Tag: pmi

PMI Launches Tobacco-Free Heat Stick

Image: Reuters
Philip Morris International unveiled a zero-tobacco stick for use with its heat-not-burn device IQOS, which may help the company avoid tax and other regulations that affect its tobacco products in some markets, according to Reuters.
The new sticks, called LEVIA, do not contain tobacco but rather a “nontobacco substrate” infused with nicotine. It offers flavors including tobacco, menthol with blueberry and peppermint.
LEVIA may avoid the heavy taxes or other controls imposed on other tobacco products, according to CEO Jacek Olczak. He said it “may not be subject to flavor regulations in some jurisdictions” and that it “doesn’t fit” in existing fiscal categories.
A PMI spokesperson declined to comment on when and where LEVIA would launch or what substance replaces the tobacco.
October 2, 2023
PMI Considering Selling Stake in Vectura

Image: Denys Rudyi
Philip Morris International is considering selling a stake in Vectura, according to Reuters.
PMI is looking to bring on a partner to help operate and grow Vectura’s drug manufacturing outsourcing business, according to company statements to the Wall Street Journal. PMI could possibly sell a majority or a minority stake. Other options are a licensing or royalties deal or a commercial partnership.
In 2021, PMI bought Vectura for $1.36 billion as part of the company’s long-term plan to transition to a “broader healthcare and wellness” company. PMI also acquired Fertin Pharma and OtiTopic in the same year.
“We aim to accelerate Vectura’s growth and will be exploring potential partnerships to enhance its contract development and manufacturing organization business,” Chief Financial Officer Emmanuel Babeau said in July, noting that the company remained committed to developing the wellness healthcare segment.
September 21, 2023
PMI Gets Science-Based Targets Validation

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The Science Based Targets initiative (SBTi) has verified Philip Morris International’s Forest, Land and Agriculture (FLAG) emissions reductions targets.
According to the Science Based Targets initiative, “SBTi’s FLAG guidance provides the world’s first standard method for companies in land-intensive sectors to set science-based targets that include land-based emission reductions and removals. The guidance enables companies to reduce the 22 percent of global greenhouse gas emissions from agriculture, forestry and other land use.”
PMI maintains its science-based target to reach net-zero emissions for scopes 1, 2 and 3 by 2040, which was validated by SBTi in July 2022. As part of its ongoing net-zero commitment, PMI has now pledged to reduce absolute scope 3 emissions related to forestry, land and agriculture by 33.3 percent by 2030 in line with SBTi best practice. PMI aspires to reduce all other scope 3 emissions by 27.5 percent within the same timeframe. PMI’s 2040 net-zero target remains in line with a 1.5-degree scenario, aligned with leading edge target-setters across business industries. PMI outlines comprehensive plans to achieving net-zero by 2040 in its Low-Carbon Transition Plan.
“We renew and continue our effort to direct our activities toward decarbonizing our value chain and are committed to aligning our work with relevant updates on international methodologies, such as the Science Based Targets for Nature (SBTN) and guidance from the SBTi on forest, land, and agriculture science-based targets,” said Scott Coutts, senior vice president of operations at PMI.
“The SBTi’s science-based targets on forestry, land use, and agriculture will become the gold standard for companies within the agricultural sector to accelerate emissions reductions, and we are pleased to be early adopters,” said Jennifer Motles, chief sustainability officer at PMI. “The SBTi’s validation demonstrates that our targets are rooted in science and aligned with the Paris Climate Agreement’s goal to keep global warming to the 1.5 degrees Celsius threshold that is considered the limit beyond which climate-related impacts will be catastrophic.”
The Science Based Targets initiative is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050. The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature and is one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
September 21, 2023
Victoria Harker Joins PMI Board

