• Historic interests in Nicotine Replacement Therapy – lozenges and gums, early inhalers
• Addition of Swedish snus-style nicotine pouches in to product ranges – “modern oral”
• Acquisitions of pharmaceutical and biotech companies developing “inhaled therapeutics” e.g. inhalers for chronic obstructive pulmonary disease (COPD)
• Investments in cannabis industry with focus on inhalers, CBD and (potentially) drug delivery – “botanical therapeutics”
• Investments are part of a trend in tobacco industry “Pharmaceuticalisation”: shifting business practices to mirror those of pharmaceutical companies either by acquiring pharma companies or presenting a pharma-like public image, despite tobacco sales.

Background

Research conducted using tobacco industry documents,  published in 2017, explores the history of tobacco industry interests in Nicotine Replacement Therapy (NRT) type products.¹ Tobacco companies first developed nicotine replacement products in the 1950s, but the threat of regulation by the US Food and Drug Administration (FDA) meant that they stopped. After that medical NRT was produced by pharmaceutical companies, initially available on prescription, and later increasingly available over-the-counter.¹ In the 1980s, the tobacco industry actively opposed NRT but, once the threat of FDA regulation had passed (with the regulation of tobacco products beginning in the US in 2009) tobacco companies re-entered the nicotine market.¹ The authors note that:

Although the tobacco industry initially viewed NRT as a threat, it found that smokers often combined NRT with smoking rather than using it as a replacement and began marketing their own NRT products.¹

The UK’s Royal College of Physicians (RCP) states that: “Nicotine replacement therapy (NRT) is most effective in helping people to stop smoking when used together with health professional input and support, but much less so when used on its own.”²

Alongside interests in NRT, a 2005 review of historic tobacco industry documents found that the tobacco industry was investigating nicotine analogues: molecules structurally similar to nicotine that that could be used “to create more ‘desirable’ products and to circumvent anticipated nicotine regulation”. There were also “potential pharmaceutical applications for analogues such as treatments for neurological disorders”.³

Research from the US shows how tobacco companies continue to develop and market oral nicotine products such as gums and lozenges, which may not support cessation long term, and risk take-up by non-smokers.⁴

More recently, transnational tobacco companies have invested in products such as non-electronic inhalers for nicotine and cannabis and, most controversially, for the delivery of medicines to treat lung disease (see PMI’s acquisition of Vectura). These interests are detailed below, by tobacco company.

For information on tobacco company investments in e-cigarettes (also known as electronic nicotine delivery systems, or ENDS), heated tobacco products (HTPs) and oral tobacco products such as snus and nicotine pouches, see Newer Nicotine and Tobacco Products.

British American Tobacco

Image 1: Slide from BAT presentation to investors (Source: British American Tobacco, Deutsche Bank Global Consumer Conference, 9 June 2021)

BAT had an interest in a nicotine inhaler, before it was abandoned in favour of its e-cigarettes, HTPs and, more recently, oral nicotine products. In a presentation to investors in June 2021, BAT said that it was “building an ecosystem beyond nicotine” and its target areas included “health and wellness” and developing products to help consumers “focus, energize and relax”.⁵ BAT subsequently launched a dedicated website for its Btomorrow Ventures investment arm.⁶ In July 2021, the website listed investments in cannabis and CBD products, meditation drinks, and other “wellness” products, including technology marketed at healthcare professionals.⁷

BAT investment in inhalers

Voke Inhaler

In 2010, British American Tobacco (BAT) acquired the licence to commercialise a nicotine inhaler called Voke, developed by a UK company called Kind Consumer.  This product was approved for medical use in 2014, making it potentially available as a cessation product on prescription in the UK. However, BAT decided instead to invest in e-cigarettes, and handed the license back in 2017. Kind Consumer did not successfully re-launch the product and at the end of 2020 the company closed down.

• For details see Kind Consumer

BAT investments in oral nicotine products

Zonnic gum & Revel lozenge

BAT own a nicotine gum called Zonnic, which it gained from its acquisition of US company Reynolds in 2017.  Reynolds had acquired this product with the Swedish company Niconovum in 2008, and marketed it from 2014, suggesting it could be used alongside cigarettes. ¹ In Sweden, BAT’s nicotine pouches (see below) are also sold under the Zonnic brand.⁸⁹

BAT also gained Reynold’s Revel nicotine lozenge. In 2020, Revel was rebranded as Velo, the same name as BAT’s  nicotine pouches.¹⁰¹¹⁴ In August 2020 BAT/Reynolds filed an application to the FDA for pre-market approval for Velo lozenges in the US.¹²¹³

In 2021, the UK Velo website did not mention Revel or Velo lozenges.¹⁴

The Niconovum website states that it also “manufactures a private lable NRT product for a major retailer in the UK”, but does not give further details.¹⁵

Lyft & Velo nicotine pouches

BAT has marketed its most recently developed products, snus-type nicotine pouches, in multiple countries, including Pakistan and Kenya, mostly under the Lyft and Velo brands. In 2020, BAT acquired US nicotine pouch Dryft via its US subsidiary Reynolds (RAI), which was subsequently rebranded as Velo.

BAT positions its nicotine pouches, alongside the nicotine gum and lozenge, as “modern oral” products.¹⁶ and has submitted PMPTAs in the US for velo pouches.¹²

BAT (Reynolds) stated that:

“Velo is an award-winning brand bringing consistently innovative products to adult tobacco users, and a potential marketing order for PMTA submission would help to ensure adult tobacco consumers have access to FDA-regulated, consumer-acceptable product alternatives to combustible tobacco”.¹²

In 2023, the Canadian government authorized the marketing of BAT’s Zonnic nicotine pouch as a natural health product.¹⁷

• For details see Nicotine Pouches

BAT pharmaceuticals

Reynold’s American Inc. (RAI) acquired Kentucky Bioprocessing (KBP), a biotech company developing anti-ebola drugs, in 2014.¹⁸ BAT acquired Reynolds American Inc. (RAI), and KBP, in 2017. According to the biotech company, its business approach:

“uniquely positions KBP – and ultimately the RAI Group and BAT – to capitalize on enormous markets and create value and new revenue streams with strong, global growth potentials.”¹⁸

In 2020 KBP began developing a COVID-19 vaccine produced using tobacco plants, a move that BAT has used to promote its tobacco business. BAT director of Scientific Research David O’Reilly said that the vaccine “reflects our efforts to accelerate the development of our emerging biologicals portfolio.”¹⁹

In January 2022, BAT announced the creation of biotech investment company KBio Holdings Limited (KBio) to “leverage the existing and extensive plant-based technology capabilities of BAT and Kentucky BioProcessing Inc”.²⁰ David O’Reilly is listed as a KBio director at Companies House.²¹

Philip Morris International

Image 2: Slide from PMI presentation to investors, 10 February 2021. (Source PMI website)

In a presentation to investors in February 2021, Philip Morris International (PMI) stated that it planned to go “beyond nicotine” into “botanicals” and “respiratory drug delivery” (image 2).²²

Image 3 Slide from PMI presentation to investors, 10 February 2021. (Source PMI website)

The company said that this was part of its “long term evolution into a broader lifestyle & consumer wellness company” (image 3).²² However the short-term goal was “additional growth”.²²

PMI investments in inhaler devices

Syqe Medical

In 2016, PMI bought an Israeli company, Syqe Medical, which was developing a cannabis inhaler.²³ PMI did not publicise this acquisition.

