Category: Heat-Not-Burn

PMI Sees IQOS Surpass Marlboro Brand in Revenue

Photo: Arkadiusz Fajer
Philip Morris International reported net revenues of $9.05 billion for the fourth quarter and net revenues of $35.17 billion for fiscal year that ended Dec. 31, 2023. On a reported basis, the figures were up 11 percent and 10.7 percent, respectively, over the comparable 2022 periods.
Performance was driven by revenue growth in both the combustible cigarette business, where pricing offset reduced volumes, and the company’s smoke-free operations, which continued to increase their share of the company’s business mix.
“We are pleased that smoke-free products reached nearly 40 percent of our total net revenues and over 40 percent of our gross profit in the fourth quarter,” said PMI CEO Jacek Olczak in a statement.
“This was led by the continued growth of IQOS, which has now surpassed Marlboro in terms of net revenues, confirming its position as the leading premium nicotine brand less than 10 years from launch. The fourth quarter also marked the first anniversary of our combination with Swedish Match, which delivered very strong results in 2023 driven by the stellar U.S. performance of ZYN.”
PMI shipped 116.3 million cans of ZYN in the fourth quarter of 2023, representing growth of 78.2 percent versus fourth-quarter 2022 Swedish Match shipments of 65.3 million cans.
“We are entering 2024 with strong momentum, and we expect it will be another year of excellent performance underpinned by an acceleration in organic smoke-free net revenue and profit growth,” said Olczak.
PMI also expects to benefit this year from a recent settlement with British American Tobacco that resolves all ongoing patent infringement litigation between the parties related to heated tobacco and vapor products. The deal allows each party to innovate and introduce product iterations.
February 8, 2024
Spain Bans Flavors for Heated Tobacco Products

Credit: Weyo
The government in Spain has approved a decree that equates the regulation of heated tobacco products with that of traditional cigarettes, prohibiting products with flavorings. The rules do not apply to all vaping products, such as e-cigarettes.
In addition, it will now be mandatory for labels to contain warnings for heated tobacco products that they products are harmful to health, according to Catalan News.
The Ministry of Health is considering further regulations.
“The ban will cover tobacco products with an aroma or flavor in their components (such as filters, papers, packaging, or capsules) or any other technique that allows modifying the smell or taste of the products or intensify the smoke. Filters, papers and capsules cannot contain tobacco or nicotine,” the report states.
Heated tobacco products must include the following informative message on their outer packaging: “Tobacco smoke contains more than 70 carcinogenic substances,” with relevant accompanying photographs.
This decree will enter into force three months after its publication in the official state gazette (Boletín Oficial del Estado).
January 16, 2024
BAT Launches Glo Hyper Pro Heated Tobacco Device

Image: BAT
BAT has launched a new version of its Glo heating device. Glo is an alternative to smoking that doesn’t involve burning, producing fewer and lower levels of toxicants than conventional cigarettes.
The Glo Hyper Pro device is lightweight, fits easily in consumers’ pockets and comes with improvements in performance, according to the company. With this new device, one charge takes approximately 90 minutes and lasts all day. Once charged, consumers can expect to use the device for 20 sessions in total.
“We’re proud that today, over 8.8 million adult consumers now use Glo,” said Kingsley Wheaton, chief strategy and growth officer at BAT, in a statement. “This latest version is our most advanced yet, with a much improved user experience. We continue to listen to consumers and enhance our products so that they find Glo a satisfying alternative to continuing to smoke. Ultimately, BAT aims to support smokers to switch to these reduced-risk products in order to deliver benefits for consumers, society and our stakeholders.”
The wider Glo range is sold in over 20 markets around the world. The Glo Hyper Pro device has been launched in Japan, Italy and Poland, with further global market rollouts planned during 2024.
January 10, 2024
PMI to Introduce Heated, Tobacco-Free LEVIA Sticks