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Philip Morris International appointed a new member, Victoria Harker, to serve on the board of directors, effective Jan. 1, 2024.
Harker is an experienced U.S. public-company chief financial officer, having served in the role with three different companies, and she has been involved in significant corporate transformations in the consumer, industrial and utility sectors for over 25 years. She is a high-energy, action-oriented, strategic executive who has worked at a significant scale, most recently as executive vice president and chief financial officer of TEGNA Inc., a global media and digital communications company, a position she will step down from effective Dec. 31, 2023. Prior to this, she served as executive vice president, chief financial officer and president of global business services of The AES Corporation, a global power company. She has served as a nonexecutive member of the boards of directors of two large and complex U.S. public companies, Huntington Ingalls Industries and Xylem Inc., since the time of their respective spinoffs. Harker also serves as the audit committee chair for Huntington Ingalls Industries and as the compensation committee chair for Xylem Inc. She is vice chair of the State Council of Higher Education for Virginia, a member of the University of Virginia Health System board and was previously a member of the University of Virginia board of visitors.
Andre Calantzopoulos, PMI’s executive chairman, commended Harker on the appointment, and said in a statement, “We are delighted to welcome Victoria to the PMI board of directors. Her broad finance and business experience will further strengthen and diversify the capabilities of our board in successfully guiding our company through its ambitious and highly promising journey toward a smoke-free future and beyond.”
September 18, 2023
PMI Publishes First Human Rights Report

Image: PMI
Philip Morris International released its first Human Rights Report, detailing the company’s strategy to promote, respect and protect human rights and its progress to date in implementing its Human Rights Commitment.
PMI’s Human Rights Commitment outlines the foundational principles that need to be respected throughout the operations and value chain by both PMI and its business partners. In 2022, PMI updated its commitment with the company’s latest saliency mapping, sustainability materiality assessment, ongoing due diligence activities and the evolution of the company’s sustainability strategy.
“Establishing a strong foundation and integrating mechanisms into our organization that promote, respect and protect human rights are an essential part of our approach to business,” said Jacek Olczak, CEO, in a statement. “While this can be challenging given the breadth of our operations and the scope and complexity of the issues involved, we believe human rights are an absolute and universal requirement that we are committed to upholding.”
In its Human Rights Report, PMI shares its best practices, lessons learned, main challenges and future actions. It also features country-based case studies and external recognition—such as the inclusion of PMI’s Agricultural Labor Practices in the World Business Council for Sustainable Development’s latest Human Rights Progress Report. PMI actively participates in the Business Commission to Tackle Inequality’s efforts and contributed to the latest report on Tackling Inequality: An Agenda for Business Action.
In addition, PMI’s Human Rights Report includes progress toward achieving its 2025 goal to conduct 10 human rights impact assessments (HRIAs) in the highest risk countries. To date, PMI has completed seven HRIAs, including two in 2022 in Brazil and Malaysia.
PMI’s approach to human rights is grounded in the United Nations Guiding Principles on Business and Human Rights.
“Human rights are inherent to the dignity of human life and a prerequisite for society to prosper,” said Jennifer Motles, chief sustainability officer. “As a global company, we work to uphold human rights both within our organization and across our value chain. We will continue to work with different parts of society in a multi-stakeholder approach to achieve sustainable solutions that comprehensively address systemic human rights issues.”
June 20, 2023
PMI Holds Virtual Annual Meeting

