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  • Baltimore Sues PMI for “Peddling Zyn to Kids”

    Baltimore Sues PMI for “Peddling Zyn to Kids”

    The City of Baltimore filed a lawsuit against Philip Morris yesterday (May 7) in the city’s Circuit Court for violating Baltimore’s Consumer Protection Ordinance through deceptive marketing practices to “peddle Zyn oral nicotine pouches to minors.” The city said PMI used “Big Tobacco’s well-developed playbook” to deceptively market flavored Zyn nicotine pouch products and hook a new generation of nicotine users.”

    “The purpose of creating a flavored tobacco product is clear — it is meant to capture children and adolescents,” the city’s complaint says.

    The complaint cites recent research that nearly 2% of middle and high school students report using nicotine pouches, and a separate survey where more than two-thirds of underage respondents reported Zyn as their favorite brand of tobacco pouches.

    In response, officials from PMI said, “Although we have not yet been served with the complaint and are not in a position to comment, we can assure you that the interests of PMI and its affiliates will be vigorously defended.”

    This is not the first time the city has targeted nicotine-related products with a lawsuit alleging deceptive marketing. Baltimore sued Juul Labs Inc. in 2020, accusing the electronic cigarette maker of promoting to minors. In September, the city reached an $8 million settlement with the California-based company.

  • PMI Hosts Shareholders Meeting

    PMI Hosts Shareholders Meeting

    Philip Morris International Inc. held its 2025 Annual Meeting of Shareholders today (May 7), with board chairman André Calantzopoulos and CEO Jacek Olczak answering questions and presenting the company’s performance.

    “Our smoke-free transformation continues to advance rapidly,” Olczak said. “We marked the 10-year anniversaries for both IQOS and ZYN in 2024 while achieving several key milestones, including our smoke-free business reaching almost $15 billion in net revenues.

    “We are increasingly deploying a multicategory strategy with our leading brands IQOS, ZYN, and VEEV, supporting our position as the global smoke-free champion as we continue to deliver meaningful value for our shareholders.”

    Shareholders elected 11 nominees for director; approved, on an advisory basis, the compensation of named executive officers; and ratified the selection of PricewaterhouseCoopers SA as independent auditors. Final voting results will be included in a Form 8-K that PMI will file with the SEC in the coming days.

    An archived copy of the webcast is available at  www.virtualshareholdermeeting.com/PM2025.

  • South Africa: Corruption and Illicit Trade Threaten Economic Stability

    South Africa: Corruption and Illicit Trade Threaten Economic Stability

    Philip Morris South Africa (Pty) Ltd (PMSA) welcomed the release of the 2025 Illicit Trade Environment Index by the Transnational Alliance to Combat Illicit Trade (TRACIT), a global benchmark report aimed at providing an update on the set of legal, regulatory and policy recommendations designed to strengthen the fight against illicit trade around the world.

    The Index ranks 158 countries based on their structural resilience to illicit trade—across sectors including tobacco, alcohol, pharmaceuticals, digital commerce, and fast-moving consumer goods—and highlights how systemic challenges such as gaps in enforcement and regulatory inconsistencies can contribute to the growth of the global black market. South Africa ranks 60th out of 158 countries, indicating moderate resistance to illicit trade, but with notable vulnerabilities in areas such as supply chain control and enforcement capacity.

    “Illicit trade is not a victimless crime. It deprives the government of critical revenue, fuels organized crime, and puts legitimate businesses at a disadvantage,” said Philippe Van Gils, Director of Illicit Trade Prevention at Philip Morris International. “The TRACIT Index reminds us that a comprehensive approach is required, one that addresses corruption, strengthens enforcement, and ensures regulatory frameworks are both appropriate and effectively implemented.”

    PMSA echoed TRACIT’s call for evidence-based and risk-proportionate regulation. “In the tobacco sector, high excise taxes and overly restrictive product policies can unintentionally incentivise consumers to turn to unregulated, illicit alternatives,” the company said.

    “Policies must be crafted with the real-world impact in mind,” Van Gils said. “Excessive taxes on cigarettes without access to scientifically substantiated less harmful, affordable, and legal alternatives merely encourage the illicit market. A risk-based taxation model, where smoke-free products like heated tobacco are taxed significantly lower than cigarettes, can encourage adults who smoke to switch to better smoke-free alternatives.”

