Tag: PML

  • Heat-not-Burn Sales Start to Catch Fire in U.K.

    Heat-not-Burn Sales Start to Catch Fire in U.K.

    Credit: Postmodern Studio

    New data from Philip Morris Limited (PML) shows that retailers should stay stocked up on the latest technology advancements in next-generation nicotine products to keep ahead of growing consumer demand.

    Kate O’Dowd, head of commercial planning UK & Ireland at PML, said that data shows that store owner competition in the heat-not-burn category is shifting the landscape, by challenging the dominance of traditional categories (such as e-cigarettes) and accelerating the pace of change.

    “The race to switch adult smokers to alternative products between convenience retailers and large multiples, and the speed with which manufacturers and their brands are developing and commercializing the most innovative products to meet growing demand show everyone is feeling the heat,” she said. “For instance, if we look at heat-not-burn – a relative newcomer to the U.K. market – we see a category growing at over twice the speed of the e-cigarette category, which launched at least a decade earlier.”

    O’Dowd cited data from PML’s first quarter results that found that the firm’s HEETS tobacco sticks accounted for more than 6 percent of the market share of the total industry sales volume for heated tobacco units.

    PML also recently commissioned a survey, which included more than 1400 convenience retailers, to find whether retailers would forego competing with other stores if it meant they could help their community to make the swap to smoke-free options.

    More than two-thirds of the respondents to the survey said they would look beyond competition with other stores to work together to help their community to go smoke-free.

    Aiming to push this potential of the heat-not-burn subcategory further, PML recently rolled out its new IQOS Originals Duo heat-not-burn product, an advancement to its previous IQOS 3 Duo, the comapny said. The new device comes in a kit with a compact, lightweight holder and two packs of HEETS at an RRP of £39.

  • Report: Price a Major Factor for 2023 Vape Sales

    Report: Price a Major Factor for 2023 Vape Sales

    Credit: Jet City Image

    A new Philip Morris Limited (PML) funded study has found that UK retailers can expect “affordability” to be the deciding factor for adult smokers trying to make the switch to vaping products in 2023.

    In its third consecutive year of running the survey for PML, KAM Media asked 250 UK convenience stores what factors they believe will be important for adult smokers switching to smoke-free alternatives at the start of the new year and throughout 2023, according to Better Retailing.

    When asked what customers will look for when choosing a smoke-free alternative, retailers prioritized price with over half (57 percent) agreeing that customers would select the cheapest products available, followed by those products offering the best overall value for money (18 percent).

    Smoke-free alternatives that offered the widest taste range available (10 percent) and those offering convenience and ease (5 percent) ranked third and fourth, respectively.

    Asked what may prevent smokers from choosing a smoke-free product this year, price again was a factor with six in 10 retailers concerned that alternatives may be too expensive.

    Additionally, 56 percent said that they stock heat-not-burn products.

    Kate O’Dowd, head of commercial planning at PML in the UK and Ireland, said that the average price of combustible cigarettes now £12.73 per pack and data shows that retailers are stocking a range of smoke-free alternatives that are affordable.

    “2023 will be the year of the multi-category, whereby retailers should offer affordable smoke-free choices that don’t compromise on taste, quality, or satisfaction for the user,” she said.