PMI welcomes its partnership with the Lucio Tan group
The new CEO of cigarette maker Philip Morris International Inc. (PMI) said he was “very happy” with the company’s partnership with the Lucio Tan group.
âOur rapprochement with the Tan family has proven to be very fruitful and we are very happy with this partnership; I am very happy with this partnership. This is an example of a good partnership with large companies. It’s a plus one equals more than two and it’s an example of how it can work, âsaid Jacek Olczak, the new CEO of Philip Morris.
Olczak was appointed CEO of the company last week. He was previously director of operations for Philip Morris.
He replaced J. AndrÃ© Calantzopoulos, who was CEO of the company from 2013 to May 5, was appointed executive chairman of the company.
In February 2010, the activities of Philip Morris, which manufactures Marlboro and its flagship product of cigarettes Philip Morris, were combined with Tan’s Fortune Tobacco Corp., which mainly manufactures low-cost products, such as Fortune and Mark cigarettes.
The two companies have an almost equal economic share of the company she called PMFTC Inc., with Tan as chairman, but day-to-day operations are handled by Philip Morris.
At one point, PMFTC’s market share reached over 90%, but it was eroded by its competitors, led by Mighty Corp.
In 2018, PMFTC’s market share was reduced to over 70% and to around 29% by Japan Tobacco International Philippines, which acquired Mighty Corp. in 2017.
Olczak said its local affiliate PMFTC had been able to roll out its IQOS in metro Manila, which now has 15 stores, by mid-last year, despite the devastating effects of the pandemic.
IQOS or abbreviation of âI Quit Ordinary Smokingâ is a device in which a tobacco stick is heated and not burned.
Olczak said he is committed to accelerating Philip Morris’s smoke-free transformation, announced in 2016, which sees more people switch to heated tobacco using his device rather than burning it.
The company is focused on the development, scientific justification, and responsible marketing of smoke-free products that are less harmful than smoking, with the goal of replacing cigarettes as quickly as possible, he said.
Olczak has been a key driver of PMI’s smoke-free transformation, which entered its commercialization phase with the launch of IQOS in Nagoya, Japan, in 2014. Under his supervision as COO, the company increased the share of its net revenue from smoke. -products free at 28 percent in the first trimester.