Image: Tobacco Reporter archive
Jacek Olczak

Andre Calantzopoulos
Philip Morris International held its 2023 annual meeting of shareholders. Andre Calantzopoulos, executive chairman of the board, addressed shareholders and answered questions. Jacek Olczak, CEO, gave a business presentation, which included an overview of PMI’s strong performance in 2022 and encouraging start to 2023; robust business fundamentals and rapid progress on its smoke-free transformation; excellent momentum in the heat-not-burn and nicotine pouch categories; further progress on sustainability, with continued recognition by leading external stakeholders; and commitment to rewarding shareholders over time.
“Our smoke-free transformation continued apace in 2022, with the growth of smoke-free products to nearly one-third of total net revenues for the year and the achievement of two important milestones—the acquisition of Swedish Match and the agreement to gain the full rights to commercialize IQOS in the U.S. in April 2024,” said Olczak.
“As a global smoke-free champion with leading brands IQOS and Zyn, we are well positioned to further accelerate our transformation in the years to come to the benefit of the company, our shareholders, other stakeholders and public health,” he said.
Approximately 81 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 12 nominees for director; approved, on an advisory basis, the compensation of named executive officers; approved, on an advisory basis, a one-year interval for the vote on the compensation of named executive officers; ratified the selection of PricewaterhouseCoopers SA as independent auditors; and voted against the shareholder proposal. 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 of the meeting will be available for approximately one year from the date of the meeting. The presentation slides and script will be available as well.
May 4, 2023
PMI Reports Strong Results for 2022

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Philip Morris International announced its 2022 fourth-quarter and full-year results. Given the impact of the war in Ukraine on the company’s operations in Russia and Ukraine in 2022, PMI also provided figures and comparisons excluding the company’s operations in these two markets for all historical periods. To provide more clarity on the full extent of the company’s business in 2023, PMI included both Ukraine and Russia in its 2023 forecast and adjusted reporting.
For the full year, net revenues from smoke-free products accounted for 32.1 percent of total net revenues, or 31.3 percent excluding Russia and Ukraine. Following the acquisition of Swedish Match, PMI defines “smoke-free products” to include all Swedish Match products other than Swedish Match’s combustible tobacco products in addition to PMI’s heat-not-burn, e-vapor, oral nicotine and wellness and healthcare products. Market share for heated-tobacco units (HTUs) in IQOS markets were up by 1.1 points to 8 percent, or by 1.4 points to 7.9 percent excluding Russia and Ukraine. The company increased regular quarterly dividend by 1.6 percent to $1.27 per share, or an annualized rate of $5.08 per share.
For the fourth quarter, net revenues from smoke-free products accounted for 36 percent of total net revenues, or 35.6 percent excluding Russia and Ukraine. Market share for HTUs in IQOS markets was up by 1.4 points to 8.5 percent, or up by 1.8 points to 8.5 percent excluding Russia and Ukraine. Total IQOS users at quarter end were estimated at approximately 24.9 million, of which approximately 17.8 million had switched to IQOS and stopped smoking (approximately 20.3 million and 14.2 million, respectively, excluding Russia and Ukraine).
“Despite the challenging operating environment in 2022, due to the war in Ukraine as well as supply chain and global inflationary pressures, we delivered very strong full-year adjusted results led by the continued growth of IQOS and a robust performance in the combustible tobacco category,” said Jacek Olczak, PMI CEO.
“We are well on our way to becoming a majority smoke-free company, with smoke-free products accounting for almost one-third of our total net revenues for the year. With the acquisition of Swedish Match and the agreement to take full control of IQOS in the U.S. in April 2024, we achieved two important milestones in our smoke-free transformation in 2022 and are well positioned to accelerate this journey.
“We enter 2023 as a truly global smoke-free champion, with two of the industry’s leading smoke-free brands, IQOS and Zyn, and continued innovation across our broader smoke-free product portfolio. For the year, we forecast organic top-line growth of 7 percent to 8.5 percent and currency-neutral adjusted diluted EPS growth of 7 percent to 9 percent despite inflationary pressures and transitory impacts related to Iluma deployment.
“For Swedish Match, we expect continued strong growth from the business in 2023, following a very strong finish to the year led by Zyn in the U.S.”
February 9, 2023
PMI, BAT Recognized for Gender Equality

