Marlboro, the flagship of the tobacco giant Philip Morris, is no longer the best brand of the group. This is due to the changed consumer behavior, a bottleneck for growth is also tax policy in many places, says Boss Jacek Olczak: “The countries are addicted to tobacco tax income.”
In the future, the group no longer wants to sell cigarettes. These “belong to the museum,” says it. Instead, Philip Morris wants to save his billion dollar company with alternative products. The IQOS tobacco heating has now overtaken the long -standing flagship Marlboro. The supervisor will continue to move smoking in many countries, so cigarettes are no longer so promising company.
Nicotinetas and tobacco heating “less harmful”
In addition to tobacco heaters, the group earns well with “bags” (nicotine bags). According to various studies, both products are very harmful and also make very addicted, but the health effects are less bad than with cigarettes. Alternative products on the market are also increasing in Austria and will soon be taxed more.
Countries are “addicted” after tobacco tax income
These products are even prohibited in some other countries. “But cigarettes are not forbidden in a single country, although they are more harmful,” says boss Jacek Olczak during an event. Many countries are “addicted” according to the income from tobacco tax. These would yield up to eight percent of the income of individual states.
But a restrictive policy and a ban on alternatives would only heat and smuggle the black market with e-cigarettes and Co. In Austria you can also see how consumers respond to particularly strict regulations. Because only the “old” IQOS version of us is available, not the newer versions or delicate. That is why many drive across the border to the Czech Republic or Hungary and get involved in the latest generation products. More than 30 percent of consumption is therefore good for more than 80 million euros in tax revenues for the state. The reason is long and complicated approval procedures.
Philip Morris also trusts the pharmaceutical sector
Apart from bags and heating, Philip Morris also trusts Pharma: a few years ago the British vectura was taken over in a billion -off deal. In the meantime, the company was again depressed. However, the area remains a growth field. It is about inhalers against sleep disorders. In the future, the group is planning to reach billions in sales with products for “good -age”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
