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LONDON, Sept 28 (Reuters) - Philip Morris International (PMI) on Thursday
unveiled a zero-tobacco stick for use with its "heat-not-burn"
device IQOS, which may help the company avoid tax and other
regulations that affect its tobacco products in some markets.
IQOS heats up small packets of ground up tobacco resembling cigarettes but does not burn them, a process
the company says potentially results in fewer
health risks compared to smoking.
Now, PMI has developed a range of sticks, which it calls LEVIA, that do not contain tobacco but a "non-tobacco substrate" infused with nicotine, with flavours including tobacco, menthol with blueberry and peppermint.
Chief Executive Officer Jacek Olczak said during
an investor day presentation that as well as offering
another alternative to consumers who may not wish to use tobacco, the product may avoid the heavy taxes or other controls
imposed on its other products.
LEVIA "may not be subject to flavour regulations in some jurisdictions" and "doesn't fit" in existing fiscal categories, Olczak continued,
adding PMI was in discussions with regulators in some target markets on how they would
approach it.
The company advocates for lower taxes for products referred to
by the industry as "reduced risk" compared to traditional cigarettes.
The U.S. Food and Drug Administration has authorised PMI
to market IQOS as offering reduced exposure
to harmful chemicals versus smoking, though the World Health Organisation says there is currently no evidence that heated
tobacco has lower health risks than other tobacco products.
A PMI spokesman declined to provide additional details on when and
where LEVIA could launch, or what substance replaces the tobacco.
Some niche companies have developed heat sticks made from tea leaves
instead of tobacco, which they sell for use with major
players' "heat-not-burn" technology - a headache for big companies
that want only their own sticks to be compatible with their
devices. (Reporting by Emma Rumney; editing by Barbara
Lewis)
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