• For more information see Cannabis

Vectura

In July 2021, PMI announced its intended acquisition of Vectura, a UK company specialising in inhaler products to deliver medicines .^{24 25}

The acquisition was especially controversial because this type of inhaler is used to treat lung conditions often caused, or made worse by, smoking.²⁶²⁷ There was strong criticism of the deal, in particular from health charities and the World Health Organization (WHO).²⁸²⁹³⁰

Vectura, along with Fertin Pharma (see below), is now a subsidiary of Vectura Fertin Pharma, a company established by PMI in 2022 to oversee the commercial development of its pharmaceutical acquisitions.³¹ PMI’s Chief Life Science’s Officer, Jorge Insuasty, was appointed President of Vectura Fertin Pharma in December 2022.³² According to its website, Vectura Fertin Pharma brings together “Vectura’s expertise in inhalation and Fertin Pharma’s leadership in oral and intra-oral delivery systems”.³¹

• For more on Vectura, PMI’s acquisition and subsequent events, see Vectura

Oti-Topic

In August 2021, PMI announced its intended acquisition of another pharmaceutical company Oti-Topic, which is based in the US and produces respiratory inhalers.³³³⁴ Notably, it was in the final stages of developing an inhalable treatment for acute myocardial infarction (heart attack). Branded ASPRIHALE, FDA approval for the product was expected in 2022.³⁴

PMI stated that:

“This acquisition is part of PMI’s strategic plan to leverage its expertise, scientific know-how, and capabilities in inhalation to grow a pipeline of inhaled therapeutics and respiratory drug delivery Beyond Nicotine.”³⁴

One market analyst estimated that the market for inhalation delivery could be worth US$18 billion by 2027.³⁵

PMI investments in oral nicotine products

In 2021 PMI acquired manufacturers of  snus type nicotine pouches, and other oral nicotine products.

Fertin Pharma

In July 2021, PMI announced that it was acquiring Fertin Pharma for around US$820 million.  PMI described the company as “a leading developer and manufacturer of innovative pharmaceutical and well-being products based on oral and intra-oral delivery systems”.³⁶³⁷³⁸ In a press release PMI CEO Jacek Olczak listed products made by Fertin, including: “gums, pouches, liquefiable tablets, and other solid oral systems for the delivery of active ingredients, including nicotine” stating  that the company was a “leading producer of Nicotine Replacement Therapy (NRT) solutions”.³⁶

Fertin Pharma describes itself on its website as a global developer and manufacturer of “oral  and intra oral delivery systems”,³⁹ these include gum, tablets, lozenges and pouch powders.⁴⁰ Fertin’s website states that it sells 3 billion units annually.³⁹ It supplies these generic delivery systems to a range of global nicotine brands including products traditionally thought of as pharmaceutical nicotine replacement therapies (NRT) such as Nicotinell.⁴¹⁴² Fertin’s tablet and gum products are also used for the delivery of non-nicotine products including cannabinoids (CBD), pain and allergy medication, sleep aids such as melatonin and vitamins.⁴⁰

According to market research company Euromonitor, Nicotinell products held a little over 10% of the market share for all NRT products in 2022.⁴³ PMI’s acquisition therefore gives it a foothold in the global supply of NRT products.

PMI said that acquiring Fertin would enable them to develop various “botanicals and other selfcare wellness products”.³⁶  On 15 September 2021, PMI announced that it had closed the deal.⁴⁴

In 2022, the company became part of Vectura Fertin Pharma (see Vectura above).³¹

As of June 2023, PMI/Fertin’s ryze nicotine gum was being marketed in India,⁴⁵ with trademarks registered or pending in multiple countries, including the Philippines, Indonesia, Cambodia, Lao PDR and Bhutan.⁴⁶

AG Snus & nicotine pouches

In May 2021, PMI acquired Danish snus manufacturer AG Snus, which produces both tobacco leaf products and nicotine pouches.⁴⁷⁴⁸

Swedish Match

In 2021, PMI acquired Swedish Match, manufacturers of snus and nicotine pouches, with a large market share in Northern Europe and the US.⁴⁹⁵⁰

In 2021, PMI began referring to gums and nicotine pouches as “modern oral” products, as does BAT.³⁶

• For more information see Newer Nicotine and Tobacco Products: Philip Morris International

PMI investment in a COVID-19 vaccine

Medicago

In May 2019, PMI invested CAD$15,975,000 for a 48% stake in Medicago, a Canadian biopharmaceutical company.⁵¹ In March 2020, Medicago began developing a COVID-19 vaccine that would be manufactured using tobacco plants.⁵² GlaxoSmithKline partnered with Medicago to assist in manufacture of the vaccine in July 2020,⁵³ and in October 2020, the Canadian government invested CA$173 million in Medicago’s vaccine.⁵⁴

This government investment in a tobacco industry sponsored vaccine was widely criticised for demonstrating a “complete disregard for [Canada’s] treaty obligations under the Framework Convention for Tobacco Control,” according to Tobacco Control experts Joanna Cohen and Simon Chapman.⁵⁵ PMI’s CEO at the time, André Calantzopoulos, welcomed the Canadian Government’s collaboration with the tobacco industry, saying “Better outcomes can be achieved when governments and companies join efforts to promote shared objectives for the greater good”.⁵⁶

In February 2022, Health Canada approved Medicago’s Covifenz for distribution.⁵⁷ At this point PMI held a 25% stake in the company.⁵⁸ However, the WHO rejected Medicago’s request for emergency global use of its Covifenz vaccine in March 2022, due to Medicago’s ties to PMI.⁵⁹

Medicago’s majority shareholder, Mitsubishi Tanabe Pharma Corporation, removed PMI as a shareholder in December 2022, following an advocacy campaign led by Action on Smoking and Health (ASH) Canada and Corporate Accountability.⁶⁰

In February 2023, Mitsubishi shut down Medicago, citing a lack of commercial viability for its Covifenz vaccine.⁶¹

• For more information see the COVID-19 monitoring database

Altria

Altria investments in oral nicotine products

Verve

Philip Morris US (an Altria company) had a nicotine lozenge called Verve, which they developed in 2012.¹⁶² According to US researchers, Philip Morris believed it could avoid the use of warning labels, because Verve was made with nicotine extract, not tobacco.

• For more information on TobaccoTactics see Altria: Funding Scientists

From 2016 the Verve lozenge only appeared to be on sale in Virginia.¹ and by 2019 it was discontinued.⁶³ In October 2021, the FDA gave approval to Altria to market new mint flavoured ‘discs’ and ‘chews’ in the US under the Verve brand.⁶³⁶⁴⁶⁵

However it is not clear if Altria intends to sell these gum and lozenge type products. The company stated that it had: “applied learnings from this successful application to our On submissions, which remain under review by FDA.”⁶³ (see below)

On! nicotine pouch

In 2019, Altria acquired On! nicotine pouches from a Swiss tobacco company. In 2020, it submitted 35 applications to the FDA for authorisation to market these products in the US.

• For details see Nicotine Pouches

On its website, Altria positions nicotine pouches alongside smokeless tobacco, heated tobacco products, and e-cigarettes, all of which it describes as “smoke-free”.⁶⁶

Altria & BAT Interests in Lexaria Bioscience

Altria and BAT have connections with Canadian company Lexaria Bioscience, relating to its drug delivery technology ‘DehydraTECH’.⁶⁷

It was reported that DehydraTECH allows oils, including cannabidiol (CBD), to be dehydrated, mixed with other ingredients and added to food, drinks and creams, enabling faster delivery into the bloodstream.⁶⁸⁶⁹ Altria acquired a nearly 17% share of Lexaria Bioscience subsidiary Lexaria Nicotine, gaining a seat on its board, and funded its research and development (R&D) programme in 2019 “to evaluate oral nicotine delivery performance”. ⁷⁰ Altria also acquired non-exclusive licence rights to use DehydraTech.⁷⁰ In 2020, BAT signed an R&D agreement with Lexaria Bioscience, which excluded the US (where Altria operates)).⁷⁰

This appears to relate to the production of nicotine pouches and cannabis or CBD products.