    PMSA supports TRACIT’s multi-pronged policy roadmap to improve countries’ ability to detect, deter, and dismantle illicit trade operations. PMSA is urging the South African government and private sector stakeholders to prioritise the following:

    •             Crafting a national anti-illicit trade strategy, integrating smart tax policies, robust regulatory enforcement, and corruption safeguards;

    •             Strengthening border control and customs capacity, particularly at high-risk points such as ports and Free Trade Zones;

    •             Securing supply chains with digital track-and-trace systems and enhanced due diligence requirements for manufacturers and logistics providers;

    •             Enhancing cooperation between government, law enforcement, and the private sector, both nationally and regionally;

    •             Educating consumers on counterfeit and smuggled products.

    “Illicit trade networks are complex, well-funded, and increasingly digital,” said Van Gils. “It’s no longer enough to raise taxes or regulate products, we need modern enforcement tools, better online regulation, and a serious crackdown on corruption.”

  • PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    A top executive of Philip Morris International (PMI) expressed optimism about the growth of smoke-free alternatives in the Philippines, saying the company sees strong potential despite being in the early stages of its market rollout.

    “In the Philippines, we are still at the very early stages, but we have a lot of confidence in smoke-free products,” said Stefano Volpetti, president of the smoke-free products category and chief consumer officer at PMI.

     Volpetti said progress in Metro Manila is already showing promise, drawing parallels with the company’s initial launches in other countries. He said PMI is committed to making smoke-free alternatives accessible to Filipino smokers, particularly through education and proper explanation of the products.

    “If you think about it, when we started in Italy and in Japan, we started from Milan and Nagoya,” Volpetti said. “We are starting the same journey in the Philippines, starting from Metro Manila. It is clear that when those smoke-free alternatives are well explained to Filipino smokers, there is clearly attraction to move from traditional cigarettes.

    “But we are very confident, because this is a journey that we have done in more than 90 countries around the world. We know the recipe of this journey and the progress in Metro Manila is very powerful.”

    At present, PMI’s smoke-free offerings in the Philippines include IQOS devices, HEETS and TEREA sticks, the more affordable BONDS device, BLENDS consumables and the ZYN oral nicotine product. When asked about the affordability of smoke-free products for Filipinos, Volpetti acknowledged the economic barriers but said PMI is working to provide more options.

    “In general, we have two important aspects of this journey,” he said. “The first aspect is to be sure that smokers understand the benefits of smoke-free alternatives. Because if you don’t understand the benefits, if the benefits are not explained to you, it is very difficult to be able to appreciate that. 

    “We are able to design the consumables in a way that is more in tune with the experience of different consumers around the world. [What the consumers around] the world wants in terms of taste, flavor, in terms of pleasure, but also in terms of the budget they are ready to pay. In the coming future, you will see a portfolio that is more balanced between the premium segment and the medium segment. Our mission is to provide choices across all consumer categories.”

  • IQOS System Commercially Available in Texas

    IQOS System Commercially Available in Texas

    Today, PMI U.S. announced its FDA-authorized IQOS system is now commercially available to residents in the Greater Austin, Texas, area online at www.IQOS.com/us, at select pop-up stores, and other 21+ venues. IQOS is available in more than 70 markets globally since launching in Japan 10 years ago. The launch in Texas marks the first in a series of introductions in markets across the U.S.

    “We’ve seen the impact that a diverse range of smoke-free alternatives—like IQOS and ZYN—can have in helping adults 21+ move away from cigarettes,” said Stacey Kennedy, PMI U.S. CEO. ”We are committed to raising awareness and educating both consumers and public health leaders about the progress being made in harm reduction with our smoke-free products.”

    The news that Austinite’s can now purchase IQOS onlinefollows the March announcement that a permanent IQOS store opened downtown. Since October 2024, more than 5,000 Austin residents signed up to “Be the First” to experience IQOS.

  • PMI Hosting Annual Meeting Webcast May 7

    PMI Hosting Annual Meeting Webcast May 7

    Philip Morris International Inc. announced it will host a live audio webcast of its 2025 Annual Meeting of Shareholders on Wednesday, May 7, 2025, at 9 a.m. EST. The meeting will be in a virtual format and can be accessed at www.virtualshareholdermeeting.com/PM2025. Presentation slides, script, and an archived recording of the webcast will be available at the same link. The recording will be available for one year from the date of the meeting.

