This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2016/nov/30/philip-morris-stop-selling-cigarettes-alternative-iqos
The article has changed 10 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Philip Morris's vision of cigarette-free future met with scepticism Philip Morris's vision of cigarette-free future met with scepticism | |
| (about 5 hours later) | |
| Claims by tobacco giant Philip Morris, the US company behind brands including Marlboro, that conventional cigarettes could become a thing of the past have been met with scepticism. | Claims by tobacco giant Philip Morris, the US company behind brands including Marlboro, that conventional cigarettes could become a thing of the past have been met with scepticism. |
| Speaking as he launched a new product that the firm claims is less harmful than traditional smoking, chief executive André Calantzopoulos predicted a “phase-out period” for cigarettes. | Speaking as he launched a new product that the firm claims is less harmful than traditional smoking, chief executive André Calantzopoulos predicted a “phase-out period” for cigarettes. |
| He said the company’s new iQos product, which heats tobacco but does not burn it, releases fewer toxins and is capable of replacing cigarettes in the long term. | He said the company’s new iQos product, which heats tobacco but does not burn it, releases fewer toxins and is capable of replacing cigarettes in the long term. |
| “I believe that there will come a moment in time where we have sufficient adoption of this alternative product and sufficient awareness to start envisaging – together with governments – a phase-out period for cigarettes,” he told BBC Radio 4’s Today programme on Wednesday. “I hope this time will come soon.” | “I believe that there will come a moment in time where we have sufficient adoption of this alternative product and sufficient awareness to start envisaging – together with governments – a phase-out period for cigarettes,” he told BBC Radio 4’s Today programme on Wednesday. “I hope this time will come soon.” |
| Philip Morris, the largest tobacco firm outside China, has invested $3bn (£2.4bn) in the iQos, which differs from vaporisers or e-cigarettes that heat a liquid containing nicotine. | Philip Morris, the largest tobacco firm outside China, has invested $3bn (£2.4bn) in the iQos, which differs from vaporisers or e-cigarettes that heat a liquid containing nicotine. |
| The firm’s prediction of a future without cigarettes came as the UK court of appeal ruled that plans to remove distinctive branding from packs will go ahead. | The firm’s prediction of a future without cigarettes came as the UK court of appeal ruled that plans to remove distinctive branding from packs will go ahead. |
| But campaigners and industry analysts cast doubt on the chances of cigarettes being banished, either by e-cigarettes or other replacement products such as the iQos. | But campaigners and industry analysts cast doubt on the chances of cigarettes being banished, either by e-cigarettes or other replacement products such as the iQos. |
| Deborah Arnott, chief executive of anti-smoking group Ash, said: “Philip Morris claims to be moving towards a post-smoking future but, like other tobacco companies, it is still actively promoting smoking around the world, using methods that would be illegal in the UK.” | Deborah Arnott, chief executive of anti-smoking group Ash, said: “Philip Morris claims to be moving towards a post-smoking future but, like other tobacco companies, it is still actively promoting smoking around the world, using methods that would be illegal in the UK.” |
| Rae Maile, tobacco industry analyst with City of London firm Cenkos Securities, pointed out that Calantzopoulos was vague about how long it might take for cigarettes to disappear. | Rae Maile, tobacco industry analyst with City of London firm Cenkos Securities, pointed out that Calantzopoulos was vague about how long it might take for cigarettes to disappear. |
| “He didn’t say when ... so it’s any time in the next century,” he said. “There are 1 billion people quite happy with smoking. Cigarettes are easy to use, convenient and don’t need recharging. People know the health risks and are willing to accept them. | “He didn’t say when ... so it’s any time in the next century,” he said. “There are 1 billion people quite happy with smoking. Cigarettes are easy to use, convenient and don’t need recharging. People know the health risks and are willing to accept them. |
| “There’s plenty of demand from current smokers so it might change, but it’ll be a very slow process.” | “There’s plenty of demand from current smokers so it might change, but it’ll be a very slow process.” |
| Despite the growing publicity surrounding vaporisers and e-cigarettes, they remain a nascent technology that forms only a tiny part of tobacco firms’ income. | Despite the growing publicity surrounding vaporisers and e-cigarettes, they remain a nascent technology that forms only a tiny part of tobacco firms’ income. |
| Philip Morris, which has its headquarters in New York and runs its international operation from Switzerland, sold 847bn cigarettes in 2015 and had group revenues of $26.8bn (or $73.9bn including excise tax). | Philip Morris, which has its headquarters in New York and runs its international operation from Switzerland, sold 847bn cigarettes in 2015 and had group revenues of $26.8bn (or $73.9bn including excise tax). |
