In an exclusive interview with apa.az, Philip Morris International (PMI) Vice President for International Communications Tommaso Di Giovanni spoke about the revolutionary transformation of the company and its aspirations for a smoke-free future.
Transitioning to a smokeless future
“Our main goal is to help smokers switch to less harmful alternatives if they can’t give up nicotine completely,” Di Giovanni emphasizes. Since 2008, PMI has invested $12.5 billion dollars in the development of innovative smokeless products in an effort to make traditional cigarettes a part of the past.
In 2023, the company allocated 74% of its commercial efforts and 99% of its research and development expenditures to smokeless technologies. While these products are not completely safe and contain addictive nicotine, they are a significantly less harmful alternative to conventional cigarettes.
Key Achievements
PMI’s transformational story began in 2009 with the opening of a research center in Switzerland. In 2014, the company introduced IQOS in Japan and Italy, and by 2020, it was recognized by the U.S. FDA, becoming the first manufacturer of electrically heated tobacco products with officially confirmed modified-risk product status.
As of September 2024, PMI’s smokeless products are available in 92 markets worldwide. Approximately 36.8 million adult users have chosen these products, with 72% of them completely giving up conventional cigarettes. The share of smokeless products in the company’s total revenue reached 38% in the first nine months of 2024.
Scientific approach and innovation
The transformation is based on extensive research and development work. 1,586 scientists, engineers and technicians are working to develop and validate smokeless alternatives. The company has published more than 530 peer-reviewed scientific papers and received 3,720 patents in the field of smokeless technology.
A success story: the example of Sweden
Sweden is close to becoming the world’s first smoke-free country, with only 5% of the population smoking. This achievement is due to the wide availability of alternative nicotine-containing products. Between 2014 and 2023, smoking rates in Sweden fell by 27%, compared to an EU average of only 11%.
Long-term goals
PMI aims to have more than two-thirds of its revenue coming from smokeless products by 2030. However, the company is looking even further ahead, with plans to expand beyond the tobacco industry into health and wellness, leveraging its expertise in aerosol chemistry, toxicology and clinical research.
Prospects for Azerbaijan
With IQOS entering the Azerbaijani market in June 2024, PMI sees great potential to reduce smoking rates in a country where about a quarter of the population now smokes. The successful example of Japan, where smoking prevalence has fallen by 46% since 2014 following the introduction of smokeless products, demonstrates the effectiveness of this approach.