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This article first appeared in The Edge Malaysia Weekly on February 18, 2019 - February 24, 2019

ALL eyes are on unlisted Philip Morris (Malaysia) Sdn Bhd (PMM) after the country’s third largest tobacco company by market share became the first to sell heat-not-burn (HNB) tobacco products here.

The jury is still out on whether reduced-risk products like IQOS will slowly cannibalise the sales volume of conventional cigarettes.

But PMM managing director Kang Tae Koo is optimistic that the new product, as well as other smokeless ones, would gradually be well received.

“Of course, quitting is the best option. Smokeless products are alternatives for those who would otherwise continue to smoke,” he tells The Edge.

British American Tobacco (Malaysia) Bhd is currently the country’s biggest cigarette player, with a 54% market share, followed by JT International Bhd with 23% and PMM at close to 20%.

Asked whether IQOS will help PMM gain an overall market share, Kang says it is too early to assess the impact.

“As we have just launched IQOS [last November], we are at a very early stage of our journey. Ultimately, a smoke-free future is only possible if all industry stakeholders — including competitors — embrace the opportunity offered by smokeless products and science,” he adds.

Kang explains that the key difference between conventional cigarettes and IQOS is that the latter’s HNB technology lies in its ability to heat up tobacco rather than burning it.

“Through years of testing and product research, we have found a way to heat tobacco without burning or combustion. That means no smoke is created. Instead, tobacco vapour is generated, which has dramatically lower levels of harmful toxins compared to cigarette smoke, and still delivers nicotine while providing the taste and ritual that smokers demand.

“Many people assume that it is the nicotine that makes cigarette smoking harmful. However, while nicotine is addictive and not risk-free, it is not the primary cause of most smoking-related illnesses,” he says.

Today, IQOS is available in key cities in over 40 markets. Japan is leading the way in Asia when it comes to smokeless products like IQOS, says Kang.

“More than six million adult smokers around the world have already stopped smoking and have switched to our HNB product,” he adds.

 

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