Will Cigarettes Disappear in 10 Years? Philip Morris International CEO Jacek Olczak’s Plan

TL;DR

Philip Morris International CEO Jacek Olczak says the company aims to phase out cigarettes worldwide by replacing them with scientifically substantiated smoke-free alternatives such as IQOS. Since 2008, PMI has invested over $10 billion in research, development, and manufacturing, while directing 99% of its R&D resources toward smoke-free products. Read on to understand the strategy, evidence, and behavioral challenge behind this ambition.

Transcript

My name is Jacek Olczak. I am a Chief Executive  Officer of Philip Morris International. So, Philip Morris International for many years, has  been known as the cigarette maker, the global leader in the cigarette category. And for the  last 10 years, we've been known as the company which wants to transform its purpose fully to  “unsmoke the world”, ... Read More

Key Insights

• Philip Morris International is transitioning from cigarettes to smoke-free products.
• The company has invested over $10 billion in smoke-free product development.
• IQOS has 27 million users globally, showing significant adoption.
• PMI's goal is to phase out cigarettes entirely in the next decade.
• Skepticism exists about tobacco companies in scientific debates.
• PMI emphasizes the importance of behavioral change to reduce smoking.
• The company is also exploring healthcare and wellness product lines.
• PMI's transformation is unprecedented in scale within the tobacco industry.

Questions & Answers

Q: Will cigarettes disappear in 10 years?

Jacek Olczak says Philip Morris International’s ambition is to phase out cigarettes around the world. The company’s stated approach is: people who do not smoke should not start, smokers should quit, and those who do not quit should change to scientifically substantiated smoke-free products.

Q: How does Philip Morris International plan to phase out cigarettes?

PMI plans to replace cigarettes with smoke-free products across different categories. Olczak says the company has moved its resources away from cigarettes because it believes eliminating them faster would benefit the public, smokers, and the company.

Q: How much has Philip Morris International invested in smoke-free products?

PMI says it has invested over $10 billion since 2008 in research, development, and manufacturing. According to the discussion, 99% of its R&D and product-development resources now support smoke-free products.

Q: Why did Philip Morris International begin developing cigarette alternatives?

The company wanted to address the harm caused by cigarettes for smokers who do not quit. Around 2008, advances in battery technology and science convinced PMI that it could develop alternatives consumers might accept and accelerate the pace of change.

Q: What is the biggest challenge in moving smokers away from cigarettes?

Developing a less harmful product is only part of the challenge. The discussion identifies convincing smokers to make a difficult behavioral change and give up cigarettes as the harder task.

Q: What is Philip Morris International’s advice to smokers?

PMI summarizes its position as: “If you don't smoke, don't start. If you smoke, quit. If you don't quit, change.” In the final case, the company recommends changing to smoke-free products that it describes as scientifically substantiated better alternatives.

Q: What benefits does Jacek Olczak attribute to IQOS?

Olczak says IQOS offers benefits compared with harmful cigarettes. He points to immediate clinical improvement in cardiovascular and respiratory areas, while saying cancer outcomes require more time because those diseases develop over time.

Q: Why are people skeptical of tobacco companies discussing science?

The discussion acknowledges substantial skepticism, distrust, and dislike when the tobacco industry enters scientific debates. One participant says she shared that skepticism before joining PMI and would not support any claim that smoking does not cause death and disease.

Summary & Key Takeaways

• Philip Morris International is actively working to eliminate cigarettes by promoting smoke-free alternatives like IQOS. With a $10 billion investment in research and development, PMI has successfully attracted 27 million users to its smoke-free products. The company's vision is to completely phase out cigarettes within the next decade, despite ongoing skepticism about tobacco companies' roles in scientific discussions.

• The shift from traditional cigarettes to smoke-free alternatives is a significant part of PMI's strategy. The company aims to address the harm caused by smoking through innovative products, emphasizing the importance of behavioral changes among smokers. PMI's transformation involves a large-scale commitment to science and technology, positioning it as a leader in the tobacco industry's evolution.

• As PMI continues its journey towards a smoke-free future, it also explores opportunities in healthcare and wellness sectors. The company believes that reducing smoking rates globally will benefit not only smokers but also their families and society as a whole. PMI's ambitious transformation reflects its dedication to public health and adapting to changing consumer demands.