TobaccoReporter logo

Tag: pmi

  • PMI Execs Talk Financials

    PMI Execs Talk Financials

    Today (June 3), Philip Morris International presented at the 2025 dbAccess Global Consumer Conference, showcasing its strategic focus on smoke-free products amid a backdrop of both opportunities and challenges. The company reported strong growth in its smoke-free portfolio, while also managing a resilient combustible business through strategic price adjustments and cost management.

    PMI reported organic revenue growth between 6% and 8% and organic operating income growth of 10.5% to 12.5%. The company said it remains on course to have two-thirds of its revenue come from smoke-free products by 2030.

    PMI said its smoke-free product volume increased by more than 14%, and revenue from smoke-free products grew by over 20% organically. This category was led by its Zyn nicotine pouches, which saw over 50% growth in the U.S. during Q1 2025, and has plans for further expansion in Europe and other markets.

    IQOS experienced nearly 10% growth in Japan and over 7% in Europe despite regulatory challenges, with Veev holding the top position in five EU markets, focusing on profitable growth.

    Emmanuel Babeau, CFO of PMI, said the company plans to expand IQOS in the U.S. and enter new markets such as Turkey, Brazil, and India, and expects to reach a net debt to EBITDA ratio of 2x by the end of 2026.

  • Survey: Two-Thirds of U.S. Healthcare Practitioners are Mistaken About Nicotine

    Survey: Two-Thirds of U.S. Healthcare Practitioners are Mistaken About Nicotine

    A new survey, funded by Philip Morris International’s U.S. affiliates (PMI U.S.), has found that 47% of U.S. healthcare practitioners—rising to 59% among medical professionals who indicate that half or more of their patients smoke cigarettes—mistakenly believe nicotine is a carcinogen, despite scientific consensus that the harms of smoking primarily stem not from nicotine but from the burning of tobacco. Another 19% are unsure. Practitioners surveyed generally agree that smoke-free products—such as nicotine pouches and other noncombustible alternatives— are addictive and not risk free but still pose less risk than cigarettes. However, the survey results also show that misconceptions about nicotine persist and are obstructing progress on tobacco harm reduction.

    Povaddo LLC fielded the survey among 1,565 medical professionals, including physicians, nurses, and mental health practitioners, across the United States between March 10 and April 5, 2025. The survey results highlighted that:

    Despite decades of research as part of tobacco control efforts, misconceptions about nicotine are pervasive among healthcare professionals and others. The survey findings demonstrate an urgent need for healthcare regulators to provide unbiased, scientifically substantiated information about nicotine and nicotine products to the healthcare community. Many clinicians report uncertainty about which products are FDA-authorized and point to a lack of up-to-date information as barriers to more frequent and informed patient guidance regarding authorized smoke-free products. This is critical at a time when an estimated 480,000 Americans die each year from smoking-related illnesses.

    “Healthcare professionals are at the heart of patient care and need reliable, science-based information to help their patients make informed choices,” said Stacey Kennedy, CEO of PMI U.S. “These findings reinforce the urgent need for transparent, evidence-driven communication from the FDA and other health authorities about the full spectrum of tobacco and nicotine products. We encourage the agency to provide timely, scientifically validated guidance to healthcare practitioners on FDA-authorized smoke-free alternatives. Ensuring clinicians have access to accurate information is essential to help adults 21+ who smoke make better choices and improve public health.”

    This need for clear, science-based information is especially urgent given the survey’s findings about persistent misconceptions within the medical community that may result in incomplete or inaccurate information being shared with patients.

    “One of the most striking findings from this research is the prevalence of misinformation about nicotine—even among otherwise well-informed healthcare professionals,” said Matt Holman, vice president of U.S. scientific engagement and regulatory strategy at PMI U.S. and former director of the Office of Science at the FDA. “Addressing these misconceptions with robust, evidence-based communication from authorities like the FDA is crucial to helping providers guide their patients and support harm reduction.”

    PMI has invested more than $14 billion globally in innovative smoke-free products and remains committed to giving adults 21+ access to FDA-authorized better alternatives.

    Read the full findings of the Tobacco Harm Reduction: U.S. Medical Professionals Survey (2025) at https://www.pmi.com/us/medical-professionals-see-greater-role-for-FDA. Access PMI’s science at www.pmiscience.com and fact sheet on nicotine here.

  • PMI India Pushing T&T to Curb Illicit Trade

    PMI India Pushing T&T to Curb Illicit Trade

    Philip Morris International Inc.’s India affiliate, IPM India, today hailed India’s decision to roll out pack-level Track and Trace (T&T) as a game-changing move against illicit tobacco trade and a major step toward modernizing regulatory enforcement. Approved under Section 148A of the Central Goods and Services Tax (CGST) Act, this is a move to protect revenue, tighten enforcement, and bring greater transparency and accountability to India’s tobacco market. Starting with cigarette packs, the government has chosen a high-impact strategy to curb illicit tobacco trade. The proposed mechanism may incorporate Unique Identification Markings on packs, which will enable enforcement agencies to easily distinguish tax-paid products from illegal ones—strengthening oversight across retail shelves, supply chains, and field operations. The proposed T&T mechanism will be a practical, real-world solution designed for immediate impact—and a critical foundation for a more modern, technology-driven regulatory system.