Japan Tobacco

Japan Tobacco international (JTI) owns the Nordic Spirit brand of oral nicotine pouches.

Japan Tobacco has a pharmaceutical division, which has developed drugs designed to treat medical conditions, including heart disease and lung cancer.⁷¹⁷²⁷³

In July 2021,  JT’s clinical trial list included a new drug (a PDHK inhibitor) to treat heart failure and “improve cardiac function”.⁷⁴

Imperial Brands

Imperial owns nicotine pouch brands Skruf and zoneX.

• For details see Nicotine Pouches

Tobacco Tactics Resources

Newer Nicotine and Tobacco Products
Nicotine Pouches
Cannabis
Harm Reduction
Vectura

TCRG Research

• Tobacco industry messaging around harm: Narrative framing in PMI and BAT press releases and annual reports 2011 to 2021, I. Fitzpatrick, S. Dance, K. Silver, M. Violini, T.R. Hird, Frontiers in Public Health, 18 October 2022, doi:10.3389/fpubh.2022.958354

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Tobacco Company Investments in Pharmaceutical & NRT Products appeared first on TobaccoTactics.

Background

In a 1970 memo on cannabis, George Weissman, President of Philip Morris wrote: “While I am opposed to its use, I recognize that it may be legalized in the near future[…] Thus, with these great auspices, we should be in a position to examine: 1. A potential competition, 2. A possible product, 3. At this time, cooperate with the government.”⁷⁶   

Cannabis legalisation and decriminalisation has become more prevalent in recent years.⁷⁷ In the US, where recreational cannabis is now legal in 11 states,⁷⁸ tobacco companies have leant their support to pro-cannabis groups lobbying for legalisation.⁷⁹

With falling cigarette sales in developed markets, and the relaxation of cannabis laws, there is an increased “legal demand” for cannabis products.⁸⁰ This is an opportunity for tobacco companies to invest in a market worth an estimated US$200 billion worldwide (Euromonitor data).⁸¹ There are several reasons for tobacco companies’ interest: the functional similarities of cannabis production; its use with tobacco in roll-your-own (RYO) cigarettes; the ability to extract its active ingredients (tetrahydrocannabinol (THC) and cannabidiol (CBD)) for use in e-cigarettes; and its medicinal potential.⁸² The tobacco industry is keen to promote its associations with harm reduction and pharmaceuticals over conventional cigarettes and cannabis offers an opportunity to do so.

As cannabis moves from a model of prohibition to one of legal regulation and as tobacco companies invest in the sector, the industry may start to mirror the tactics of Big Tobacco, including “pushing governments to crack down on smaller competitors, funding research which fits their own commercial and reputational interests, or exploiting traditional cannabis growers in lower-income countries, and lobbying against public-health oriented regulations and in favour of more industry-friendly ones.”⁸³, according to illict trade expert Benoit Gomis.

Transnational Tobacco Company Investments in Cannabis

Philip Morris International

In 2016, PMI invested US$20 million in Syqe Medical, an Israeli company developing a medical cannabis inhaler. This was the second largest cannabis investment in 2016.⁸⁴ PMI has not publicly spoken about the investment.

Altria

In December 2017, Altria made an investment of US$1.8 billion for 45% of Cronos Group, a Canadian cannabis company.⁸⁵ In its 2020 “10 Year Vision”, Altria said it wants to “Help position Cronos as a leader in a highly responsible, regulated and legalized U.S. cannabis market.”⁸⁶ However, in November 2019 Altria declared its investment had reduced in value by US$731 million, because of the complicated regulatory procedures surrounding cannabis products.⁸⁷

Imperial Brands

In April 2018 Imperial invested in Oxford Cannabinoid Technologies (OCT) which describes itself as managing “a wide-ranging research program that investigates the medical potential of cannabinoids across different therapeutic areas.”⁸⁸ OCT is licensed by the Home Office.

Matthew Phillips, Chief Development Officer at Imperial, said: “We are pleased to be partnering with OCT. Cannabinoid products have significant potential and our investment enables Imperial to support OCT’s important research while building a deeper understanding of the medical cannabis market.”⁸⁹⁹⁰ In an interview in April 2019, Imperial’s then Chief Executive Officer Alison Cooper refused to disclose the amount invested in OCT but said that it was an “interesting area to look at”.⁹¹ 

In 2019, Imperial increased its stake in the cannabis market, investing GB£75 million in Auxly, a Canadian “global leader in branded cannabis products”.⁹² Imperial described the move as an expansion of its “next generation product” portfolio.⁹³

In September 2019, a “partnership agreement” was finalised between Imperial and Canadian cannabis producer Auxly Cannabis Group.⁹⁴⁹⁵ As part of the deal, Imperial paid GB£85 million to acquire 19.9% stake in Auxly. Imperial will also give Auxly “worldwide licences for its vaporization technology” and access to its subsidiary Nerudia.⁹⁴ Auxly has also become “an exclusive partner for Imperial’s cannabis-related business activities”.⁹⁴ It is unclear whether this arrangement precludes Imperial from making further partnership deals with cannabis companies.

British American Tobacco

In February 2020, BAT announced that they were researching CBD and THC flavourings for its Vype and Vuse e-cigarettes at its research facility in Southampton, but not “actively pursuing” these flavours for sale.⁹⁶ However, in January 2021, BAT began test-marketing a range of CBD products called the “VUSE CBD Zone” in Manchester, UK, saying this was part of its efforts to go “beyond nicotine”. BAT referred to a potential nationwide roll-out of VUSE CBD Zone later on in 2021.⁹⁷

Via BTomorrow Ventures, set up in 2020, BAT invested in start-ups working on cannabis, CBD and other “wellness” products.⁹⁸ As of November 2022, the dedicated website listed the following cannabis related companies in its portfolio:⁹⁹

• Trait Biosciences – “Innovative Science advancing cannabinoid production technology”.^99100101
• Cannopeaia – “Proprietary cannabis vaping technology”.⁹⁹¹⁰²
• Unrooted – “Functional beverages boosted by African baobab”.⁹⁹ Unrooted’s website stated that it used CBD in one of its products.¹⁰³
• Open Book Extracts – “Cannabinoid innovation house”.⁹⁹ Open Book Extracts’ website states that it has the “Broadest cannabinoid portfolio in the market”.¹⁰⁴

In March 2021, BAT bought a 20% stake in OrganiGram, a Canadian cannabis producer with plans to produce “next-generation” CBD based cannabis products. The C$221 million investment includes an agreement to build an R&D Center of Excellence in New Brunswick.¹⁰⁵¹⁰⁶

In September 2022, BAT acquired a non-controlling minority stake in the German cannabis company Sanity Group.¹⁰⁷ BAT said that this added “a European dimension to one of the many BAT explorations beyond nicotine”.¹⁰⁷ Sanity Group’s portfolio includes CBD products and medical cannabis.¹⁰⁷ On 27 September Sanity Group announced that its latest funding round was “led by BAT Group.”¹⁰⁸

In November 2022, BAT invested GB£48.2 million in a nearly 20% share of Charlotte’s Web, a cannabinoid extract retailer.¹⁰⁹BAT said that the appeal of the company was that it had “a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust B2C e-commerce platform serving a loyal US consumer base, and a track record of in-depth scientific research.”¹⁰⁹

For more see British American Tobacco: Btomorrow Ventures and Tobacco Company Investments in Pharmaceutical & NRT Products.

