PMI Developing Affordable NGPs for Africa

According to a report from African Business on December 28th, a senior executive from Philip Morris International (PMI) stated that PMI is developing a new, more affordable tobacco product aimed at providing an alternative for smokers in Africa.

Frederic de Wilde, CEO of PMI South Asia, Southeast Asia, CIS, Middle East, and Africa, stated at a technology innovation event in Abu Dhabi, UAE that although the smoke-free market in Africa is still in its early stages, consumers are very price-sensitive, which presents a business opportunity for the company.

The official pointed out that the initially launched new tobacco products were high-end products with high prices. Although they have achieved a certain market penetration in some economies, only 5% to 10% of consumers can afford them in many countries they are responsible for. In order to address this cost barrier, PMI is currently working on developing more affordable new tobacco products.

He stated that the company is developing a simple HNB device targeting the mid to low-end market through innovation. In the e-cigarette sector, the company is also developing product lines, hoping to achieve success in smokeless alternatives in emerging economies.

However, due to varying approaches to tobacco regulation in different countries, some policymakers have an ambiguous attitude towards smoke-free alternatives, often categorizing them together with traditional cigarettes.

Wald pointed out that gaining the trust of regulators requires educating them about new tobacco products. He emphasized that 11 independent national authorities, including the US FDA, have reviewed the scientific evidence, with the US FDA even granting authorization for their reduced risk tobacco products. Another important aspect of gaining the trust of African regulators is clearly communicating that these products are not targeted at new consumers, but designed for existing smokers with the goal of reducing their current health risks.

He believes that increasing awareness of smoke-free alternatives must first start with the authorities and then expand to consumers. To achieve this, there needs to be a relaxation of marketing restrictions on smoke-free alternatives in terms of information dissemination, and they should not be classified together with traditional cigarettes. He calls for giving the market freedom so that companies can interact with consumers and support them in trying new products to help transition to smoke-free alternatives.