Under Olczak, who became chief executive earlier this year after almost 30 years with the company, Philip Morris has invested heavily in nicotine alternatives, including its flagship IQOS product. The cigarette-like device, which heats tobacco rather than burning it, has more than 20m users worldwide.
Globally, the company derives almost a quarter of its revenue from alternative products, a much higher proportion than rivals such as Altria and Imperial Tobacco. In March, Philip Morris committed itself to earning half its revenue from non-smoking products and earlier this month the company said it would acquire Vectura, a UK-based manufacturer of inhalers for drug delivery, for more than £1bn.
Chief financial officer Emmanuel Babeau told the Financial Times last week: "We believe in, and we are going to contribute to, cigarettes being phased out."
Anti-smoking campaigners have voiced scepticism that tobacco companies can completely abandon traditional cigarettes and assert that some of the alternatives to smoking are almost as harmful.
The commitment to phase out traditional cigarettes in the UK is also partly driven by consumer and investor behaviour, and government policy. Smoking rates in the country are already comparatively low while cigarettes are heavily taxed and, since 2016, are sold in plain packaging.
In 2019, the government committed to cutting smoking prevalence to 5 per cent by 2030, about a third of current levels.
- Financial Times