Philip Morris International (PMI) recently hosted its ninth Technovation event at Cube, its state-of-the-art research and development center in Neuchâtel, Switzerland. Celebrating “30 years of innovation, 10 years of progress,” the company provided journalists with a unique opportunity to interact directly with PMI’s senior management, scientists and R&D experts, highlighting the company’s commitment to innovation and its vision of a smoke-free future. Among PMI’s advanced facilities, their production and technology center in Bologna, Italy, stands out as a center for the development and production of smokeless products using advanced technologies.
Bologna is not the only place PMI is investing to realize its vision. For example, PMI has made a significant investment in its Nis factory in Serbia, allocating US$100 million to transition from traditional cigarette production to smokeless tobacco products. With this investment, PMI’s total commitment in Serbia now exceeds USD 1 billion. The plant now exports 87% of its products, demonstrating PMI’s strategic focus on global markets. In addition, the company has launched a $5 million initiative called StarTech to support Serbia’s digital transformation, aligning with the government’s ambition to position the country as a technology hub in Europe.At Technovation
Jacek Olczak, CEO of PMI, shared his opinion on the company’s bold direction and his frank approach to leadership.
Your remarks at Technovation about “smart people making stupid decisions” and “cigarettes belonging in a museum” were impressive. Do you often find it important to challenge perspectives and provoke deeper thought when you take to the stage?
Education and knowledge should guide us in making better decisions. It’s not about whether we like the facts; if the science shows that the climate is changing or fossil fuel reserves are depleting, we must act. In business, time is the most important resource, more important than money. You can make money, but you can’t get back the time you spend. Every year we put off addressing these issues, whether it’s climate change or the tobacco epidemic, the consequences are getting worse. We cannot debate endlessly while the world faces tangible consequences. Millions die every year from tobacco; if we wait another decade, that’s millions more lives lost. The goal of developing alternatives is to address this issue now, not later. Cigarettes are harmful and there are safer alternatives. It is up to politicians and society to act beyond awareness – to make meaningful change.
Speaking of technology, how has it contributed to the transformation of PMI?
We have made significant advances in tobacco heating technology, achieving lower levels of toxicants while increasing consumer satisfaction, which encourages smokers to quit. Like innovations in other industries, such as the evolution of seat belts, our products will continue to improve as we invest in research and development. By bringing new products to market, we are not only driving the industry forward, but also highlighting the urgent need to reduce harm to smokers by offering a variety of safer alternatives.
India is focused on technological progress, but there is resistance to your products. How do you see it?
India’s position is contradictory. On the one hand, they want to become a leader in technology; on the other, they are limiting technology in tobacco. Refusing to innovate does not benefit public health and discourages investment. If the policy changes, we can work with Indian farmers to adapt their crops to fit new products, creating a fully integrated supply chain that leverages local expertise and sustainability.
How will the government and tobacco manufacturers benefit if policy makers consider approving smokeless products?
The Indian market is huge, with millions of tobacco consumers, making investment in local tobacco farmers essential. Instead of buying tobacco from abroad, it is crucial to work with farmers who know the land. While some are not yet growing the best varieties, we can help them improve their practices. Agriculture relies on generations of knowledge, and by changing the types of tobacco grown and improving soil cultivation, we can improve quality while preserving tradition. These investments create a fully integrated supply chain, promoting health and fostering sustainable practices. Ultimately, addressing health issues with smokeless products has a positive impact on all stakeholders.”
Finally, it is said that you used to dream of being a musician. Do you still play the guitar?
Not anymore, but dreams are important, even if they don’t come true. When I was young, I had time, but no money for a guitar. Now I can buy any guitar I want, but I don’t have the time. That’s the point – to maximize the time you have. For politicians, the lesson is clear: act now, when you have the opportunity. The longer we delay, the more lives are at stake; no resources can make up for lost time. The choices we make today determine the impact of tomorrow. It is critical that we use the knowledge and technology we have to save millions of lives.”
The PMI’s efforts under Jacek Olczak’s leadership emphasize transformational change in the tobacco industry, emphasizing innovation and timely action. Whether these changes will have the desired effect depends on how quickly and effectively they are implemented and supported by broader policy and societal acceptance.