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Philip Morris International and BAT were included in the 2023 Bloomberg Gender-Equality Index (GEI).
PMI made the index for the third year running, achieving an overall score of 80.6 percent.
“Achieving gender balance at all levels of the company is one of our top priorities, and I am delighted that our efforts are recognized again in this year’s index,” said Silke Muenster, chief diversity officer at PMI. “While we are making significant progress, we know we need to keep our foot on the acceleration pedal. An inclusive workplace that leverages the full talents of both women and men is crucial to our smoke-free vision, making our organization more innovative, resourceful and engaged.”
In 2022, PMI achieved its target of ensuring at least 40 percent female representation in managerial roles and announced a new target to achieve 35 percent of women in senior roles by the end of 2025, among other targets.
BAT, which participated in the index for the first time, received a score of 75 percent. BAT was recognized for creating an inclusive culture for women via its recruiting initiatives, adoption of family-friendly policies, sponsoring programs dedicated to educating women, and support of community programs. Inclusion in the index follows BAT being named as a Global Top Employer for a sixth successive year.
“Recognition in this year’s Bloomberg Gender-Equality Index demonstrates our commitment to addressing gender diversity and highlights our concerted global efforts to provide transparent reporting,” said Hae In Kim, BAT’s director of talent, culture and inclusion. “With more than 50,000 employees worldwide, our diversity and inclusion strategy is truly global, and I continue to be incredibly proud of the collective efforts made by all our employees.”
The GEI measures gender equality performance globally across five pillars as set by Bloomberg: leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and external brand. The 2023 Bloomberg GEI comprises 485 companies from 45 countries and regions.
February 1, 2023
Study: PMI Uses Ad Loopholes in Israel

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Philip Morris International has exploited loopholes in smoking product advertisement bans in Israel, a new study shows, reports The Jerusalem Post.
The study, published in Tobacco Control, analyzes PMI’s advertising expenditure over four years across the general population, the ultra-Orthodox (haredi) public, Arab speakers and Russian speakers.
“We conducted a comparison among the advertising expenditures for all Philip Morris cigarette brands and the IQOS brand (a heated-tobacco stick that entered the local market in December 2016) in light of regulatory changes that restricted the advertising of tobacco products,” said doctoral student Amal Khayat.
Advertising restrictions led to a reduction in PMI’s marketing expenditures, but it exploited legal loopholes in the printed press, according to the study.
“Even after the law came into effect, the company continued to spend almost NIS3 million [$872,566.93] on advertising with a focus on the printed press,” said Yael Bar-Zeev, lead researcher. “While the law restricted print advertising to one advertisement in each newspaper, 40 percent of the IQOS adverts placed were giant, two-page ads, effectively doubling the product’s advertising space while still being considered a single advert as allowed by the letter of the law.”
PMI also used QR codes, allowing consumers to scan and view additional information. Before the law went into effect, according to the study, PMI significantly increased its advertising to the studied population groups, particularly the Haredi population, which previously had the lowest smoking rates in Israel.
“Our data shows that since the introduction of the IQOS e-cigarettes, 216 targeted ads were published, of which 55 percent were created for the Haredi public, 6 percent for the Arab public and the rest for the Russian-speaking public,” said Bar-Zeev. For regular cigarette brands, 87 percent of advertisements were targeted at the Haredi population.
“We expected that the company would focus on populations with the highest rates of smoking in Israel—Arab men—and not on the population that had hardly any smokers,” said Bar-Zeev.
Following the study, the 24th Knesset decided to remove the printed press advertisement exception but deferred implementation for seven years. In the interim, coupons, QR codes and advertisements featuring cigarette packs that do not have mandatory plain packaging are banned in the printed press.
December 15, 2022
Swedish Match Applies for Delisting

Image: Tobacco Reporter archive
The board of Swedish Match said it will apply for delisting of the company’s shares from Nasdaq Stockholm, according to a press release. The last day of trading in the company’s shares on Nasdaq Stockholm will be announced as soon as the company has received confirmation from the exchange.
Philip Morris Holland Holdings, an affiliate of Philip Morris International, declared the public offer for Swedish Match unconditional on Nov. 7, 2022. PMHH controls more than 90 percent of the shares in Swedish Match and has initiated squeeze-out proceedings in respect of the remaining shares in the company.
December 6, 2022