We all know that the leader in alternative tobacco products is Philip Morris $PM+0.5%.
But today CEO Jacek Olczak said it doesn't make sense to keep selling cigarettes, including Marlboro, the world's most popular cigarette brand. "If you are still interested in old technology [like cigarettes], you should only see it in a museum."
Philip Morris said it plans to generate more than half of its revenue by 2025 through alternative products, including nicotine sachets, electronic cigarettes or products that don't burn tobacco. Currently, those types of products account for about 35% of revenue, Olczak said.
They started very well, but I don't think it will be this easy and the transition shouldn't grab the company. After all, cigarettes still make up a significant majority of the company's profits. It's a long run.
What you write here is interesting, but it is electronic smoking and electronic smoking... Considering iqos, it is in a word just bullshit. If a person smokes and wants to quit, there are two ways, either they have a strong will and quit right away, or they limit the number of cigarettes. Or the other option is to start vaping, and there it's a much healthier way to smoke because you can make the liquid yourself and it's a lot cheaper overall, and honestly it's kind of fun. Too bad PM didn't go that route and went through iqos. If they had gone through those liquids and developed some of those vaping devices and invented other things instead of their heated crap where it's very well known that tobacco is maybe not even something like that and instead of a filter mica ... 😂 I'm basing this on my own experience regarding vaping and on videos I've seen before about iqos and what has been discussed several times in various vape forums... Sorry for the verbage, but at least maybe someone will make a picture of well about it. The stock of course is bad there is no business about it and they have it well thought out and know how to just sell it to those people..
I'm probably missing out on a lot, but guns and tobacco are beyond me as stocks
This is quite interesting rhetoric and it doesn't fit in with my social bubble... people around me are very skeptical about electric smokes and stick to conventional cigarettes tooth and nail...
It is a fact that electronic cigarettes are simply the future, nowadays you just don't want to smell like cigarette smoke anymore, neither you nor the people around you. My generation, for example, won't even come to normal cigarettes anymore. But this move strikes me as crazy because there are plenty of people, especially older people, who will still buy that pack.
Well, that's great news that they want change. It makes sense to me, but as you write, they shouldn't push it too hard and the transition will take a long time.
My personal opinion is that the electronic cigars are more addictive than the traditional ones and that's what it's all about.