“If you don’t smoke, don’t start. If you smoke, quit. If you don’t quit, change.”
The unexpected statement comes from Oggie Kapetanovic, president of Heat-Not-Burn at Philip Morris International (PMI), who repeated what he called is the “mantra in the company” which is also published in articles in its website.
The change he is referring to is the range of science-backed smoke-free alternatives to cigarettes that meet adult smokers’ needs and expectations and delivers less harmful effects. There are 1.1 billion smokers around the world despite health warnings, legislation on the control of tobacco sale and advertising, and higher prices.
Ten years after PMI launched IQOS, its leading brand of heated tobacco products, in Nagoya in 2014, the company celebrated its success on Oct. 19 in Tokyo with the Together X Sensorium event. In attendance were PMI officials, customers, media, and notable personalities from IQOS markets.
And so started our interview in Tokyo last week with Mr. Kapetanovic, top executive in the biggest cigarette company which has declared the “ambition to be a substantially smoke-free company” with over two-thirds of its total net revenues coming from smoke-free products by 2030.
At the sidelines of the event, Mr. Kapetanovic shifted from gracious host to advocate of smoke-free alternatives, which PMI had supported with an investment of over $12.5 billion in science-based innovation to develop smoke-free devices to deliver the expectations of a smoker – though not risk-free – with significant harm reduction.
Mr. Kapetanovic explained that IQOS, is “a great example” of one of the products that provides an alternative to smokers who don’t quit. The PMI website describes the process: “IQOS tobacco heating systems heat specially designed heated tobacco units, without combustion, fire, ash, or smoke. This generates a flavorful nicotine-containing vapor, releasing the true taste of heated tobacco.”
The device is composed of a holder for the specially-designed tobacco units, and a battery. The heat-not-burn process will not emit smoke, ash, and odor, and reduces the harmful chemicals.
He explained the process that takes away the harmful chemicals: “Heat-not-burn products is where tobacco is heated to a point but not until it combusts. No combustion means there’s no smoke and no ash and no odor; and 95 percent less emission of harmful chemicals.”
Of the 1.1 billion people around the world who are still smoking, 36.5 million are on smoke-free products.
“That’s a long a way to go until we make the whole world smoke-free,” Mr. Kapetanovic said.
PMI has invested in developing a “multi-category portfolio of scientifically-backed smoke-free products that – while not risk-free – are a better choice for adults than continue smoking,” a company press statement said.
“Our vision is to replace every cigarette with heat-not-burn for all those smokers who cannot quit. It’s a 1.1-billion people vision. You need to listen all those smokers, what are their needs, why do they not want to stop, why are they not considering changing to other alternatives. When you think of that you start thinking of products,” he said.
“Our job will be done when cigarettes are in museums,” Mr. Kapetanovic said.
When asked what feedback PMI has been getting about IQOS, our host lights up.
“The best feedback we are getting is the fact that so many of them who have tried have converted to them completely. Of the 36 million users, 72 percent of them have converted completely. They have stopped smoking cigarettes. That to me is the most important feedback we can get for our product because it shows that we are able to address the needs of smokers.”
IQOS has overtaken PMI’s leading cigarette brand, Marlboro, in terms of net revenues for the first time in its fourth-quarter 2023 report. “With IQOS now our top nicotine product—less than a decade since its launch—coupled with the fact that today it accounts for more than 50 percent of our total net revenues in 25 markets, we’re demonstrating significant strides toward becoming a company that no longer sells cigarettes,” a statement in the PMI website in February 2024 said.
The change from cigarettes to smoke-free device like IQOS does not happen overnight. It depends on the individual and it can take between two to three weeks. On the average, for somebody committed to switch, in space of three weeks, you can see them fully converted to the ICOS. Seventy-two percent converted completely. Some continue to use both, the PMI heat-not-burn chief executive explained.
An obstacle to the switch, though, is the price of the IQOS. Mr. Kapetanovic said that there are places where consumers can afford to spend $50 to $60 dollars for IQOS. There are places where it is very difficult because of the earning power.
He cites, though, that “what is important is that we are committed to find a solution for everybody. While today we don’t have devices less than $19, we are constantly working to improve to offer smokers all solutions. Remember, the cigarette museum is the aim.”