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  • Philip Morris Pushes for Arbitration in Washington MSA Dispute

    Philip Morris Pushes for Arbitration in Washington MSA Dispute

    Philip Morris USA (PM USA) urged a King County Superior Court judge in Washington State to compel arbitration in its dispute with R.J. Reynolds (RJR) and other tobacco companies. The conflict centers on longstanding disagreements over the annual Master Settlement Agreement (MSA) payments to the state.

    RJR and fellow plaintiffs claim PM USA aims to derail a separate 2025 settlement signed between RJR and Washington by attempting to enforce an arbitration clause dating back to a 2017 agreement. They argue PM USA is improperly interfering in a deal it is not directly part of.

    This week, in response, PM USA submitted a motion to compel arbitration, asserting that RJR and the other defendants are bound by the 2017 arbitration clause and that the court must defer to this private resolution mechanism. The outcome of this procedural motion could significantly influence the future of tobacco payment disputes under the MSA—either moving them out of public courtrooms or keeping them subject to private arbitration panels.

  • PMI Launches IQOS ILUMA i in Egypt

    PMI Launches IQOS ILUMA i in Egypt

    Philip Morris Misr launched the IQOS ILUMA i in Egypt, the “latest and most advanced smoke-free device in its portfolio,” according to the company. The device features the Smartcore Induction System, which heats tobacco without combustion, delivering a cleaner, residue-free experience. It includes smart features like a touchscreen, pause mode, FlexPuff, and improved battery technology.

    “We leverage science, world-leading brands, and commercial capabilities to provide better alternatives to our consumers,” said Ali Nevzat Karaman, managing director of Philip Morris Egypt and Levant. “Following the introduction of IQOS ILUMA in Egypt in 2023, we are now taking the IQOS experience to new heights. IQOS ILUMA i is our most innovative device to date—our flagship product in the portfolio of scientifically substantiated, heat-not-burn smoke-free systems.”

    The IQOS ILUMA i is compatible with existing TEREA sticks, avoiding the need for format changes. This launch supports Philip Morris International’s vision of a smoke-free future, backed by over $14 billion in R&D and a goal to eliminate cigarettes. Smoke-free products now make up 42% of PMI’s net revenues, with 38.6 million adult users worldwide as of December 2024.

  • PMFTC Eyes Double-Digit Growth for IQOS in the Philippines

    PMFTC Eyes Double-Digit Growth for IQOS in the Philippines

    PMFTC Inc., the Philippine affiliate of Philip Morris International (PMI), is targeting double-digit growth this year for its smoke-free product, IQOS, as it pushes to expand its market in the country.

    In an interview, PMFTC President Gijs de Best said the Philippines now has around 150,000 IQOS users since the product’s launch in 2020. “People don’t understand what the problem is related to smoking because in the Philippines, 60% of people believe that nicotine is the most harmful ingredient, which it is not,” he said. “It’s the burning that is causing the issue. Simply, when you use a cigarette, once it is lit, harmful chemicals are released. What our technology is all about is heating, not burning.”

    Because it was launched in the market during the COVID-19 pandemic, IQOS gained traction mainly through word of mouth. Now, PMFTC aims to accelerate growth by increasing education around the benefits of heated tobacco. To support its expansion, PMI inaugurated a ₱8.8-billion ($150 million) manufacturing plant in Tanauan, Batangas last year to produce IQOS and other smoke-free products locally. The Philippines is one of 96 global markets for IQOS, with Indonesia currently being the largest in the region.

  • South Africa Debating Vape’s Role in Harm Reduction

    South Africa Debating Vape’s Role in Harm Reduction

    South Africa’s Parliament is reviewing the Tobacco Products and Electronic Delivery Systems Control Bill, which proposes strict regulations on all nicotine products—treating e-cigarettes, heated tobacco, and traditional cigarettes the same. Proponents of harm-reducing products warn that treating all nicotine products equally could stifle innovation and keep safer alternatives out of reach.

    The debate comes at a critical juncture for South Africa’s public health and economy. The current bill includes plain packaging, graphic health warnings, a ban on advertising, public vaping restrictions, and limits on vape flavors. Industry leaders like Philip Morris International (PMI) argue this approach ignores scientific evidence showing reduced harm from smoke-free products, urging a differentiated regulatory framework like those in the UK and Japan.

    PMI says equal restrictions discourage smokers from switching to less harmful alternatives. But health groups and some lawmakers remain cautious, citing youth vaping risks and insufficient long-term safety data.

  • PMI Calls for Smoke-Free Africa 

    PMI Calls for Smoke-Free Africa 

    Philip Morris International (PMI), called for the removal of all obstacles preventing the eradication of smoking in the African continent. The call, made in line with the company’s Tobacco Harm Reduction Program, specifically seeks governments’ policies and actions that are based on current scientific findings, rather than traditions, emotions, and skepticism.

    Speaking at the 2025 Technovation Conference in Cape Town, South Africa, officials of PMI identified a lack of effective government policies, skepticism, and the absence of communication, among other things, as the bane of a smoke-free future in Africa.

    “Innovation has the power to tackle global challenges and, when paired with policy changes, can drive meaningful solutions to worldwide issues,” PMI’s Vice President, Communications and Engagement, Tommaso Di Giovanni said. “However, skepticism toward innovation often results in missed opportunities and stalls progress.” 

     “I think the question we need to ask ourselves is not whether and why, but how Africa should proceed further,” said Andrea Gontkovicova, PMI’s Vice President for Corporate Affairs in the region. “What is the role that we want to take together so that the adult smokers who would otherwise continue smoking are given the information, are given the choice, and are given the products which are significantly better?”  