| UK-based rival British American Tobacco makes e-cigarettes under the Vype brand and this month launched a competitor to iQos called glo. | UK-based rival British American Tobacco makes e-cigarettes under the Vype brand and this month launched a competitor to iQos called glo. |
| But revenues from what it calls “next generation products” are still so small that the company does not publish them, describing income from the division as “not currently material”. | But revenues from what it calls “next generation products” are still so small that the company does not publish them, describing income from the division as “not currently material”. |
| Imperial Tobacco also does not publish figures for vaporiser sales, while it is yet to launch a “heat-not-burn” product like iQos. | Imperial Tobacco also does not publish figures for vaporiser sales, while it is yet to launch a “heat-not-burn” product like iQos. |
| And while countries such as the US, UK, Italy and France have begun to embrace alternatives, the use of traditional cigarettes is still on the rise elsewhere. | And while countries such as the US, UK, Italy and France have begun to embrace alternatives, the use of traditional cigarettes is still on the rise elsewhere. |
| In Indonesia, the percentage of the 258 million-strong population that smokes every day is projected to rise from 30.9% of adults in 2010 to 40.7% by 2025, or nearly 80% among men, according to World Health Organisation figures. | In Indonesia, the percentage of the 258 million-strong population that smokes every day is projected to rise from 30.9% of adults in 2010 to 40.7% by 2025, or nearly 80% among men, according to World Health Organisation figures. |
| That compares with a predicted decline in the UK from 20.9% to 13.2% over the same period. | That compares with a predicted decline in the UK from 20.9% to 13.2% over the same period. |
| Maile said rising smoking rates in the developing world were partly the result of lower life expectancy reducing people’s fear of late-life diseases, as well the lack of social stigma attached to the habit. | Maile said rising smoking rates in the developing world were partly the result of lower life expectancy reducing people’s fear of late-life diseases, as well the lack of social stigma attached to the habit. |
| He pointed out that even markets such as the US, where smoking rates are declining, offer attractive opportunities for companies such as British American Tobacco, which recently spent $47bn to buy out Reynolds American. | He pointed out that even markets such as the US, where smoking rates are declining, offer attractive opportunities for companies such as British American Tobacco, which recently spent $47bn to buy out Reynolds American. |
| “If you look at the percentage penetration rate, it’s halved since 1970 from over 40% to 20%, but the number of smokers has stayed at 45 million because you’ve seen growth in the population,” he said. | “If you look at the percentage penetration rate, it’s halved since 1970 from over 40% to 20%, but the number of smokers has stayed at 45 million because you’ve seen growth in the population,” he said. |
| Maile added that this pattern was replicated elsewhere, with markets such as Indonesia and north Africa expanding, even if population growth is not factored in. | Maile added that this pattern was replicated elsewhere, with markets such as Indonesia and north Africa expanding, even if population growth is not factored in. |
| While Calantzopoulos claimed Philip Morris was shifting away from cigarettes, he also defended the company’s role in smoking-related health problems. | While Calantzopoulos claimed Philip Morris was shifting away from cigarettes, he also defended the company’s role in smoking-related health problems. |
| . “I don’t think Philip Morris invented cigarettes. For us, it’s to offer our consumers the best product we can in a category that we all know is addictive and causes harm. | . “I don’t think Philip Morris invented cigarettes. For us, it’s to offer our consumers the best product we can in a category that we all know is addictive and causes harm. |
| “Once we have the alternative, as we have today, we offer them the alternative and we will do everything we can to convince [people] to switch to these products.” | “Once we have the alternative, as we have today, we offer them the alternative and we will do everything we can to convince [people] to switch to these products.” |
| Arnott said independent evidence was needed to support any claims made by the tobacco industry that new products were safer. | Arnott said independent evidence was needed to support any claims made by the tobacco industry that new products were safer. |
| “From past experience, nothing the tobacco companies say should be accepted at face value,” she said. | “From past experience, nothing the tobacco companies say should be accepted at face value,” she said. |
| “Fully independent research and assessment will be crucial if iQos and related products are to be accepted as useful in fighting the smoking epidemic.” | “Fully independent research and assessment will be crucial if iQos and related products are to be accepted as useful in fighting the smoking epidemic.” |