Photo: PMI
Philip Morris International is set to introduce LEVIA, a tobacco-free product boasting a cellulose-based composition with nicotine, aiming to reduce harm significantly compared to conventional cigarettes.
In an interview with Daily News Egypt, Gizelle Baker, PMI’s vice president of global scientific engagement, emphasized the company’s commitment to offering satisfying alternatives to smokers, understanding the complexity of breaking the smoking habit. PMI’s strategy, she noted, involves varied device types, price points, flavors, and addressing rituals associated with smoking.
Designed as a nicotine-delivery system resembling e-cigarettes but without tobacco, LEVIA emits 99 percent fewer harmful chemicals than cigarettes, according to PMI. Paired with the ILUMA device, LEVIA aims to provide a sensory smoking experience while minimizing health risks. PMI’s approach to reducing secondhand smoke involves eliminating smoke production by not burning tobacco.
Bakes said PMI envisions a smoke-free future by eliminating combustion, not necessarily tobacco or nicotine. The company aims to diversify its portfolio beyond smoking-related products into wellness and healthcare sectors, leveraging expertise gained from tobacco research. This transition includes exploring new smoke-free products beyond oral, tobacco-heating systems and vape options, according to Baker.
The company’s acquisitions in drug manufacturing indicate a shift towards diverse offerings beyond tobacco. PMI foresees future innovative products based on scientific advancements and customer satisfaction across both device and consumable categories.
December 26, 2023
Report Finds Herbal Heated Sticks Market ‘On Fire’

Photo: cirquedesprit
Herbal heated sticks are rapidly spreading worldwide not only as a replacement for conventional smoking, but also as an alternative to heated tobacco products, according to new research from TobaccoIntelligence.
These products provide an experience similar to using heated tobacco, but unlike heated tobacco products they do not contain any tobacco. Instead, they use a different substance—often tea—to hold flavorings and, sometimes, nicotine.
Now, the new TobaccoIntelligence Herbal Heated Sticks Tracker casts light on this fast-growing but poorly understood market.
It reveals that fruit flavors are the most popular in most countries covered, but nicotine strengths vary greatly. In some countries, such as Japan, only zero-nicotine products are sold.
“Heated herbal sticks are typically cheaper than comparable tobacco products, and are also compatible with some heated tobacco devices. So from the consumer’s point of view, they offer a low-cost alternative—while for manufacturers, they can provide a legal way of providing flavors in countries where heated tobacco flavors are banned,” explains Eva Antal, director of market analysis at TobaccoIntelligence’s publisher Tamarind Intelligence.
“We expect more product launches in more countries–but at the same time, we don’t expect regulators to ignore them forever,” says Antal.
Currently, Japan and Poland have the most products available, although there are far more different brands in Japan.
And Japan is also among the countries where these products are cheapest. By contrast, Germany is the most expensive.
The Herbal Heated Sticks Tracker covers nine major markets: the Czech Republic, Germany, Hungary, Japan, Malaysia, the Philippines, Poland, Russia and the U.K.
November 29, 2023
JT Launches Ploom X Advanced H-n-B in Japan
Image: JT
Japan Tobacco announced the launch Ploom X Advanced, a new model of heated tobacco device that has evolved in terms of taste and user comfort.
The company believes the new device will play a significant role in its mid- to long-term business strategy.
According to JT, the new device represents a significant improvement over the current model and incorporates advanced features, including:
An upgraded heating technology, dubbed “Power Heatflow,” which increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience.
A new automatic heating function that automatically starts heating when a stick is inserted into the device.
Reduced charging time from approximately 110 minutes for the current model to approximately 90 minutes.
The device will be available at convenience stores and tobacco retailers nationwide in Japan starting on Nov. 21, 2023, at a suggested, tax-included retail price of ¥1,980 ($13.22).
Following the launch of Ploom X Advanced, JT will discontinue sales of the current Ploom X model in Japan.
October 30, 2023
Czechia Bans Flavors for Heated Tobacco Products

Photo: diy13
The sale of flavored heated-tobacco products (HTPs) will be banned in the Czech Republic, effective today, reports Expats.cz. A European directive requires that EU member states incorporate the ban into their legal frameworks effective Oct. 23. The directive does not allow for a transitional period for sale of existing stock.
Slightly more than half of HTP users prefer flavored tobacco, according to Jiri Sochor, spokesperson for JT International. Sochor noted that based on U.S. ban results, some people reverted to traditional combustible cigarettes.
The ban will not take effect simultaneously in neighboring countries, Sochor said, noting that only Germany has introduced it. Due to this, people are likely to purchase flavored products abroad.
Flavored heated-tobacco products generate about CZK2.9 billion ($125.16 million) in consumer taxes annually, according to Sochor.
Companies are responding to HTP flavors ban by introducing new, tobacco-free products. British American Tobacco, for example, has begun selling heat sticks with nicotine-infused rooibos tea. Certain tobacco firms have also opposed the ban, and the legislation will be addressed by the EU Court of Justice due to complaints from Irish companies.
October 23, 2023
PMI Applies to Sell IQOS Iluma in the U.S. Market

