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TOKYO (Reuters) – Philip Morris International Inc. will sell cheaper versions of its IQOS heat not burn products in Japan and launch new and improved products next month to boost market share, the company's chief executive said.
The new Philip Morris IQOS 3 devices are presented at a press conference given by the president of his international, Andre Calantzopoulos, in Tokyo, Japan, on October 23, 2018. REUTERS / Kim Kyung-Hoon
Since regular nicotine-containing electronic cigarettes are effectively banned in Japan, the country has become the main market for heat not burn (HNB) products, which emit less smoke and smell less than conventional cigarettes.
Philip Morris, a Marlboro cigarette manufacturer, was the first to start selling HNB products in Japan in 2014, but British American Tobacco and Japan Tobacco Inc. faced fierce competition.
Companies have cut prices for heaters earlier this year.
Philip Morris currently sells a pack of 20 sticks, rolls of tobacco used with IQOS devices, at 500 yen ($ 4.43). The CEO, Andre Calantzopoulos, told Reuters that as of Tuesday, a new "HEETS" line priced at 470 Yen will be available.
"Clearly, for some people, spending 30 yen more, 40 yen more per day is expensive," he said Monday during an interview in Tokyo.
In mid-November, the company will also release enhanced versions of its "IQOS 3" and "IQOS 3 MULTI" devices. Calantzopoulos said existing versions would still be available at current prices.
"We want to respond to the entire population. From a pricing perspective, it will contribute to the perception of the product, "said Calantzopoulos.
Philip Morris, the largest publicly traded tobacco company in the world, recently posted lower-than-expected growth in IQOS after gaining a leading position in the global HNB market.
Japan accounts for about 85 percent of the $ 6.3 billion HNB market, according to Euromonitor.
Philip Morris said IQOS holds 15.5% of the Japanese tobacco market, including conventional cigarettes, but its market share has stabilized.
"I think it's natural in any category that you have slowdowns," said Calantzopoulos. "We have people who have adopted earlier and more conservative people," he said.
Philip Morris also submitted a marketing request to the FDA for IQOS, which would allow the company to sell it with a reduced risk claim.
The PMI was created by Altria Group Inc almost 10 years ago and Altria will market IQOS in the United States.
Calantzopoulos said that companies would not expect approval of the reduced risk claim to launch the product, because separately, the marketing authorization would come "hopefully before the end of the year. ;year".
He said that Altria was "ready to be launched as soon as it would get its approval (marketing)".
A Reuters report released in December revealed gaps in the training and professionalism of some of the leading researchers in clinical trials submitted to the FDA by Philip Morris.
On Monday, Philip Morris was accused of hypocrisy after using a four-page newspaper advertisement to urge smokers to quit.
Reportage of the taiga Uranaka; Edited by Susan Fenton
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