  • Major U.K. Supermarkets Told to Stop Tobacco Ads

    Major U.K. Supermarkets Told to Stop Tobacco Ads

    The British government has contacted Sainsbury’s and Morrisons, two of the UK’s largest supermarket chains, asking them to stop “advertising and promoting” heated tobacco products, which it says is against the law, according to the BBC. It was reported in February that both supermarkets were displaying posters and video screens showing devices that create a “nicotine-containing vapor by heating tobacco with an electric current.” At the time, both supermarkets said they believed the adverts were legal.

    Since 2002, the law has defined a tobacco product as something designed to be “smoked, sniffed, sucked or chewed.” Those supporting heated products point out that such products do not produce smoke, and Philip Morris International says it believes the Department of Health’s interpretation of the law is wrong, and says it has “complied with all applicable laws and regulations” since it launched its heated product, iQos, in 2016.

    The government has now written to the supermarkets saying that, in its opinion, the law does apply to heated products.

    A spokesperson for Morrisons said it was reviewing the letter and would respond “in due course.” Sainsbury’s said, “We remain in close contact with the government and industry partners and are planning our transition to ensure we also comply with planned incoming legislation.”

    It would likely take a court case to settle this dispute; however, currently, there is a bill at the committee stage in the House of Lords that is expected to conclusively ban all tobacco and vape advertising and sponsorship, making other legal actions futile.

  • PM Korea Introduces New “Cigarette-Type” E-Cig

    PM Korea Introduces New “Cigarette-Type” E-Cig

    Philip Morris Korea officially launched its new cigarette-style vaping device “IQOS ILUMA i ONE” on today (June 12), which improves cost-effectiveness for the company. The new product is an entry model for the Illuma i series following the ‘Iqos Illuma i Prime’ and ‘Iluma i’, which were introduced in February. The recommended consumer price is 59,000 won ($43.66).

    The iQOS Illuma i One features a compact all-in-one design and intuitive usability. The “Auto Start” function, which automatically starts heating when a dedicated “Tabaco” stick is inserted, and the “Flex Puff” function, which automatically operates so that additional inhalation can be performed up to four times for up to six minutes by analyzing individual usage patterns.

    It can be used up to 20 times continuously when fully charged, and it weighs 74 grams. 

  • EU Sees Highest Rate of Illicit Cigarettes Since 2015

    EU Sees Highest Rate of Illicit Cigarettes Since 2015

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, smokers in the European Union consumed 38.9 billion illicit cigarettes in 2024, a 10.8% increase versus 2023, the highest level since 2015. That number accounts for 9.2% of total cigarette consumption, with governments losing as much as €14.9 billion in tax revenues at a time when many countries face intense economic pressures and rising black markets.

    PMI called for effective policymaking to counter the growing threat of illicit trade, and said it believes that steep and abrupt tax increases are exacerbating the issue and benefitting criminals who supply unregulated, untaxed, and inferior products. To combat this growing threat, PMI urges the adoption of evidence-based regulation with balanced and predictable taxation through tax calendars, continued public-private collaboration, and enhanced support of regional and national law enforcement agencies.

    “The illicit tobacco trade threatens the European economy, public health, security, and social stability; today, higher-taxed and higher-priced markets such as France and the Netherlands are especially impacted by illegally imported and counterfeit goods,” said Christos Harpantidis, PMI’s Senior Vice President, External Affairs. “Its massive socioeconomic impact negatively affects tax collection, job creation, and legitimate businesses, the engine of our European economies. The availability of cheap, unregulated cigarettes in the underground economy also impairs efforts to reduce smoking rates and achieve a smoke-free future.”

    France has the largest illicit market in Europe, reaching 18.7 billion illicit cigarettes consumed last year, 37.6% of total consumption. The Netherlands saw the largest increase in illicit cigarettes, which doubled to 17.9% of total consumption.

    A detailed overview of the results, country profiles, and methodology of the KPMG study is available here.

  • Report: Black Marketeers Continue to Evolve with Technology

    Report: Black Marketeers Continue to Evolve with Technology

    Tobacco smugglers and black marketeers are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report found.

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, the illegal networks’ flexible strategies have helped illicit consumption increase 10.8% in the EU from 2023, with criminal groups shifting toward smuggling smaller packages, more often, via budget airlines, railways, and drones. They are also increasingly bypassing physical stores to sell directly to consumers on social media.

    The report showed that criminal groups are holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, and also reducing the chance of detection.

  • PMI Ukraine Running at Full Capacity

    PMI Ukraine Running at Full Capacity

    Philip Morris Ukraine is considering exporting cigarettes manufactured at its newly built factory in the Lviv region, company CEO Maksym Barabash said during a roundtable discussion on Ukraine’s economic recovery. Ukraine Business News (UBN) said the PMI factory in Kharkiv, which closed at the outbreak of war with Russia, produced 20 billion cigarettes annually, 50% of which were exported, including to Japan.

    By launching a new $30 million factory in the Lviv region, the company sees the potential to resume exports to geographically close countries. The new factory in the Lviv region opened in May 2024 and features five production lines that this year reached their planned capacity of 10 billion cigarettes per year. This factory has become an important part of the company’s supply chain in Ukraine.

    Philip Morris Ukraine has been active in the Ukrainian market since 1994 and has invested over $750 million in the Ukrainian economy during this time, according to UBN.