TOBACCO: E-CIGS AND SMOKE-FREE


“dissuade people from starting to smoke and encourage cessation”, but he also suggests that “the millions of men and women who will continue to smoke should have the opportunity to switch to better alternatives”. With this in mind, he highlights


how “e-cigarettes and heated tobacco products do not involve combustion and although not risk-free, have the potential to represent a significant public health opportunity”. For PMI, the company believes


MESH ‘e-vapor’ from PMI. Regulatory control “not only


impacts what can be sold, but also who can sell e-cigarettes, and where, and how they can be marketed”, he goes on to explain. “For example, some jurisdictions


require licensing” and for others, “rules on PoS marketing vary widely”. According to Page, “the regulatory


regime in Europe is fairly settled in its broad outline, and reasonably friendly”, but “the US is potentially more restrictive and also complex because you have state as well as federal rules, but there are strong signs of it loosening up at federal level”. Meanwhile, regulation in Asia can


be ‘mixed’ and “the least friendly regulatory regimes are in the Middle East, Latin America and Australia”. Meanwhile, “on a global level, the regulatory environment is far from being terrible – and e-cigarettes have managed to thrive as a result”. Thornton points out that regulations should continue to


“In Asia, home to 60% of the world’s smokers, many governments are denying smokers the option to switch to smoke-free products – either through outright bans, outdated regulation or philosophical opposition.”


Bryson W. Thornton, Director Communications EEMA, Middle East, Africa & Philip Morris International (PMI) Duty Free


54 TRBUSINESS


“such products deserve regulatory frameworks that allow availability and accurate information to help encourage smokers to switch”, explains Thornton. “There is a growing consumer


demand for better alternatives to cigarette smoking. In Asia, home to 60% of the world’s smokers, many governments are denying smokers the option to switch to smoke-free products – either through outright bans, outdated regulation or philosophical opposition. “This goes against the growing


body of science that points to these products being likely to be significantly less harmful. He continues: “With that said,


there are some success stories in countries where smoke-free products have been made available to Asian smokers. “In Japan, IQOS, our most


commercially advanced smoke-free product, has captured nearly 14% of the entire cigarette market in only three years,” he explains. In addition, PMI reports positive


trends in Korea, a market in which PMI claims that IQOS now accounts for 4.5% of the cigarette market after a few months of launching. “It’s clear that smoke-free


products make a massive impact on reducing smoking rates in a very short time and that making these products available can complement and enhance existing tobacco control measures,” Thornton argues. Page identifies Japan and South


Korea as interesting markets to watch at present, largely due to the introduction of ‘heat-not-burn’ products like the IQOS. Likewise, China remains not only


“the major international producer of e-cig hardware”, says Page, but its government is showing “increasing commitment to bringing down smoking rates”, so “the domestic market for e-cigs there could develop into a huge one”.


The road ahead So, how does the tobacco industry address the aforementioned trends, while, invariably, seeking to futureproof its existence by staying relevant and forward-looking? PMI tells TRBusiness its “smoke-free


products are intended as cigarette alternatives for adult smokers who would otherwise continue smoking”. “At present, there are over one


billion smokers around the world and public health authorities estimate that there will still be over one billion smokers in the next decade,” says Thornton, adding that the company is “increasingly shifting resources to the development, assessment, and commercialisation of smoke-free products”. “Governments, public health


officials, the scientific community and industry all have a role to play to help accelerate the availability of these products, and help encourage smokers to switch,” he says. Page acknowledges there’s


little doubt that the ‘fundamental drivers for growing demand’ exist. However, he flags the industry’s main challenges as: “Improving product to convert even more smokers to e-cigarettes; managing compliance and dealing with the unintended consequences of regulation and combatting consumer misperceptions of risk.” Within this, Page alludes to independent scientific


“major,


reports” from Public Health England and NASEM (National Academies of Sciences, Engineering and Medicine) in the US, which agree that “e-cigs are vastly safer than smoking, but it’s a highly politicised issue and there is a lot of misinformation around”. For 2018, ECigIntelligence


predicts that the category will see continued growth, innovation and sophistication, although, as Page notes: “The picture will continue to vary dramatically from one country to the next.” «


FEBRUARY 2018


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