Tobacco staff migration

Several tobacco company employees and people associated with the tobacco industry have been taking roles in the growing cannabis industry. 

• In 2020, Boldt Runners Corp., seller of Cannadips CBD pouches (similar to snus-style nicotine pouches), appointed former Altria executives Peter Diatelevi and Maura Scott as CEO¹¹⁰ and CSO respectively.¹¹¹
• Taat Lifestyle and Wellness, producer of the ‘Beyond Tobacco’ hemp cigarette (not yet launched as of October 2020), appointed former PMI commercialization executive Tim Corkum as Chief Revenue Officer in 2020.¹¹²
• PharmaCielo, a Canadian cannabis oil company with operations in Colombia, has a number of tobacco industry executives, and industry-linked scientists, on its Board of Directors. These include:
  • Simon Langelier – Chair of the PharmaCielo Board. Langelier joined PharmaCielo in 2015 after a 30 year career with PMI.¹¹³ In 2017, he also became a Non-Executive Director at Imperial Tobacco.¹¹⁴
  • Matteo Pellegrini – joined PharmaCielo in April 2017 .¹¹⁵ From 2003 to 2015 Pellegrini was PMI’s President of Asia where he led PMI’s Asian expansion.¹¹⁶
  • Delon Human – joined PharmaCielo in November 2016 as Vice Chair of PharmaCielo’s Board.¹¹⁷
  • Riccardo Polosa – Medical and Scientific Advisory Board (MSAB). Polosa has previously received funding from PMI, worked as a contractor for BAT and founded the Centre of Excellence for the Acceleration of Harm Reduction (CoEHAR), a grantee of the Foundation for a Smoke-Free World.¹¹⁸

     

Relevant Links

• Syqe Medical
• Cronos
• Oxford Cannabinoid Technologies
• Pharmacielo

TobaccoTactics Resources

• Philip Morris International
• Altria
• Imperial Brands
• British American Tobacco
• Newer Nicotine and Tobacco Products

References

The post Cannabis appeared first on TobaccoTactics.

Long Career with Altria

Begley joined Philip Morris USA, an Altria company, in 1995, where he held various positions including:¹²⁰

• Vice President, Brand Management
• Vice President, Strategy & Business Development
• Vice President, Marketing & Promotion Services
• Vice President: Brand Management, Smokeless
• Vice President, Brand Management, Philip Morris USA
• Vice President, Customer & Marketing Services, AGDC

Immediately prior to being appointed COO, Begley served as President and General Manager of Nu Mark, through which Altria produced e-cigarettes until December 2018.¹²¹ Read more on our E-cigarettes: Altria page.

Begley is one of three Altria employees serving on the board of the Cronos Group, a Canada-based cannabis company.¹²² In 2018, Altria announced it had acquired a 45% stake in Cronos Group, due to increase to 55% by 2022.¹²³

Relevant Links

• Altria Leadership Team

TobaccoTactics Resources

• Altria

References

The post Jody Begley appeared first on TobaccoTactics.

Philip Morris International (PMI) is the largest tobacco company in the world (excluding the Chinese National Tobacco Corporation).¹²⁴ The company is headquartered in New York in the United States (US), but also based operationally in Lausanne, Switzerland and Hong Kong. According to the Associated Press, Altria decided to separate Philip Morris USA and its international operations in order to “clear the international tobacco business from the legal and regulatory constraints facing its domestic counterpart, Philip Morris USA”.¹²⁵

In 2018, PMI and its subsidiaries sold its products in over 180 markets, selling cigarettes, other tobacco products and newer nicotine and tobacco products. The company reported in 2019 that it held 28.4% of the global market for cigarette and heated tobacco products (HTPS) excluding the US and China.¹²⁶ The company owned six of the top 15 international cigarette brands in 2018. Its global cigarette brands are Marlboro (the world’s bestselling international brand), Merit, Parliament, Virginian S, L&M, Philip Morris, Bond Street, Chesterfield, Lark, Muratti, Next and Red & White. The company reported owning a market share of at least 15% or over in 100 countries in 2018, although in the UK PMI held only fourth position for cigarette market share behind Imperial Tobacco, Japan Tobacco International (JTI) and British American Tobacco (BAT).¹²⁷

According to Euromonitor International, PMI’s global share of the cigarette market (by retail volume) was under 14% in 2018, and fell to 12% in 2020 (figures rounded). ¹²⁸

On 27 August 2019, global news outlets reported that PMI and Altria were considering a merger to reunite the brands that had split in 2007.^129130131 However the merger was called off the next month, in response to news that the FDA was considering a ban on flavoured e-cigarettes.¹³²¹³³ On March 21, 2018, PMI acquired Tabacalera Costarricense, S.A. and Mediola y Compañía, S.A. for USD$95 million, which sell Derby, Marlboro and L&M cigarettes in Costa Rica.¹²⁶

Employees or Board Members: Past and Present

Jacek Olczak was appointed the Chief Executive Officer of PMI in May 2021.¹³⁴ Previously he was the company’s Chief Operating Officer. He succeeded André Calantzopoulos who was appointed Executive Chairman of the Board. The previous chairman Louis C. Camilleri, stepped down in Decemer 2020. A full list of the company’s leadership team can be accessed at PMI’s website. Other persons that currently work for, or have previously been employed with, the company:

Massimo Andolina | Chris Argent | Drago Azinovic | Emmanuel Babeau | Werner Barth | Charles Bendotti | Frank de Rooij | Frederic de Wilde | Suzanne Rich Folsom | Stacey Kennedy | Martin King | Michael Kunst | Andreas Kurali | Bin Li | Marco Mariotti | Mario Massroli | Deepak Mishra | Silke Muenster | John O’Mullane | Paul Riley | Marian Salzman | Gregoire Verdeaux | Michael Voegele | Stefano Volpetti | Jerry Whitson |  Martin J. Barrington | David Bernick | Bertrand Bonvin | Harold Brown | Patrick Brunel | Mathis Cabiallavetta | Louis C. Camilleri | Andrew Cave | Herman Cheung | Kevin Click | Marc S. Firestone | John Dudley Fishburn | Jon Huenemann | Even Hurwitz | Jennifer Li | Graham Mackay | Sergio Marchionne | Kate Marley | Kalpana Morparia | Jim Mortensen | Lucio A. Noto | Matteo Pellegrini | Robert B. Polet | Ashok Rammohan | Carlos Slim Helú | Julie Soderlund | Hermann Waldemer | Stephen M. Wolf | Miroslaw Zielinski

Affiliations

Memberships

In 2019, PMI declared membership of the following organisations on the European Transparency Register:¹³⁵

The American Chamber of Commerce to the European Union | American European Community Association (AECA) | American Chamber of Commerce of Lithuania | Ass. Industrial Portuguesa (AIP) | Business Europe | Centromarca | CEOE | Czech Association Branded Goods | Czech Foodstuff Chamber | Economiesuisse | Estonian Chamber of Commerce | European Communities Trademark Association (ECTA) | European Policy Centre (EPC) | Kangaroo Group | Latvian Chamber of Commerce | Latvian Traders Association | Lithuanian Confederation of Industrialists | MARQUES | Spanish Tobacco Roundtable | VBO-FBE