Photo: vfhnb12
Philip Morris International Oct. 20 submitted premarket tobacco product applications (PMTAs) and modified risk tobacco product applications (MRTPAs) for IQOS Iluma heated tobacco products with the U.S. Food and Drug Administration (FDA).
IQOS Iluma products are PMI’s most-innovative heated tobacco products. They deliver substantially similar reductions in the formation of harmful and potentially harmful constituents as earlier versions of IQOS products authorized by FDA
According to PMI, IQOS Iluma has demonstrated higher rates of full switching by adults who smoke and improved consumer satisfaction in many countries.
IQOS Iluma products rely on a fundamentally different heating technology from previous versions of IQOS products and contain numerous technological advancements including improved device and battery longevity.
IQOS Iluma products are currently available in 27 markets internationally
PMI’s applications are supported by a thorough scientific assessment, including aerosol chemistry, in vitro toxicology, a pharmacokinetic study, and consumer perception and behavior studies, as well as the comprehensive scientific dataset generated with previous versions of the IQOS system
The IQOS Iluma devices operate on the Smartcore Induction System that heats tobacco from within Terea Smartcore Sticks—heated tobacco sticks designed to be used only with IQOS Iluma devices
PMI has submitted applications for three Iluma devices and five variants of the tobacco sticks: Terea Blue, Terea Green, Terea Sienna, Terea Bronze, Terea Amber

Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S.
Stacey Kennedy, president Americas and CEO of PMI’s U.S. business
“Tens of millions of American adults today smoke cigarettes and will likely continue to do so. They should have a range of scientifically substantiated better alternative nicotine products to choose from, and PMI is committed to providing them with new choices,” said Stacey Kennedy, president Americas and CEO of PMI’s U.S. business, in a statement.
“Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S. and drive a rapid decrease in smoking rates among adults. These are strong applications, and we urge the FDA to prioritize them for review.
“Since 2008 PMI has invested more than $10.5 billion to scientifically research, develop, and commercialize smoke-free products, an investment that was further bolstered last year through our acquisition of Swedish Match. We are focused on providing adults who smoke with alternatives that can reduce their risks compared with smoking and help make America cigarette-free.”
PMI will have the full rights to commercialize all IQOS products in the U.S. as of April 30, 2024, per the terms of an agreement with Altria Group, Inc. ending the companies’ commercial relationship covering IQOS in the U.S.
October 21, 2023
BAT Uses Rooibos Tea in Heat Sticks for IQOS

BAT has begun selling heat sticks made from nicotine-infused substances such as rooibos tea to counter an incoming EU ban on flavored heated-tobacco products, according to Reuters.
Health experts have warned that the safety of the new products is unclear.
BAT has launched heat sticks containing nicotine-infused rooibos tea rather than tobacco in nine European markets, including Germany and Greece. The company plans to roll the product out globally.
BAT stated that the move will provide “adult nicotine users and smokers with the widest possible range of reduced-risk products.”
“Anything that burns or is vaporized … and inhaled into the lungs, probably will cause some effects,” said Erikas Simonavicius, a research associate at King’s College London, of the unknown risk factors of the tea-infused heat sticks. Tobacco companies have not yet published any research showing the health implications of rooibos or other zero-tobacco heat sticks, said Simonavicius.
BAT is the first big tobacco company to publicly state what its zero-tobacco sticks are made from. The company declined to comment on whether it had conducted research on the health implications of the product.
Philip Morris International plans to roll out a zero-tobacco stick later this year, according to statements made during the company’s investor day in September. PMI declined to comment on what the product is made from or its health implications.
According to Jacek Olczak, PMI CEO, the company’s product could avoid the regulatory scrutiny of tobacco products.
According to BAT, its new zero-tobacco heat sticks are not subject to EU tobacco rules, meaning the company can sell its sticks in flavors even after a ban on flavored heated-tobacco products is implemented later this month.
“The obvious advantage these new products should provide is a way to keep menthol and flavor varieties on the EU market,” said Owen Bennett, a Jefferies analyst.
Experts do not think the regulatory advantages will last long, however, according to Bennett and Phil Gorham, senior equity analyst at Morningstar.
“The next generation of regulation is going to target nicotine,” Gorham said.
October 16, 2023
PMI Launches Tobacco-Free Heat Stick for IQOS

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