    During the meeting, André Calantzopoulos, Chairman of the Board, and Jacek Olczak, Chief Executive Officer, will address shareholders and answer questions. Only shareholders of record with a valid 16-digit control number will be allowed to ask a question or make a comment.

    The audio webcast may also be accessed on mobile devices by downloading PMI’s free Investor Relations App at www.pmi.com/irapp.

  • Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Authorities in Bocaue, Bulacan, Philippines, seized six truckloads with 717 boxes of assorted branded cigarettes in a warehouse last week, worth P83.7 million ($1.5 million). Philip Morris Philippines Manufacturing and Japan Tobacco International both cited the Bureau of Customs’ “dedication and effectiveness” as well as the leadership of Customs Commissioner Bienvenido Rubio. 

    Owners of the warehouse will be charged for violating the Tax Reform for Acceleration and Inclusion Law if they fail to present documents within 15 days, Rubio said. Charges could also be filed against the owners of the smuggled dried tobacco products for violating the Anti-Agricultural Economic Sabotage Act. 

  • PMI CEO Calls for Common-Sense Regulations

    PMI CEO Calls for Common-Sense Regulations

    Jacek Olczak, Chief Executive Officer of Philip Morris International Inc., outlined the need for common-sense regulations in the consumer goods sector while addressing global leaders at Semafor’s annual World Economy Summit in Washington, D.C., on April 25, 2025. Olczak emphasized the sector’s potential for innovation-led growth despite the volatile economic environment. He stressed, however, that without appropriate regulation and policy frameworks to enable scientific evaluation and consumer access, promising breakthroughs—such as innovations in wellness, food, and personal care products—could become missed opportunities.

    “Disparities in nicotine regulation are creating a global divide with profound health and economic impacts,” Olczak said. “Some countries that have prohibited smoke-free products are seeing higher smoking rates persist, while many of those whose policies encourage smokers to make better choices are advancing away from cigarettes more quickly. As a result, we are already starting to see nations where smoking has significantly declined while others unnecessarily continue to experience smoking rates of 20%, 30% or higher.”

    According to PMI, more than 190 million smokers in more than 20 markets—nearly 20% of smokers globally—have no legal access to smoke-free products, while cigarettes—the most harmful way to consume nicotine—are available on the market. This stagnation persists despite the introduction of advertising bans, high excise taxes, plain packaging, and a complete flavor ban on cigarettes.

    “Innovation needs to be accessible and impactful,” Olczak said. “At PMI, we have invested heavily, innovated continually, and transformed our business model to replace cigarettes with better, smoke-free alternatives, which as of Q1 2025 represent 42% of our global net revenues—up from zero a decade ago. It is imperative that countries worldwide adopt policy frameworks that keep pace with these innovations to deliver on the promise of progress.”

  • PMI Halts U.S. Cigar Sale

    PMI Halts U.S. Cigar Sale

    Bloomberg reported that yesterday Philip Morris International Inc. called off the sale of its $1 billion US cigar business, citing the “current environment” in the latest deal to go awry amid market turmoil.

    PMI said following a thorough review and after taking into account the current environment, it will not shed the cigar unit it acquired as part of its $16 billion purchase of rival Swedish Match. It has previously said it wanted to dispose of US cigars as it continues to pin its future on a shift toward smoke-free alternatives to traditional tobacco products.

    The company said strong sales of Zyn nicotine pouches — also acquired from Swedish Match — were driving performance as it boosted adjusted earnings per share guidance this year to as much as $7.49, compared with a previous targeted high of $7.17.

    The smoke-free business includes Zyn and IQOS heated tobacco sticks and accounted for 42% of the first-quarter total net revenue. Philip Morris wants to generate more than two-thirds of its sales from alternative products by 2030.

  • PMI Surpasses Estimates for Fourth Straight Quarter

    PMI Surpasses Estimates for Fourth Straight Quarter

    Today (April 23), Philip Morris International announced first-quarter earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.61 per share. This is a 12.7% increase, and compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items, and mark the fourth straight quarter the company has surpassed consensus EPS estimates.

    PMI posted revenue of $9.3 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%.

    “We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion,” said Jacek Olczak, Chief Executive Officer. “Our smoke-free business goes from strength to strength, delivering organic growth of over 20% in net revenues and over 33% in gross profit.

    “We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year.”

    PMI’s smoke-free business saw a 14.4% increase in shipment volumes, and now accounts for 42% of its total net revenues and 44% of its total gross profit.