PMI had previously listed memberships of: International Trademark Association (INTA) | The Trans-Atlantic Business Council (TABC) | | European Risk Forum | European Smokeless Tobacco Council (ESTOC) | British Chamber of Commerce | Public Affairs Council | APRAM | LES France | AmCham Germany | Bund fur Lebensmittelrecht & Lebensmittelkunde | Europaischer Wirtschaftssenat (EWS) | Wirtschaftsbeirat der Union e.V. | American Chamber of Commerce of Estonia | American Lithuanian Business Council | Lithuanian Confederation of Industrialists | Investors’ Forum | AmCham Spain | Unindustria (Confindustria) | Consumer Packaging Alliance | British Brands Group | Foodstuff Chamber The company is also a donor to the Eliminating Child Labour in Tobacco Growing Foundation (ECLT), alongside BAT, Imperial Brands, JTI and Swedish Match, among others.¹³⁶

In May 2015, ECLT and the International Labour Organization (ILO) entered into an agreement to develop global guidance on occupational health and safety with regards to child labour in the tobacco industry.¹³⁷ PMI was a member of the Confederation of European Community Cigarette Manufacturers (CECCM), but left in 2006 following a dispute with other members.¹³⁸

Consultancies

PMI has worked with numerous Public Relations (PR) and law consultancies:

• In 2020 and 2021 PMI released white papers and held events on public trust in science in partnership with the Industry Transformation Coalition.
• In January 2020, PMI released a white paper entitled “Unsmoke Your Mind: Pragmatic Answers to Tough Questions for a Smoke-Free Future”. The company enlisted the consulting firm Povaddo, which works across public affairs, strategy and research,¹³⁹ to conduct an opinion-based survey of smokers across 14 countries.¹⁴⁰ The report was heavily criticised in The Lancet medical journal (see below)¹⁴¹ who pointed out that its findings were based on a “self-funded online survey”.¹⁴¹ In July 2020, PMI published another white paper called “In Support of the Primacy of Science”, which was also based on online surveys conducted by Povaddo, on the public’s views on science.¹⁴²¹⁴³ In March 2021 PMI released the results of a third online survey, conducted by Povaddo in 20 countries, on public attitudes to newer nicotine and tobacco products and collaboration between governments and tobacco companies.¹⁴⁴ Povaddo has conducted previous research for PMI.¹⁴⁵
• In December 2019, researchers and academic institutions received invitations from the consulting firm, Handshake, to commission research on behalf of PMI on how companies navigate corporate transformation.¹⁴⁶
• In 2016, Philip Morris UK was a client of London-based PR and communications company Instinctif Partners.
• That same year, media also linked Brussels-based PR company Pantarhei Advisors to Philip Morris.
• In 2014, UK-based Media Intelligence Partners was PMI’s media contact during Sir Cyril Chantler’s plain packaging review.
• In 2014, German PR company Communications & Network Consulting AG (CNC) listed Philip Morris as a client on the EU Transparency Register.
• In that same year, Luxembourg-based Felula SA, a one-person consultancy run by Serge Estgen, listed PMI as its client on the EU Transparency Register.
• In 2013, Edinburgh-based Halogen Communications supported PMI’s opposition to Scotland’s plans to introduce Plain Packaging.
• In 2012 and 2013, PMI worked with London-based PR and media company Pepper Public Affairs on PMI’s Anti-Plain Packaging Media Campaign.
• In 2012, the UK branch of Crosby Textor Group, helped PMI oppose Plain packaging in the UK.
• Law firm Clifford Chance has a history of lobbying for PMI in the UK and European Union (EU). In 2009, the firm submitted anonymous Freedom of Information requests to a UK university on behalf of the tobacco company, and in 2011 and 2012 Clifford Chance’s Michel Petite lobbied on the EU Tobacco Products Directive.
• From 2009 to 2011 PR company Gardant Communications worked for Philip Morris UK. In 2009, the PR company supported Philip Morris’ PR Campaign Against the Display Ban and was involved in Philip Morris’ Regulatory Litigation Action Plan Against the Display Ban.
• APCO Associates‘ collaboration with PMI goes back to the 1990s when it helped the company set up the European Science and Environment Forum. More recently, it was involved in Philip Morris’ PR Campaign Against the Display Ban.
• London-based PR company INHouse Communications also played a part in Philip Morris’ PR Campaign Against the Display Ban.
• Ogilvy Group‘s collaboration with Philip Morris goes back to the 1950s when it ran one of its advertising campaigns.
• José María Aznar, the former Spanish Prime Minister (see below)

Controversial Marketing Strategies

Since its controversial “Be Marlboro: Targeting the World’s Biggest Brand at Youth” campaign in 2014, PMI have been accused on multiple occasions of targeting their products at young people. On its website, PMI says that it is “committed to doing our part to help prevent children from smoking or using nicotine products”. ¹⁴⁷ It further states that its “marketing complies with all applicable laws and regulations, and we have robust internal policies and procedures in place so that all our marketing and advertising activities are directed only toward adult smokers”.¹⁴⁷ Despite these assurances, PMI has been accused of, and fined for, running marketing campaigns that target young people. For more information see Be Marlboro: Targeting the World’s Biggest Brand at Youth. PMI has increasingly used social media to market its newer products, including e-cigarettes (also known as electronic nicotine delivery systems, or ENDS) and heated tobacco products.

• For more information on PMI’s newer, including IQOS, visit Newer Nicotine and Tobacco Products: Philip Morris International and Heated Tobacco Products: Philip Morris International.

In December 2023 The Times newspaper highlighted PMI’s role in third party campaigns promoting e-cigarettes in the UK.¹⁴⁸ For more information visit the Foundation for a Smoke-Free World page.

Complicity in Tobacco Smuggling

PMI portrays itself publicly as a victim of illicit tobacco trade, with the company reporting that tobacco smuggling results in “considerable financial losses” and “damage” to manufacturers’ brands.¹⁴⁹ To help tackle illicit trade, PMI launched a funding initiative called PMI IMPACT in 2016, worth US$100m and aimed at bringing together “organisations that fight illegal trade and related crimes, enabling them to implement solutions”.¹⁵⁰¹⁵¹ In its first call for proposals in 2016, PMI asked for “projects that have an impact on illegal trade and related crimes in the European Union…”¹⁵² The second call, made in 2017, expanded the areas of focus to include the Middle East, North Africa, South and Central America and South and Southeast Asia.¹⁵³ For more information, visit our page on PMI IMPACT. In contrast to the company’s public persona of being part of the smuggling solution, evidence shows that the company was, in fact, part of the problem. In 2000, the European Commission (backed by a majority of EU member states) started court proceedings in the US Courts against PMI and other tobacco companies for its complicity in tobacco smuggling. The Commission claimed that the tobacco companies “boosted their profits in the past by deliberately oversupplying some countries so that their product could be smuggled into the EU”, costing the EU millions of euros in lost tax and customs revenue.¹⁵⁴¹⁵⁵ PMI and the Commission settled their dispute in 2004, when the company agreed to pay the Commission £675m to fund anti-smuggling activities.¹⁵⁶ The two Parties signed an Anti-Counterfeit and Anti-Contraband Cooperation Agreement,¹⁵⁷ referred to by the company as Project Star. As part of this agreement, PMI commissioned KPMG to measure annually the size of the legal, contraband and counterfeit markets for tobacco products in each EU Member States. Project Star’s methodology and data have been strongly criticised for lack of transparency, overestimating illicit cigarette levels in some European countries, and serving PMI’s interests over those of the EU and its member states.¹⁵⁸

Tactics to Subvert Tobacco Control Campaigns and Policies

PMI has strongly opposed tobacco control legislation and regulations across the world, including plain packaging in Australia and the UK, the EU Tobacco Products Directive (TPD), and tobacco control decrees in Uruguay. The company has used a variety of strategies and tactics to influence tobacco control policies and subvert existing regulations.

