TOBACCO: E-CIGS AND SMOKE-FREE Next-gen technology interest rises


The trend towards e-cigarettes and smoke-free products continues to gather momentum in many countries, but challenges persist. Jessica Mason speaks to Philip Morris International and ECigIntelligence for an update on how it is affecting travel retail.


M


aking advances within the tobacco category amid a minefield of regulation


often presents a conundrum for travel retail. Understanding and knowledge of e-cigarettes – notably surrounding their rules and regulations – vary, but what is clearer is the technology continues to carve out appeal in certain quarters. “PMI’s vision is to replace


cigarettes with smoke-free products that are a much better choice than continued smoking,” says Bryson W. Thornton, Director Communications EEMA, Middle East, Africa & Philip Morris International (PMI) Duty Free. “Our goal is to switch all adult


smokers who would otherwise continue smoking, to these novel products as soon as possible.” Thornton says the company’s


smoke-free portfolio includes heated tobacco products and items without tobacco, such as e-cigarettes. IQOS, PMI’s most advanced smoke-free product and the subject of a recent US Food and Drug Administration (FDA) supervisory panel into claims the technology can reduce the risk of tobacco-related diseases, is available in 31 markets, including in duty free shops across the globe. “MESH, our next generation


e-vapor product that uses a new approach to vapor generation, is available in the UK,” Thornton also confirms.


Retailing challenges When it comes to e-cigarettes retailing, there are some challenges, according to Barnaby Page, Spokesperson at ECigIntelligence. “The more advanced systems


require fairly detailed consultation with the customer and therefore a certain level of staff training – think of it as being like selling a phone or glasses frames, for example. So they are obviously more suited to specialist stores than


FEBRUARY 2018


general retailers.” “Where duty free is concerned,


there is a particular challenge because of import regulations in some countries (a minority do ban e-cigarettes) and also civil aviation restrictions. “These are perceived problems


rather than actual problems – for example, the FAA (Federal Aviation Administration) mandates that e-cigarettes must be carried in cabin rather than checked baggage. So that doesn’t really pose any practical issue for duty free. But the mere fact that there are rules might deter retailers. It might just look too complicated to get involved in.” That said, the demand and the


interest for new e-cigarettes and smokeless technology continues to rise. Thornton identifies that recent


growth in the e-cigarette and heated tobacco product market is evidence that there is demand for better alternatives to cigarettes, reminding that “close to four million smokers have already switched to (PMI’s) IQOS”. This statistic alone is evidently


being used as ammunition to show there is interest in


the product. According to Thornton, retailers


will continue to be a “vital partner” for PMI by providing channels for consumers to access its new products. As such, he believes “new opportunities will arise for retailers as we explore new business models to distribute and sell these products, including in the travel retail industry, which is considered a unique and strategic channel for PMI”.


Regulatory hurdles However, as always there are roadblocks facing the market. For travel retail – like any other retailing channel – regulation remains an important part of the landscape of tobacco sales. For the e-cigarette category, it will always be “extremely complex, and constantly changing”, notes Page.


“Where duty free is concerned, there is a particular challenge because of import regulations in some countries and also civil aviation restrictions.”


Barnaby Page, Spokesperson, ECigIntelligence


Above: PMI claims almost four million adult smokers have switched to IQOS.


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