FAZ Exclusive: Philip Morris abandons the fight against disposable e-cigarettes

YouFor years, Philip Morris has been losing the disposable e-cigarette market to competitors. When it came to alternative tobacco products, cigarette maker Marlboro limited itself to a tobacco heater sold under the Iqos brand. Now it’s all over: Philip Morris will launch its Veev-branded e-cigarette next Monday, competing primarily with Chinese manufacturers and BAT’s Vuse rival.

Philip Morris has had e-cigarettes in its portfolio for many years and also sells them in other countries such as Poland, the Czech Republic and Greece, but does not sell them in Germany. “We don’t want to encourage young people to smoke, but rather to offer adult smokers a lower-harm alternative to cigarettes, and that’s what we’re doing with Iqos,” said the tobacco company’s then-chief lobbyist Claudia Oeking. year.

There was no ban on disposable e-cigarettes

Her successor Thorsten Albig explains the change of heart in an interview with FAZ: “We have been lobbying for a long time at the state level to ban disposable e-cigarettes, but to no avail. So now we are entering this market too.” Disposable e-cigarettes are especially popular among teenagers and young adults.

While the federal Ministry of Food and Agriculture in charge is likely considering banning menthol as an ingredient to make e-cigarettes less popular, policymakers elsewhere in Europe are reacting more consistently. For example, in France and Belgium, disposable e-cigarettes will be banned starting next year. Besides their appeal to teenagers and young adults, they are also an environmental disaster. Because they contain a battery, they should be disposed of as electrical devices, but they often end up in household waste or in bushes by the side of the road.

Philip Morris will also bring disposable products to market in addition to the rechargeable e-cigarette. “But this should only be a trial product,” Albig says. The tobacco company plans to give away a free rechargeable version of Veev with the purchase of three disposable e-cigarettes. This should be possible in participating retail stores as well as the group’s own Iqos stores. Albig announces that Veev will be integrated into stores, mainly in major cities, that previously only sold heated tobacco.

The group’s goals are ambitious

The tobacco company’s top lobbyist also acknowledges that the rise of e-cigarettes is more than just a defiant reaction to a lack of policy regulation. “If we as a group want to achieve our global goal of generating two thirds of our net revenues from lower-emission cigarette alternatives in 2030, then this will not be possible without Germany.” 6 percent share with Iqos tobacco heater. In large cities, this figure is slightly higher, just over 10 percent. By comparison, Marlboro tobacco cigarettes account for about 25 percent.

The company wants to attract smokers with the Veev electronic cigarette. And at competitive prices: the disposable version goes on sale for 7.90 euros, two refillable cartridges for the refillable system will be sold for 8.90 euros. Depending on the content, competitors typically charge ten euros or more for their disposable e-cigarettes. Philip Morris is not without controversial tastes. Albig is relaxed about banning menthol or flavorings in e-cigarettes. “If that happens, then so be it. We are targeting our product not at young people, but at cigarette smokers who are accustomed to the taste of tobacco.”

In its efforts to offer smokers lower-risk alternatives and thus preserve its own business model in the new era, Philip Morris, like other tobacco companies, faces strong obstacles. The World Health Organization, in particular, denies that alternative tobacco products are less harmful than classic cigarettes. Independent scientists quickly come under suspicion of serving the tobacco lobby simply because the tobacco lobby pays them for their work. Philip Morris wants to protect itself here in the future, Albig told FAZ. He wants any collaboration between science and a tobacco company to be externally certified. It is currently being determined whether TÜV or Dekra can be involved in this.