Funding Pro-Tobacco Research and Discrediting Independent Evidence

In response to plain packaging proposals in the UK, PMI funded research, expert opinion and public relations activities which supported its position. One of the people that PMI funded for this purpose was Will O’Reilly, a former Detective Chief Inspector with the London Metropolitan Police. O’Reilly was appointed as a PMI consultant in 2011,¹⁵⁹ conducting undercover test purchases of illicit tobacco and publicising his findings in UK regional press.¹⁶⁰ One of PMI’s arguments to oppose plain packaging was that the public health measure would lead to an increase in illicit tobacco, including counterfeited plain packs. For background on, and a critique of, this argument, go to Countering Industry Arguments Against Plain Packaging: It will Lead to Increased Smuggling. O’Reilly’s test purchases appear to have enabled PMI to secure significant press coverage of its data on illicit tobacco.¹⁶¹ In March 2019, Euromonitor International, a market research organisation, received funding through two PMI initiatives: the Foundation for a Smoke-Free World and PMI IMPACT.^162163164 Examples of other organisations and individuals that have received funding from PMI to produce research or expert opinions or critiques of independent evidence, in order to oppose tobacco control legislation are: Deloitte | KPMG | Transcrime | Roy Morgan Research | Ashok Kaul | Michael Wolf | Populus | Centre for Economics and Business Research¹⁶⁵¹⁶⁶ | Compass Lexecon¹⁶⁷ | Rupert Darwall¹⁶⁸ | James Heckman¹⁶⁹ | Lord Hoffman¹⁷⁰ | Alfred Kuss¹⁷¹ | Lalive ¹⁷² | LECG^173174175 | London Economics | Povaddo¹⁴⁵| SKIM Consumer Research¹⁷⁶

• To see a list of all organisations funded through PMI’s Foundation for a Smoke-Free World (FSFW), visit our pages on the FSFW’s Centres of Excellence and grantees.
• For more information on the tobacco industry’s use of research to undermine legitimate independent evidence see: Plain Packaging in the UK: Tobacco Industry Funded Research, Expert Opinion and Public Relations.

Using Freedom of Information Requests to Acquire Public Health Research Data

Freedom of Information (FOI) requests are one strategy that the tobacco industry uses to undermine tobacco control legislation, often covertly using third parties.¹⁷⁷ In 2009, and again in 2011, PMI sent Freedom of Information requests to Stirling University (UK) requesting access to a wide range of data from its research on teenage smoking. PMI alleged that it wanted “to understand more about the research project conducted by the University of Stirling on plain packaging for cigarettes”.¹⁷⁸ The FOI requests were eventually dropped. For more information on these FOI requests, and an explanation on how these requests impacted the University of Stirling, go to our page FOI: Stirling University.

Fabricating Support through Front Groups

PMI has used front groups to oppose tobacco control measures. Front Groups are organisations that purport to serve a public interest, while actually serving the interests of another party (in this case the tobacco industry), and often obscuring the connection between them. In Australia, leaked private documents revealed that the supposed anti-plain packaging retailer grass roots movement, the Alliance of Australian Retailers was set up by tobacco companies and that the Director of Corporate Affairs Philip Morris Australia, Chris Argent, played a critical role in its day-to-day operations.^179180181

• For more information on this front group, and Philip Morris Australia’s involvement, visit the Alliance of Australian Retailers page.
• For more information on front groups funded and/or organised by PMI and other tobacco companies, see the list on the Expose Tobacco website.

Lobbying of Decision Makers

Article 5.3 of the The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) explicitly aims to reduce industry influence in public health policymaking by obliging parties to protect their health policies from tobacco industry interests and interference.¹⁸² Yet tobacco industry representatives, and third-parties regularly attempt to influence public health policymaking in the industry’s favour. This section details some of these incidents involving PMI and the response of the governments and the global health community.

EU

PMI reported that it spent between €1,250,000 and €1,499,999 in 2019 lobbying EU institutions, employing only 2 fulltime equivalent staff in its Brussels office.¹³⁵ If this data is correct, it suggests that PMI relied heavily on external lobbying firms. A 2013 leaked internal PMI document revealed that the company had 161 lobbyists working to undermine the revision of the EU Tobacco Products Directive (TPD).¹⁸³ The objective of PMI’s campaign was to either “push” (i.e. amend) or “delay” the TPD proposal, and “block” any so-called “extreme policy options” like the proposed point of sales display ban and plain packaging.¹⁸⁴

• For more information on PMI’s campaign to undermine the TPD, go to EU Tobacco Products Directive Revision and PMI Mobilised Support from Retailers.

UK

The leaked internal PMI documents from 2013 also revealed the extent of a multi-faceted campaign against Plain Packaging in the UK, including a detailed media campaign using dozens of third parties (both individuals and organisations) to promote its arguments against the policy. The documents also included a detailed political analysis of potential routes of influence for the tobacco company (Image 1).¹⁵⁹

One third party appointed in November 2011 to help PMI oppose the plain packaging proposal was the Crosby Textor Group. This appointment led to a conflict of interest scandal, given that Lynton Crosby co-Director of the Crosby Textor Group, was also the political election strategist for the UK’s Conservative Party, which was in power in the UK. David Cameron, then Prime Minister, insisted that Crosby never lobbied him about plain packaging. ¹⁸⁵¹⁸⁶ Despite a lack of evidence that Crosby lobbied the Prime Minister and Health Minister on plain packaging, documents released under FOI legislation, obtained by the University of Bath Tobacco Control Research Group, show that Crosby lobbied the UK Government on plain packaging via Lord Marland, the then Parliamentary Under Secretary of State for Intellectual Property, to oppose plain packaging. For more information on this lobbying scandal, go to Lynton Crosby’s page.

• For more detail on PMI’s attempts to undermine plain packaging proposals in the UK, visit: PMI Mobilised Support from Retailers | PMI’s Anti-Plain Packaging Lobbying Campaign | PMI’s Anti-Plain Packaging Media Campaign | PMI’s “Illicit Trade” Anti-Plain Packaging Campaign
• For information on the tobacco industry’s tactics to undermine this tobacco control measures, visit our pages on: Plain Packaging in the UK: Tobacco Company Opposition | Plain Packaging in the UK: Tobacco Industry Funded Research, Expert Opinion and Public Relations | Plain Packaging in the UK: Tobacco Industry Built Alliances | Plain Packaging in the UK: Tobacco Industry Funded Third Party Campaigns
• PMI also opposed the tobacco product display ban gradually introduced in the UK from 2012. More information on PMI’s tactics to stop this measure, see: Philip Morris’ PR Campaign Against the Display Ban

Australia

Australia has one of the least hospitable regulatory environments for the tobacco industry, having passed regulations banning advertising since 1976, a point of sale ban in 2011, and a plain packaging law in 2012. It also has regulation in place to prevent the sale of nicotine products, including e-cigarettes and HTPs.¹⁸⁷

The industry has not, however, given up on attempting to market its products and lobby decision makers across the country. In a 2019 article, the Sydney Morning Herald reported that Tammy Chan, Managing Director of PMI Australia, New Zealand and the Pacific wrote letters to health organisations urging them to enter into a “dialogue” on PMI’s “smoke-free” vision in the lead up to a parliamentary select committee meeting on the impact of e-cigarettes on “personal choice”.¹⁸⁸

In March 2019, PMI was accused of “subliminal advertising” in its sponsorship of the Ferrari Formula One team during the Australian Gran Prix in Melbourne. PMI has been accused of attempting to evade advertising bans by sponsoring motorsports teams.