    Similar systems have been successfully deployed in UK, Russia, Jordan, Gulf Cooperation Council (GCC), where PMI has worked with national authorities to build scalable, locally adapted traceability frameworks. Across all markets, the outcome have been consistent: better visibility, stronger compliance, and measurable reductions in illicit trade.

    “This is a landmark reform and a visionary step towards a cleaner, more modern, and a transparent market,” Navaneel Kar, Managing Director, IPM India said. “With thoughtful execution, India’s T&T system can reshape the fight against illicit tobacco trade—boosting public trust, strengthening government revenues, and accelerating the modernization of enforcement practices. Eliminating illicit tobacco trade has been a longstanding priority for us and remains integral to our broader efforts in driving operational excellence and building a sustainable future. PMI has long invested in technologies that protect supply chain integrity globally, and we are committed to partnering with the Indian government to make this initiative a success.”

  • Survey: Two-Thirds of U.S. Healthcare Practitioners are Mistaken About Nicotine

    Survey: Two-Thirds of U.S. Healthcare Practitioners are Mistaken About Nicotine

    A new survey, funded by Philip Morris International’s U.S. affiliates (PMI U.S.), has found that 47% of U.S. healthcare practitioners—rising to 59% among medical professionals who indicate that half or more of their patients smoke cigarettes—mistakenly believe nicotine is a carcinogen, despite scientific consensus that the harms of smoking primarily stem not from nicotine but from the burning of tobacco. Another 19% are unsure. Practitioners surveyed generally agree that smoke-free products—such as nicotine pouches and other noncombustible alternatives— are addictive and not risk free but still pose less risk than cigarettes. However, the survey results also show that misconceptions about nicotine persist and are obstructing progress on tobacco harm reduction.

    Povaddo LLC fielded the survey among 1,565 medical professionals, including physicians, nurses, and mental health practitioners, across the United States between March 10 and April 5, 2025. The survey results highlighted that:

    Despite decades of research as part of tobacco control efforts, misconceptions about nicotine are pervasive among healthcare professionals and others. The survey findings demonstrate an urgent need for healthcare regulators to provide unbiased, scientifically substantiated information about nicotine and nicotine products to the healthcare community. Many clinicians report uncertainty about which products are FDA-authorized and point to a lack of up-to-date information as barriers to more frequent and informed patient guidance regarding authorized smoke-free products. This is critical at a time when an estimated 480,000 Americans die each year from smoking-related illnesses.

    “Healthcare professionals are at the heart of patient care and need reliable, science-based information to help their patients make informed choices,” said Stacey Kennedy, CEO of PMI U.S. “These findings reinforce the urgent need for transparent, evidence-driven communication from the FDA and other health authorities about the full spectrum of tobacco and nicotine products. We encourage the agency to provide timely, scientifically validated guidance to healthcare practitioners on FDA-authorized smoke-free alternatives. Ensuring clinicians have access to accurate information is essential to help adults 21+ who smoke make better choices and improve public health.”

    This need for clear, science-based information is especially urgent given the survey’s findings about persistent misconceptions within the medical community that may result in incomplete or inaccurate information being shared with patients.

    “One of the most striking findings from this research is the prevalence of misinformation about nicotine—even among otherwise well-informed healthcare professionals,” said Matt Holman, vice president of U.S. scientific engagement and regulatory strategy at PMI U.S. and former director of the Office of Science at the FDA. “Addressing these misconceptions with robust, evidence-based communication from authorities like the FDA is crucial to helping providers guide their patients and support harm reduction.”

    PMI has invested more than $14 billion globally in innovative smoke-free products and remains committed to giving adults 21+ access to FDA-authorized better alternatives.

    Read the full findings of the Tobacco Harm Reduction: U.S. Medical Professionals Survey (2025) at https://www.pmi.com/us/medical-professionals-see-greater-role-for-FDA.

    Access PMI’s science at www.pmiscience.com and fact sheet on nicotine here.

  • Reno Reporters Stumble into Counterfeit Zyn

    Reno Reporters Stumble into Counterfeit Zyn

    News 4-Fox 11 in Reno, Nevada, is reporting its investigation that found counterfeit Zyn products for sale at a local convenience store that looked identical to the legitimate brand. Last October, an employee of the station bought three cans of “Zyn,” which he said tasted different than usual. The cans were sent to McKinney Specialty Labs in Virginia for testing.

    “They really are misbranded and illegally on the market,” Dr. Roxana Weil, chief regulatory science officer at McKinney, said. The tested product only contained 4.5mg of nicotine, contrary to the 6mg advertised, and additionally contained six methyl nicotine, an additive that should not have been in there. The lab only tested for nicotine, so it’s unclear what else could be in the counterfeit product.

    Dr. Willie McKinney, CEO of McKinney, said, “It was a little bit of a surprise to see six methyl nicotine simply because it’s manufactured. It’s man-made.”

    Representatives from Philip Morris International, the makers of Zyn, and the store owner believe the counterfeit products likely came from a distributor.

    “Our findings are that these are produced from overseas,” said Brian Weinhaus, director for illicit trade at PMI. “They are not produced in the United States.”

  • 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.