Middle East) Limited. “At PMI, we are invested in providing existing adult smokers with better alternatives through harm reduction innovations, which can help them take a step back from cigarettes toward better alternatives.”

    “Smoking-related diseases today call for a pragmatic solution that places consumers at the forefront while moving away from cigarettes,” said Saim Yasin, director of marketing and digital at PMMS. “IQOS Iluma is our latest innovation in tobacco-heating systems that will accelerate our goal toward a smoke-free future. Through a growing portfolio of smoke-free alternatives, we are reaffirming our commitment to create realistic, society-wide change that can reimagine the world we are living in—without cigarettes.”

    The IQOS Iluma series offers three devices: IQOS Iluma Prime, IQOS Iluma and IQOS Iluma One. All the devices use new induction heating technology but offer different designs.

  • PMI Hosts ‘Technovation’ Event

    PMI Hosts ‘Technovation’ Event

    Photo: PMI

    Philip Morris International recently hosted its seventh Technovation at the Cube, the company’s R&D center in Neuchatel, Switzerland. The event provides stakeholders the opportunity to interact with senior leaders, scientists and R&D experts from PMI.

    According to PMI, the conversations focused on the crucial roles that innovation, technology and science can play in enabling a better future for everyone—highlighting the call to harness the full potential of innovation and evidence-based policies that are needed to steer the collective efforts toward eliminating smoking.

    [T]here’s a potential for a tenfold reduction in smoking-attributable deaths compared with historical tobacco control measures alone.

    Jacek Olczak, PMI CEO

    “It is no longer a case of if smoke-free alternatives are better than cigarette smoking; it is a case of by how much,” said PMI CEO Jacek Olczak in a statement. “Based on WHO [World Health Organization] and other third-party data, our hypothetical model shows that if smoke-free products are assumed to be 80 percent less risky than cigarettes—and if people who currently smoke were to switch to them completely—then over their lifetime, there’s a potential for a tenfold reduction in smoking-attributable deaths compared with historical tobacco control measures alone.”

    Gregoire Verdeaux, PMI’s senior vice president of external affairs, led a discussion on what success looks like when regulating smoke-free alternatives. Citing Italy, Japan, New Zealand, Sweden, the U.K., the U.S. and other countries, Verdeaux made the case for inclusive and innovative frameworks that have complemented traditional tobacco control measures in expediting the decline of smoking.

    The COP10 could be used an as opportunity to bring all stakeholders together, consider the comprehensive science on nicotine alternatives and create guidelines that can help reduce harm.

    Gregoire Verdeaux, senior vice president of external affairs, PMI

    “The number of smokers globally has remained virtually unchanged for the past 30 years,” said Verdeaux, who said the upcoming session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control (COP10)—which was recently postponed to 2024 due to civil unrest in its host country, Panama—presents a chance to change the global smoking rates status quo.

    “The COP10 could be used an as opportunity to bring all stakeholders together, consider the comprehensive science on nicotine alternatives and create guidelines that can help reduce harm for hundreds of millions of smokers around the world. Unfortunately, this is not the case, but we hope that this will change in future for the benefit of a billion smokers and global public health,” said Verdeaux.

    The missing piece of the puzzle is the collective effort of governments, the public health community, our industry and civil society.

    Tommaso Di Giovanni, vice president of international communications and engagement, PMI

    Tommaso Di Giovanni, PMI’s vice president of international communications and engagement, discussed what more can be done to encourage innovation in the tobacco industry. He said, “Better alternatives to cigarettes exist, and scientific data support their potential to be less harmful. The missing piece of the puzzle is the collective effort of governments, the public health community, our industry and civil society to make these alternatives accessible to adult smokers who do not quit. To support this transformation, we envision to become a majority smoke-free-led entity, with smoke-free options now accounting for over 36 percent of total net revenues, following third-quarter financial results.”

  • PMI: COP10 Missed Opportunity

    PMI: COP10 Missed Opportunity

    Image: PMI

    Philip Morris International is concerned that participants in the upcoming Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC) will promote prohibitionist policies for noncombustible tobacco products, according to an article in The Guardian.

    “The agenda and meeting documents have been made public for the main part,” PMI Senior Vice President of External Affairs Gregoire Verdeaux wrote in an email. “Unfortunately, they reconfirmed every concern we had that this conference may remain as the biggest missed opportunity ever in tobacco control’s history … WHO’s agenda is nothing short of a systematic, methodical, prohibitionist attack on smoke-free products.”

    Without “reasonable, constructive outcomes,” Verdeaux wrote, the “WHO will have irreversibly compromised the historic opportunity for public health presented by the recognition that smoke-free products, appropriately regulated, can accelerate the decline of smoking rates faster than tobacco control combined.”

    While tobacco companies are not invited to the Conference of the Parties to the FCTC, Verdeaux said he will be in Panama “to publicly denounce the absurdity of being excluded from it while PMI today [is] undoubtedly the most helpful private partner WHO could have in the fight against smoking.”

    Last year, PMI made $10.19 billion in revenue from products like heated-tobacco and electronic cigarettes.

  • PMI Joins We Card

    PMI Joins We Card

    Image: Tobacco Reporter archive

    Philip Morris International has joined the We Card Program, a national nonprofit serving the nation’s retailers of age-restricted products. The company’s Swedish Match affiliate will serve on We Card’s manufacturer advisory council.

    Independent retail establishments and large retail chains utilize We Card’s educational and training services for their compliance efforts with federal, state and local laws aimed at preventing age-restricted product sales to minors.

    National and state retail trade associations, government officials, community groups and others also support We Card’s ongoing efforts to raise awareness of responsible retailing and age verification requirements and to educate and train retail employees to identify and prevent underage attempts to purchase age-restricted products.

    “As we enter the U.S. market, our ambition is twofold: to be the market leader across America for innovative smoke-free products that are a better choice than continued cigarette use and to ensure that youth cannot access these products, which are intended only for adults who smoke or use another nicotine product,” said Stacey Kennedy, president of the Americas and CEO of the PMI U.S. business. “Joining We Card reflects the commitment shared by PMI and Swedish Match to further enhance youth access prevention programs in close cooperation with our retail partners.”

    “The We Card Program has long been a vital tool for retailers, and we look forward to working with them to expand the program’s suite of tools to reflect the growing range of innovative nicotine products, including oral pouches,” Kennedy added.

    “We Card is pleased to have Swedish Match join our manufacturer advisory council. This will help us further our mission to prevent underage access to nicotine products and work to address the problem of the social sourcing of those products,” said Doug Anderson, president of the We Card Program.