• For more information see Motorsport Sponsorship

Latin America

José María Aznar, the former Prime Minister of Spain, has been widely reported by media outlets as having taken up a position as a lobbyist for PMI in Latin America.^189190191192

• For more information on his meetings with public officials in Chile and Peru, as well as his history of association with the tobacco industry while in office, see our page on José María Aznar.

Intimidating Governments with Litigation or Threat of Litigation

PMI has legally challenged tobacco control regulations across the globe, including:

• Comprehensive No Smoking Ordinance (2010 and 2016) and Tobacco-Free Generation Ordinance (2016) in Balanga, Philippines. A front group for the world’s biggest tobacco companies, including PMI, called the Philippine Tobacco institute (PTI) sued the city of Balanga in August 2017 over the Comprehensive No Smoking Ordinance, which it argued was “arbitrary and oppressive” and cost PMI USD$420,000 a month in lost sales. In July 2018, regional courts ruled in PTI’s favour, noting that although the city’s tobacco control efforts were “commendable”, they were also unconstitutional. PTI launched another lawsuit in May 2018 to challenge the constitutionality of the city’s Tobacco-Free Generation Ordinance.¹⁸⁸
• The Cigarettes and Other Tobacco Products (Packaging and Labelling) Second Amendment Rules, 2018 text and pictorial health warnings law in India. PMI affiliate Godfrey Phillips India sought a stay of implementation of new legislation requiring health warnings to increase to cover 85% of the surface of cigarette packaging, from the High Court of Karnataka in Bangalore, India. The Court rejected the request for stay in August 2018. The legality of the Rules themselves was at the time pending in the Supreme Court.¹⁹⁴
• The May 20, 2016 Decree plain packaging law in France. In December 2016, the Conseil d’Etat (the Council of State, the highest administrative jurisdiction in France) dismissed a six-part legal challenge jointly brought against the plain packaging law by JTI, Philip Morris France, BAT France, a tobacco paper manufacturer and The National Confederation of Tobacco Retailers of France (Confédération Nationale des Buralistes de France).¹⁹⁵
• In 2013, the mayor of Popayán, a city in southwestern Colombia, issued a decree prohibiting tobacco sales within 500 metres of schools, libraries and health institutions. Following heavy lobbying from Coltabaco, a Philip Morris affiliate, the radius was decreased to 200 metres. Coltabaco sued Popayán in March 2015, arguing that a mayoral decree was insufficient to effect legitimate regulation. Coltabaco won its lawsuit in September 2015.¹⁹⁶
• The Standardised Packaging of Tobacco Products Regulations 2015 (UK). Following the passage of the legislation in March 2015, PMI and others launched a legal action, which it lost in May 2016 (the day before the legislation was due to come into force).¹⁹⁷¹⁹⁸
• The 2014 EU Tobacco Products Directive (TPD). PMI and BAT attempted to invalidate the TPD as a whole, or various provisions within it, but this legal challenge was dismissed in the European Court of Justice in May 2016.¹⁹⁹ More details can be found on the page TPD: Legal Challenges.
• The Ministry of Public Health Notice of Rules, Procedures, and Conditions for the Display of Images, Warning Statements, and Contact Channels for Smoking Cessation on Cigarette Labels of 2013 (Thailand). In July 2013, Philip Morris Thailand and Japan Tobacco International (JTI) Thailand requested a temporary injunction against an increase of picture and text health warnings from 55 to 85 percent of the front and back of cigarette warnings. Though their request was initially granted in August 2013 in the Central Administrative Court of Thailand, the injunction was reversed in May 2014 by the Supreme Administrative Court following appeal by the government. PMI and JTI ultimately withdrew their legal challenge.²⁰⁰
• Following heavy criticism of its “Be Marboro” campaign worldwide (see below), Germany banned PMI from displaying “Be Marlboro” advertising in the country. A German court overturned the ban in 2015, stating that the wording of the advertisements did not explicitly target younger than legal age smokers.²⁰¹
• National Systems of Health Oversight RDC No. 14/2012 Brazil. The Brazil Health Regulatory Agency’s (ANVISA) resolution No. 14 banned tobacco additives and flavours. The National Confederation of Industry (Confederação Nacional da Indústria) challenged the ban as an unconstitutional use of regulatory power. In February 2018, the highest court in Brazil, the Supreme Federal Tribunal, upheld the 2012 ban and reaffirmed the right of ANVISA to regulate tobacco products.²⁰²
• The Tobacco Plain Packaging Act 2011 (Australia). PMI fiercely opposed the legislation, fearing that it might set a global precedent. The company fought this legislation unsuccessfully on three fronts:
  • World Trade Organization (WTO) challenge: In 2014, PMI supported a request by the Dominican Republic government before the WTO Dispute Settlement Body, alleging that Australia’s plain packaging laws breach the WTO’s General Agreement on Tariffs and Trade (GATT), Agreement on Technical Barriers to Trade (TBT) and agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).²⁰³ Similar requests were submitted by Ukraine, Cuba, Indonesia and Honduras, and furthermore, a record number of more than 40 WTO members joined the dispute as third parties.²⁰⁴
  • Constitutional challenge: In March 2012, PMI supported a claim made by British American Tobacco (BAT) in December 2011 before the Australian High Court that plain packaging was in breach of the Australian constitution.²⁰⁵ On 15 August 2012, the Hight Court ruled that plain packaging was not in breach with the Australian constitution as there had been no acquisition of property as alleged by the tobacco companies.²⁰⁴
  • Bilateral Investment challenge: In 2011, PMI started legal proceedings against the Australian government for allegedly violating the terms of The Australia – Hong Kong Bilateral Investment Treaty.²⁰⁶ In December 2015, The Permanent Court of Arbitration issued a unanimous decision that it had no jurisdiction to hear the claim. For more information on all three claims go to Australia: Challenging Legislation.
• Executive Decree No. 611 passed on 3 June 2010 in Panamá. Philip Morris Panamá joined onto a claim of unconstitutionality brought by British American Tobacco (BAT) against a ban on tobacco advertising, promotion and sponsorship (TAPS) and tobacco product display at the point of sale. BAT Panama claimed the ban violated freedom of expression and property rights, among others. The Supreme Court ruled in May 2014 against BAT, noting that, among other things, freedom of expression could be restricted in order to protect public health.²⁰⁷
• 2010 Amendment to the 1973 Act relating to the Prevention of the Harmful Effects of Tobacco (the Tobacco Control Act) in Norway. The Norwegian display ban on tobacco products came into effect on 1 January 2010 after an amendment was passed by the government in favour of the prohibition of visible tobacco products, smoking accessories and vending machines of tobacco products. PMI unsuccessfully challenged the ban as imposing a barrier to trade; the Oslo District court ruled in favour of the display ban in September 2012.²⁰⁸
• Ordinance 514, dated 18 August 2008, and Decree 287/009 dated 15 June 2009 (Uruguay). PMI unsuccessfully challenged the Uruguayan Tobacco Control Act which included a mandate for 80% health warnings on tobacco packets. The case was decided in favour of public health in 2017.²⁰⁹ PMI brought its claim under the Switzerland-Uruguay Bilateral Investment Treaty at the World Bank’s International Center for Settlement of Investment Disputes. The tribunal ruled in favour of Uruguay in July 2016.²¹⁰

Newer Nicotine and Tobacco Products

As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, transnational tobacco companies (TTCs) have invested in, developed and marketed various newer nicotine and tobacco products.²¹¹  

In January 2017, PMI issued a press release which stated that the company intended to move its business away from conventional tobacco products entirely (see Image 2).²¹² The company’s much publicised vision for a “smoke-free” future is one in which PMI plays a central role in “[providing] better alternatives to smoking for those who don’t quit”.¹²⁶ Integral to this vision was the release of IQOS in 2014. By 2016, PMI was the market leader in heated tobacco products (HTPs), accounting for over 99% of the global HTP market.¹⁹³ By 2018, PMI’s share of the global HTP market had fallen to around 80%.¹⁹³²¹³ PMI reported that by the end of 2019, IQOS was available in 52 markets, including the United States (US), and a number of lower income countries.²¹⁴

• For more information on IQOS and PMI’s newer products see Newer Nicotine and Tobacco Products: Philip Morris International and Heated Tobacco Products: Philip Morris International.
• See also PMI’s Promotion of IQOS Using the FDA’s 2020 Modified Risk Tobacco Product (MRTP) Order

In April 2019, a life insurance company Reviti was launched. Registered in the UK at Companies House, Reviti is a wholly owned subsidiary of PMI.²¹⁵²¹⁶ The London-based company specialises in offering policies to smokers, with discounts for those who reduce or switch to PMI’s newer products.²¹⁷

In May 2022, PMI made an offer of US$16 billion deal to acquire Swedish Match, a manufacturer of snus and nicotine pouches, as well as chewing tobacco, snuff and cigars.²¹⁸²¹⁹ Swedish Match had planned to sell its cigar business but these plans were put on hold in March 2022.²²⁰ PMI CEO Jacek Olczak said of the deal: “An important aspect of this proposed combination is the opportunity in the U.S., which is the world’s largest market for smoke-free products.”²²¹PMI is also hoping to significantly increase its market share of newer nicotine products in Europe and Asia.²²² 

As of 28 November 2022, PMI had acquired over 90% of Swedish Match, gaining control of the company and enabling it to buy the remaining shares and take Swedish Match off the stock market.²²³²²⁴

• For details see Swedish Match

Tobacco companies, including PMI, also invest in therapeutic products, such as nicotine lozenges, gum and inhalers. More information can be found on this page: Tobacco Company Investments in Pharmaceutical & NRT Products

“Smoke-Free” Campaigns

PMI has run various “smoke-free” campaigns promoting its newer products, including “Hold My Light” (UK); “Unsmoke Your World” (global); “It’s Time” (targeting policy makers); and “Futuro sin Humo” (in Mexico).

• For details see: Philip Morris International: “Smoke-Free” campaigns

Participation in Global Platforms to Rehabilitate Image

PMI has attempted to gain access to many high-level international events as a means of “rehabilitating its image and securing influence over global institutions and policy elites”. Since January 2019, PMI presence has been documented at:¹⁹³

January 2019

• World Economic Forum (WEF; Davos, Switzerland): PMI launched its first “white paper” to coincide with WEF. Though it was not an invited guest, PMI held a side-event co-hosted by the Wall Street Journal, and sponsored the Davos Playbook, Politico’s daily newsletter distributed to attendees.

June 2019

• (Group of 20) G20 Summit (Osaka, Japan): PMI took out a two-page advertisement in The Japan Times promoting its corporate transformation and reiterating the need for dialogue between decision-makers and industry.
• Cannes Lions International Film Festival of Creativity (Cannes, France): PMI attended Cannes to talk about newer tobacco products and potentially recruit celebrity activists to its cause.²²⁵ In addition, PMI had its own schedule of events, hosted by actress Rose McGowan and rapper Wycliff Jean. It also spoke in the festival’s Good Track stream alongside organisations including Greenpeace and UN Women. The decision to include PMI on the Good Track was heavily criticised in the light of “the ethics of proclaiming a smoke-free philosophy while continuing to sell billions of cigarettes a year”.²²⁶²²⁷

October 2019

• United Nations General Assembly (UNGA; New York City, USA): Though barred from participating directly in the UNGA, PMI hosted a parallel event at Concordia, a high-level event to foster partnerships between businesses, governments and UN agencies. In attendance were officials from the UN’s World Food Program, the UN Foundation and the World Bank as well as PMI’s Vice President of Global Partnerships and Cooperation, who spoke at the event. Bob Eccles, a paid PMI advisor, spoke at the UNGA during a side event on Exclusion and Engagement in Sustainable Investing.

TobaccoTactics Resources

• PMI Mobilised Support from Retailers
• PMI’s Anti-Plain Packaging Lobbying Campaign
• PMI’s Anti-PP Media Campaign
• PMI’s “Illicit Trade” Anti-Plain Packaging Campaign
• PMI IMPACT
• Philip Morris vs the Government of Uruguay
• Philip Morris’ PR Campaign Against the Display Ban
• Philip Morris’ Regulatory Litigation Action Plan Against the Display Ban
• Philip Morris’ Marlboro Brand Architecture
• Codentify
• Motorsport Sponsorship
• Digital Coding & Tracking Association (DCTA)
• Foundation for a Smoke-Free World
• Foundation for a Smoke-Free World: How it Frames Itself for a detailed analysis of the ways in which the Foundation portrays itself and those who oppose the Foundation, plus the counter evidence to these portrayals
• Foundation for a Smoke-Free World People
• Foundation for a Smoke-Free World Grantees
• Foundation for a Smoke-Free World Centres of Excellence
• Newer Nicotine and Tobacco Products: Philip Morris International
• Heated Tobacco Products: Philip Morris International

Relevant Links

• Read the STOP report: Addiction At Any Cost: The Truth About Philip Morris International
• Philip Morris International company website
• Cancer Council Australia’s Critiques of KPMG Australia illicit tobacco trade reports
• Foundation for a Smoke-Free World website
• PMI Impact website

TCRG Research

• The Philip Morris-funded Foundation for a Smoke-Free World: tax return sheds light on funding activities, T. Legg, S. Peeters, P. Chamberlain, A. Gilmore, The Lancet, 2019, 393(10190):2487-2488
• The revision of the 2014 European tobacco products directive: an analysis of the tobacco industry’s attempts to ‘break the health silo’, S. Peeters, H. Costa, D Stuckler, M. McKee, A. Gilmore, Tobacco Control, 2016, 25(1):108-117
• ‘It will harm business and increase illicit trade’: an evaluation of the relevance, quality and transparency of evidence submitted by transnational tobacco companies to the UK consultation on standardised packaging 2012, K. Evans-Reeves, J. Hatchard, A. Gilmore, Tobacco Control, 2015, 24(e2):e168-e177
• Illicit trade, tobacco industry-funded studies and policy influence in the EU and UK, G, Fooks, S. Peeters, K. Evans-Reeves, Tobacco Control, 2014, 23(1):81-83
• Transnational tobacco company interests in smokeless tobacco in Europe: Analysis of internal industry documents and contemporary industry materials, S. Peeters, A. Gilmore, PLoS Medicine, 2013, 10(9):1001506
• Towards a greater understanding of the illicit tobacco trade in Europe: a review of the PMI funded ‘Project Star’ report, A. Gilmore, A. Rowell, S. Gallus, A. Lugo, L. Joossens, M. Sims, 2013, Tobacco Control, doi:10.1136/tobaccocontrol-2013-051240

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Philip Morris International appeared first on TobaccoTactics.

TobaccoTactics Resources

• Philip Morris International
• Altria

Relevant Link

Philip Morris International website

References

The post Stephen M. Wolf appeared first on TobaccoTactics.